In This Article:
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Net Sales Growth: 15.6%, with contributions from acquisitions amounting to 8.7%.
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Adjusted Profit Margin: Increased to 8.5% from last year's 7.9%.
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Operating Profit: SEK450 million, up from SEK333 million last year.
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Free Cash Flow: Increased by SEK332 million compared to last year.
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Preschool Segment Growth: Number of children increased by 33%; net sales increased by 35% with an 8.3% organic growth.
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Compulsory School Segment: Student numbers increased by 1.6%; net sales rose by 6%.
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Upper Secondary School Segment: Student numbers increased by 2.9%; sales growth of 5.9%.
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Adult Education Segment: Sales increased by 6.5%; adjusted EBIT increased to SEK23 million from SEK20 million.
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Net Debt (excluding IFRS 16): Increased by SEK1 billion compared to last year.
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Leverage Ratio (excluding IFRS 16): 0.6, below the financial target of less than three.
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Overall Student Growth: 6.2%, mainly through international expansion.
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Annual Net Sales Increase: 11.5%, with organic growth at 7.3%.
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Annual Adjusted EBIT Margin: 6.3%, up from last year's 6.2%.
Release Date: August 28, 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 strong quarter with net sales growth of over 15%, half of which was organic.
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The company achieved a 50% growth in international operations, contributing significantly to increased profitability.
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Adjusted profit margin improved to 8.5% from last year's 7.9%, with operating profit reaching SEK450 million.
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The preschool segment saw a 33% increase in the number of children, driven by acquisitions and new openings.
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Free cash flow increased by SEK332 million compared to last year, attributed to higher profits and favorable net working capital development.
Negative Points
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The Swedish preschool segment was affected by the closure of six preschools in the past 12 months.
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The upper secondary school segment's school voucher revision was insufficient to fully offset inflation cost increases.
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Net debt, excluding IFRS 16, increased by SEK1 billion compared to last year, partly due to acquisitions.
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The adjusted EBITDA margin of 6.3% for the year fell below the target range of 7.8%.
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The company faces challenges in maintaining margins in the preschool segment due to potential dilutive effects of recent acquisitions.
Q & A Highlights
Q: Can you provide insights on the preschool business margins and expectations for next year? A: Petter Sylvan, CFO: The current margins are expected to be sustainable into next year. The margins seen in Q4 and Q3 are indicative of future expectations, assuming no significant changes in compensation levels.