Overview
Sweden pet healthcare firm's Q4 revenue grew 3% yr/yr, operational EBITDA fell 25%
Profitability affected by marketing costs, ERP issues, and inventory write-offs
Outlook
Swedencare aims to complete Amazon transition for NaturVet and Europe by 2026
Company plans to expand collaborations in veterinary sector in Europe and North America
Swedencare proposes a dividend of 0.28 SEK per share for 2026
Result Drivers
MARKETING COSTS - Higher marketing expenses, especially on Amazon, impacted profitability as they did not align with expected sales increases
ERP IMPLEMENTATION - ERP transition at NaturVet caused operational disruptions, affecting execution speed and shipments
INVENTORY WRITE-OFFS - Inventory write-offs contributed to weaker profitability during the quarter
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 EPS
SEK 0.10
Q4 Net Income
SEK 16.40 mln
Q4 Adjusted EBITDA
SEK 108.60 mln
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "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 SEK49.00, about 112.6% above its February 11 closing price of SEK23.05
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 27 three months ago
Press Release: ID:nMFNbSw13J
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(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.)