Swedencare organic growth slows to 2% in Q3 as revenue misses forecasts
Key Facts
Swedencare reported currency-adjusted organic growth of 2% in the third quarter of 2026, down from 15% in the year-earlier period, after posting 7% in the second quarter of this year. Chief Executive Håkan Lagerberg said he had expected the third quarter to match the previous quarter, adding: "I expected us to be at the level of the second quarter, when we achieved 7%." Revenue was 732.2 million Swedish kronor, up 3% year on year from 712.9 million. But revenue fell short of the average forecast of five analysts, which was 762 million kronor, according to Investing.com. Lagerberg said the 2% growth was "disappointing and below expectations."
The company’s segments posted mixed results in the quarter, with Europe and Production each recording organic growth of 11%, while North American organic growth contracted 4%. The company attributed the region’s weakness to lower orders from several major customers in its nutraceutical group. This affected both private-label products and the group’s own brands, with NaturVet the most affected. The company also said the U.S. veterinary channel remained weak. It expects NaturVet to improve gradually over the coming years, while North America remains a challenge for the group.
At group level, Swedencare said the impact of the September SQF inspection on production was greater than expected. The inspection, according to the company, resulted in approval for an additional facility, but affected production during the period. Weaker performance late in the quarter at some European veterinary brands also weighed on group growth. Supply-chain challenges delayed deliveries and negatively affected online sales for some brands. These factors coincided with lower orders in North America, resulting in a clear divergence between growth in Europe and Production and contraction in the segment posing the greatest challenge to the company.
Slower sales were accompanied by a decline in operating profitability. Adjusted earnings before interest, taxes, depreciation and amortization were 150.1 million kronor in the third quarter, down 3% from the year-earlier period. The margin fell to 20.5% from 21.7% a year earlier. Operating cash flow was 96.3 million kronor, compared with 152.6 million in the third quarter of 2025. These figures put earnings, margin and cash flow in the context of a quarter in which revenue grew, but came in below the analysts’ average forecast and organic growth declined.
Currency-adjusted organic growth was 6% in the first nine months of 2026. The company said full-year double-digit growth was no longer a likely target, without setting a new full-year forecast. Swedencare reported currency-adjusted organic growth of 9% in 2025, while its financial targets call for annual double-digit growth and an adjusted earnings-before-interest, taxes, depreciation and amortization margin above 26% over the medium term. In light of the nine-month result, the company maintained its ambition to return to double-digit organic growth in the fourth quarter. The disclosure did not specify an alternative full-year target.
The company is also pursuing larger partnerships in the United States, whose effects it expects to become visible before product launches in early 2027. This comes as it describes the U.S. veterinary channel as still weak, with NaturVet remaining central to expectations for gradual improvement over the coming years. On management, Lagerberg said he had informed the board of his intention to leave the CEO post no later than the third quarter of 2027, after 12 years in the role. Among the dates announced for investors, the year-end report will be published on 10 February 2027.