Swedencare - Presentation June 2020
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Swedencare Presentation June 2020
Swedencare’s acquisition of stratford • On or about the 24th of June 2020 Swedencare expect to sign an agreement to acquire the pet health care business from Stratford, a leading US-based company • The acquisition will be executed through a fully owned new subsidiary (Stratford Care USA, Inc.) and it is expected to close on the 1st of July 2020 • The Transaction value on a debt- and cash free basis is approx. 159,3 million SEK (17 million USD), financed by own funds, bank loan (50 million SEK) and a directed share issue • Including Stratford, Swedencare’s proforma net revenue the last twelve months (LTM) ending March 2020 increased by 78,2 million SEK (+58%) to 212,2 million SEK • In the same period Swedencare’s EBITDA increased by 16 million SEK (+41%) to 55,2 million SEK • Swedencare expect near-term synergies in marketing, sales and logistics on the US-market and long-term synergies in marketing Statford’s product portfolio on international markets
Stratford Care USA, Inc. at a glance • Market and sell a broad range of own premium brands in dermatology (skin & coat), joint support, behavioral/calming, hepatic (liver) and gut/intestine (probiotic) health • Provides products and services to more than 10,000 veterinary hospitals utilizing a multi- channel distribution strategy and provides private label to some of the industry’s most popular OTC/Internet brands • Stratford, with a broad premium product offering and a focus on the vet channel, offers a great complement to SwedencareUSA’s focus on ProDen PlaqueOff and their strong presence in the pet channel • Have a proven history of high growth and high profitability, the company has recently started an internationalization of the business with large customers in UK and France • The management with over 40 years experience in animal health manufacturing, distribution, brand creation will remain intact “Stratford’s most requested category of products from its customers are oral/dental health products - with Swedencare’s world renown, ProDen PlaqueOff, this provides Stratford the opportunity to significantly strengthen its product offering to more than 10,000 veterinary hospitals within its network”
TSEK
Swedencare Stratford Proforma Swedencare Stratford Proforma
2019 2019 2019 Q1 2020
Net revenue 126 769 71 479 198 248 37 726 21 811 59 537
Total revenue 126 874 71 479 198 353 37 851 21 811 59 662
Cost of sales -33 823 -34 427 -68 250 -10 849 -12 080 -22 929
Gross profit 93 051 37 052 130 103 27 002 9 731 36 733
Gross profit (%) 73,3% 51,8% 65,6% 71,3% 44,6% 61,6%
Other external costs -25 190 -7 046 -32 236 -8 703 -1 792 -10 495
Salaries -28 330 -15 001 -43 331 -7 869 -4 325 -12 194
OPEX -53 520 -22 048 -75 568 -16 572 -6 117 -22 689
OPEX (%) 42,2% 30,8% 38,1% 43,8% 28,0% 38,0%
EBITDA 39 531 15 004 54 535 10 430 3 614 14 044
EBITDA (%) 31,2% 21,0% 27,5% 27,6% 16,6% 23,5%
proforma 2018 – Q12020 LTM, 12 months trailing April 2019 – March 2020
Sales per region - 2019
swedencare proforma
Sales per PRODUCT - 2019
swedencare proforma
SWEDENCARE AT A GLANCE - 2019
Pets
- from something you own to a member of the family
• “Pet owner” to “Pet parent”
• 94% sees the pet as a family member
• Increased demand for organic, premium, sustainable and “clean label” products
• The pets live longer – age related symptoms increase What would pet owners sacrifice if they were in financial difficulty?
• Knowledge increase & demand for nutraceuticals grows 90 %
80 %
79 %
67 %
70 % 61 %
60 %
50 %
37 % 35 %
• Dental health is the biggest concern for petowners 40 %
30 %
27 %
20 % 9%
• 80% of dogs have oral health issues before 3-yrs age 10 %
0%
Swedencare and the World
70M+
pets in
China/Japan
184 180 Pet market in China
million million grows by
pets in Europe
pets in the U.S.
