Scandic Hotels (SHOT) Q3 2024 earnings summary

Executive summary

• Delivered a solid quarter with net sales of 6,182 million SEK, stable market conditions, and like-for-like sales growth of 2.6%, despite 1.5% fewer available rooms and negative currency effects.

• Strong performance in Sweden and Norway, while Finland faced challenges due to weak economy and closed Russian border; operational adjustments were made.

• Continued portfolio growth with new hotel signings in Sweden, Germany, and the Nordics, plus the launch of a new loyalty program and partnership with SAS.

• Announced new financial targets for 2025–2027, including a lower net debt/adjusted EBITDA target and significant capital returns to shareholders.

Financial highlights

• Net sales reached 6,182 million SEK in Q3, with organic growth of 0.5%; adjusted EBITDA was 1,077 million SEK (down from 1,173 million SEK), margin at 17.4% (down from 18.6%).

• Free cash flow for Q3 was 659 million SEK and 940 million SEK for the last twelve months; operational cash flow on a rolling 12-month basis was 1,856 million SEK.

• Net debt reduced to 36 million SEK at quarter end; net debt/adjusted EBITDA at 0.0x.

• Earnings per share after dilution for Q3 was 2.48 SEK.

Outlook and guidance

• Q4 2024 expected to see occupancy and room rates in line with last year; Nordic hotel market anticipated to improve in 2025 with positive RevPAR growth.

• Margin target of at least 11% set as a floor, with ambitions to exceed.

• Maintenance CapEx for full year expected at ~3% of net sales, at the lower end of guidance.

• Focus remains on efficiency and cost control, with a positive outlook described as the best shape ever.