AcadeMedia AB: AcadeMedia's year-end report July 2023 - June 2024
- Net sales increased by 15.6 percent and amounted to SEK 4,856 million (4,199). Organic growth, including bolt-on acquisitions, was 6.8 percent.
- Operating profit (EBIT) amounted to SEK 532 million (404), of which acquisitions contributed about SEK 30 million.
- Adjusted operating profit, adjusted for items affecting comparability and IFRS 16, amounted to SEK 415 million (333). Items affecting comparability were SEK 0 million (-23).
- Net profit for the period amounted to SEK 249 million (205).
- Earnings per share was SEK 2.46 (1.94) after dilution. Earnings per share adjusted for the effects of IFRS 16 was SEK 2.73 (2.19) after dilution.
- The number of children and students in preschool, compulsory school, and upper secondary school increased by 10.6% to an average of 109,510 (98,988) in the fourth quarter.
- The results presented in this report are in line with the preliminary results published 19 July 2024.
- Net sales increased by 11.5 percent and amounted to SEK 17,332 million (15,539). Organic growth, including bolt-on acquisitions, was 7.3 percent.
- Operating profit (EBIT) amounted to SEK 1 490 million (1 270).
- Adjusted operating profit, adjusted for items affecting comparability and IFRS 16, amounted to SEK 1,097 million (964). Items affecting comparability was SEK -17 million (-45).
- Net profit for the period amounted to SEK 632 million (578).
- Earnings per share was SEK 5.99 (5.47) after dilution. Earnings per share adjusted for the effects of IFRS 16 was SEK 7.01 (6.39) after dilution.
- The number of children and students in preschool, compulsory school, and upper secondary school increased by 6.2% to an average of 103,994 (97,916) during the year.
- The Board proposes an ordinary dividend of SEK 1.75 (1.75) per share.
- The Board intends to propose a voluntary share redemption program.
The complete report will be made available at
https://academedia.se/en/investors/reports-and-presentations/
Comments from CEO Marcus Strömberg
AcadeMedia ends the financial year 2023/24 with continued good development thanks to the investments made in recent years in quality and capacity. During the year, strategically important acquisitions in Finland and the Netherlands were completed and the international operations and adult education combined now account for around 40 percent (33) of AcadeMedia's total net sales. Including acquisitions, the number of children and students increased by 10.6% in the quarter, net sales increased by 15.6% and adjusted operating profit increased by almost 25%. The positive development combined with financial stability gives AcadeMedia an excellent position to continue to reinvest in the development of education, both in Sweden and internationally.
Investing in reading and language
We know that children who have a vocabulary of 8,000 words when they leave preschool perform better in primary school. We also know that reading aloud is important for children's language development. That is why Pysslingen preschools aimed to read 100,000 books to their children during the spring, and they succeeded. All Pysslingen preschools in Sweden have small libraries where parents can borrow books to take home to inspire reading.
AcadeMedia's compulsory schools have also focused on language and reading skills. All schools have a reading strategy, early support and focus on Swedish as a second language. The efforts have given effect and reading skills have increased.
Continued improvement in equal assessment and grading
In recent years, AcadeMedia has made a major effort to increase equivalence in grading. Compliance with national tests is increasing, while students' level of knowledge is improving. AcadeMedia will continue its work on equal assessment and grading pending the finalisation of the new grading inquiry initiated by the Swedish government. AcadeMedia has for a long time requested independent knowledge measurements that are comparable over time.
International business is growing profitably
AcadeMedia's strategy is to operate throughout the education chain with a diversity of educational profiles in different countries. This strategy provides stability and promotes knowledge sharing between different functions and countries. Preschools, which now exist in five countries, share best practices in language development, reading, science and physical activity to jointly develop the preschool of the future. One initiative we hope to spread to other countries is that Pysslingen's preschools, starting in the autumn, will offer their 5-year-olds swim classes. According to Swedish National Agency for Education statistics, the proportion of children and young people who can swim is declining in Sweden. Swimming is not only an important life skill, but it also boosts children's self-esteem and confidence.
It is positive that after a period of inflation, increased sick leave and lagging funding, the profitability of the international operations has improved. In particular, the school vouchers in Germany are increasing. The potential to continue growing the international business is high. In 2023/24, 13 new preschools opened in Germany and today more than 27,000 children and students attend our international schools and preschools. International operations currently account for 31 percent (24) of AcadeMedia's total sales, and the proportion of operations where revenue is not based on Swedish school vouchers is 40 percent (33).
One of the best schools in the world
AcadeMedia's Vittra Landborgen compulsory school in Helsingborg has been recognised as one of the world's top ten schools in the "Community Collaboration" category. The award is part of the World's Best School Prizes competition, which honours schools for their work and contribution to education and development of the community. Vittra Landborgen is just one of many schools within AcadeMedia that take a large responsibility for integration and community development.
Preliminary student numbers indicate eight percent growth for the first quarter 2024/25
Preliminary student numbers for autumn 2024 show an overall average growth of approximately eight percent to approximately 109,000 (100,752) children and students at our three school segments. This can be compared to 5.1 percent growth in the first quarter last year.
AcadeMedia students' winners in European entrepreneurship competition
AcadeMedia has a long tradition of students running businesses during their upper secondary school years and participating in the Junior Achievement Enterprise competition (Sw. Ung Företagsamhet). AcadeMedia's students have won many prizes over the years and this year four students from the science programme at Donnergymnasiet in Gothenburg won the Swedish Championship. Their business idea, which attracted a lot of attention during the competitions, is a climate-positive and innovative fertiliser based on microalgae. It is also exciting that in June these students also won a silver medal at the Gen-E 2024 European Youth Entrepreneurship final in Italy.
AcadeMedia has established a Future Prize that will be awarded annually to students who excel in innovation, ambition, and contribution to a more sustainable future. The students from Donnergymnasiet became the first winners for their innovative ecological climate-positive agriculture fertiliser.
I would like to say thank you to all our employees for everything that you do for education and schools. The most important mission in the world.
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=50049871
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-q4-report-2023
The presentation material will be available before the conference begins on AcadeMedia web via:
https://academedia.se/en/about-us/investors/reports-and-presentations/
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 August 28, 2024