70% of
double
Average
households
have a pet
Pet Oral Care,
Average
spending digits
spending 600 € both by number of pets and
1 200 $ 1700 spending
7% of
MUSD households
have a pet –
Worldwide Nutraceuticals, huge potential
2500 9.3 2.3
MUSD
in Europe and USACompany Timeline
SWEDENCARE´S STRENGTHS
New markets Global
and marketing distribution
Channels
network
SWEDENCARE • Vet
+50 countries
• Pet
• Retail
Agile &
Strong brands streamlined
organization
Loyal
customers The marketDog - Cat - Horse
NUTRACEUTICALS
FOOD
ACCESSORIES PRESCRIBED PRODUCTSProDen PlaqueOff ® - a leading oral health product • 100% natural and organic active ingredient • Systemic effect on Oral Health • Patent- and Trademark protected in all our major markets • Several clinical studies • Marketed in several sizes and forms - Powder, Dental Bites, Dental Bone, and in feed • 2 million pots, annual consumption for 0,8 million dogs. Approx. 500 million registered dogs in the world means that we reach 0,16% of the potential market
Other products NutriScience by Swedencare for dogs and cats A new group of products within several focus areas for dogs and cats. • Joints and mobility • Skin and coat • Multivitamin supplement • Calming supplement NutriScience by Swedencare for horses We are expanding the selection and we are now able to offer products which also soothes and prevents common problems with horses. • Digestive supplement • For a healthy stomach • For strength and performance • Cooling gel • Salt replacement
Clinical Studies - VOHC Both ProDen PlaqueOff® Powder 2019 and Dental Bites 2017 are now approved. Study for Cat product – In progress The difference between the placebo product and the tested product (ProDen PlaqueOff®) was 30-70%. P1 Placebo P2 ProDen PlaqueOff®
Rolling 4 quarters – Revenue MSEK
Rolling 4 quarters – EBITDA MSEK
SALES PER PRODUCT
2019 2016SALES PER REGION
2019 2016Despite no order from China – Revenue 23% increase
compared to Q1 2019
Q1 2020 Amazon – doubled revenue compared to Q1 2019 through
wholeseller
Highlights –
Increased Rest of Asia – 14% of total revenue - Korea – large order
marketing with complete range
investments
results in record
New cooperation with Brasilien petfood producer
sales
Increased marketing – Amazon, new stores in US &
personnelKey Performance Indicators – q1 2020
Sales per Region
Q1 2020 Q1 2019Sales per Product
Q1 2020 Q1 2019Rolling 4 Quarters - in KSEK
COVID-19 IMPACTS
• No order from China in Q1
• Suppliers & factories deliver according to plan
• Activities cancelled and/or postponed
• Slow down in shops – expecting delay in orders following
quarters
• Increased online sales
The pet market is expecting to continue to grow – both with
number of pets & importanceStock Trend – 2019-To date Introduction price: 14 SEK
Owners 2020-03-31
NUMBER OF
SHARES OWNERSHIP
Håkan Svanberg & Co Health Care AB 4 631 455 29,31%
JCC Group Invest Sweden AB (Johan Bergdahl genom bolag) 1 517 351 9,60%
DNCA Investments 1 427 299 9,03%
Mastan AB (Håkan Lagerberg genom bolag) 1 110 362 7,03%
AMF Aktiefond Småbolag 755 000 4,78%
SEB Nanocap 538 485 3,41%
SHB Fonder 500 000 3,16%
Aktia Nordic Micro Cap 329 396 2,08%
Martin Shimko - VD Swedencare USA 300 000 1,90%
Investment AB Spiltan 300 000 1,90%
Cbny-Mkpgue Nab Acf Pie Growth UK 250 000 1,58%
Nordnet Pensionsförsäkring AB 237 583 1,50%
ML, Pierce Fenner & Smith Inc. 222 173 1,41%
Hans Persson - VD Swedencare Frankrike 199 750 1,26%
Enter Småbolagsfond 195 000 1,23%
Tedcap AB (Thomas Eklund genom bolag) 190 000 1,20%
Grandeur, Fund BBHBOS 170 982 1,08%
Avanza 149 136 0,94%
BFCM P/C BFCM Sweden Retail LT - NEW 146 741 0,93%
Per Malmström Consulting AB 123 000 0,78%
COGEFI 113 391 0,72%
Cbny-Mkjgro Nab Acf Juno Kiwisaver 110 000 0,70%
Aktia Secura 108 873 0,69%
Other 2 176 003 13,77%
Total 15 801 980 100,00%
Free Float* 8 194 812 51,86%Our targets and vision
“Our vision is to Establish Ourselves
as the Leading Company within dental
and oral Health for the pet market.”
“Swedencare shall pay a dividend that
takes into account the Group's earnings
trend- and consolidation and investment
needs, liquidity and financial position.
The goal is to pay a dividend of 40 percent
of profit after tax.”You can also read
