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AcadeMedia Interim / Quarterly Report 2022
2996_ir_2023-02-02_05bb5c21-b83d-4ea5-8bcc-364d25e1b46f.pdf
Interim / Quarterly Report
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AcadeMedia AB (publ)
Interim report July – December 2022
- 5.9 percent increase in number of children and students, 13.0 percent in the Preschool Segment
- AcadeMedia received good allocation of vocational programmes and gain market share
- Preliminary school voucher increase of about 4 percent in Sweden for 2023
Interim report quarter 2 2022/23
Summary of the second quarter (October - December 2022)
- Net sales increased by 7.1 percent and amounted to SEK 4,041 million (3,774). Organic growth, including bolt-on acquisitions, was 4.3 percent.
- Operating profit (EBIT) amounted to SEK 266 million (342).
- Adjusted operating profit, adjusted for items affecting comparability and effects of IFRS 16, amounted to SEK 203 million (263). Items affecting comparability amounted to SEK -21 million (7).
- Net profit for the period amounted to SEK 109 million (186).
- Earnings per share was SEK 1.16 (1.76) after dilution. Adjusted for IFRS 16, earnings per share was SEK 1.38 (1.96) after dilution.
- The average number of children and students in preschool, compulsory school, and upper secondary school during the second quarter was 97,767 (92,363), representing an increase of 5.9 percent.
- In November, AcadeMedia's board of directors communicated a clarified dividend policy and introduced new financial key performance indicators.
Summary the first six months (July – December 2022)
- Net sales increased by 6.9 percent to SEK 7,146 million (6,685). Organic growth, including bolt-on acquisitions, was 4.4 percent.
- Operating profit (EBIT) amounted to SEK 504 million (575).
- Operating profit, adjusted for items affecting comparability and effects of IFRS 16, amounted to SEK 354 million (457). Items affecting comparability amounted to SEK -16 million (-23).
- Net profit for the period amounted to SEK 203 million (285).
- Diluted earnings per share was SEK 1.88 (2.70). Adjusted for IFRS 16, diluted earnings per share was SEK 2.31 (3.11).
- The average number of children and students in preschool, compulsory school, and upper secondary school during the first six months was 96,800 (91,897), representing an increase of 5.3 percent.
| Second quarter | Half year | Rolling 12 months |
Full year | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | Change | 2022/23 | 2021/22 | Change | Jan 22 – Dec 22 |
2021/22 |
| Net sales | 4,041 | 3,774 | 7.1% | 7,146 | 6,685 | 6.9% | 14,799 | 14,339 |
| Organic growth, % | 4.3% | 6.0% | -1.7 p.p. | 4.4% | 6.3% | -1.9 p.p. | 4.3% | 5.2% |
| Operating profit (EBIT) | 266 | 342 | -22.2% | 504 | 575 | -12.3% | 1,154 | 1,224 |
| EBIT margin, % | 6.6% | 9.1% | -2.5 p.p. | 7.1% | 8.6% | -1.5 p.p. | 7.8% | 8.5% |
| Adjusted EBIT1 | 203 | 263 | -22.8% | 354 | 457 | -22.5% | 898 | 1,001 |
| Adjusted EBIT margin, % | 5.0% | 7.0% | -2.0 p.p. | 5.0% | 6.8% | -1.8 p.p. | 6.1% | 7.0% |
| Profit for the period | 109 | 186 | -41.4% | 203 | 285 | -28.8% | 522 | 605 |
| Earnings per share, diluted (SEK) | 1.16 | 1.76 | -34.3% | 1.88 | 2.70 | -30.1% | 4.90 | 5.72 |
| Free cash flow | 282 | 606 | -53.5% | 218 | 506 | -56.9% | 633 | 922 |
| Number of children and students2 | 97,767 | 92,363 | 5,9% | 96,800 | 91,897 | 5,3% | - | 92,549 |
| Number of FTEs | 14,510 | 13,847 | 4.8% | 14,246 | 13,695 | 4.0% | n.m. | 13,829 |
Second quarter summary
1 The key performance indicators Adjusted EBITDA and Adjusted EBIT are performance measures adjusted for items affecting comparability and with lease agreements reported as it was applied in previous accounting periods (IAS 17). This means that leases of real estate are recognised as rent and not as
finance leases. 2Excl. adult education. See definitions on pages 32-33.
CEO's comments
The second quarter of the financial year shows continued strong demand for our educational programmes. The number of children and students totals nearly 100,000, 5.9 percent higher than in the previous year. The strongest growth is evident in the Preschool Segment, which now also includes the acquisition of FAWZ in Germany. In addition, preschool operations in Germany and the Netherlands continue to expand. As expected, the quarter was affected by inflation, and volume in areas of the Adult Education segment is lower than last year. Higher vocational training in adult education continues to show good growth. At the same time, our school operations report strong interest ahead of the autumn start in 2023.
Accelerated international growth
Our strategy for international growth has been successful. Our platform acquisition in Germany in 2017 included seven units; we now have 95 units in Germany and the Netherlands, with a total of around 7,200 children and students.
Through the acquisition of FAWZ, AcadeMedia has taken an important step and extended its operations in Germany. In addition to preschool, AcadeMedia now also operates in the compulsory school, upper secondary school and adult education sectors in the country. This platform acquisition paves the way to new opportunities for growth in Germany. The need for new preschool places continues to grow and now stands at around 400,000. AcadeMedia is in a strong position and operations in Germany now consists of 80 preschool and 7 school units.
In the Netherlands, more than 50 percent of all preschools are privately run. In the previous financial year, AcadeMedia acquired two units, and has since started to build a platform through further acquisitions. We now operate eight units and believe there are good opportunities for growth, both organically and through further acquisitions.
AcadeMedia gaining market share in higher vocational education
In January, the Swedish National Agency for Higher Education (MYH) announced the numbers of programme places to be allocated to the various providers. AcadeMedia was allocated 7,300 places (5,872), with the first courses starting in autumn 2023. This means that AcadeMedia's adult education is gaining market share. The total allocation for the year was 35,000 places, on par with that of the previous year.
The programmes that MYH decides will start are determined by the needs of the labour market. Unemployment remains high in Sweden and there are major skills shortages in many sectors. Higher vocational education plays an important role in meeting society's future challenges. AcadeMedia has long maintained a clear strategy to be the leading provider in this field, and we are grateful for the continued trust.
School voucher funding to increase in 2023 – inflation-proofed over time
Sweden's municipalities continue to prioritise school and education, even though many are experiencing a hard-pressed financial situation. The Swedish model is based on the right of all students to an equal education. As a result, the school voucher system must reflect changes in costs in society over time. Stability in the school voucher system is crucial to the quality of Swedish schools.
Many municipalities have now decided on the school voucher funding for 2023. Based on about 70 percent of these decisions, the increase in school voucher funding in Sweden averages just over 4 percent (2.6) in our preschool and school operations. In Norway, school voucher funding is expected to increase by around 9 percent (2.8).
Strong interest in open house events
Choosing a school is an important decision, whether it's for a proud six-year-old starting school or a teenager taking an important step towards adulthood via their choice of upper secondary school. To enable students and guardians to make an informed choice, we at AcadeMedia put a lot of effort into providing information about our schools and we also invite children, students and guardians to visit them. The opportunity to meet their future teachers and students already attending the school, better equips the student to choose a school that provides the conditions they need to succeed.
During the late autumn, a large number of Open Houses are held at both compulsory and upper secondary schools, and we have seen a great deal of interest in our units. This great interest applies very much to our upper secondary school campuses, where several schools are housed under the same roof and share a number of facilities. Demand for upper secondary school places is high, especially in the larger cities where expansion of capacity provided by the community has not kept pace.
Roadmap 2030
For a number of years, AcadeMedia has operated a clear plan for the future. We are now closing Roadmap 2023 and can confirm that we have delivered well on it. We have expanded our educational activities and educational profiles, invested in quality, and built capacity with new schools and campuses. As a result, demand and growth have been good.
We are now launching our Roadmap 2030, where the central message is that all of us at AcadeMedia will work to make the societies we work in a little better, every day. Our aim is to help change people's lives for the better and to create sustainable societies where everyone's right to a good education is fulfilled. The need for new places in education and training is great and investing in education and training is crucial to the development of society. AcadeMedia has already taken many important steps in this direction. We look forward to a rewarding and exciting 2023 – and are starting on the journey towards 2030.
Marcus Strömberg
President and CEO AcadeMedia AB (publ)
Development in the second quarter (October – December 2022)
Volume development and net sales
Net sales in the second quarter increased by 7.1 percent to SEK 4,041 million (3,774). The acquisition of Sandviks AS and FAWZ contributed with 1.8 percentage points. Organic growth, including bolt-on acquisitions, was 4.3 percent and changes in exchange rates impacted sales by 1.0 percent. The average number of children and students, excluding the Adult Education Segment, increased by 5.9 percent to 97,767 (92,363)
Adjusted operating profit and operating profit (EBIT)
Adjusted EBIT was SEK 203 million (263) and adjusted EBIT margin 5.0 percent (7.0). Operating profit (EBIT) was SEK 266 million (342) and EBIT margin 6.6 percent (9.1). The development in the first quarter continued in the second, earnings decline was mainly due to lower volumes in part of the Adult Education Segment. Inflation increased operating costs, mainly electricity and food, about SEK 20 million. Lower pension contribution in Norway, about SEK -10 million, and capacity expansion in the Swedish school segments had a negative impact. Higher capacity utilisation in the Swedish and Norwegian preschools dampened the effect. Acquisitions contributed with SEK 4 million in the quarter.
Group overhead was in line with last year.
Items affecting comparability
Items affecting comparability amounted to SEK -21 million (7) and include transaction and integration expenses related to the FAWZ acquisition, restructuring expenses in the Compulsory School Segment and insurance compensation related to a fire in a compulsory school in July 2021. The insurance case was settled in the quarter.
| Second quarter | ||
|---|---|---|
| SEK m | 2022/23 | 2021/22 |
| Transaction expenses (FAWZ) | -11 | - |
| Restructuring expenses (Comp.) | -13 | - |
| Fire, insurance compensation (Comp.) | +3 | 18 |
| VAT- (Adult education) | - | -11 |
| Total | -21 | 7 |
Acquisitions, divestments, new establishments, and discontinued operation
Net, nine new units were added in the quarter. All in the Preschool Segment.
In the graph, the EBIT margin is presented excl. IFRS 16.
