Swedencare gives up double-digit growth for 2026 after a 2% quarter
Swedencare's third-quarter organic growth slowed to 2% from 15% a year earlier, and the company now expects about 6% for 2026 instead of double digits. In our view, a weak North American vet channel is doing the damage while Europe and production grow 11%.
A quarter with 2% organic growth led a Swedish pet health group to give up on double-digit growth for 2026 on October 21st, 2026. Swedencare, which sells animal health products in about 70 countries, called the result a disappointment in its third-quarter report. Investing.com reported the shares fell about 19% that day to SEK 19.06, after touching a 52-week low of SEK 18.54.
A 2% quarter breaks Swedencare's double-digit run
Swedencare reported net revenue of SEK 732.2M for July through September, up 3% from SEK 712.9M a year earlier. Organic growth, which strips out currency and acquisitions, was 2%, against 15% in the third quarter of 2025. Operational EBITDA fell 3% to SEK 150.1M, a 20.5% margin against 21.7% a year earlier. Profit after tax rose to SEK 28.7M from SEK 22.2M.
Investing.com put the consensus at SEK 762M in revenue, compiled by Modular Finance from five analysts, and SEK 162M in operational EBITDA. By our math, revenue landed about 3.9% under that figure and EBITDA about 7% under.
For the full year, the company now expects organic growth of about 6% and says double-digit growth is no longer a probable target. It still aims for double-digit organic growth in the fourth quarter.
CEO Håkan Lagerberg gave three reasons for the shortfall. A September SQF certification audit, a food-safety and quality standard, approved a further facility but disrupted production more than expected, the company said. European veterinary brands were weaker than expected late in the quarter. Supply chain problems delayed deliveries and hurt some online sales.
Europe and production are carrying a weak North America
Europe grew 11% organically, and so did the production segment, which makes products for other companies. The report says demand is high in the EU, the UK and pharma, with new contracts won.
North America is the drag. The report says the US veterinary channel remains weak. GlobalPETS, summarizing the figures, put the region at SEK 406.0M with organic growth of negative 4%, driven by lower orders from a few larger nutraceutical customers.
North America was SEK 406.0M of SEK 732.2M in net revenue, about 55% by our math. Segment figures overlap, so treat the share as approximate. With the group at 2% and that region shrinking, the rest of the business had to grow somewhere around 8% to 12% organically, our estimate on prior-year weights, because both reported rates are rounded. Swedencare does not report that figure.
Zoetis, a far larger vet-channel supplier, also posted flat revenue in the second quarter. Swedencare credits its dental line, ProDen PlaqueOff, with growth above 30% for another quarter and says its own Amazon sales in the US and Europe are developing well, though it gives no channel breakdown.
One piece of the story is still ahead. Swedencare's pharma unit was approved following a US FDA pre-approval inspection, and the company says production for a recently approved pharmaceutical product is planned to start in 2027. It did not name the customer.
A double-digit fourth quarter still leaves the year near 7%
The fourth-quarter ambition does less for the full year than it sounds. Nine-month organic growth was 6%, the same as the new full-year outlook, which would imply a fourth quarter not far above that pace. Management did not say what it assumes, and it still aims for double digits.
If the fourth quarter grew 10%, the full year would land near 7%, by our math, assuming the quarter is 25% of annual sales and the nine-month figure is a rounded 6%. A 10% year would have needed a fourth quarter near 22%.
The company-reported plan from here leans on gradual improvement at its Naturvet brand and on larger partnerships that are expected to launch in early 2027.
Lagerberg, CEO for 12 years, will leave no later than the third quarter of 2027. Swedencare announced the plan on September 18th, 2026, so the next chief inherits whatever the fourth quarter shows.
The fourth quarter will say whether 2% was a blip or a trend.
Source: Swedencare via Inderes
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