Swedencare AB (publ)

Welcome to the presentation of SwedenCare's Q1 report, led by our CEO Håkan Lagerberg and CFO Jenny Graflind. And we are pleased to have our CEO of Europe, Laszlo Wege, joining us with a presentation during today's webinar. And as usual, we will have a Q&A after the presentations, so please raise your hand if you have any questions. Over to you, Jenny and Håkan.

Thank you so much Emma. Warm welcome for our Q1 2026 presentation. We had a solid quarter starting the year good, double digit growth, improved gross margin compared to Q4 and 25 and increased profitability as we expected and communicated with our pre-call earlier this year. Margins and sales still impacted by Nature at Amazon project, the takeover. It is improving month by month. We target that the normalized levels will be in H2, 2026. The other issues we had in Q4 mitigated. And And we're happy that we could deliver that as we also communicated. Strong momentum, especially in Europe and production segments with 20% organic growth. And in different growth groups, pharma, we have been waiting for both development and manufacturing had a fantastic quarter. Dental, including Dental Month in the US predominantly, but it has been presented in Europe as well in some markets. Really strong demand for dental products and also online over all of our brands continue to grow faster than ever. than we do in other segments. Perl & Plakoff continue to outperform 33% organic growth and NatureVet 14%. The NatureVet brand is really starting to take off now with our online sales on Amazon. So we're really happy to see that. Coming back to the international turmoil, no visible effects as of yet in demand in markets or for us when it comes to any getting products. Of course, transportation costs a bit higher, but not a major impact on us. And as you all know, we have our local manufacturing in Europe and in the US, so not so much affected by Middle East and Asia. So happy to see that. Over to Jenny about the financials.

Yes, so revenue for the quarter amounted to 650 million. This was a 1% growth. 11% was organic growth. We had a 14% negative currency impact and we had a 4% acquired growth. The acquired revenue came from Summit Vet. This was acquired in April last year. So from Q2, it will be reported in organic growth. The currency impact is mainly coming from the US dollar, but also euro and pound has all weakened against the crown during the quarter. As you can see on the top right, the organic growth of 11% is doubled compared to what we had last year in Q1, when we achieved 5%, as well as the third consecutive quarter with the double-digit growth. And like Håkan said, this was in line when we communicated on the update call. Operating growth margin is strong, 59.7%. Stronger than Q4 and also for the full year 2025. And in the higher span of the corridor where we have communicated we like to be with 58-59%. The high growth margin is partly coming from the product mix. For example, like Håkan said, we had strong growth in Plakoff. With 33% growth, and this we have, of course, stronger margins, and we have a lower share of private label this quarter. But it's also due to the strong growth we have in Europe. Europe is the segment where we have the highest margin. Summit VET, which we did not have last year, also contributed to a higher gross margin. The external cost is quite stable. It's higher than it was in Q1 last year, because we have moved the NatureVet Amazon in-house since then. which has external costs linked to those Amazon sales. As we have mentioned before, when we grow in Amazon, there is additional costs which are linked to the sales. In addition to that, in Q1, Swedencare always participates in several trade shows, which also has a higher cost. Personnel cost is slightly down if you compare to Q1 last year and also last quarter and for the full year 25. Partly this is due to the FX. So it's more important, I think, to look at the percentage of sales and we have the same percentage as we had last year. Operational EBITDA and reported EBITDA, because there was no adjustments between operational and reported this quarter, amounts to 128 million for the quarter. This is an increase of 3% compared to last year and a margin of 19.6%. Also, this is a small increase to last year when the margin was 19.4%, as well as better than last year, as we promised. Net debt to EBITDA. This is 2.8. It has decreased with 0.1 since last quarter. The increase that you can see in Q2 last year is due to the acquisition of Summit Vet. And in Q4, it was up due to the decreased EBITDA. Our cash conversion for the quarter was 51%. This is mainly due to a higher inventory value at close, together with some larger tax payments we had to do this quarter, which impacted the operating cash flow. During the quarter, we have repaid 50 million on our external long-term loans, and our CapEx remains at 2% of net sales for the quarter, which is in line with what we had last year. The rolling full quarters on the left chart, you can see that the rolling 12 month trend has not really changed much this quarter because it was very similar to Q1 last year. And that was due to this negative currency impact. On the right hand side, you can see the trend of all the Q1s for the last five years. Here you can see that there is no adjustments between the reported and operating EBITDA.