Second quarter in summary by segment
| Number of students (average) |
Net sales, SEK m |
Adj. operating profit. (EBIT), SEK m |
Adj. EBIT margin |
Operating profit (EBIT), SEK m |
EBIT margin | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2022/23 | 2021/22 | |
| Preschool | 24,842 | 21,982 | 1,252 | 1,061 | 26 | 22 | 2.1% | 2.1% | 15 | 22 | 1.2% | 2.1% |
| Compulsory School | 28,520 | 27,867 | 986 | 937 | 63 | 74 | 6.4% | 7.9% | 53 | 92 | 5.4% | 9.8% |
| Upper Secondary School | 44,405 | 42,513 | 1,361 | 1,278 | 107 | 118 | 7.9% | 9.2% | 107 | 118 | 7.9% | 9.2% |
| Adult Education | 1 - |
1 - |
438 | 498 | 28 | 71 | 6.4% | 14.3% | 28 | 60 | 6.4% | 12.0% |
| Group adj. Parent company |
- | - | 4 | 0 | -20 | -21 | - | - | -20 | -21 | - | - |
| Impact from IFRS 162 | - | - | - | - | - | - | - | - | 84 | 72 | - | - |
| Total | 97,767 | 92,363 | 4,041 | 3,774 | 203 | 263 | 5.0% | 7.0% | 266 | 342 | 6.6% | 9.1% |
1 Adult education volume is not measured by the number of participants as the length of the programmes varies from single occasions to academic years. 2 Please see note 2 for information on how application of IFRS 16 impact the financial reports.
Development in the first six months (July 2022 – December 2022)
Volume development and net sales
Net sales increased by 6.9 percent to SEK 7,146 million (6,685). The acquisition of Sandviks AS and FAWZ contributed 1.4 percentage points. Organic growth, including bolt-on acquisitions, was 4.4 percent and changes in exchange rates impacted sales by 1.1 percent. The average number of children and students, excluding the Adult Education Segment, increased by 5.3 percent to 96,800 (91,897)
Adjusted operating profit and operating profit (EBIT)
Adjusted EBIT for the first six months decreased to SEK 354 million (457) and adjusted EBIT margin was 5.0 percent (6.8). Operating profit (EBIT) was SEK 504 million (575) and EBIT margin 7.1 percent (8.6). The decline in earnings was mainly due to lower volumes in part of the Adult Education Segment. Inflation increased operating costs, mainly electricity and food, about SEK 30 million. Also, lower pension contribution in Norway, about SEK -20 million, and capacity expansion in the Swedish schooling segments had a negative impact. Higher capacity utilisation in the Swedish and Norwegian preschools dampened the effect. Acquisitions contributed with SEK 5 million in the quarter.
Group overhead expenses were lower compared to last year, due lower activity levels and cost savings programs.
Items affecting comparability
Items affecting comparability amounted to SEK -16 million (-23) and include transaction and integration expenses relating to the FAWZ acquisition, restructuring expenses relating the Compulsory School Segment, and insurance compensation related to a fire in a compulsory school in July 2021. Insurance compensation has covered most of the expenses and the insurance case was settled in the quarter.
| Half year | ||
|---|---|---|
| SEK m | 2022/23 | 2021/22 |
| Transaction expenses (FAWZ) | -11 | - |
| Restructuring expenses (Comp.) | -13 | - |
| Fire, insurance compensation (Comp.) | +9 | +18 |
| Fire (Comp.) | - | -30 |
| VAT- (Adult education) | - | -11 |
| Total | -16 | -23 |
Acquisitions, divestments, new establishments, and discontinued operation
Net, 21 new units were added during the first six months. Most in the Netherlands and Germany where 14 were added through acquisitions and 6 through new openings. Also, three upper secondary schools, one compulsory school, and one preschool have opened in Sweden. First half year is also impacted by four units less.
In the first quarter, AcadeMedia acquired Futuregames further strengthening the position in game education within the Adult Education Segment. Also, the edtech company Framtidsutveckling was acquired during the first quarter.
First six months in summary by segment
| Number of students (average) |
Net sales, SEK m |
Adj. operating profit. (EBIT), SEK m |
Adj. EBIT margin |
Operating profit (EBIT), SEK m |
EBIT margin | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2022/23 | 2021/22 | |
| Preschool | 23,772 | 21,491 | 2,209 | 1,868 | 23 | 30 | 1.0% | 1.6% | 12 | 30 | 0.5% | 1.6% |
| Compulsory School | 28,468 | 27,782 | 1,732 | 1,649 | 114 | 128 | 6.6% | 7.8% | 109 | 116 | 6.3% | 7.0% |
| Upper Secondary School | 44,560 | 42,624 | 2,386 | 2,242 | 181 | 205 | 7.6% | 9.1% | 181 | 205 | 7.6% | 9.1% |
| Adult Education | 1 - |
1 - |
815 | 925 | 72 | 138 | 8.8% | 14.9% | 72 | 127 | 8.8% | 13.7% |
| Group adj. Parent company |
- | - | 4 | 0 | -36 | -44 | - | - | -36 | -44 | - | - |
| Impact from IFRS 162 | - | - | - | - | - | - | - | - | 166 | 141 | - | - |
| Total | 96,800 | 91,897 | 7,146 | 6,685 | 354 | 457 | 5.0% | 6.8% | 504 | 575 | 7.1% | 8.6% |
1 Adult education volume is not measured by the number of participants as the length of the programmes varies from single occasions to academic years
2 Please see note 2 for information on how application of IFRS 16 impact the financial reports.
Cash flow and financial position
In the cash flow analysis below, lease payments attributable to property leasing are reported as part of operating activities. According to IFRS 16, lease payments are reported as part of the financing activities. Please see note 2 for reconciliation with the financial reports.
Cash flow adjusted for lease payments
| Second quarter | Half year | Rolling 12 months |
Full year | |||
|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | 2022/23 | 2021/22 | Jan 22- Dec 22 |
2021/22 |
| Cash flow from operating activities before changes in working capital |
215 | 295 | 393 | 541 | 1,044 | 1,192 |
| Cash flow from changes in working capital | 139 | 380 | -16 | 108 | -91 | 33 |
| Cash flow from operating activities | 354 | 675 | 377 | 649 | 953 | 1,225 |
| Investments related to existing operations1 | -72 | -70 | -160 | -142 | -320 | -303 |
| Investments related to expansion2 | -75 | -51 | -157 | -84 | -306 | -234 |
| Cash flow from investing activities | -146 | -120 | -316 | -227 | -626 | -536 |
| Cash flow from financing activities | -301 | -313 | -388 | -312 | -605 | -530 |
| CASH FLOW FOR THE PERIOD | -93 | 242 | -327 | 110 | -278 | 158 |
| Free cash flow3 | 282 | 606 | 218 | 506 | 633 | 922 |
Cash flow from operating activities for the quarter amounted to SEK 354 million (675). The decline compared to last year was due to lower profit and a less positive effect from net working capital development, SEK +139 million (+380). The net working capital development in the quarter was mainly due to a reversal of the calendar effect from the first quarter, which increased accounts payables of about SEK 200 million in the first quarter.
Investments in existing operations1 were in line with last year and amounted to SEK 72 million (70) contributing to a free cash flow3 of SEK 282 million (606). Expansion investments2 in the period were SEK 75 million (51), mainly related to the acquisition of FAWZ and an additional purchase consideration in the Netherlands. Cash flow from investing activities amounted to SEK -146 million (-120). Cash flow from financing activities totalled SEK -301 million (-313), of which dividend to shareholders SEK -185 million (-185). All in all, cash flow for the quarter amounted to SEK -93 million (+242).
In the first six months, cash flow from operating activities amounted to SEK 377 million (649). The decline was due to lower profit and a less positive effect from net working capital development, SEK -16 million (+108). Paid tax in the first six months amounted to SEK 148 million (71), affected by higher preliminary tax in Sweden at SEK 30 million. Paid tax previous year included a positive adjustment of final tax in Norway and Sweden at SEK 55 million.
Investments in existing operations1 during the first six months were higher compared to last year and amounted to SEK 160 million (142) contributing to a free cash flow3 of SEK 218 million (506). Expansion investments2 in the period were SEK 157 million (84), mainly related to the acquisition of Framtidsutveckling, Futuregames, preschools in the Netherlands, and FAWZ in Germany. In total, cash flow from investing activities amounted to SEK -316 million (-227). Cash flow from financing activities totalled SEK -388 million (-312) of which dividend to shareholders SEK -185 million (-185). All in all, cash flow from the first six months amounted to SEK -327 million (110).
1 Investments related to existing operations include leasehold improvements, investments in equipment, investments in intangible non-current assets, investments in non-current financial assets, and divestment of non-current financial assets.
2 Expansion investments include acquisitions and investments in own preschool buildings in Norway, as well as divestments of such assets.
3 Free cash flow before expansion investments consists of the cash flow from operating activities less investments in existing operations.
Financial position1
In November 2022, AcadeMedia's Board of Directors communicated a clarified dividend policy and at the same time introduced new financial key performance indicators relating to capital structure. The new dividend policy and financial key performance indicators are specified on page 14.
| Including IFRS 16 | Excluding IFRS 16 | ||||||
|---|---|---|---|---|---|---|---|
| SEK m | 2022-12-31 | 2021-12-31 | 2022-06-30 | 2022-12-31 | 2021-12-31 | 2022-06-30 | |
| Net debt | 10,409 | 9,324 | 9,460 | 1,357 | 1,216 | 987 | |
| Property-related leasing liabilities | 9,052 | 8,109 | 8,474 | - | - | - | |
| Net debt/ adjusted EBITDA | 3.4 | 3.2 | 3.1 | 1.0 | 0.9 | 0.7 | |
| Debt ratio (%) | 55.4% | 54.1% | 53.4% | 13.1% | 12.6% | 10.1% | |
| Equity/asset-ratio (%) | - | - | - | 54.8% | 53.0% | 55.3% | |
| Buildings2 | 1,138 | 1,120 | 1,057 | 1,138 | 1,120 | 1,057 |
Consolidated interest-bearing net debt1 including property-related leasing liabilities amounted to SEK 10,409 million (9,324), of which property-related leasing liabilities amounts to SEK 9,052 million (8,109). The increase compared to last year is partly related to expansion and new lease agreements, partly that current lease agreements expired and resigned. Financial expenses increased to SEK 253 million (214) following the increased leasing liabilities and increased interest rates. Interest expenses related to property-related leasing liabilities amounted to SEK 224 million (196). During the third quarter 2022/23, the group's net debt including leasing liabilities is expected to increase by approximately SEK 500 million due to indexation of existing rental agreements.
Consolidated interest-bearing net debt1 excluding property-related leasing liabilities amounted to SEK 1,357 million (1,216) as of 31 December 2022. The increase in net debt over the past 12 months is due to international expansion in Germany and Netherlands. In the beginning of the financial year, AcadeMedia signed a new loan agreement with DNB and SEB to refinance existing loans to an amount of SEK 1,650 million until the middle of 2025 with the possibility to extend until 2027. Annual amortization will decrease by SEK 34 million which will positively impact cash flow.
