Swedencare Q3 2026 Results: Revenue Rises 3%, Organic Growth Slows to 2% as Operating Earnings Decline

Swedencare AB reported higher revenue for the third quarter of 2026, but the Swedish pet-health group’s latest results reveal a marked slowdown in underlying growth and lower operating earnings. Revenue reached SEK 732.2 million, up 3% year on year, while organic, currency-adjusted growth fell to 2% from 15% in the corresponding quarter of 2025. Operational EBITDA declined 3% to SEK 150.1 million, and the company said full-year double-digit organic growth was no longer a probable outcome.

The interim report, published on 21 October 2026, points to a business with contrasting regional and operational performance: Europe and the Production segment continued to grow strongly, while North America remained challenging. Production disruption, supply-chain delays and weaker-than-expected sales from European veterinary brands late in the quarter contributed to the shortfall.

Key financial results: Q3 2026

Source: company interim report; percentage-point changes are calculated from reported figures

The results distinguish reported revenue growth from the underlying pace of business expansion. Revenue rose by 3%, but organic growth was just 2%. Management’s report attributes approximately one percentage point of growth to acquired revenue associated with the step acquisition of Viyo, while currency impact was rounded to zero.

Operational earnings also weakened. The 20.5% operational EBITDA margin compared with 21.7% a year earlier, while operational EBIT fell 8% to SEK 122.3 million. Profit after tax, by contrast, rose to SEK 28.7 million from SEK 22.2 million. The divergence underlines why headline net profit alone does not capture the quarter’s softer operating performance.

Reported EBITDA was SEK 152.2 million and included a SEK 2.1 million non-operational adjustment associated with the Viyo step acquisition. The company’s operational EBITDA figure of SEK 150.1 million is therefore the more appropriate measure for the operating comparison above.

What caused the slowdown?

Swedencare’s chief executive, Håkan Lagerberg, identified three principal factors behind the weaker-than-expected organic growth.

1. Manufacturing disruption during an inspection

A September inspection under the Safe Quality Food (SQF) programme affected production more than anticipated. The inspection had a positive outcome, with an additional facility approved, but the operational disruption constrained production during the quarter.

2. Weaker late-quarter performance from European veterinary brands

Despite strong overall organic growth in Europe, some of Swedencare’s European veterinary brands developed more weakly than management expected towards the end of September. This contributed to the group missing its growth expectations.

3. Supply-chain challenges and delayed deliveries

Supply-chain problems delayed customer deliveries and negatively affected online sales for some brands. The timing of these issues was particularly important because the shortfall emerged towards the end of the quarter.

Management said it had expected Q3 organic growth to remain close to the 7% delivered in Q2. The actual 2% outcome was therefore a material disappointment.

Regional and business-segment performance: Europe and production outperform

The group’s headline growth masks a pronounced divide between its operating areas.

Europe and Production each delivered 11% organic growth, providing important support to group performance. The company also reported strong demand from existing and prospective customers for production capacity in the European Union, the United Kingdom and its Pharma business.

North America remains the principal challenge. The company highlighted continued weakness in the US veterinary channel and ongoing efforts to improve NaturVet’s performance. Management expects a gradual improvement for the brand over the coming years and anticipates that larger partnerships could support performance ahead of launches planned for early 2027.

Product and manufacturing developments

Swedencare reported continued momentum for ProDen PlaqueOff, its pet oral-care product, which grew by more than 30% for another quarter, according to the company commentary reported by Investing.com. This provides a positive counterpoint to the broader slowdown and suggests that selected established products continue to perform well.

• FDA pre-approval inspection: Swedencare’s Pharma unit passed a US Food and Drug Administration pre-approval inspection for a customer product. Manufacturing is planned to begin in 2027. This is a manufacturing-readiness milestone for a customer product, not an announcement that Swedencare has received approval for a new proprietary drug.

• Summit Vet: The subsidiary expanded its product offering to include soft chews following a collaboration with sister company Vetio.

• NaturVet: Management is working on a turnaround, with larger partnerships and launches planned for early 2027 expected to support future performance.

These developments offer potential routes to growth, but their financial contribution will depend on execution, launch timing, customer demand and the pace at which production and distribution normalise.

For the first nine months of 2026, Swedencare reported revenue of SEK 2,052.5 million, up 3% from SEK 2,000.8 million in the same period of 2025. Organic, currency-adjusted growth was 6%, compared with 9% a year earlier.

Source: Swedencare Q3 2026 interim report.

Profit after tax increased to SEK 70.1 million from SEK 39.1 million. That improvement should be considered alongside the decline in operating cash flow, which fell to SEK 239.8 million from SEK 282.1 million. The different movements in profit and cash flow make working-capital discipline and cash conversion important metrics to monitor in subsequent reporting periods.

Full-year outlook: double-digit growth no longer probable

Swedencare now expects organic growth of approximately 6% for full-year 2026, based on performance through the first nine months. Management said double-digit organic growth for the full year was no longer a probable target, although it aims to return to double-digit organic growth in Q4.