Swedencare earnings for the third quarter of 2026 showed organic growth of 2%, below management’s expectation of around 7%, as production disruptions and weak North American sales outweighed stronger European performance. In its October 21 results discussion, management said full-year double-digit organic growth would most likely not be achieved, although it continued to aim for double-digit growth in the fourth quarter.
Key Takeaways
- North America, representing 56% of group revenue, recorded a 4% organic sales decline.
- The operational EBITDA margin fell to 20.5% from 21.7% a year earlier.
- Management expects some delayed orders to ship in Q4, but cautioned that lost online sales will not necessarily return.
Table of Contents
- Swedencare earnings expose North American pressure
- Delivery delays do not all become future sales
- Europe and PlaqueOff provide a counterweight
- Q4 ambition remains despite the forecasting miss
- Conclusion
Swedencare earnings expose North American pressure
The North American nutraceutical business and NatureVet brand were the main drags on group growth. Management attributed NatureVet’s decline partly to a difficult comparison with the previous year’s Walmart launch stocking order.
Chief Financial Officer Jenny Rothlund said North America accounted for most of the decline in the operational EBITDA margin. Weak sales volumes reduced operating leverage, limiting profitability even though the third quarter was the company’s strongest of 2026 for both sales and profitability.
Management pointed to modestly improving pet retail and online trends, but did not expect North America to deliver double-digit growth in Q4. A return to positive growth would be welcome, it said.
| Item | Details |
|---|---|
| Q3 revenue versus Q2 | Up 9% sequentially |
| Q4 gross-margin expectation | 58%–59% |
| North American RX facility | Received FDA approval |
| UK pharmaceutical launch | Summit Vet launched its first pharmaceutical soft chew |
Delivery delays do not all become future sales
Management identified several late-quarter setbacks: an SQF inspection that disrupted production more than expected, supply-chain delays that hurt online availability, and weaker development in European veterinary brands.
Some large international orders in the UK and Italy were pushed into Q4 by customers. However, management declined to quantify the overall backlog or equate it with the five-percentage-point gap between expected and actual organic growth. Online shoppers may have bought competing products when Swedencare products were unavailable.
An internal move to bring a volume product into in-house production created a supply timing gap. Management expected those internal problems to be resolved in Q4, with shipping already starting. External sourcing of raw materials for high-protein organic treats had improved since quarter-end but remained challenging.
Europe and PlaqueOff provide a counterweight
Europe delivered 11% organic growth, supported by online sales and strong performances in the UK, Germany and Spain. That broader regional strength coexisted with delayed orders in the veterinary channel; management described underlying European veterinary demand as stable rather than growing at double-digit rates.
ProDen PlaqueOff grew more than 30%, with gains across channels, particularly online and exports. The production segment also achieved 11% organic growth, led by the UK, Ireland and the pharmaceutical division.
These gains show that the group’s slowdown was uneven rather than universal. They were not sufficient, however, to offset weakness in North America, its largest revenue region.
Q4 ambition remains despite the forecasting miss
Year-to-date organic growth stood at 6%. Swedencare’s published financial targets include annual double-digit organic growth, but that strategic objective is distinct from management’s warning that the 2026 full-year ambition would most likely be missed.
Management acknowledged that forecasting needed improvement after another quarter below expectations. It retained the aim of double-digit group growth in Q4, supported by a combination of factors rather than a single distribution launch.
Rothlund expected net debt relative to EBITDA to fall from the current 3.0 times, although a Summit earn-out payment could affect the outcome depending on fourth-quarter performance.
Conclusion
The next scheduled results checkpoint is Swedencare’s February 10, 2027 year-end report. The key questions are whether delayed orders are delivered, internal supply problems ease and North America returns to growth—not simply whether the group repeats its Q4 ambition.
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