Cost ManagementA rise in external costs, driven by higher marketing expenses, particularly investments in digital marketing, brand strengthening, and sales efforts within e-commerce, explains the weaker margin.
EarningsSwedencare's 3Q24 report was weaker-than-expected, with net revenue increasing 6% year-on-year, which was 3% below Modular Finance consensus.
Strategic ChallengesThe company experienced negative growth in its largest unit, NaturVet, primarily due to strategic changes with Amazon sales and a significant retail customer shutting down a large private label concept.