Q4 2024 AcadeMedia AB Earnings Call Transcript
Key Points
- AcadeMedia AB (FRA:V8T) reported a strong quarter with net sales growth of over 15%, half of which was organic.
- The company achieved a 50% growth in international operations, contributing significantly to increased profitability.
- Adjusted profit margin improved to 8.5% from last year's 7.9%, with operating profit reaching SEK450 million.
- The preschool segment saw a 33% increase in the number of children, driven by acquisitions and new openings.
- Free cash flow increased by SEK332 million compared to last year, attributed to higher profits and favorable net working capital development.
- The Swedish preschool segment was affected by the closure of six preschools in the past 12 months.
- The upper secondary school segment's school voucher revision was insufficient to fully offset inflation cost increases.
- Net debt, excluding IFRS 16, increased by SEK1 billion compared to last year, partly due to acquisitions.
- The adjusted EBITDA margin of 6.3% for the year fell below the target range of 7.8%.
- The company faces challenges in maintaining margins in the preschool segment due to potential dilutive effects of recent acquisitions.
So good morning, everybody. And I will start Marcus Strömberg, CEO here. And I must say that Stockholm today has fantastic weather and AcadeMedia has started the new school year in a really good way. We increased the number of children with 8%, that is a result of the efforts and investments that we have done, both international and also in the Swedish Education parts.
So we think that we sum up a very good year and a good quarter with strong demand. We have increased the number of school places, but we have also increased the capacity utilization. The net sales grow with more than 15%, of which around half was organic and the profitability also increased a lot. And the result of the international development that really has increased the profitability.
We have now 50% growth international, and we also see that 40% of AcadeMedia is adult education and international education. And our target that is 50%, so we are on a good road to reach the target and get a good balance between Swedish education and international
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