In This Article:
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Revenue Growth: 12% overall growth, with 6% organic growth.
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Adjusted Profit: Increased from SEK151 million to SEK157 million.
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Free Cash Flow: Negative SEK225 million, compared to last year's negative SEK127 million.
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Preschool and International Segment: Number of children increased by 29.6%; net sales increased by 24.6%.
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Compulsory School Segment: Net sales rose by 7.6%; margin decreased to 5.1% from 6.4%.
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Upper Secondary School Segment: Sales growth of 3.4%; margin increased to 6.0% from 5.7%.
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Adult Education Segment: Sales increased by 7.1%; adjusted EBIT increased to SEK67 million from SEK48 million; margin at 17.1% compared to 13.2% last year.
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Net Debt: Increased by SEK146 million; leverage ratio at 0.9%.
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CapEx: Maintenance CapEx as a percentage of sales declined to 1.6%.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AcadeMedia AB (FRA:V8T) reported a 12% growth in the first quarter, with 6% being organic growth.
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The company is expanding internationally, nearing 100 units in Germany, indicating strong international development.
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AcadeMedia AB is recognized as a leading vocational trainer in Sweden, benefiting from government investments in vocational training.
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The company's quality model is considered a role model in Sweden, with strong performance in school inspections.
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The adult education segment showed a significant increase in adjusted EBIT, driven by higher demand in vocational education.
Negative Points
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The first quarter is seasonally small, impacting net sales and profit margins negatively.
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Free cash flow was negative at SEK225 million, worse than the previous year's SEK127 million, due to unfavorable working capital development.
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Adjusted EBIT decreased in the preschool, international, and compulsory school segments.
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The preschool segment faced a negative margin of -0.8%, affected by seasonal closures and acquisition impacts.
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Higher personnel and maintenance costs led to a decrease in operating profit in the compulsory school segment.
Q & A Highlights
Q: Can you comment on the preschool profitability, given the lower results in Q1 compared to expectations? A: Petter Sylvan, CFO: The lower profitability in Q1 is due to normal seasonal effects, particularly in the preschool segment, which is typically weaker as they are closed to a high degree. This aligns with our expectations and previous communications. Marcus Stromberg, CEO: The major change from last year is the absence of certain grants, which affected the numbers.