The property loans increased over the past 12 months following the acquisition of FAWZ and a stronger Norwegian krona. In total, the property loans amounted
to SEK 776 million (764). Buildings increased by SEK 18 million to SEK 1,138 million (1,120) during the equivalent period.
Net debt in relation to adjusted EBITDA1 (rolling 12 months) amounted to 1.0 (0.9), which meets the Group's financial target of a net debt in relation to adjusted EBITDA lower than 3.0. Net debt in relation to adjusted EBITDA including IFRS 16 (rolling 12 months) was 3.4 (3.2).
2 As of 31 December 2022, AcadeMedia owns 41 preschool properties in Norway, which are funded by long-term liabilities in the Norwegian State Housing Bank and short-term construction loans. Through the acquisition of FAWZ, AcadeMedia owns 3 properties in Germany.
1 Implementation of IFRS 16 had a significant effect on AcadeMedia's financial statements. By excluding the effects of IFRS 16, continuity is achieved in the KPIs above. See pages 32 to 33 for definitions.
Preschool
- The number of children increased by 13.0 percent to 24,842 (21,982) in the second quarter.
- Sales increased by 18.1 percent and amounted to SEK 1,252 million (1,061), positively affected by acquisitions and currency changes. Organic growth increased by 8.1 percent.
- Adjusted operating profit (adj. EBIT) increased to SEK 26 million (22).
AcadeMedia's Preschool segment runs preschools in Sweden, Norway, Germany and the Netherlands, and educational services through Sandviks AS. In Sweden, business is conducted in many municipalities with a total of 110 units. In Norway, Espira is the third largest preschool provider with 107 units. In Germany and the Netherlands, we operate 87 and 8 units, respectively. The segment had a total of 312 units during the quarter.
Outcome for the second quarter
The average number of children increased by 13.0 percent compared with the previous year and amounted to 24,842 (21,982). The increase was mainly driven by the acquisition of FAWZ, the acquisition in Netherlands, and new establishments in Germany. Sales increased by 18.1 percent and amounted to SEK 1,252 million (1,061). The acquisitions, Sandviks and FAWZ, and positive currency effects contributed 6.3 and 3.8 percentage points, respectively. The organic growth was 8.1 percent.
Adjusted operating profit (EBIT) increased to SEK 26 million (22) and the margin was 2.1 percent (2.1). The increased profit was mainly due to increased capacity utilisation in Sweden and the acquisitions. The Norwegian business was affected by lower pension supplement, SEK 9 million and increased energy costs, SEK 5 million, mitigated by a higher capacity utilisation and lower costs for temporary staff. In Germany, higher operating costs continue to have a negative impact.
Non-recurring items amounted to SEK -11 million (-) and include transaction and integration costs for the acquisition of FAWZ. Operating income (EBIT) was lower compared to last year and amounted to SEK 15 million (22) corresponding to an EBIT margin of 1.2 percent (2.1).
As of 1 January, pension expenses in Norway are expected to increase with approximately SEK 10 million on an annual basis.
Outcome for the first half year
The average number of children increased by 10.6 percent and amounted to 23,772 (21,491). Net sales increased by 18.3 percent and amounted to SEK 2,209 million (1,868). The acquisitions, Sandviks and FAWZ, and positive currency effects contributed 5.0 and 4.1 percentage points, respectively. The organic growth was 9.1 percent.
Adjusted operating profit (adj. EBIT) for the first half year was SEK 23 million (30), and the margin 1.0 percent (1.6). The decline in profit and margin were due to the Norwegian preschools and relates to higher salary expenses and lower pension supplement, total SEK 22 million, and also increased operating costs mainly energy, SEK 8 million, driven by inflation. Increased operating costs due to inflation also had an impact on the Swedish and German operation but were mitigated by increased capacity utilisation in Sweden.
Non-recurring items amounted to SEK -11 million (-) and include transaction and integration costs for the acquisition of FAWZ. Operating income (EBIT) was lower compared to last year and amounted to SEK 12 million (30). This corresponds to an EBIT margin of 0.5 percent (1.6).
Operational changes
The existing business in Germany opened one new unit and two existing units moved to larger premises. In Netherlands, one more unit was acquired and the acquisition of FAWZ in Germany contributed with 8 units in total. In Sweden, one unit was closed in the quarter.
Net, the number of units have increased by 20 during the first six months. The preliminary school voucher revision in Norway amounts to 9 percent (2.8).
Financial overview1
| Second quarter | Half year | Rolling 12 m |
Full year | |||||
|---|---|---|---|---|---|---|---|---|
| SEK M | 2022/23 | 2021/22 | Change | 2022/23 | 2021/22 | Change | Jan 22 – Dec 22 |
2021/22 |
| Net sales | 1,252 | 1,061 | 18.1% | 2,209 | 1,868 | 18.3% | 4,520 | 4,180 |
| Operating profit (EBIT) | 15 | 22 | -31.8% | 12 | 30 | -60.0% | 124 | 142 |
| EBIT margin, % | 1.2% | 2.1% | -0.9 p.p. | 0.5% | 1.6% | -1.1 p.p. | 2.7% | 3.4% |
| Items affecting comparability | -11 | - | n.a. | -11 | - | n.a. | -32 | -21 |
| Adjusted operating profit (adj. EBIT) | 26 | 22 | 18.2% | 23 | 30 | -23.3% | 155 | 163 |
| Adjusted EBIT margin, % | 2.1% | 2.1% | 0.0 p.p. | 1.0% | 1.6% | -0.6 p.p. | 3.4% | 3.9% |
| Number of children and students | 24,842 | 21,982 | 13.0% | 23,772 | 21,491 | 10.6% | n.m. | 22,413 |
| Number of units | 312 | 285 | 9.5% | 308 | 282 | 9.2% | n.m. | 286 |
The segments report property leasing in accordance with previous accounting practice (IAS 17). This entails that property lease payments are recognised as rent and not as finance lease. 1 Additional financial information per segment is presented on pages 28-29.
Compulsory School
- The number of students increased by 2.3 percent to 28,520 (27,867) in the second quarter.
- Sales increased by 5,2 percent to SEK 986 million (937).
- Adjusted operating profit (EBIT) decreased to SEK 63 million (74).
AcadeMedia's Compulsory School segment runs compulsory schools and integrated preschools in many municipalities in Sweden under the brands Innovitaskolorna, Montessori Mondial, Noblaskolorna, Pops Academy, Snitz and Vittra. Operations are based entirely on the school voucher system. The segment had 116 units during the quarter, whereof 38 integrated preschools.
Outcome for the second quarter
The average number of students increased by 2.3 percent compared with the previous year and amounted to 28,520 (27,867). The increase relates to growth in existing units, of which some have increased their capacity, and to one new unit with 130 children.
Net sales increased by 5.2 percent and amounted to SEK 986 million (937), which in addition to the increase in number of students, also was due to the annual adjustment of school vouchers and increased government grants.
Adjusted operating profit was SEK 63 million (74) and the margin 6.4 percent (7.9). The result was affected by the general higher cost level, energy and meal costs increased by SEK 7 million. The newly opened unit and units with added capacity also have a temporary negative effect on the results until the capacity utilization has increased. In the quarter, initiatives to strengthen student health at our schools, also contributing to increased costs.
Non-recurring items amounted to SEK -10 million (+18) and include restructuring expenses and insurance compensation related to a fire at a school in July 2021. Insurance compensation has covered most of the expenses and the insurance case was settled in the quarter. Operating income (EBIT) decreased compared to last year and amounted to SEK 53 million (92) corresponding to an EBIT margin of 5.4 percent (9.8).
Financial overview1
Outcome for the first half year
The average number of students increased by 2.5 percent and amounted to 28,468 (27,782). Net sales increased by 5.0 percent and amounted to SEK 1,732 million (1,649) following the volume increase but also the annual adjustment of school vouchers and increased government grants.
Adjusted operating profit was lower than last year, SEK 114 million (128). The result was affected by the general higher cost level where energy and meal costs increased by SEK 10 million. Initiatives to strengthen student health at our schools, also contributing to increased costs. The newly opened unit and units with added capacity also have a temporary negative effect on the results until the utilization has increased.
Items affecting comparability amounted to SEK -4 million (-12) include restructuring expenses and insurance compensation relating to fire in July 2021. Operating profit (EBIT) amounted to SEK 109 million (116), and the operating margin was 6.3 percent (7.0).
Operational changes
During the first quarter, one compulsory school opened in Örebro with 130 children and two units merged into one unit.
Second quarter Half year Rolling 12 m Full year SEK m 2022/23 2021/22 Change 2022/23 2021/22 Change Jan 22 – Dec 22 2021/22 Net sales 986 937 5.2% 1,732 1,649 5.0% 3,626 3,543 Operating profit (EBIT) 53 92 -42.4% 109 116 -6.0% 246 253 EBIT margin, % 5.4% 9.8% -4.4 p.p. 6.3% 7.0% -0.7 p.p. 6.8% 7.1% Items affecting comparability -10 18 n.a. -4 -12 n.a. -10 -18 Adjusted operating profit (adj. EBIT) 63 74 -14.9% 114 128 -10.9% 257 271 Adjusted EBIT margin, % 6.4% 7.9% -1.5 p.p. 6.6% 7.8% -1.2 p.p. 7.1% 7.6% Number of children and students 28,520 27,867 2.3% 28,468 27,782 2.5% n.m. 27,896 Number of units 116 116 - 116 116 - n.m. 116
The segments report property leasing in accordance with previous accounting practice (IAS 17). This entails that property lease payments are recognised as rent and not as finance lease.
1 Additional financial information per segment is presented on pages 28-29.
Upper Secondary School
- The number of students increased by 4.5 percent in the second quarter, amounting to 44,405 (42,513).
- Sales increased 6.5 percent to SEK 1,361 million (1,278).
- Adjusted operating profit decreased to SEK 107 million (118).
AcadeMedia's Upper Secondary School Segment provides upper secondary education throughout Sweden under 16 different brands, offering both academic and vocational programmes. The schools operate entirely based on the school voucher system. The segment had 152 units during the quarter.
Outcome for the second quarter
The number of students increased by 4.5 percent compared with the previous year, amounting to 44,405 (42,513). The growth was mainly attributable to 24 new units that have opened since 2017, of which three in the beginning of current financial year, enrolling new students. In total, these 24 units have admitted about 1,250 additional students compared to the same period last year. Expansion through new starts and investments in campuses has increased the student capacity with about four thousand places. These places are expected to be filled in coming years.
Net sales increased by 6.5 percent to SEK 1,361 million (1,278), following increased number of student and the annual school voucher revision.
