Overview

• Sweden pet healthcare firm's Q4 prelim revenue grew 11% organically to 682 MSEK

• Profitability impacted by higher marketing costs and operational disruptions

• Company to complete Amazon transition for NaturVet

Outlook

• Swedencare plans to complete Amazon transition for NaturVet in 2026

• Company aims to expand veterinary collaborations in Europe and North America

• Swedencare expects to normalize margins within Big Box channel

Result Drivers

• HIGHER MARKETING COSTS - Profitability affected by increased marketing expenses for Amazon and Big Box channel initiatives

• OPERATIONAL DISRUPTIONS - ERP implementation at NaturVet led to reduced execution speed and delayed shipments

• BIG BOX CHANNEL INVESTMENTS - Elevated marketing investments to build awareness and support rebranding in Big Box channel

Key Details

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 SEK49.00, about 44.3% above its January 29 closing price of SEK33.95

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nMFN7YSB6K

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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.)