FantastiQ1 - In sales, results and PlaqueOff growth
SUMMARY OF THE PERIOD
FIRST QUARTER: JANUARY 1ST - MARCH 31ST 2019
Numbers in parentheses refers to outcomes during the corresponding period of the previous year.
- Net revenue amounted to 30 551 KSEK (21 685 KSEK), an increase of 41%
- Organic, currency-adjusted, growth amounted to 33%
- Operating profit after depreciation (EBIT) amounted to 10 679 KSEK (6 012 KSEK), corresponding
to an increase about 78% and an EBIT margin of 34,9% (27,6%)
- Profit after tax amounted to 8 508 KSEK (4 801 KSEK)
- Earnings per share calculated on 15 770 622 shares 0,54 SEK (0,30 SEK)
- As of March 31st 2019, cash amounted to 35 252 KSEK (22 624 KSEK)
SIGNIFICANT EVENTS DURING THE FIRST QUARTER
Swedencare's ProDen PlaqueOff® Powder has been approved by VOHC.
Swedencare establishes its own sales and marketing company in Spain - Swedencare Spain SLU.
Swedencare receives another Swedish institution as new owner, Investment AB Spiltan.
SIGNIFICANT EVENTS AFTER THE FIRST QUARTER
There are no significant events after the end of the first quarter to report.
WORDS FROM THE CEO
In the annual report, I mentioned that the year started well and this still applies!
We have a fantastic quarter behind us, our strongest ever in terms of both sales and profit. We have now four quarters in a row with different records, this shows the momentum I talked about on several occasions.
We have definitely geared up and still see many new business opportunities which predicts that we are only at the start of what we want to create. Our vision is to establish ourselves as the leading company within dental and oral health for the pet market while offering our customers a broad complementary portfolio of well-functioning animal health products.
Net sales during Q1 2019 was 30.5 MSEK, an increase of 41% compared to Q1 2018. The profit was even better and we showed an EBIT of 10.7 MSEK, an increase of 78%. The EBIT margin was noted at 34.9%, well above our 30% profit target. This is the first time that we have sales of more than 30 MSEK and also the first time we have a profit of more than 10 MSEK.
We have had strong development in most markets. North America continues to deliver despite some challenges. During the quarter, we changed partners regarding deliveries in Canada, as our former partner did not keep promised delivery times. Not until now in April have we been able to restock our warehouse after having sold out our Dental Bones early in the quarter in Canada. North America has also been negatively affected by production delays for Dental Bites at our new manufacturing partner. Despite this, we have a currency-adjusted sales increase in Swedencare USA of 55% compared with the corresponding quarter last year, and with a very high margin, already in Q1, 61% of last year's full-year result was achieved. Demand remains high and we expect North America to remain strong throughout the year.
The UK also had a strong quarter where all product areas are growing. Dental Bones has the strongest growth and this is because we only had one flavor in Q1 2018 compared to four this year. Online sales through partners remain strong, but we also see that our increased onsite visits / trainings at clinics and stores provide results.
The Nordic region has come back strongly after a slow 2018 and here we work the market with both onsite visits and online ventures. In the rest of Europe, France has delivered well along with Portugal and Greece, among others. In Spain we started our own sales organization during Q1 and we expect to have our first sales figures to be presented in Q2 with increasing volumes during the second half of the year. We already have agreements with a number of regional distributors and larger pet retail chains. It will be exciting to follow how we, together with our new colleague Raquel Tosca, will change our position in the Spanish market, which is one of the most important in Europe.
As far as the Rest of the World is concerned, Asia and especially China and Japan, were strong in the quarter. In China, major investments are still being made in education and customer visits. Our partner sold twice as much in Q1 this year compared to last year's corresponding period. We will participate in a longer educational tour in April and the interest in our products increase quarter by quarter.
Our colleagues in Ireland have now moved in completely and the factory meets our high demands and expectations. The team has done a fantastic job with the move, and it is only now in April they can completely focus on "normal" production work. The sale of the NutriScience line will increase during the year and we look forward to launches in some new countries. We also have had several visits during Q1 by external customers, all of whom are very impressed by the facility and this has led to discussions about new projects.
2019 will be intense and the entire organization looks forward to delivering our high demand products and continue to build strong brands worldwide. I will go to Australia in May, and it will be inspiring to meet both veterinarians and pet owners in a market which we expect to continue to show good growth in the coming years.
Håkan Lagerberg, CEO
Malmö April 25th 2019
The complete interim report is attached to this press release and is available at www.swedencare.se
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