Scandic Hotels (SHOT) Q2 2024 earnings summary

Executive summary

• Achieved strong Q2 results with net sales up 3.1% to SEK 5,871 million, driven by robust demand, improved efficiency, and higher margins across all markets.

• Adjusted EBITDA increased to SEK 841 million, reflecting cost control and higher profitability.

• Portfolio optimization continued with hotel renovations, new Scandic Go signings in Gothenburg and Umeå, and selective exits.

• Secured long-term, sustainability-linked financing, enhancing financial flexibility and supporting growth ambitions.

• Market conditions remained stable, with strong demand and positive price development, especially in Norway and Denmark.

Financial highlights

• Q2 net sales rose 3.1% to SEK 5,871 million (5,693), with adjusted EBITDA up to SEK 841 million (772) and margin at 14.3% (13.6%).

• Q2 operating profit reached SEK 927 million (833); Q2 net profit was SEK 310 million (271).

• Free cash flow for Q2 was SEK 463 million (664), with rolling 12-month free cash flow at SEK 1.2 billion.

• Q2 RevPAR increased by 5.2% year-over-year to SEK 871; average room rate up 3.4% to SEK 1,360; occupancy improved to 64%.

• H1 net sales were SEK 10,290 million (+0.7% YoY); H1 adjusted EBITDA was SEK 874 million (942).

Outlook and guidance

• Expect continued solid hotel market in the Nordics for the rest of 2024, with high demand and stable economy.

• Q3 bookings and occupancy rates are in line with last year, with slightly higher average room rates.

• Maintenance CapEx for the full year expected at 3%-4% of net sales, likely closer to 4%.

• No further legacy timing effects expected to impact cash flow in 2024.

• Focus remains on cost control, efficiency, and portfolio growth.