Adjusted operating profit was SEK 107 million (118), representing a margin of 7.9 percent (9.2). Decreased profit and margin were a result of expansion in new starts and campuses that initially reduce the capacity utilisation to 84.9 percent (87.6). Higher cost level, mainly energy, increased operating costs by SEK 6 million compared to last year.
Operating profit (EBIT) decreased and amounted to SEK 107 million (118) and the margin was 7.9 percent (9.2).
Outcome for the first half year
The number of students increased by 4.5 percent amounting to 44,560 (42,624) and net sales increased by 6.4 percent to SEK 2,386 million (2,242). The growth was attributable to new openings and higher school vouchers per student.
Adjusted operating profit was SEK 181 million (205), representing a margin of 7.6 percent (9.1). Profit and margin were affected by general higher cost level, about SEK 13 million, and lower capacity utilisation due to expansion.
Items affecting comparability amounted to SEK 0 million (0). Operating profit (EBIT) was SEK 181 million (205) and the margin was 7.6 percent (9.1).
Operational changes
At the start of the autumn term 2022, three new upper secondary schools opened, in Gothenburg and Malmö, admitting almost 350 students. Number of units during the first six months has been affected by one closed unit in Stockholm and two units merged into one unit.
| Second quarter | Half year | Rolling 12 m |
Full year | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | Change | 2022/23 | 2021/22 | Change | Jan 22 – Dec 22 |
2021/22 |
| Net sales | 1,361 | 1,278 | 6.5% | 2,386 | 2,242 | 6.4% | 4,950 | 4,807 |
| Operating profit (EBIT) | 107 | 118 | -9.3% | 181 | 205 | -11.7% | 411 | 435 |
| EBIT margin, % | 7.9% | 9.2% | -1.3 p.p. | 7.6% | 9.1% | -1.5 p.p. | 8.3% | 9.0% |
| Items affecting comparability | - | - | n.a. | - | - | n.a. | -15 | -15 |
| Adjusted operating profit (adj. EBIT) | 107 | 118 | -9.3% | 181 | 205 | -11.7% | 426 | 450 |
| Adjusted EBIT margin, % | 7.9% | 9.2% | -1.3 p.p. | 7.6% | 9.1% | -1.5 p.p. | 8.6% | 9.4% |
| Number of children and students | 44,405 | 42,513 | 4.5% | 44,560 | 42,624 | 4.5% | n.m. | 42,240 |
| Number of units | 152 | 151 | 0.7% | 152 | 151 | 0.7% | n.m. | 151 |
Financial overview1
The segments report property leasing in accordance with previous accounting practice (IAS 17). This entails that property lease payments are recognised as rent and not as finance lease.
1 Additional financial information per segment is presented on pages 28-29.
Adult Education
- Sales decreased 12.0 percent to SEK 438 million (498).
- Operating profit (EBIT) was SEK 28 million (60).
AcadeMedia's Adult Education Segment is Sweden's largest provider of adult education with a presence in about 150 locations in the country. The segment works in three main customer groups: Municipal Higher Education (43 percent of sales in the quarter), Higher Vocational Education (44) and Labour Market Services (8).
Outcome for the second quarter
Net sales decreased by 12.0 percent and amounted to SEK 438 million (498). The decrease is mainly attributable to Municipal Adult Education and Labour Market Services, to some extent mitigated by a strong Higher Vocational Education.
The number of participants in the Higher Vocational Education continued to increase and net sales increased by 15 percent. Higher Vocational Education is now the largest area in the segment.
Volumes in Municipal Adult Education continue to be much lower than last year and net sales decreased by 28 percent affecting profit and margin. Efforts to adjust the business, especially in basic adult education and upper secondary school education for adults, is under way and is expected to be completed during the fourth quarter 2022/23.
The conscious choice to reduce exposure to the Labour Market Services business continue to impact net sales which decreased 25 percent compared to last year. The decline is related to the contracts STOM and Vocational Swedish (YS) that are now closed. The volumes in the new matching contracts (KROM) have increased substantially but are still far below the Swedish Public Employment Service's forecasts.
Operating profit (EBIT) decreased to SEK 28 million (60), corresponding to a margin 6.4 percent (12.0). The lower earnings were mainly related to lower volumes in Municipal Adult Education business. Also, the Labour Market Services declined, an effect of a conscious reduced exposure.
The assessment is that volumes will continue to be low in the third quarter. Consequently, the segment's EBITmargin in the third quarter is anticipated to be
significantly below the range of 9-11 percent. The development of the economy and the new transition study grant (sv. Omställningsstudiestöd) can in the longer term have a positive effect on the development.
Outcome for the first half year
Net sales decreased by 11.9 percent and amounted to SEK 815 million (925). Adjusted operating profit was SEK 72 million (138), corresponding to a margin of 8.8 percent (14.9). Operating profit decreased to SEK 72 million (127) and the margin was 8.8 percent (13.7). The decline was mainly due to lower volumes.
Operational changes and market development
I January, the Swedish National Agency for Higher Vocational Education announced that AcadeMedia was awarded 7,364 educational places with a first start in the autumn 2023. The award means that AcadeMedia is gaining market share on a market that has stabilised on a high level.
The outlook on the labour market has worsened during the final months of 2022 and the number of people receiving notice of employment termination increased. However, in December the number of notices of employment termination was in line with the past two years.
To stimulate reskilling and upskilling, a new transition study grant (sv. Omställningsstudiestöd) was launched in October 2022, searchable for individuals already employed. More people than expected showed interest in the study grant and demand for education within higher vocational education and Komvux are expected to increase.
Financial overview1
| Second quarter | Half year | Rolling 12 m |
Full year | |||||
|---|---|---|---|---|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | Change | 2022/23 | 2021/22 | Change | Jan 22 - Dec 22 |
2021/22 |
| Net sales | 438 | 498 | -12.0% | 815 | 925 | -11.9% | 1,694 | 1,804 |
| Operating profit (EBIT) | 28 | 60 | -53.3% | 72 | 127 | -43.3% | 149 | 203 |
| EBIT margin, % | 6.4% | 12.0% | -5.6 p.p. | 8.8% | 13.7% | -4.9 p.p. | 8.8% | 11.3% |
| Items affecting comparability | 0 | -11 | n.a. | -0 | -11 | n.a. | - | -11 |
| Adjusted operating profit (adj. EBIT) | 28 | 71 | -60.6% | 72 | 138 | -47.8% | 149 | 214 |
| Adjusted EBIT margin, % | 6.4% | 14.3% | -7.9 p.p. | 8.8% | 14.9% | -6.1 p.p. | 8.8% | 11.9% |
The segments report property leasing in accordance with previous accounting practice (IAS 17). This entails that property lease payments are recognised as rent and not as finance lease.
1 Additional financial information per segment is presented on pages 28-29.
Quality
AcadeMedia's vision is to lead the development of education for the future. One of our goals in achieving this is to be a leader in learning, where the main indicator is '100% – everyone should achieve their educational objectives'. We can only accomplish this by providing the highest quality education in the areas in which the Group operates. To attain our goal, AcadeMedia maintains strong focus on systematic quality enhancing work. We have a group-wide quality management model, and our size enables us to pursue development initiatives and find ways for the structured exchange of experiences on a large scale. We are constantly developing as a learning organisation.
"All of AcadeMedia's operations are part of a clear structure with a common framework and a culture with a focus on continuous improvement that makes us stronger together. We must deliver high-quality teaching and good goal fulfilment both based on core tasks and business tasks." AcadeMedia's Roadmap
Quality results for the second quarter
During the second quarter AcadeMedias quality report and sustainability report for the fiscal year 2021/22 was published. The report includes the group's quality results for preschool, compulsory school, upper secondary school and adult education. The report is available on AcadeMedias web.
Preschool
No comprehensive quality reviews were carried out at the Swedish, Norwegian, or German preschools during the second quarter.
Compulsory School
No comprehensive quality reviews were carried out at the Swedish compulsory schools during the second quarter.
Upper Secondary School
In November 2022, the Swedish national agency for education published the results for students who graduated from upper secondary school in the spring of 2022. The results were in line with AcadeMedia's own and preliminary grade compilations that were presented in AcadeMedia's Annual and sustainability report for 2021/22.
The percentage of AcadeMedia's students who met the upper secondary school graduation requirements declined, 90.1 percent (92.0). The national average decreased 91.0 percent (91.8). The grade point average for students with diplomas was in line with last year 14.2 (14.2), the national average was also in line with last year 14.5 (14.5) points. The percentage students with diploma within three years declined to 78,3 percent (79.2), while the national average increased to 79.7 percent (79.6 percent).
Adult Education
Compilations of the Adult Education's participant surveys with respect to the autumn term of 2022 show that participants' satisfaction remains at a high level and continue to improve compared to the previous year, 86.4 percent (86.0). The propensity to recommend AcadeMedia to others increased to 87.4 percent (87.1).
Employees
The average number of full-time employees in the quarter was 14,510 (13,847) which represents an increase of 4.8 percent. The proportion of women in the Swedish operation was 66.8 percent (66.9) in the quarter. Employee turnover in Sweden, measured as the proportion of individuals who resigned, was 12.7 percent aggregated over the six-month July – December period, compared with 9.8 percent aggregated over the corresponding period in the previous year. Absence due to illness for AcadeMedia employees in Sweden (aggregated average short-term absence <90 days) was 4.4 percent (4.7) during quarter.
12
Parent Company
Revenue during the first six months amounted to SEK 9 million (6). Operating profit (EBIT) amounted to SEK -6 million (- 5) and profit after tax was SEK -0 million (-2). The Parent Company's assets essentially consist of participations in Group companies and intercompany receivables. Operations are financed by equity, debt, and intra group loans. Equity in the Parent Company as of 31 December 2022 was SEK 2,233 million (2,406). The Parent Company's interest-bearing debt as of 31 December 2022 was SEK 506 million (730).
Owners and share capital
AcadeMedia AB (publ) is a public limited company listed on Nasdaq Stockholm since 2016. As of 31 December 2022, share capital was SEK 105,793,382 and the number of shares amounted to a total of 105,793,382 shares distributed among 105,587,477 ordinary shares and 205,905 Class C shares, where the C-shares are held by AcadeMedia AB. The quota value is SEK 1.00 per share. Mellby Gård AB is the largest shareholder in AcadeMedia with 22.83 percent of the capital as of 31 December 2022.
The number of shares and votes in AcadeMedia AB has increased during September 2022 as a result of the conversion of convertibles within the framework of the convertible program aimed at employees in the AcadeMedia group which was introduced at the annual general meeting on November 22, 2018. In total, the number of shares and votes has increased by 504 ordinary shares and equal many voices.
Significant events after the end of the reporting period
Preliminary school voucher increases
With around 70 percent of decisions received, we see an average school voucher increase of about 4 percent (2.6) for our Swedish operations. In Norway, school voucher funding is expected to rise by about 9 percent (2.8) and is based on the actual municipal cost for the financial year 2021 adjusted with a cost index for 2022 and 2023. The voucher increases are based on municipality announcements to date and are calculated as a weighted average based on AcadeMedia's student mix in each country.
