Europe helps power Swedencare’s Q1 as U.S. vet demand stays soft: full analysis

Swedencare’s first-quarter results suggest Europe is becoming more than a bright spot. It’s increasingly the company’s main growth counterweight to softer U.S. veterinary demand. In its interim report for January 1 to March 31, 2026, released April 23, the Sweden-based pet health company posted revenue of SEK 650.3 million, up 1% year over year, alongside 11% organic, currency-adjusted growth. Profit after tax was SEK 17.7 million. Management said Europe and the production segment both delivered organic growth above 20%, while North America grew 5% organically. (swedencare.com)

That regional divergence has been building for several quarters. In Q1 2025, Swedencare said Europe was already driving growth, particularly in the Nordics and the UK, with the online and veterinary channels strongest in the UK. By Q3 2025, the company described Europe as strong across the year, with UK businesses growing organically by 36%, led by online and veterinary sales. In its full-year 2025 report, management said North America and Europe delivered organic growth of 22% and 10%, respectively, and laid out plans for 2026 centered on tighter control of Amazon sales, more veterinary collaborations in Europe and North America, and expansion of its CDMO pharma business. (swedencare.com)

The Q1 2026 numbers show how that strategy is playing out. Reported revenue growth was held back by foreign exchange, with Swedencare saying the stronger Swedish krona reduced the apparent top-line gain even though the earnings effect was limited by its local revenue-and-cost structure. Operational EBITDA rose 3% to SEK 127.7 million, with margin improving slightly to 19.6%. Management also said cash flow from operations remained solid at SEK 65.3 million, allowing another SEK 50 million of debt reduction during the quarter. (swedencare.com)

Within the business, Swedencare pointed to strong starts for multiple brands, continued momentum in pharma, and satisfactory performance in EU-based manufacturing despite weaker demand from larger veterinary dermatology customers. The company said order intake improved in the second quarter and that it expects the dermatology segment to return to growth later this year. That’s notable because dermatology and oral care are core categories for veterinary recommendation and repeat purchasing, and Swedencare has spent the past two years broadening its platform through product launches, channel expansion, and acquisitions such as Summit Veterinary Pharmaceuticals in 2025. (swedencare.com)

Management’s commentary also sharpened the contrast between regions. CEO Håkan Lagerberg said the U.S. veterinary market remains cautious, with fewer clinic visits and more demand shifting online, while Europe is showing stronger underlying momentum. That aligns with Swedencare’s earlier disclosures that online and veterinary channels in the UK have been especially resilient, and that improved UK-EU trading conditions had already started easing administration and cost friction for some products with animal content. (swedencare.com)

There wasn’t much outside expert commentary available immediately after the release, but the company’s own framing is consistent with broader investor messaging from recent quarters: Europe is benefiting from channel mix, local brand traction, and better execution in veterinary and e-commerce, while North America is still working through margin normalization tied to NaturVet’s Amazon transition and prior retail expansion. Swedencare has said those Amazon-related costs should normalize in the second half of 2026, and that it plans to reactivate marketing programs during Q2 as profitability and growth rebalance. That makes Europe’s current performance especially important as a near-term stabilizer. (swedencare.com)

Why it matters: For veterinary professionals, distributors, and industry operators, Swedencare’s quarter is a useful read on where pet health demand is holding up best. Europe’s strength, especially in veterinary, online, dental, and pharma-adjacent categories, suggests clinics and suppliers there may see steadier support from preventive and repeat-purchase products than peers relying more heavily on discretionary U.S. clinic traffic. It also reinforces how much channel strategy now matters: companies that can serve veterinary practices, e-commerce, and retail in parallel may be better insulated when one route softens. (swedencare.com)

What to watch: Swedencare’s next signals will likely come from its June 2, 2026 Capital Markets Day, second-quarter commentary on dermatology order recovery, and whether Europe can keep delivering outsized growth while U.S. veterinary demand remains subdued. (swedencare.com)