Acquisitions and strong organic growth set new records
Summary of the period
First quarter:
Numbers in parentheses refers to outcomes during the corresponding period of the previous year.
- Net revenue amounted to 133 908 KSEK (37 726 KSEK), an increase of 255%
- Organic, currency-adjusted growth amounted to 25%
- Operating profit before depreciation (EBITDA) amounted to 35 780 KSEK (10 430 KSEK), corresponding to an increase of 243% and an EBITDA-margin of 26.7% (27.6%)
- Operating profit after depreciation (EBIT) amounted to 35 189 KSEK (10 714 KSEK), corresponding to an increase of 228% and an EBIT-margin of 26.2% (28.3%)
- Profit after tax amounted to 26 743 KSEK (8 441 KSEK)
- Earnings per share calculated on 21 075 598 shares
1.27 SEK (0.53 SEK ) - As of
March 31st, 2021 cash amounted to 162 528 KSEK (44 092 KSEK) - Costs in connection with the acquisition of Holden2 amounted to 911 KSEK. Adjusted for this, EBITDA amounted to 36 690 KSEK, corresponding to an EBITDA margin of 27.4% and EBIT to 36 099 KSEK corresponding to an EBIT margin of 26.9%
Significant events during the first quarter
- Canagans Dental dry food, which contains
Swedencare 's ProDen PlaqueOff®, has been approved by VOHC Swedencare AB (publ) has completed the acquisition of Holden2 and part of the purchase price is settled with a non-cash share issueSwedencare AB (publ) presents new financial targets which are to achieve revenue of 2 MSEK in 2025 with an EBIT margin exceeding 30%Swedencare AB (publ) acquires Rx Vitamins, an American company focusing on dietary supplements for the veterinary channel
Significant events after the first quarter
There are no significant events after the end of the first quarter to comment.
Words from the CEO
Synergies and business are easy when you have skilled colleagues
Strong demand for our products, some production and delivery challenges due to Covid-19, many internal projects regarding launches, product development, training, new employees, and optimizations as well as mergers of warehousing, logistics and finance in the US and finally a new acquisition completes an intense quarter!
The first quarter's net sales of 134 MSEK meant an increase of 255% compared with Q1 2020, while EBITDA profit increased by 243% to 35.8 MSEK, corresponding to a margin of 26.7%. Adjusted for acquisition costs, we reach an EBITDA margin of 27.4%. Q1 offered strong momentum in the industry despite continued pandemic impact worldwide.
As stated above, we have put a hectic quarter behind us. All companies in our group have had a strong quarter, a development that is largely due to active business development through collaborations between our subsidiaries but also due to our goal-oriented work in recent years that is now beginning to pay off. This correlates well with our goal, which is to grow significantly faster than the industry. During the first quarter, we show organic growth of 25% despite some production and delivery challenges that shifted some major orders, which were originally planned for delivery in the quarter but were just shipped in April.
Our investments in the
In a short time, we have succeeded with many of our online ventures. A proof of this and a fantastic achievement I dare say, is that our two flagship products, ProDen PlaqueOff® powder and ProDen PlaqueOff® Cat both hold first place on Amazon
Some projects that I had hoped would be completed during Q1 were, for various reasons a bit delayed, some due to the challenges I mentioned above. However, I can inform you that most projects were completed in April such as; production start at our internal facility in
In Q2, we have had several exciting start-up projects, including the launch of the Animal Pharm products on Amazon and
All subsidiaries will launch a number of new products and/or new product lines and I look forward to reporting on their progress in the coming quarterly reports.
During the quarter, we received even more attention in the market from a number of major players who approached us with requests for new or expanded collaborations. I see it as proof that our strategy to grow both organically and with qualitative acquisitions is a success. We are well prepared and have laid the ground to take an even more prominent position in the fast-growing pet market around the world.
A brief update of our markets shows that the
At the end of the quarter, we made another acquisition, Rx Vitamins, founded and led by
Despite reintroduced restrictions due to Covid, our companies in the
Also, in the rest of
Moreover, I look forward to our European launch of PetMD® on Amazon, a project that will start in Q2.
As for our other markets,
On the acquisition side, we are contacted by many companies, who for various reasons want to be part of our group. We follow the plan laid down and prioritize profitable and growth-driven companies that share our entrepreneurial focus. We are interested in both strong product and brand companies as well as distribution companies in attractive markets. Based on our success in
I want to express my gratitude for a fantastic organization, amazing customers and for the interest from investors around the world. My hope is that in the coming quarters we all can start to return to a more normal way of living and traveling, allowing more customer meetings IRL!
Håkan Lagerberg, CEO
Malmö
The complete interim report is attached to this press release and is available at www.swedencare.se
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