AcadeMedia (ACAD) Q1 24/25 earnings summary

Executive summary

• Net sales increased by 12% year-over-year to SEK 3,842 million, with 6% organic growth and strong international expansion, especially in Germany where student numbers rose 15% and the company nears 100 units.

• Student numbers grew by 8.5% to 109,281, driven by acquisitions and new establishments.

• The first quarter is seasonally small due to summer closures, impacting net sales and profitability.

• Quality initiatives in reading and mathematics have shown positive results, with results above national averages in compulsory and upper secondary schools.

• Adult education performed well, benefiting from short summer courses and increased vocational demand.

Financial highlights

• Adjusted EBIT was SEK 157 million (up from 151), with an adjusted EBIT margin of 4.1% (down from 4.4%).

• Free cash flow was -225 million SEK, down from 127 million SEK last year, due to unfavorable net working capital.

• Net sales in the international segment rose 24.6% to SEK 1,452 million, with organic growth of 7.1%.

• Earnings per share before dilution increased 24.5% to SEK 1.09.

• Adjusted EBIT margin for the group was 6.2% on a rolling 12-month basis, below the 7%-8% target.

Outlook and guidance

• Management expects seasonal effects to normalize profitability in preschools and compulsory schools over the full year.

• Adult education margins are expected to be around 10%, in line with the last twelve months.

• Plan to open the 100th preschool in Germany during Q2, with a total of 8 new preschools planned for the year.

• Continued investment in quality, early reading, mathematics, digital learning, and international acquisitions planned.

• No formal forecasts published.