First quarter in summary, January 1 - March 31, 2024.
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Net sales declined by 2.4 percent to 4,419 million SEK (4,526). The 2024 Easter holiday occurred in March, which is why the quarter is not fully comparable with the first quarter 2023. Calendar effects are estimated to have impacted net sales negatively by 4 to 5% due to the early Easter.
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Average occupancy rate was 51.9 percent (53.5).
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Average revenue per available room (RevPAR) was 619 SEK (626).
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Operating profit totaled 126 million SEK (199).
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Adjusted EBITDA was 33 million SEK (170).
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Excluding IFRS 16, earnings per share equaled -1.10 SEK (-0.88).
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Free cash flow was -733 million SEK (-356).
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Interest-bearing net debt/adjusted EBITDA amounted to 0.9x (0.5x excluding the convertible loan).
Events during the period
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On March 12, Scandic signed a contract for a 144-room Scandic Go in Oulu, Finland. The hotel is expected to open in 2025.
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On March 1, the 311-room Scandic Nürnberg Central opened in Germany.
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On January 17, Pär Christiansen was appointed new Chief Financial Officer and member of the Executive Committee.
CEO'S COMMENTS
"SCANDIC'S FINANCIAL POSITION IS STRONG AND WE HAVE A POWERFUL COMMERCIAL AGENDA. THE SECOND QUARTER GOT OFF TO A GOOD START AND BOOKINGS FOR MAY AND JUNE ARE IN LINE WITH LAST YEAR."
With low indebtedness and a powerful commercial agenda, we are developing Scandic at a high pace to improve the guest experience as well as to increase growth and profitability. The first quarter is relatively small and seasonally weak for the hotel sector. The early Easter holiday impacted demand significantly in March, but this was offset by a good start to April. We delivered a stable quarter, and the somewhat lower net sales and adjusted EBITDA compared with the previous year are mainly attributable to the Easter effect, strikes in Finland, significantly lower non-recurring items and the higher pace of development.
We have had a good start to the second quarter and the booking situation for spring and summer are in line with last year.
We note increased optimism in the market and have a positive view of Scandic's growth opportunities going forward. Our growth journey in Germany continues and during the quarter, we took over the operations of a hotel in Nürnberg, which has had a promising start. In general, our hotels perform well in the German market and along with initiatives to strengthen business development, we see excellent opportunities to increase the pace of growth. Scandic Go is also continuing to expand and during the quarter, we signed an agreement for a new hotel in Oulu (Finland) which will open in 2025. Guests appreciate the concept and I feel confident in our ambitious growth aspirations. The pace will remain high to grow and optimize the hotel portfolio and during the year, we will also gradually increase the pace of investments in maintenance and renovations to reach more normalized levels.
The rollout of Oracle Hospitality OPERA Cloud is going according to plan, and already before the summer all hotels will have finished implementing the new cloud-based enterprise system. In the longer term, we see great potential for improvements in all touchpoints of the guest journey, and there are several commercial projects underway related to, for example, the Scandic Friends loyalty program and our booking channels, that is, our website and app.
The new system will also allow us to streamline and facilitate daily work for team members in staffing and resource planning, where we see potential. As early as 2025, we expect to see positive financial effects from the investments.
With a good development so far in April and a favorable booking situation for May and June, we expect slightly higher occupancy and average room rates for the second quarter compared to last year. I have a positive view of the hotel market this year and after two record years in a row, we are commercially and financially stronger than ever. Scandic is well positioned for the future, and I look forward to an eventful spring and summer with a high level of activity at our hotels.
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 CEST on April 24, 2024.
For more information, please contact:
Rasmus Blomqvist, Director Investor Relations, Scandic Hotels Group
Email: [email protected]
Telephone: +46 702 335 367
Scandic Hotels Group will present its interim report for the first quarter 2024 in a webcast at 09.00 CEST on April 24, 2024. The report will be published at 07.30 CEST 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, April 24, 2024 at 09.00 CEST.
Location: Webcast and telephone conference.
Telephone numbers: 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.
Registration: Click here to register Webcast: Scandic's interim report for the first quarter 2024
Please register and call in five minutes before the start. The interim report, presentation and webcast will be made available on www.scandichotelsgroup.com.
Please 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
Scandic Hotels Group AB