The Swedish National Agency for Higher Vocational Education announced allocation of educational places with first start autumn 2023
AcadeMedia's Higher Vocational Education awarded more than 7,300 educational places and gains market share. This was announced by the Swedish National Agency for Higher Vocational Education in connection with the presentation of which applications were granted. The award means that AcadeMedia's total number of educational places for the autumn 2023 is expected to be higher compared to the autumn 2022.
Fire at a primary school in Helsingborg
In January 2023, a school in Helsingborg was damaged by fire. The damaged parts will be restored. Additional costs as a result of the fire will impact the result in the third quarter of 2022/23 as an item affecting comparability. The costs are expected to a large extent be covered by insurance claims.
Other
Risks and uncertainties
AcadeMedia categorises risks as operating, external, and financial and they are described in detail in AcadeMedia AB's 2021/22 Annual Report. Operating risks include variations in demand and number of students and participants, risk relating to the supply of qualified employees and payroll expenses, risk relating to quality deficiencies, contractual compliance within adult education, AcadeMedia's reputation and brand, permits, and liability and property risk. With declining demand in a specific unit, fixed expenses and thus rental costs are a risk.
External risks include risks relating to school voucher funding and the general economy, political risk, changes in laws or regulations as well as the dependence on national authorities in the education sector. A common factor for various political proposals is that the processes are usually long, and proposals must be in a legally enforceable format and must ultimately be approved by the respective national parliament. In addition, there are financial risks such as credit and currency risks.
In October 2022, the incoming government presented an agreement on the school. The proposals covered both system and organizational issues and things that more directly affect teaching in the school. It is important to underline that these proposals in the agreement must be investigated according to the existing procedures. These proposals must both be sent out for consultation and to the Legislative Council before they are presented for a vote in the Riksdag. This process can take several years. The main headings of the agreement for the school are Knowledge results and knowledge
content, Safety and peace of mind at work and independent schools and freedom of choice. If the proposals are implemented, the expectation is that a clear set of regulations with a focus on knowledge, at the same time as serious independent schools will also continue to be given good conditions to be an important part of the work to develop the school. One of the proposals in the agreement concerns a ban on profit distribution during the first years for new startups and new acquisitions. It therefore does not cover the existing operations of AcadeMedia or other actors. In terms of start-ups, AcadeMedia has historically contributed to the creation of new educational places by opening new schools and expanding operations. Newly opened units are generally loss-making in the first years, so the proposal is not expected to affect AcadeMedia's plans to continue contributing to the creation of new training places or expansion. The proposals are therefore judged, based on known information, not to affect AcadeMedia's financial position.
The increased inflation and rising interest rates can lead to a recession, which in turn will increase the demand for adult education. Higher electricity prices, CPI-indexed rents and meal costs affect AcadeMedia's cost mass, but over time, higher costs are reflected in increased school fees.
Seasonal variations
AcadeMedia's four segments show different seasonal variations. The three school segments show recurring seasonal variations, in which the first half of the year, July to December, typically reports weaker sales and earnings. This is mainly due to school holidays, annual leave and the annual salary review. The second half, January to June, is stronger, as sales typically rise because of the annual school voucher funding reviews and higher numbers of children and students. The Adult Education segment shows more irregular seasonal variations. However, with a stable portfolio of contracts, the fourth and first quarters are typically weaker, while the second and third quarters are stronger due to the distribution of training days over the year. However, the seasonal variations in the Adult Education segment may show sharp deviations from this pattern in the event of major contractual changes or changes in public initiatives. The seasonal variations are described in more detail in AcadeMedia AB's annual report for 2021/22.
Covid-19 has had a major impact on our business, which is why 2019/20 and 2020/21 were special. The result was mainly affected by lower costs during the second and third quarters of the business year, mainly due to cancelled and postponed activities as well as lower personnel costs due to high sickness absence and limited access to substitutes.
Clarified dividend policy and introduction of new financial key performance indicators
In November 2022, AcadeMedia's Board of Directors communicated a clarified dividend policy and at the same time introduced new financial key performance indicators relating to capital structure. The purpose with the clarification was to clarify AcadeMedia's capital structure and how capital should be allocated over time. The considerations made by the board when formulating the new policy are presented in the press release from 7 November 2022.
AcadeMedia's new dividend policy reads:
AcadeMedia's purpose is to provide quality education for the funding received. AcadeMedia's free cash flow will primarily be reinvested in the business in order to maintain high quality and to finance future business development and growth. The Board of Directors deem that AcadeMedia should maintain a strong balance sheet and thereby high financial stability. Surplus may be distributed to the shareholders provided that AcadeMedia in all material respects meets its targets relating to quality and financial position. This can be done through dividend and/or through redemption of shares or similar methods provided all AcadeMedia's shareholders are treated equally. AcadeMedia aims to distribute 30 percent of annual profits after tax as dividends.
Given that AcadeMedia has large lease obligations related to property, the Board of Directors have decided to implement new financial key performance indicators that take this into account and that can be applied when evaluating the company's financial position. The new key ratios are:
- Net debt / adjusted EBITDA R12, including the effect of IFRS 16
- Debt ratio defined as Net debt / Total assets excluding cash and cash equivalents, including and excluding the effects of IFRS 16
Outlook
AcadeMedia does not publish any forecasts.
Calendar
| 2 February 2023 | Interim report, second quarter |
|---|---|
| 5 May 2023 | Interim report, third quarter |
| 19 July 2023 | Preliminary result for the fiscal year 2022/23 |
| 30 August 2023 | Year-end report 2022/23 |
| 25 October 2023 | Interim report, first quarter |
| 25 October 2023 | Annual report 2022/23 |
For further information, please visit https://corporate.academedia.se
The Board of Directors and the Chief Executive Officer certify that the interim report gives a true and fair view of the Parent Company's and Group's operations, their financial position and results of operations, and describes significant risks and uncertainties facing the Parent Company and other companies in the Group.
Stockholm 2 February 2023
Håkan Sörman Chairman of the Board
Marcus Strömberg Johan Andersson Ann-Marie Begler Chief Executive Officer Board Member Board Member
Jan Bernhardsson Mikael Helmerson Pia Rudengren Board Member Board Member Board Member
Silvija Seres Anna Lundmark Boman Anders Lövgren Board Member Employee representative Employee representative
This report has not been reviewed by the company's auditors.
AcadeMedia AB (publ)
Corp. reg. no. 556846-0231 Box 213, 101 24 Stockholm tel. +46-8-794 42 00
For more information, please contact:
Marcus Strömberg, President and CEO Telephone: +46-8-794 42 00 E-Mail: [email protected] Katarina Wilson, CFO Telephone: +46-8-794 42 91 E-mail: [email protected]
This information is information that AcadeMedia AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET on 2 February 2023.
Consolidated income statement
| Second quarter | Half year | Rolling 12 m |
Full year | |||
|---|---|---|---|---|---|---|
| Not SEK m |
2022/23 | 2021/22 | 2022/23 | 2021/22 | Jan 22- Dec 22 |
2021/22 |
| Net Sales 3 |
4,041 | 3,774 | 7,146 | 6,685 | 14,799 | 14,339 |
| Cost of services | -392 | -345 | -707 | -617 | -1,364 | -1,274 |
| Other external expenses | -393 | -325 | -709 | -592 | -1,490 | -1,373 |
| Personnel expenses | -2,495 | -2,333 | -4,288 | -4,021 | -8,915 | -8,648 |
| Depreciation/amortization | -474 | -436 | -922 | -858 | -1,820 | -1,755 |
| Items affecting comparability 1) | -21 | 7 | -16 | -23 | -57 | -64 |
| TOTAL OPERATING EXPENSES | -3,776 | -3,433 | -6,641 | -6,111 | -13,645 | -13,115 |
| OPERATING INCOME (EBIT) | 266 | 342 | 504 | 575 | 1,154 | 1,224 |
| Financial income | 8 | 0 | 11 | 0 | 12 | 1 |
| Financial expenses 6 |
-129 | -108 | -253 | -214 | -480 | -441 |
| Net financial items | -122 | -108 | -242 | -214 | -469 | -441 |
| INCOME BEFORE TAX | 144 | 234 | 263 | 361 | 686 | 784 |
| Tax | -35 | -48 | -60 | -76 | -163 | -179 |
| PROFIT FOR THE PERIOD | 109 | 186 | 203 | 285 | 522 | 605 |
| Profit for the period attributable to: | ||||||
| Owners of the parent company | 109 | 186 | 203 | 285 | 522 | 605 |
| Basic earnings per share (SEK) | 1.16 | 1.76 | 1.89 | 2.70 | 4.91 | 5.73 |
| Diluted earnings per share (SEK) | 1.16 | 1.76 | 1.88 | 2.70 | 4.90 | 5.72 |
| Earnings per share based on number of shares outstanding (SEK) |
1.16 | 1.76 | 1.89 | 2.70 | 4.91 | 5.73 |
1 Items affecting comparability are specified on page 4. Key performance indicator definitions are on pages 32 to 33.
Please see note 2 for information on how application of IFRS 16 impact the financial reports.
| Second quarter | Half year | Rolling 12 m |
Full year | |||
|---|---|---|---|---|---|---|
| Not SEK m |
2022/23 | 2021/22 | 2022/23 | 2021/22 | Jan 22- Dec 22 |
2021/22 |
| PROFIT FOR THE PERIOD | 109 | 186 | 203 | 285 | 522 | 605 |
| Other comprehensive income | ||||||
| Items that will not be reclassified to profit/loss | ||||||
| Actuarial gains and losses | 2 | -10 | -36 | -20 | -22 | -6 |
| Deferred tax relating to actuarial gains and losses | -0 | 2 | 8 | 4 | 5 | 1 |
| 1 | -8 | -28 | -15 | -17 | -4 | |
| Items that may be reclassified to profit/loss | ||||||
| Translation differences | 12 | 17 | 25 | 23 | 38 | 35 |
| Other comprehensive income for the period | 14 | 9 | -3 | 7 | 20 | 31 |
| COMPREHENSIVE INCOME FOR THE PERIOD | 123 | 195 | 200 | 293 | 543 | 636 |
| Comprehensive income for the period attributable to: | ||||||
| Owners of the parent company | 123 | 195 | 200 | 293 | 543 | 636 |
Consolidated statement of comprehensive income
| SEK m | Dec 31, 2022 |
Dec 31, 2021 |
Jun 30, 2022 |
|---|---|---|---|
| ASSETS | |||
| Intangible non-current assets | 6,758 | 6,471 | 6,597 |
| Buildings | 1,138 | 1,120 | 1,057 |
| Right-of-use assets | 8,987 | 8,140 | 8,367 |
| Other property, plant, and equipment | 1,049 | 824 | 924 |
| Other non-current assets | 102 | 62 | 79 |
| Total non-current assets | 18,034 | 16,617 | 17,024 |
| Current receivables | 740 | 617 | 704 |
| Cash and cash equivalents1 | 818 | 1,084 | 1,137 |
| Total current assets | 1,558 | 1,701 | 1,840 |
| TOTAL ASSETS | 19,592 | 18,318 | 18,864 |
| EQUITY AND LIABILITIES | |||
| Total equity | 5,772 | 5,412 | 5,758 |
| Non-current liabilities to credit institutions | 1,532 | 1,605 | 722 |
| Long-term lease liabilities | 8,069 | 7,150 | 7,464 |
| Provisions and other non-current liabilities | 229 | 181 | 212 |
| Total non-current liabilities | 9,829 | 8,936 | 8,397 |
| Current interest-bearing liabilities | 348 | 431 | 1,207 |
| Short-term lease liabilities | 1,251 | 1,197 | 1,180 |
| Other current liabilities | 2,392 | 2,342 | 2,323 |
| Total current liabilities | 3,991 | 3,970 | 4,709 |
| TOTAL EQUITY AND LIABILITIES | 19,592 | 18,318 | 18,864 |
Consolidated statement of financial position in summary
1 Cash includes Cash restricted for payroll tax withholdings with SEK 55 million (SEK 54 million per 31 Dec 2021 and SEK 37 million per 30 June 2022).
