Slides
Page 1
Q3 Report PRESENTATION WILL BEGIN SHORTLY
Page 2
Q3 Report JULY - SEP 2025 with Håkan Lagerberg, CEO Jenny Graflind, CFO
Page 3
Q3 2025 Highlights Record net revenue & profitability High international activity and internal collaboration Financial Targets – Under Review – New before yearend Launch in Big Box: 1400 WM, 1100 CVS and more Small minority investment – VIYO – adding new product group – Nutravet first to launch Q1 2026 in UK Organizational overview, realizing synergies – UK & Tampa
Page 4
Financial Highlights Q3 2025 Comments • Q: Org +15%, -9% Fx, +5% acq. • YTD • 2B (1,9B) +9% organic • Stabile GM • OpEx • External costs • Cost associated with Amazon is 50% of external costs – increase with sales • Non-Amazon external costs are decreasing as % of sales • Personnel costs • Release of bonus accruals Net Revenue Operational Gross Margin Operational EBITDA +4% -13%
Page 5
Financial Highlights Q3 2025 Comments Net Debt / EBITDA Op. cash flow / Cash conversion Net Debt/EBITDA • Improved compared to Q2 • Impacted by payments for acquisitions Cash • 99% cash conversion vs Op, EBITDA • Driven by inventory reductions • Acquisitions (total 28M) • Minority acq. of Viyo • 2nd purchase pmt and earn-out of Pack Approved • Reduced debt with 75M • CapEx below 2%
Page 6
Rolling 4 quarters Rolling twelve months - net revenue and EBITDA Net revenue EBITDA Operational EBITDA 0 100 200 300 400 500 600 2020 2021 2022 2023 2024 R12 2025 0 20 40 60 80 100 120 140 160 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2025
Page 7
Product- and brandsplit – Q3 2024 2025 2024 2025 Not adjusted for acquisition or currency - 50 100 150 200 250 300 NUTRACEUTICALS TOPICALS/ DERMATOLOGY DENTAL PHARMA OTHER TREATS +4% +106%+28% -2% +50% +25% - 20 40 60 80 100 120 +17% +23% -6% +53% +11% -10% -13% +23% Other Contract Manufacturing Private/ CO Label +2% +23% +17%
Page 8
Net sales North America 421,7 MSEK MSEK 8% growth, organic 18% • Pet retail and Online strong, Vet still soft • NaturVet – Big Box, expansion in PetSmart and others • NaturVet Amazon – acquired inventory sold out, will not affect Q4 and forward • Strong Online sales across the board, top sellers ProDen PlaqueOff® and Treats, NaturVet still in transition • Launch of VetWorthy in Pet retail, presence in almost 500 stores end of Q3 • Outlook Q4 – expect momentum to improve 59% of total net revenue 0 50 100 150 200 250 300 350 400 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025
Page 9
Net sales Europe 162,6 MSEK 39% growth, organic 19% 23% of total net revenue 0 20 40 60 80 100 120 140 160 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 • UK and Nordics leading growth • Amazon markets making same transition as UK • Building out local team in important Amazon markets, Germany Q2, Spain Q4 + more • Portugal – now handled from Spanish team and new local partner • Eu NaturVet - Preparation for launch of new design Q2 2026 • Outlook Q4 – momentum continues
Page 10
Net sales Production 128,7 MSEK -4% growth, organic 3% 18% of total net revenue 0 20 40 60 80 100 120 140 Q2 Q3 Q4 Q1 Q2 Q3 2024 2025 • 3 out of 4 DD-growth, the biggest -13%, decline mainly due to Vet market softness in US and inventory optimization • Increased internal demand and last volume products being transferred in Q4/Q1 2026 • EU stronger demand than NA, high RFP activity for Pharma development • Internal collaboration and know-how transfer • Outlook Q4 – momentum continues and expect to pick up 2026
Page 11
Priorities 2025 Continue our strong growth trajectory, focusing on present main markets and geographic expansion into Asia and South America Enhance operational efficiencies, particularly in production and supply chain chain optimization Strengthen our online platforms and D2C sales, driving brand loyalty and higher margin sales Pursue new acquisitions that align with our vision for premium, science-backed pet health products
Page 12
Production Update Q3 Investor Presentation 22 October 2025 John Kane Building a Global CDMO - Vetio Leveraging Vetio Soft Chew Technology
Page 13
2018 2020 2022 2024 2026 2028 Vetio North Vetio South Vetio UK Vetio Ireland Building a Global CDMO - Vetio Topical Liquids Nutritional Supplements Treats & Non-Sterile Liquids1 Pharma Solid Dosage Pharma Non-Sterile Liquids Sterile Fill & Finish Nutr. Supplements Treats2 Nutr. Supplements Starting Project late 2025 (1) and 2026 (2)
Page 14
Global Companion Animal Drugs Market - $14 Billion Parasiticides Flea / Tick / Heartworm Therapeutics Pain, Diseases (kidney, liver, etc.), Ophthalmology, etc. Vaccines greater use in Large Animal / Livestock Solid Oral Dosage Tablets, Powders, Soft Chews Parenteral Mainly Injectables (vaccines, insulin), does not pass through GI tract Topicals & Other Non-Sterile Liquids (dermatology liquids, spot-ons) Sources: * Mordor Intelligence, Global Market Insights, Precedence Research, GM Insights, Internal analysis
Page 15
Global Pet Supplements & Treats Market - $5 Billion Source: American Pet Association, American Veterinary Medical Association, US Census Bureau, and Straits Research 7/4/24, Internal Analysis Pet Spending by Category – Ex. Food & Vet Services* Pet Supplements Projected Growth *Among Cats & Dogs
Page 16
Leveraging Vetio Soft Chew Technology •The Vetio soft chew matrix is a highly stable and palatable delivery system consisting of one or more pharmaceutical grade APIs or supplement ingredients. •Vetio’s process & composition chew patent is the result of a decade of development.
Page 17
Compounding Veterinary Specials (1) Grand View Research (2) Management Estimate (3) MyMedsMatter Veterinarian Survey April 2020 (4) Blue Ridge Partners Veterinary Survey in May 2018, n = 405 (5) Vetnosis: 5% commercially-approved branded medication growth rate 2013 - 2019 Acquired by Swedencare March 24, 2025, Summit UK offers an extensive suite of animal health specials in the UK. Summit supports a variety of species through its medications including canine, feline, equine and other companion animals. Summit enables over 5.500 veterinary clinics to provide care to its patients across the UK through its 22,500sq ft turn-key facilities in Oxford.
Page 18
Summary of Production Opportunities Drivers Impact Growth of Sterile Products •Increase in Parenteral (injectable) administration in vet clinics (accuracy, cannot be sold online) •Vetio investing in sterile capabilities driven by sponsor client •Opens up large growing market, including Large Animal / Livestock segment & advanced therapeutics in the future Trend toward Soft Chews • Blockbuster generic Rx drugs coming off patent in the coming years • Most popular dosage form for supplements in US and growing popularity in EU •Large development projects with commercial manufacturing contracts •Soft Chew Specials for UK is unique opportunity for Summit Vet Popularity of Pet Treats •Demand for premium and functional treats, overall health & wellness products or specific dietary needs •Exciting growth category complementary with nutritional supplements made at several Vetio sites
Page 19
Q&A Thank you for participating!