Fast synergies and opening of veterinary clinics gave a record boost in Q2
Summary of the period
Second quarter:
Numbers in parentheses refers to outcomes during the corresponding period of the previous year.
- Net revenue amounted to 160 221 KSEK (32 015 KSEK), an increase of 400%
- Organic, currency-adjusted growth amounted to 45%
- Operating profit before depreciation (EBITDA) amounted to 47 206 KSEK (7 424 KSEK), corresponding to a increase of 536% and an EBITDA-margin of 29.5% (23.1%)
- Operating profit after depreciation (EBIT) amounted to 44 031 KSEK (5 671 KSEK), corresponding to an increase of 676% and an EBIT-margin of 27.5% (17.7%)
- Profit after tax amounted to 32 593 KSEK (5 145 KSEK)
- Earnings per share calculated on 106 031 450 shares
0.31 SEK (0.06 SEK )* - As of
June 30th, 2021 , cash amounted to 1 261 006 KSEK (175 795 KSEK) - Costs in connection with the acquisition of Rx Vitamins amounted to 982 KSEK. Adjusted for this, EBITDA amounted to 48 188 KSEK, corresponding to an EBIT-margin of 30.1% and EBIT to 45 013 KSEK corresponding to an EBIT-margin of 28.1%
First 6 months:
- Net revenue amounted to 294 129 KSEK (69 740 KSEK), an increase of 322%
- Organic, currency-adjusted growth amounted to 34%
- Operating profit before depreciation (EBITDA) amounted to 82 986 KSEK (17 853 KSEK), corresponding to an increase of 365% and an EBITDA-margin of 28.2% (25.5%)
- Operating profit after depreciation (EBIT) amounted to 79 219 KSEK (16 385 KSEK), and an EBIT-margin of 26.9% (23.4%)
- Costs in connection with the acquisitions amounted to 1 900 KSEK. Adjusted for this, EBITDA amounted to 84 886 KSEK, corresponding to an EBITDA-margin of 28.8% and EBIT to 81 119 KSEK corresponding to an EBIT-margin of 27.6%
- Profit after tax amounted to 59 336 KSEK (13 586 KSEK)
- Earnings per share calculated on 105 706 525 shares
0.56 SEK (0.17 SEK )* - Cash flow from operating activities amounted to 56 681 KSEK (13 761 KSEK)
- Foreign exchange gains amounted to 840 KSEK
*Converted to the number of shares after the share split 5:1
Significant events during the second quarter
- The Annual General Meeting resolved to divide the company's existing shares, whereby an existing share is divided into 5 shares of the same share class (share split 5:1). The date for the division was
May 25th, 2021 Swedencare acquires Vetio, leading North American CDMO group within Pet Health CareSwedencare carries out a directed new share issue of 11 954 200 shares and is thus provided with approximately 1 150 MSEK, which after issue costs of 1 675 KSEK gave a net contribution of 1 148 MSEK, to finance the American business acquisition
Significant events after the second quarter
Swedencare has completed the acquisition of Vetio, and part of the purchase price is settled with a non-cash share issue.Swedencare proforma revenue, including Vetio and the other acquisitions, for the trailing 12 months includingJune 2021 is 919 MSEK with an EBITDA of 241 MSEK
Words from the CEO
Record acquisition and strong momentum for
Yet another intense quarter is behind us, and we start seeing what I have been predicting in recent reports – that the new
The second quarter’s sales are 160 MSEK (
Our organic growth was 45%, which solidly exceeded the 30% I had expected based on last year’s Q2 being more modest due to the pandemic. Again, we exceed the market growth, and we strive to keep doing so. There is still much to do, and we have strong product lines that will develop with increased sales channel efforts as well as brand new therapy areas.
All though being successful during this quarter some of our larger projects were slightly delayed and only got initiated in the last weeks of the quarter which means that they are not included in our sales figures for Q2. Among these is the launch of Animal Pharm´s products on the internet platforms Amazon and Chewy, as well as Pet MD® on Amazon
I would like to highlight some of the activities executed by our group companies and markets worldwide. Our newly acquired companies all had high profitability and when looking at growth, to compare with our 45% organic, it varied between nearly 100% to single digit growth for a few. The ones with smaller growth had one thing in common, it was due to back orders from suppliers. We have thankfully been able to deliver most of these in July. The situation is a bit better than end of last quarter and together with our acquisition of Vetio I do believe that we will be able to minimize back orders before the year end. Our company DNA is sales and delivery so we don´t like to know that we could have sold even more.
In, basically, all markets there was a sharp increase in the two channels, Veterinary and Pet Retail compared to Q2 last year since most of the outlets have gone back to normal opening hours and with normal customer flows as a result. Online, that for many of our end customers was the only viable alternative last year, also increased but not to the same extent as the other two. Besides the re-opening of the physical stores the main internet platforms in
It is satisfying to see that the strong development continues in middle- and south
For external markets we have had large shipments to
At the end of the quarter, we did our biggest acquisition ever, Vetio – the leading specialized CDMO (
We have made many good acquisitions over the years, but Vetio is the most transformative, not only due to size but since we now possess a width and capacity that not many in the animal health industry do. This means that we will get opportunities to completely new types of business deals and give us a rather unique position in the market. We have already several new business concepts in development but first I will have a couple of weeks’ vacation! I hope that all of you, our shareholders, are satisfied with what my fantastic organization has delivered in this quarter and that you also have had or will have some days off this warm summer.
Håkan Lagerberg, CEO
Malmö
The complete half year report is attached to this press release and is available at www.swedencare.com
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