AcadeMedia AB: AcadeMedia's interim report, July 2024 - September 2024
- Net sales increased by 12,0 percent and amounted to SEK 3,842 million (3,430). Organic growth, including bolt-on acquisitions, was 6.0 percent.
- Operating profit (EBIT) amounted to SEK 272 million (232).
- Adjusted operating profit, adjusted for items affecting comparability and effects of IFRS 16, amounted to SEK 157 million (151). There were no items affecting comparability in the quarter (SEK -6 million).
- Net profit for the period amounted to SEK 80 million (62).
- Earnings per share was SEK 0.79 (0.59) after dilution. Adjusted for IFRS 16, earnings per share was SEK 1.09 (0.87) after dilution.
- The average number of children and students in preschool, compulsory school, and upper secondary school during the first quarter was 109,281 (100,752), representing an increase of 8.5 percent.
- After the end of the reporting period, the Board of AcadeMedia has resolved to propose that the Annual General Meeting resolves on a voluntary share redemption program with a maximum amount of SEK 300 million.
The complete report will be made available at
https://academedia.se/en/about-us/investors/reports-and-presentations/
Comments from CEO Marcus Strömberg
AcadeMedia started the 2024/2025 financial year with a firm and stable growth. Net sales increased by 12 percent and the number of children and students by 8.5 percent. AcadeMedia continues to report positive organic growth, despite the demographic trend in Sweden. Growth in Germany is good and demand there is expected to remain high. The Adult Education segment shows strong profit and margin growth, driven by growth in higher vocational training.
In terms of net sales and profitability, the first quarter of the year is always small, an effect from operations being closed during parts in the summer. Compared to last year, the acquisition of Touhula has been added and they follow the same seasonal pattern. The operating profit for segment International and Preschool was therefore negative in the quarter, SEK -11 million (0). Operations in Finland on a full-year basis are expected to perform well, with margins improving gradually over the years ahead, in line with previous communications.
Continued strong growth in Germany
Demand in Germany remains strong. Compared to the preceding year, the number of children increased by nearly 15 percent. Preschool Germany now operates 98 units, a figure that is expected to rise to 100 in the third quarter. In all, eight new establishments are planned for 2024/2025, and a further 17 over the next two years. We are continuously assessing further new establishments, but also complementary acquisitions in Germany, in both preschool and school sectors. Germany is, and will continue to be, a priority market for both preschool and school operations, going forward.
AcadeMedia - Sweden's leading adult education provider
In Sweden, unemployment remains high and is expected to increase. At the same time, the country faces a skills shortage. Against that background, the government has in its budget for 2025 increased funding for various educational initiatives focused on vocational training, where AcadeMedia already holds a leading position. Higher vocational education, adult vocational education, and labour market training are all sectors that are expected to expand in volume. AcadeMedia focuses closely on providing jobseekers with the right initiatives that will improve their chances of finding a new job.
Vocational training is in large part conducted in the form of distance education or via a combination of distance learning and classroom education. Here, AcadeMedia has introduced Omniway, its proprietary learning platform to ensure efficiency and quality. Today, Omniway is among Sweden's most widely used learning platforms, serving 50,000 unique users each year. AcadeMedia's investment in the Omniway learning platform is an important element of AcadeMedia's digital strategy. Net sales for the Adult Education segment in the quarter increased by just over 7 percent, mainly in the Higher Vocational Education segment, where we now have more programme starts and applicants than before, and closer to 13,000 students.
Stronger interest in vocational training programmes at upper secondary level
At AcadeMedia, we see increasing number of students opt for vocational training at upper secondary school. This is a development to be welcomed, as the vast majority of students who choose these programmes find jobs after graduation. The new upper secondary programmes are designed such that the courses are not a dead-end but also provide qualification for higher education.
AcadeMedia has invested heavily in Gothenburg, where we now operate three Drottning Blanka schools offering combinations of theoretical and vocational programmes. These schools experience high demand in their vocational programmes. One of the schools is located in the venerable Odinskolan, which AcadeMedia has renovated, and which will remain a popular school campus for many years to come.
Positive trend in percentage of students with passing grades at compulsory school
Unfortunately, results at Sweden's compulsory schools declined over the 2023/24 year. Both upper secondary school qualification and proportion of students with passing grades are falling. At AcadeMedia, pleasingly, the trend is in the opposite direction. The percentage of students with passing grades is rising and the correlation with national tests is stable. Above all, an improvement is evident among students who are in most need of school.
Our analysis of data from schools indicates that the most common reason for a failure grade is in mathematics. AcadeMedia is planning a series of initiatives in this area and will shortly recruit a mathematic strategist.
Early reading initiatives have an impact
AcadeMedia has engaged in extensive early reading activities, in both preschools and compulsory schools. AcadeMedia offer compulsory school teachers - and others - a new programme that provides in-depth knowledge about teaching reading and writing. The programme, developed in partnership with Karlstad University, focuses on the teaching methods that science tells us have the best impact on student learning.
AcadeMedia has hired specialists in reading techniques, who spread the word on useful examples and tried-and-tested practices. In most compulsory schools, various efforts are made to encourage the children to read books. The Montessori School in Kungsholmen, Stockholm, may serve as a great model where reading is interwoven into all of the school's activities.
Our work to encourage and spread the importance of reading also extends beyond the school. For the second year in a row, AcadeMedia was represented at the annual Gothenburg Book Fair, one of the biggest in Europe, with more than 80,000 visitors. This year, our attention focused on reading development, well-being, and learning among children and young people. Several of our schools, teachers and students took part, presenting inspirational projects connected with language and reading.
It is highly encouraging to see the commitment of these and many others to give more children and students a better future, and it is impossible to overestimate the importance of this work. Fortunately, we also see the effects of these efforts in the screenings we conduct using both the tools of the Swedish National Agency for Education's and other analytical models.
This is change through education.
Marcus Strömberg
President and CEO
AcadeMedia AB (publ)
Presentation of the report
A web-cast telephone conference will be held at 09:30 CEST today, where CEO Marcus Strömberg, and CFO Petter Sylvan will present the report.
To participate in the conference call please register via this link:
https://conference.financialhearings.com/teleconference/?id=50049872
After registration, you will be provided with telephone numbers and a conference ID to access the conference. You can ask questions verbally via the telephone conference.
To follow the presentation webcast on the following page: https://ir.financialhearings.com/academedia-q1-report-2024/register
The presentation material will be available before the conference begins on AcadeMedia web via:
https://academedia.se/om-oss/investerare/rapporter-och-presentationer/
It will also be possible to access the recorded version of the webcast after it is finished on this page.
For more information, please contact:
Marcus Strömberg, CEO
Telephone: +46 8 794 4200
E-mail: marcus.stromberg@academedia.se
Petter Sylvan, CFO
Telephone: +46 8 794 43 40
E-mail: petter.sylvan@academedia.se
About AcadeMedia
AcadeMedia creates opportunities for people to develop. The 21,000 employees at our 860 preschools, compulsory schools, upper secondary schools, and adult education centres share a common focus on quality and development. Our 209,000 children and students are provided with a high-quality education, giving them the best conditions to attain both learning objectives and their full potential as individuals. AcadeMedia is Northern Europe ́s largest education company, with locations/facilities/presence in Sweden, Norway, Germany, Finland, Netherlands, Poland and UK. Our size gives us the capacity to be a robust, long-term partner to the communities we serve. More information about AcadeMedia is available on www.academedia.se.
This information is information that AcadeMedia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CEST October 24, 2024.