Summary of consolidated statement of changes in equity
Equity attributable to the owners of the Parent Company
| Jul – Dec | Jul - Dec | Jul-Jun | |
|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | 2021/22 |
| Opening balance | 5,758 | 5,305 | 5,305 |
| Profit for the period | 203 | 285 | 605 |
| Other comprehensive income for the period | -3 | 7 | 31 |
| Consolidated statement of comprehensive income | 199 | 293 | 636 |
| Dividend paid | -185 | -185 | -185 |
| Other transactions with owners1 | -0 | -0 | 2 |
| Closing balance | 5,772 | 5,412 | 5,758 |
1 Transactions with owners amounts to SEK +0.0 million and include new issue connected to the convertible program SEK +0.0 million and share-matching program SEK +0.0 million, and repurchase of issued warrants SEK -0,1 million in the second quarter. Transactions with owners in the previous year include a new share issue connected to the convertible program SEK +0,2 million and premium for issued warrants of SEK +2,1 million in the fourth quarter.
Consolidated cash flow statement
| Second quarter | Half year | Full year | |||
|---|---|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2021/22 |
| Operating profit (EBIT) | 266 | 342 | 504 | 575 | 1,224 |
| Depreciation/amortization | 474 | 436 | 922 | 858 | 1,755 |
| Adjustment for other non-cash items | -11 | -17 | -23 | -15 | 37 |
| Tax paid | -77 | -59 | -148 | -71 | -179 |
| Cash flow from operating activities before changes in working capital |
653 | 701 | 1,256 | 1,347 | 2,838 |
| Cash flow from changes in working capital | 275 | 317 | -11 | 40 | -7 |
| Cash flow from operating activities | 927 | 1,019 | 1,244 | 1,387 | 2,831 |
| Acquisition of subsidiaries | -80 | -37 | -156 | -51 | -181 |
| Investments in buildings | -7 | -13 | -13 | -20 | -20 |
| Leasehold improvements | -22 | -31 | -45 | -64 | -148 |
| Investments in equipment | -48 | -34 | -112 | -74 | -152 |
| Investments in intangible non-current assets | -2 | -4 | -3 | -4 | -2 |
| Divestment of fixed assets | 12 | - | 12 | - | - |
| Investments in non-current financial assets | - | -0 | - | -14 | -33 |
| Cash flow from investing activities | -146 | -120 | -316 | -227 | -536 |
| Interest received (+) and paid (-) | -10 | -6 | -21 | -13 | -30 |
| Interest paid, lease liabilities | -117 | -101 | -228 | -200 | -407 |
| Dividend paid | -185 | -185 | -185 | -185 | -185 |
| New share issue | - | - | - | - | 2 |
| Increase (+)/decrease (-) of interest-bearing liabilities | -64 | -82 | -106 | -45 | -171 |
| Repayment of lease liabilities | -499 | -282 | -715 | -608 | -1,346 |
| Cash flow from financing activities | -875 | -656 | -1,255 | -1,051 | -2,136 |
| CASH FLOW FOR THE PERIOD | -93 | 242 | -327 | 110 | 158 |
| Cash and cash equivalents at beginning of period | 907 | 836 | 1,137 | 966 | 966 |
| Exchange-rate differences in cash and cash equivalents | 4 | 6 | 8 | 8 | 12 |
| Cash and cash equivalents at end of period | 818 | 1,084 | 818 | 1,084 | 1,137 |
Please see note 2 for information on how application of IFRS 16 impact the financial reports.
Notes and accounting policies
The interim report includes pages 1 to 33 and pages 1 to 15 are an integrated part of this financial report.
NOTE 1: ACCOUNTING POLICIES
This Interim Report for the Group is prepared in accordance with IAS 34 Interim Financial Reporting, as well as applicable stipulations in the Annual Accounts Act. The Interim report for the Parent Company is prepared in accordance with chapter 9 Interim report in the Annual Accounts Act.
The accounting policies and basis of calculation applied are the same as those described in AcadeMedia's 2021/22 Annual Report, which was prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU.
New and amended accounting standards applied from 1 July 2022
New and amended standards and interpretations applicable from 1 July 2022 have not and will not have any significant effect on the financial reports.
NOTE 2: FINANCIAL REPORTS DISCLOSING THE IMPACT FROM IMPLEMENTATION OF IFRS 16
Below, the effects on the financial reports from implementation of IFRS 16 Leasing are disclosed.
Consolidated income statement
| Second quarter 22/23 | First half year 22/23 | Full year 21/22 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| SEK m | IFRS 16 effect |
Excl. IFRS 16 |
IFRS 16 effect |
Excl. IFRS 16 |
IFRS 16 effect |
Excl. IFRS 16 |
|||
| Net Sales | 4,041 | - | 4,041 | 7,146 | - | 7,146 | 14,339 | - | 14,339 |
| Cost of services | -392 | - | -392 | -707 | - | -707 | -1,274 | - | -1,274 |
| Other external expenses | -393 | 438 | -831 | -709 | 863 | -1,572 | -1,373 | 1,646 | -3,019 |
| Personnel expenses | -2,495 | - | -2,495 | -4,288 | - | -4,288 | -8,648 | - | -8,648 |
| Depreciation/amortization | -474 | -354 | -120 | -922 | -697 | -225 | -1,755 | -1,358 | -398 |
| Items affecting comparability | -21 | - | -21 | -16 | - | -16 | -64 | - | -64 |
| TOTAL OPERATING EXPENSES | -3,776 | 84 | -3,860 | -6,641 | 166 | -6,808 | -13,115 | 288 | -13,403 |
| OPERATING INCOME | 266 | 84 | 181 | 504 | 166 | 338 | 1,224 | 288 | 936 |
| Financial income | 8 | - | 8 | 11 | - | 11 | 1 | - | 1 |
| Financial expenses | -129 | -115 | -14 | -253 | -224 | -29 | -441 | -401 | -41 |
| Net financial items | -122 | -115 | -7 | -242 | -224 | -18 | -441 | -401 | -40 |
| INCOME BEFORE TAX | 144 | -31 | 175 | 263 | -58 | 321 | 784 | -112 | 896 |
| Tax | -35 | 7 | -42 | -60 | 13 | -73 | -179 | 25 | -204 |
| PROFIT FOR THE PERIOD | 109 | -24 | 133 | 203 | -45 | 248 | 605 | -88 | 692 |
| Other comprehensive income for the period | 14 | - | 14 | -3 | - | -3 | 31 | - | 31 |
| COMPREHENSIVE INCOME FOR THE PERIOD |
123 | -24 | 146 | 200 | -45 | 244 | 636 | -88 | 723 |
| Earnings per share basic (SEK) | 1.16 | -0.23 | 1.39 | 1.89 | -0.43 | 2.32 | 5.73 | -0.83 | 6.56 |
| Earnings per share basic/diluted (SEK) | 1.16 | -0.23 | 1.38 | 1.88 | -0.42 | 2.31 | 5.72 | -0.83 | 6.54 |
| Earnings per share based on number of shares outstanding (SEK) |
1.16 | -0.23 | 1.39 | 1.89 | -0.43 | 2.32 | 5.73 | -0.83 | 6.56 |
Consolidated statement of financial position in summary
| 31 Dec 2022 | 31 Dec 2021 | |||||
|---|---|---|---|---|---|---|
| SEK m | IFRS 16 effect |
Excl. IFRS 16 |
IFRS 16 effect |
Excl. IFRS 16 |
||
| ASSETS | ||||||
| Intangible non-current assets | 6,758 | - | 6,758 | 6,471 | - | 6,471 |
| Buildings | 1,138 | - | 1,138 | 1,120 | - | 1,120 |
| Right-of-use assets | 8,987 | 8,722 | 265 | 8,140 | 7,905 | 235 |
| Other property, plant, and equipment | 1,049 | - | 1,049 | 824 | - | 824 |
| Other non-current assets | 102 | 28 | 74 | 62 | 19 | 43 |
| Total non-current assets | 18,034 | 8,750 | 9,284 | 16,617 | 7,924 | 8,692 |
| Current receivables | 740 | -331 | 1,070 | 617 | -302 | 919 |
| Cash and cash equivalents | 818 | - | 818 | 1,084 | - | 1,084 |
| Total current assets | 1,558 | -331 | 1,889 | 1,701 | -302 | 2,003 |
| TOTAL ASSETS | 19,592 | 8,420 | 11,173 | 18,318 | 7,622 | 10,696 |
| EQUITY AND LIABILITIES | ||||||
| Total equity | 5,772 | -345 | 6,117 | 5,412 | -256 | 5,668 |
| Non-current liabilities to credit institutions | 1,532 | - | 1,532 | 1,605 | - | 1,605 |
| Long-term lease liabilities | 8,069 | 7,933 | 136 | 7,150 | 7,041 | 109 |
| Provisions and other non-current liabilities | 229 | -114 | 343 | 181 | -53 | 234 |
| Total non-current liabilities | 9,829 | 7,819 | 2,010 | 8,936 | 6,987 | 1,948 |
| Current interest-bearing liabilities | 348 | - | 348 | 431 | - | 431 |
| Short-term lease liabilities | 1,251 | 1,119 | 133 | 1,197 | 1,068 | 129 |
| Other current liabilities | 2,392 | -173 | 2,565 | 2,342 | -178 | 2,519 |
| Total current liabilities | 3,991 | 945 | 3,045 | 3,970 | 890 | 3,079 |
| TOTAL EQUITY AND LIABILITIES | 19,592 | 8,420 | 11,173 | 18,318 | 7,622 | 10,696 |
Consolidated cash flow statement
| Second quarter 22/23 | First half year 22/23 | |||||
|---|---|---|---|---|---|---|
| SEK m | IFRS 16 effect |
Excl. IFRS 16 |
IFRS 16 effect |
Excl. IFRS 16 |
||
| Operating profit/loss (EBIT) | 266 | 84 | 181 | 504 | 166 | 338 |
| Depreciation/amortization | 474 | 354 | 120 | 922 | 697 | 225 |
| Adjustment for other non-cash items | -11 | -0 | -10 | -23 | -1 | -23 |
| Tax paid | -77 | - | -77 | -148 | - | -148 |
| Cash flow from operating activities before changes in working capital |
653 | 438 | 215 | 1,256 | 863 | 393 |
| Cash flow from changes in working capital | 275 | 136 | 139 | -11 | 4 | -16 |
| Cash flow from operating activities | 927 | 574 | 354 | 1,244 | 867 | 377 |
| Cash flow from investing activities | -146 | - | -146 | -316 | - | -316 |
| Cash flow from financing activities | -875 | -574 | -301 | -1,255 | -867 | -388 |
| CASH FLOW FOR THE PERIOD | -93 | -0 | -93 | -327 | -0 | -327 |
NOTE 3: REVENUE
| Second quarter Half year |
Full year | ||||
|---|---|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2021/22 |
| Education-related income | 3,868 | 3,651 | 6,851 | 6,480 | 13,885 |
| State subsidies | 84 | 74 | 135 | 123 | 243 |
| Sandviks | 28 | 0 | 55 | 0 | 15 |
| Other income | 62 | 49 | 106 | 82 | 196 |
| Net Sales | 4,041 | 3,774 | 7,146 | 6,686 | 14,339 |
Education-related income consists of school vouchers and participant fees. Tuition fees are recognised as revenue and allocated in line with the degree of completion over the period during which the education is provided, including time for planning and grading of student learning. Revenue for preschool operations is recognised based on the same fundamental principles. Revenue for services sold is recognised upon delivery to students. Revenue in the adult education operation is based on the same fundamental principles, but also takes into account the empirical estimate of the number of participants not completing the programme started, as well as estimates of compensation received based on the number of participants completing the programme.
