AcadeMedia (ACAD) Q4 23/24 earnings summary

Executive summary

• Net sales increased by 15.6% in Q4 and 11.5% for the full year, driven by organic growth, acquisitions, and strong international expansion; adjusted EBIT rose 24.6% year-over-year.

• International operations now account for 40% of net sales, with a target of 50% for a balanced portfolio.

• Major acquisitions in Finland (Touhula) and the Netherlands (Winford) significantly boosted international business turnover by 50%.

• Student numbers grew by 10.6% in Q4, with preliminary autumn 2024 figures indicating 8% growth.

• The Board proposes a SEK 1.75 per share dividend and a voluntary share redemption program.

Financial highlights

• Q4 net sales: SEK 4,856 million (up 15.6% YoY); full year: SEK 17,332 million (up 11.5%).

• Q4 adjusted EBIT: SEK 415 million (up 24.6%); full year: SEK 1,097 million (up 13.8%).

• Q4 EBIT: SEK 532 million (up 31.7% YoY); full year EBIT: SEK 1,490 million (up 17.3%).

• Free cash flow for the year: SEK 1,124 million (up 41.9%).

• Earnings per share: SEK 2.73 in Q4 (up 24.7%); full year: SEK 7.01 (up 9.6%).

Outlook and guidance

• Preliminary student numbers for autumn 2024 indicate 8% growth, compared to 5.1% last year.

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

• 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, with school voucher adjustments reflecting this.

• No formal forecasts published.