Swedencare

Summary of the period
Numbers in parentheses refer to outcome of the corresponding period of the previous year.

Fourth quarter: October 1st - December 31st, 2025

• Net revenue amounted to 682.3 MSEK (661.3 MSEK), corresponding to an increase of 3% (5%)
• Organic, currency-adjusted growth amounted to 11% (4%)
• Operational EBITDA amounted to 108.6 MSEK (145.3 MSEK), corresponding to a decrease of ‑25%, and an EBITDA-margin of 15.9% (22.0%)
• Operational EBITA amounted to 81.3 MSEK (123.7 MSEK), corresponding to a decrease of ‑34%, and an EBITA-margin of 11.9% (18.7%)
• Profit after tax amounted to 16.4 MSEK (23.8 MSEK)
• Earnings per share calculated on 159,840,958 shares (158,862,839 shares) amounted to 0.10 SEK (0.15 SEK)
• Cash flow from operating activities amounted to 44.7 MSEK (81.7 MSEK)
• As of December 31st, 2025, cash amounted to 103.0 MSEK (186.8 MSEK)

Full year: January 1st - December 31st, 2025

• Net revenue amounted to 2,683.1 MSEK (2,530.2 MSEK), corresponding to an increase of 6% (9%)
• Organic, currency-adjusted growth amounted to 9% (9%)
• Operational EBITDA amounted to 511.0 MSEK (560.7 MSEK), corresponding to a decrease of ‑9%, and an EBITDA-margin of 19.0% (22.2%). The operational adjustments totaling 59.7 MSEK include mainly a non-cash flow-impacted evaluation of acquisition stock to fair value, as well as M&A costs, costs for the implementation of an ERP system and costs that relate to prior years
• Operational EBITA amounted to 424.4 MSEK (478.0 MSEK), corresponding to a decrease of ‑11% and an EBITA-margin of 15.8% (18.9%). The operational adjustments of total 2.9 MSEK refers to costs that relate to prior years
• Profit after tax amounted to 55.5 MSEK (98.9 MSEK)
• Earnings per share calculated on 159,599,778 shares (158,786,637 shares) amounted to 0.35 SEK ( 0.62 SEK)
• Cash flow from operating activities amounted to 326.8 MSEK (359.1 MSEK)
• The board proposes a dividend of 0.28 SEK (0.25 SEK) per share

Significant events during the fourth quarter
Swedencare announces new financial targets for the next five years to reflect the current market situation, growth ambitions and commitment to shareholder value.

Significant events after the fourth quarter
There are no significant events after the end of the fourth quarter to comment on.

Words from the CEO
The fourth quarter’s net revenue of 682 MSEK represented an increase of 3% compared to Q4 2024 and was negatively affected by the strengthening of the Swedish krona over the year. The currency impact on our profit is limited since we almost exclusively have costs and revenues in the same currency across our group companies around the world. Our operational EBITDA margin was 16% and amounted to 109 MSEK, negatively affected by a number of factors of either one-off or temporary nature. Despite weaker profitability than expected, our operating cash flow was positive at 45 MSEK, and we continued to amortize our debt by 65 MSEK during the quarter.

Full year 2025
The full year net revenue of 2,683 MSEK represented an increase of 6% compared to 2024, and was also negatively affected by the stronger krona. Our operational EBITDA margin was 19% and amounted to 511 MSEK. Despite weaker profitability than expected, our operating cash flow was positive at 327 MSEK, and during 2025 we amortized a total of 233 MSEK.

Our organic growth amounted to 11% for the quarter and 9% for the year. Both quarterly and annual figures show stronger growth than the market (6-7%), but our ambition is to achieve double-digit growth also on a full-year basis.

Profitability during the quarter
As we announced in our press release on January 30th, profitability during the quarter was weaker than I had expected, primarily due to four reasons:

• Higher marketing costs on Amazon associated with longer than expected transition and control of NaturVet Amazon account
• ERP implementation at NaturVet, which caused operational interruptions including reduced execution speed, downtime and delayed shipments
• Elevated marketing investments to:
  • Build up pull and awareness for new Big Box channel, including targeted campaigns as well as a low-margin display campaign rolled out in 2,000 Walmart stores (1,400 existing + 600 new)
  • Strengthen partner relationships and support the important rebranding initiatives across key channels
• Inventory write offs

I am highly dissatisfied that we could not manage the profitability better together with the double digit and expected growth. The ERP transition and this quarter’s inventory write-offs are not recurring. The higher marketing costs were expected, but they should be directly aligned with sales increases – something that unfortunately did not materialize during the quarter. This resulted in a too-high share of marketing spend to support our Big Box launches. We have seen that our investments have given the desired result with the sales in Walmart stores almost doubled in January compared to December and I expect that it will generate a more normalized margin during the current year. Regarding Amazon, it has been difficult to assess the development of moving the NaturVet account in-house. We have taken stronger measures to eliminate third-party sellers of our brand on Amazon, which should lead to improved profitability on Amazon quarter by quarter going forward.

The only larger acquisition of the year, Summit, has developed well and has contributed to a strong increase in the Pharma product group, with a good profitability. Across all markets, underlying consumer demand remains healthy and stable. The trend we have seen, where online grows faster than other channels, continues. North America and Europe had an organic growth of 22% respectively 10%. The production segment decreased with -16%, driven by continued low demand for liquid dermatology products, postponement of Pharma projects to 2026 and that we have increased our internal volumes that do not contribute at the group level.

Forward looking
Swedencare has always grown with good profitability and strong cash flow, which has enabled regular dividend payouts. Against this background, and with a stable balance sheet despite significant investments and initiatives, the Board proposes a dividend of 0.28 SEK per share for decision on the Annual General Meeting this spring.

Over the past two years, we have focused on laying the foundation for stronger future performance. In 2026, we will have completed the Amazon transition for NaturVet and Europe, giving us full control over marketing and pricing. We will also expand our collaborations within the veterinary sector in both Europe and North America, launch several clinically proven products across multiple brands, significantly grow our CDMO Pharma business, and normalize margins in the Big Box channel.

Overall, our strengthened presence in the Big Box channel improves Swedencare’s long-term growth profile and forms an important building block for achieving our updated financial targets, which are presented in detail in the report on page 14-15. In addition, we have already implemented several organizational and strategic initiatives focused on profitability improvements.

I would like to conclude by thanking the entire organization for their efforts during the year. We are all focused on gradually moving toward the new financial goals.

Håkan Lagerberg
Malmö February 12th, 2026

The complete year end report is attached to this press release and is available at www.swedencare.com.

Swedencare invites shareholders and analysts to a presentation of the year end report where CEO Håkan Lagerberg and CFO Jenny Graflind will comment on the report. Brian Nugent, CCO of North America, will also participate in the presentation. The presentation will be held at 10:30-11:30am CET and can be followed via live webinar.

Please use this link to join the webinar: https://us06web.zoom.us/j/82342380787