AcadeMedia (ACAD) Q4 23/24 earnings summary

Executive summary

• Net sales grew 15.6% in Q4, with organic growth of 6.8% and strong international expansion; about half of growth was organic and the rest from acquisitions.

• International operations saw 50% growth, now making up 40% of the business, with a target of 50% for a balanced portfolio.

• Two major acquisitions, Winford (Netherlands) and Touhula (Finland), significantly boosted international business.

• Student numbers grew by 10.6% in Q4; preliminary autumn 2024 figures indicate 8% growth.

• Board proposes to maintain dividend of SEK 1.75 per share and introduce a voluntary share redemption program, with details to be finalized before the annual meeting.

Financial highlights

• Q4 net sales: SEK 4,856 million (+15.6%), with acquisitions contributing 8.7%; adjusted EBIT: SEK 450 million (up from SEK 333 million), margin at 8.5% (up 0.6 p.p. year-over-year).

• Earnings per share: SEK 2.73 (+24.7%); free cash flow: SEK 514 million (+26.6%).

• Full-year net sales: SEK 17,332 million (+11.5%), organic growth at 7.3%; adjusted EBIT: SEK 1,097 million (+13.8%), margin at 6.3%.

• Full-year earnings per share: SEK 7.01 (+9.6%); free cash flow: SEK 1,124 million (+42%).

• Free cash flow for the year was SEK 332 million higher than last year.

Outlook and guidance

• Current preschool segment margins are expected to be sustainable into next year, barring changes in compensation frameworks.

• Lower inflation is expected to result in smaller increases in salaries and rental costs, and school voucher adjustments will reflect this.

• Plan to open about 10 new preschools in Germany in 2024/25, focusing on capacity utilization and profitability.

• Adult education margins are expected to remain within target range, with a shift toward voucher-based revenue reducing reliance on tenders.

• Preliminary student numbers for autumn 2024 indicate 8% growth.