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SkiStar AB (FRA:3AJ) Q1 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

In This Article:

  • Revenue: Down 3% compared to last year; organic decline of 2%.

  • Operating Profit: Increased by SEK 18 million compared to last year.

  • Net Debt/EBITDA: Improved to 1.7 times from 2.6 times last year.

  • Equity Ratio: Increased to 48%.

  • Retail and Shop Business: Growth driven by online sales, contributing SEK 9 million.

  • Operating Cash Flow: Continued strong performance with improvements in working capital.

  • Energy and Petrol Costs: Decreased due to later start of snow production.

  • Personnel Costs: Slight increase due to annual salary adjustments.

Release Date: December 19, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • SkiStar AB (FRA:3AJ) reported a strong previous year with record turnover and a favorable financial position, including a net debt/EBITDA ratio of 1.7 times.

  • The company has set ambitious financial targets, including 6% organic growth and an 18% operating margin, and is on track with a 10% growth and a 16% margin last year.

  • SkiStar AB (FRA:3AJ) is expanding its international customer base, with Danish guests increasing by 7% and other international guests showing double-digit growth.

  • The company is focusing on sustainability, achieving a 50% climate reduction and operating the world's first fossil-free ski destination at Hammarbybacken.

  • Retail growth is strong, with a turnover approaching SEK 500 million, and the company's own brand EQPE is contributing significantly to margins.

Negative Points

  • Sales in the first quarter were down 3% compared to the previous year, with organic sales down 2%, primarily due to timing shifts in partner agreements.

  • Bookings are down 3%, equating to a loss of around 10,000 nights, attributed to a late Easter and a slower booking pattern.

  • The company faces challenges in building demand for the late season, with a need to improve marketing and offers to attract guests.

  • Retail sales, while profitable, do not constitute the majority of the company's profit, indicating room for improvement in this segment.

  • Capital expenditures have been high in previous years, and while they are being normalized, there is a need to balance investments with cash flow and debt reduction.

Q & A Highlights

Q: Can you elaborate on the growth of international customers and their booking patterns? A: Stefan Sjostrand, CEO: The Danes are increasing by 7%, and other international guests are growing in double digits. Danes will make up about 25% of total guests, with other international guests around 7%. The British will visit in week 8, and Danes in week 7, with international guests spread throughout the season.