Sweden's Swedencare Q2 revenue rises
Sweden's Swedencare Q2 revenue rises
Overview
Sweden pet healthcare firm's Q2 revenue rose 4% yr/yr, operational EBITDA up 5%
Adjusted EBIT for Q2 fell 2% yr/yr, EBIT margin at 15.4%
Organic growth of 7% in Q2, below company expectations due to delayed North America deliveries
Outlook
Swedencare expects a stronger second half, driven by improved Online sales and Big Box volumes
Company plans to capitalize on increased demand in production and Pharma segments
Company notes economic uncertainty, particularly affecting US consumer demand
Result Drivers
NORTH AMERICA DELAYS - Organic growth was held back by a new FDMC customer in North America delaying its launch delivery, resulting in negative organic growth in the region
EUROPE & PRODUCTION SEGMENT - Strong growth in Europe and the production segment, driven by high demand in EU/UK and Pharma, with UK, Italy, Nordics, and export markets contributing positively
BRAND PERFORMANCE - ProDen PlaqueOff saw organic growth above 30%, with export business and Asian markets, especially China, performing strongly; NaturVet had a weaker quarter due to softer US market and consumer caution
Company press release: ID:nMFN2LpXl1
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| SEK 670 mln |
|
Q2 EPS |
| SEK 0.15 |
|
Q2 Net Income |
| SEK 23.70 mln |
|
Q2 Adjusted EBITDA |
| SEK 129.40 mln |
|
Q2 Adjusted EBIT |
| SEK 103 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the pharmaceuticals peer group is "buy"
Wall Street's median 12-month price target for Swedencare AB (publ) is SEK42.50, about 64.4% above its July 21 closing price of SEK25.85
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago
Reuters Recommended Reads
July 20 - Veterinary drugmaker Virbac's H1 revenue rises on Supercharge platform strength
July 21 - Sweden's Asker Healthcare Q2 profit jumps on increased scale
July 21 - Sweden's MedCap Q2 net sales rise 16% on organic growth and acquisitions
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)