Scandic’s interim report for the fourth quarter 2024 – Strong quarter, stable bookings and capital returns to shareholders

Fourth quarter in summary, October 1 – December 31, 2024

• Net sales rose by 1.4 percent to 5,487 million SEK (5,410). Organic growth increased by 1.5 percent.
• Average occupancy rate increased to 59.6 percent (57.9).
• Average revenue per available room (RevPAR) went up to 762 SEK (734).
• Operating profit totaled 626 million SEK (502).
• Adjusted EBITDA was 544 million SEK (451).
• Excluding IFRS 16, earnings per share equaled 1.08 SEK (0.78).
• Free cash flow was 521 million SEK (549).
• Interest-bearing net debt/adjusted EBITDA amounted to 0.1x on a rolling 12-month basis.

January 1 – December 31, 2024.

• Net sales rose by 0.1 percent to 21,959 million SEK (21,935). Organic growth increased by 0.9 percent.
• Average occupancy rate increased to 61.8 percent (61.4).
• Average revenue per available room (RevPAR) went up to 799 SEK (782).
• Operating profit totaled 2,836 million SEK (2,785).
• Adjusted EBITDA was 2,495 million SEK (2,566).
• Excluding IFRS 16, earnings per share equaled 5.23 SEK (5.09).
• Free cash flow was 910 million SEK (1,754).
• For 2024, the Board proposes that the AGM resolve on a dividend of 2.60 SEK (0) per share.
• Net sales declined by 0.3 percent to 16,472 million SEK (16,525). Organic growth increased by 0.7 percent.

Events during the period

• The Board of Directors set financial targets for 2025-2027.
• Scandic launched a share buyback program of approximately 300 million SEK.
• Scandic held an extraordinary general meeting to resolve on an extraordinary dividend of approximately 550 million SEK.
• Scandic repaid a debt of 631 million SEK related to deferred VAT and employer contributions.
• Scandic established a strategic partnership with SAS.
• Scandic signed agreements for a new Scandic Go in Helsingborg and a new Scandic Go in Jönköping.
• Scandic signed an agreement for a new hotel in Stuttgart and opened a new Scandic Go hotel in Stockholm.

Events after the reporting date

• The Board of Directors proposes a dividend of 2.60 SEK per share. The dividend policy is to distribute at least 50 percent of net profit for the year. Dividends are based on net profits excluding the effects of IFRS 16.
• Scandic intends to launch a new share buyback program of approximately 500 million SEK in 2025.
• Scandic signed an agreement for a new hotel in Berlin.

CEO’S COMMENTS

“Scandic delivered a record fourth quarter with significantly improved results. Bookings are stable, and we have a positive view of market development going forward. Given the good performance, the Board has proposed a dividend of 2.60 SEK per share and intends to launch a new share buyback program of about 500 million SEK during 2025.”

Scandic concluded the year with a record strong fourth quarter both in terms of revenue and profits. The hotel market continues to show strength and develop positively, and we are meeting demand with high efficiency and effective cost control. We sold more room nights than last year, despite exiting several hotels to optimize the hotel portfolio and returning to a more normalized pace of renovations.

Organic growth increased by 1.5 percent and for comparable units by 3 percent due to somewhat higher room revenues. Restaurant and conference revenues was impacted by reduced room capacity, our focus on maintaining good profitability and a slightly lower level of consumption. All markets contributed to the company’s organic growth except for Finland, which continued to be challenged by the geopolitical situation.

We delivered strong profitability with adjusted EBITDA growing by 20 percent to 544 million SEK (451), corresponding to an operating margin of 9.9 percent (8.3). Excluding non-recurring items, the operating margin was 9.6 percent (8.7). With an improved operating result and net financial result, earnings per share increased by nearly 40 percent to 1.08 SEK (0.78). For the year, net sales grew slightly with an operating margin of 11.4 percent (11.7). Excluding non-recurring items, the margin was generally in line with last year.

We have placed great focus on our future initiatives to further strengthen our commercial and operational capabilities. Highlights from last year include the implementation of Oracle OPERA Cloud, the launch of the new Scandic Friends loyalty program, and the establishment of a strategic partnership with SAS

Preparations for the launch of Scandic’s new app and website are in full swing, with the planned launch prior to the summer. This initiative is expected to enhance the guest experience substantially. During the year, we will also implement a new workforce management platform for scheduling and staffing, which will help us optimize staffing further and strengthen cost control.

Together, these initiatives mark a shift towards a more commercial and competitive Scandic with strong potential to attract more guests, increase loyalty and improve efficiency.

During the quarter, we also signed agreements for two new Scandic Go hotels and opened our second Scandic Go. We also signed an agreement for a new hotel in Stuttgart. After the quarter ended, we also announced that Scandic would open a new 214-room hotel in Berlin that is expected to open during the second half-year 2026.

Scandic is well-positioned to drive growth, and in addition to our ambitious plan for the lease portfolio, we are also focusing on expansion through franchising. We see opportunities in Nordic destinations where we currently do not operate any hotels. With a strong commercial platform and operational model, we offer a competitive concept.

We are entering the new year better prepared than ever, and at the next general meeting, the Board intends to propose a dividend of 2.60 SEK per share. With our positive development as a foundation, we also intend to launch a new share buyback program of around 500 million SEK during 2025.

We have a good momentum and a positive outlook on market development going forward. Bookings are stable, and for the first quarter we expect somewhat higher occupancy at higher room rates compared with last year.  In conclusion, I’d like to thank our guests and team members for yet another successful year.

Jens Mathiesen
President & CEO

This information is information that Scandic Hotels Group 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 person set out below, at 07.30 CET on February 19, 2025.

For more information, please contact:
Rasmus Blomqvist, Director Investor Relations, Scandic Hotels Group
Email: rasmus.blomqvist@scandichotels.com
Telephone: +46 702 335 367

Scandic Hotels Group will present its Q4 and Year-End report for 2024 in a webcast at 09.00 CET on February 19, 2025. The report will be published at 07.30 CET on the same day.

Scandic’s President & CEO Jens Mathiesen will present the report together with CFO Pär Christiansen in a webcast and telephone conference. The presentation is in English.

Time: Wednesday, February 19, 2025 at 09.00 CET.

Location: Webcast and telephone conference.

Registration: Dial-in number to the telephone conference will be received by registering on the link below. After the registration you will be provided with phone numbers and a conference ID to access the conference.

Telephone Conference: Click here to register    

Webcast: Scandic’s Q4 and Year-End Report

The report, presentation and webcast will be available on www.scandichotelsgroup.com.

Welcome to join us to listen in and ask questions!

About Scandic Hotels Group
Scandic is the largest hotel company in the Nordic countries with a network of about 280 hotels with 58,000 rooms in operation and under development, in more than 130 destinations. The company is the leader when it comes to integrating sustainability in all operations and its award-winning Design for All concept ensures that Scandic hotels are accessible to everyone. Well loved by guests and employees, the Scandic Friends loyalty program is the largest in the Nordic hotel industry and the company is one of the most attractive employers in the region. Scandic is listed on Nasdaq Stockholm. www.scandichotelsgroup.com