State subsidies include State subsidies for the primary school initiative, smaller classes, skills development and before and after school care initiatives. State subsidies are recognised at fair value in the case that there is reasonable certainty that they will be received and that AcadeMedia will meet the conditions attached to the grant. Subsidies received to cover costs are recognised as an expense reduction for the relevant expense item, for example teacher salary premiums, head teacher premiums and other salary subsidies.
Other income refers to income not directly related to education.
NOTE 4: RELATED-PARTY TRANSACTIONS
Related party transactions are described in detail in the 2021/22 Annual Report. Related party transactions take place at an arm's length basis. During the second quarter no significant related-party transactions took place.
NOTE 5: ACQUISITIONS
| Acquiring company | Acquired company | Acquisition date | Segment |
|---|---|---|---|
| Plek voor kinderen Holding B.V. | 100% B.V. | 30-Sep-22 | Preschool |
| Plek voor kinderen Holding B.V. | Tommy & Annika B.V. | 30-Sep-22 | Preschool |
| AcadeMedia Game Education AB | Changemaker Education AB (Futuregames) | 31-Aug-22 | Adult Education |
| AcadeMedia Edtech AB | Framtidsutveckling i Sverige AB | 31-Aug-22 | Adult Education |
| AcadeMedia Education GmbH | FAWZ gGmbH | 07-Nov-22 | Preschool |
The purchase price allocations are preliminary one year from the acquisition date.
The acquisitions above represent a combined value of less than 5 percent of the Group. Voting rights amount to 100 percent.
The purchase consideration was in the form of cash.
Details of the net assets and goodwill acquired are given below. Goodwill attributed to company value exceeding net assets is not tax deductible whereas goodwill attributed to assets in asset-based acquisitions is tax deductible.
In the first quarter, the acquisition analysis for Sandviks AS has been adjusted, which among other things resulted in a reduction of Goodwill of SEK 12 million and an increase in Brands and Other intangible fixed assets of SEK 11 million and SEK 4 million, respectively. The adjustment is shown in the table below.
| Acquisition effects of acquisitions made (SEK m) | Adjustment Sandviks |
Acquisition in the period |
Total |
|---|---|---|---|
| Purchase consideration including transaction expenses and interest compensation | - | 296 | 296 |
| Purchase consideration excluding transaction expenses and including interest compensation | - | 296 | 296 |
| Fair value of acquired net assets excluding goodwill | -12 | -172 | -184 |
| Total goodwill | -12 | 124 | 112 |
| Fair values acquired (SEK m) | Adjustment Sandviks |
Acquisition in the period |
Total |
|---|---|---|---|
| Intangible non-current assets | 15 | 5 | 20 |
| Property, plant, and equipment | - | 114 | 114 |
| Right-of-use assets | - | 145 | 145 |
| Financial non-current assets | - | 1 | 1 |
| Current assets | - | 10 | 10 |
| Cash and cash equivalents | - | 140 | 140 |
| Interest bearing liabilities | - | -21 | -21 |
| Interest bearing liabilities – IFRS 2016 | - | -145 | -145 |
| Non-interest-bearing liabilities | - | -75 | -75 |
| Current tax liability | - | 0 | 0 |
| Deferred tax liability | -3 | -2 | -6 |
| Net assets acquired | 12 | 172 | 184 |
FAWZ gGmbH was acquired in the second quarter and the purchase price allocation will be revised in the third quarter.
Goodwill that has arisen in connection with acquisitions consists in part of synergies with existing businesses for example within personnel, recruitment, and personnel development and with service organisation, which can be streamlined as a result of the acquisitions, and in part of acquired resources which are not valued such as staff and the future sales development.
| Impact of the acquisitions on the Group's cash and cash equivalents (SEK m) | Total |
|---|---|
| Purchase consideration excluding transaction expenses and including interest | 296 |
| Less purchase consideration that has not been settled in cash as of period end | -1 |
| Cash and cash equivalents at time of acquisition | -140 |
| Impact on the Group's cash and cash equivalents | 155 |
| Contribution of acquisitions to consolidated profit (SEK m) | Totalt |
| Net sales | 75 |
| Operating profit (EBIT) | 5 |
| If the units had been included in consolidated profit from July 1, 2022 the contribution would have been (SEK m) |
Totalt |
| Net sales | 184 |
Operating profit (EBIT) 11
NOTE 6: FINANCIAL EXPENSES
| Second quarter | Half year | |||||
|---|---|---|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2021/22 | |
| Financial expenses | ||||||
| Interest expense | -10 | -5 | -21 | -12 | -25 | |
| Borrowing costs 1 | -0 | -1 | -1 | -1 | -4 | |
| Interest expense on the lease liability | -117 | -101 | -228 | -200 | -407 | |
| Exchange rate losses | - | - | - | - | -2 | |
| Other | -2 | -1 | -3 | -1 | -3 | |
| Financial expenses | -129 | -108 | -253 | -214 | -441 | |
| Interest expense on property related lease liability | -115 | -99 | -224 | -196 | -401 |
1 Acquisition costs for loans are expensed over the term of the loan.
The financial expenses are somewhat higher than previous year, following increased property-related leasing liabilities as the operations grow.
NOTE 7: TAXES
The tax expense for the first six months amounted to SEK 60 (76) million, corresponding to an effective tax rate of 22.9 percent (21.0).
NOTE 8: FINANCIAL INSTRUMENTS
AcadeMedia's financial instruments consist of accounts receivable, other receivables, accrued income, cash and cash equivalents, accounts payable, accrued expenses, interest-bearing liabilities, and deferred consideration. Since loans to credit institutions are at variable interest, which essentially are deemed to correspond to current market interest rates, the carrying amount excluding loan expenses is considered to correspond to fair value. Other financial assets and liabilities have short terms. It is therefore deemed that the fair values of all of the financial instruments are approximately equal to their carrying amounts.
NOT 9: LEASING COMMITMENTS
In addition to the leasing contracts reported in the balance sheet, AcadeMedia has entered into leasing contracts which have not yet commenced. The total commitment for these contracts as per 31 December 2022 amounts to SEK 1,555 million (2,084 as per 30 June 2022). The decrease in the quarter is an effect of leasing contracts commencing at the start of the autumn term.
On 1 January 2023, most of AcadeMedia's existing rental agreements are revised. In Sweden, this is done mainly based on index which was approximately 10 percent. The impact on AcadeMedia's balance sheet is expected to amount to approximately SEK 500 million in higher leasing liabilities and right of use assets.
Parent company – financial reports
Parent company income statement in summary
| Second quarter | Half year | Full year | |||
|---|---|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2021/22 |
| Net sales | 4 | 2 | 9 | 6 | 7 |
| Operating expenses | -8 | -6 | -15 | -11 | -24 |
| OPERATING PROFIT | -5 | -4 | -6 | -5 | -17 |
| Interest income and similar items | 26 | 5 | 38 | 9 | 20 |
| Interest expense and similar items | -24 | -4 | -32 | -7 | -16 |
| Net financial items | 2 | 1 | 6 | 2 | 4 |
| Year-end appropriations | - | - | - | - | 20 |
| PROFIT BEFORE TAX | -3 | -3 | -0 | -3 | 8 |
| Tax | 1 | 1 | 0 | 1 | -1 |
| PROFIT FOR THE PERIOD | -2 | -3 | -0 | -2 | 7 |
Parent company other comprehensive income
| Second quarter | Half year | |||||
|---|---|---|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2021/22 | |
| Profit for the period | -2 | -3 | -0 | -2 | 7 | |
| Other comprehensive income for the period | - | - | - | - | - | |
| COMPREHENSIVE INCOME FOR THE PERIOD | -2 | -3 | -0 | -2 | 7 |
Parent company balance sheet in summary
| SEK m | 31 Dec | 31 Dec | Jun 30, |
|---|---|---|---|
| 2022 | 2021 | 2022 | |
| ASSETS | |||
| Participations in Group companies | 3,261 | 3,261 | 3,261 |
| Total non-current assets | 3,261 | 3,261 | 3,261 |
| Current receivables | 4,062 | 2,947 | 3,178 |
| Cash and cash equivalents | 432 | 828 | 841 |
| Total current assets | 4,494 | 3,775 | 4,020 |
| TOTAL ASSETS | 7,756 | 7,036 | 7,281 |
| EQUITY AND LIABILITIES | |||
| Restricted equity | 106 | 106 | 106 |
| Non-restricted equity | 2,127 | 2,300 | 2,312 |
| Total equity | 2,233 | 2,406 | 2,418 |
| Non-current liabilities | 306 | 355 | 19 |
| Current liabilities | 5,216 | 4,275 | 4,844 |
| TOTAL EQUITY AND LIABILITIES | 7,756 | 7,036 | 7,281 |
Parent company statement of changes in equity
| Jul -Dec | Jul -Dec | Jul-Jun | |
|---|---|---|---|
| SEK m | 2022/23 | 2021/22 | 2021/22 |
| Opening balance | 2,418 | 2,593 | 2,593 |
| Profit for the period | 0 | -2 | 7 |
| Other comprehensive income for the period | - | - | - |
| Total profit for the period | 0 | -2 | 7 |
| Dividend | -185 | -185 | -185 |
| Other transactions with owners1 | 0 | 0 | 2 |
| Closing balance | 2,233 | 2,406 | 2,418 |
1 Transactions with owners amounts to SEK +0.0 million and include new issue connected to the convertible program SEK +0.0 million and share-matching program SEK +0.0 million, and repurchase of issued warrants SEK -0,1 million in the second quarter. Transactions with owners in the previous year include a new share issue connected to the convertible program SEK +0,2 million and premium for issued warrants of SEK +2,1 million in the fourth quarter.
Multi-year review
| SEK million, unless otherwise stated | Second quarter Half year |
Full year | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2021/22 | 2020/21 | 2019/20 | 2018/191 | 2017/181 | |
| PROFIT/LOSS ITEMS | |||||||||
| Net sales | 4,041 | 3,774 | 7,146 | 6,685 | 14,339 | 13,340 | 12,271 | 11,715 | 10,810 |
| Items affecting comparability | -21 | 7 | -16 | -23 | -64 | -7 | 36 | 1 | -48 |
| EBITDA | 740 | 778 | 1,427 | 1,433 | 2,980 | 2,754 | 2,486 | 931 | 872 |
| Depreciation/amortization | -474 | -436 | -922 | -858 | -1,755 | -1,580 | -1,513 | -296 | -250 |
| Operating profit/loss (EBIT) | 266 | 342 | 504 | 575 | 1,224 | 1,174 | 973 | 635 | 622 |
| Net financial items | -122 | -108 | -242 | -214 | -441 | -402 | -417 | -69 | -68 |
| Profit/loss for the period before tax | 144 | 234 | 263 | 361 | 784 | 772 | 556 | 566 | 555 |
| Profit/loss for the period after tax | 109 | 186 | 203 | 285 | 605 | 599 | 431 | 431 | 430 |
| BALANCE SHEET ITEMS | |||||||||
| Non-current assets | 18,034 | 16,617 | 18,034 | 16,617 | 17,024 | 15,773 | 15,262 | 8,218 | 7,823 |
| Current receivables and inventories | 740 | 617 | 740 | 617 | 704 | 662 | 710 | 976 | 860 |
| Cash and cash equivalents | 818 | 1,084 | 818 | 1,084 | 1,137 | 966 | 528 | 527 | 699 |
| Non-current interest-bearing liabilities | 1,559 | 1,631 | 1,559 | 1,631 | 747 | 1,850 | 1,914 | 2,205 | 2,209 |
| Long-term lease liabilities | 8,069 | 7,150 | 8,069 | 7,150 | 7,464 | 6,495 | 6,346 | - | - |
| Non-current non-interest-bearing liabilities | 201 | 155 | 201 | 155 | 187 | 162 | 207 | 305 | 135 |
| Current interest-bearing liabilities | 348 | 431 | 348 | 431 | 1,207 | 195 | 270 | 592 | 673 |
| Short-term lease liabilities | 1,251 | 1,197 | 1,251 | 1,197 | 1,180 | 1,077 | 1,010 | - | - |
| Current non-interest-bearing liabilities | 2,392 | 2,342 | 2,392 | 2,342 | 2,323 | 2,319 | 1,965 | 2,030 | 2,103 |
| Equity | 5,772 | 5,412 | 5,772 | 5,412 | 5,758 | 5,305 | 4,790 | 4,589 | 4,262 |
| Total assets | 19,592 | 18,318 | 19,592 | 18,318 | 18,864 | 17,401 | 16,500 | 9,720 | 9,383 |
| Capital employed | 8,293 | 7,968 | 8,293 | 7,968 | 8,181 | 7,705 | 7,232 | 7,386 | 7,144 |
| Net debt including IFRS 16 | 10,409 | 9,324 | 10,409 | 9,324 | 9,460 | 8,650 | 9,011 | 2,266 | 2,179 |
| Net debt, excluding IFRS 16 | 1,357 | 1,216 | 1,357 | 1,216 | 987 | 1,222 | 1,797 | 2,266 | 2,179 |
| Property adjusted net debt | 582 | 451 | 582 | 451 | 237 | 526 | 1,138 | 1,533 | 1,528 |
| KEY RATIOS | |||||||||
| Net sales, SEK m | 4,041 | 3,774 | 7,146 | 6,685 | 14,339 | 13,340 | 12,271 | 11,715 | 10,810 |
| Organic growth incl. Bolt-on acquisitions, % | 4.3% | 6.0% | 4.4% | 6.3% | 5.2% | 8.1% | 5.4% | 4.4% | 5.8% |
| Acquired growth, larger acquisitions, % | 1.8% | 3.1% | 1.4% | 3.2% | 1.6% | 1.6% | - | 3.2% | 7.9% |
| Change in currency, % | 1.0% | 0.8% | 1.1% | 0.5% | 0.8% | -1.1% | -0.7% | 0.8% | -0.1% |
| Operating margin (EBIT), % | 6.6% | 9.1% | 7.1% | 8.6% | 8.5% | 8.8% | 7.9% | 5.4% | 5.8% |
| Adjusted EBIT, SEK m | 203 | 263 | 354 | 457 | 1,001 | 939 | 728 | 634 | 670 |
| Adjusted EBIT margin, % | 5.0% | 7.0% | 5.0% | 6.8% | 7.0% | 7.0% | 5.9% | 5.4% | 6.2% |
| Adjusted EBITDA, SEK m | 323 | 365 | 579 | 649 | 1,398 | 1,295 | 1,066 | 930 | 920 |
| Adjusted EBITDA margin, % | 8.0% | 9.7% | 8.1% | 9.7% | 9.7% | 9.7% | 8.7% | 7.9% | 8.5% |
| Return on capital employed, %, (12 months) | 11.1% | 13.2% | 11.1% | 13.2% | 12.6% | 12.6% | 10.0% | 8.7% | 10.1% |
| Return on equity, % (12 months) | 10.4% | 13.9% | 10.4% | 13.9% | 12.0% | 13.3% | 11.6% | 9.7% | 11.2% |
| Equity/assets ratio, % | 54.8% | 53.0% | 54.8% | 53.0% | 55.3% | 53.3% | 51.4% | 47.2% | 45.4% |
| Interest coverage ratio, times | 21.8 | 33.0 | 21.8 | 33.0 | 31.6 | 27.9 | 15.9 | 12.5 | 10.9 |
| Net debt/Adjusted EBITDA (12 m) incl IFRS 16 | 3.4 | 3.2 | 3.4 | 3.2 | 3.1 | 3.1 | 3.7 | - | - |
| Net debt/Adjusted EBITDA (12 m) | 1.0 | 0.9 | 1.0 | 0.9 | 0.7 | 0.9 | 1.7 | 2.4 | 2.4 |
| Debt ratio, incl IFRS 16 | 13.1% | 12.6% | 13.1% | 12.6% | 10.1% | 13.0% | 19.9% | - | - |
| Debt ratio, excl. IFRS 16 | 55.4% | 54.1% | 55.4% | 54.1% | 53.4% | 52.6% | 56.4% | - | - |
| Free cash flow | 282 | 606 | 218 | 506 | 922 | 1,117 | 805 | 356 | 688 |
| Cash flow from investing activities | -146 | -120 | -316 | -227 | -536 | -437 | -375 | -559 | -970 |
| Number of full-time employees | 14,510 | 13,847 | 14,246 | 13,695 | 13,829 | 13,360 | 12,686 | 12,405 | 11,863 |
1 Relates to financial statements with application of accounting policies for financial years earlier than 1 July 2019. This entails accounting with application of leases under IAS 17, i.e., effects from leases of real estate are recognised as rent and not as finance leases.
Key performance indicator definitions, see pages 32 to 33.
Quarterly data, Group
| Quarterly data | 2022/23 2021/22 |
2020/21 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million, unless otherwise stated | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales | 4,041 | 3,104 | 3,851 | 3,802 | 3,774 | 2,911 | 3,672 | 3,591 | 3,436 | 2,641 |
| EBITDA | 740 | 687 | 787 | 760 | 778 | 655 | 741 | 750 | 660 | 603 |
| Depreciation/amortization | -73 | -67 | -62 | -59 | -58 | -58 | -56 | -53 | -50 | -50 |
| Depreciation/amortization related to acquisitions | -6 | -6 | -5 | -4 | -5 | -4 | -4 | -4 | -4 | -4 |
| Depreciation/amortization related to right-of-use assets | -395 | -376 | -383 | -384 | -373 | -359 | -351 | -346 | -332 | -326 |
| Depreciation/amortization | -474 | -448 | -450 | -447 | -436 | -421 | -411 | -404 | -386 | -380 |
| Items affecting comparability | -21 | 6 | -14 | -27 | 7 | -30 | -14 | 6 | -9 | 10 |
| Operating income (EBIT) | 266 | 239 | 337 | 313 | 342 | 233 | 330 | 346 | 275 | 222 |
| Total financial items | -122 | -120 | -114 | -113 | -108 | -106 | -100 | -98 | -100 | -104 |
| Income before taxes | 144 | 119 | 223 | 200 | 234 | 127 | 231 | 249 | 174 | 118 |
| Tax for the current period | -35 | -25 | -59 | -44 | -48 | -27 | -50 | -58 | -40 | -26 |
| Profit/loss for the period | 109 | 94 | 164 | 155 | 186 | 100 | 181 | 191 | 134 | 93 |
| Number of children/students, schools | 97,767 | 95,834 | 93,308 | 93,092 | 92,363 | 91,431 | 90,032 | 89,691 | 85,927 | 85,642 |
| Number of full-time employees | 14,510 | 13,982 | 14,022 | 13,904 | 13,847 | 13,543 | 13,733 | 13,767 | 13,127 | 12,814 |
| Number of education units | 580 | 571 | 559 | 556 | 552 | 545 | 539 | 536 | 525 | 525 |
| Key ratios | ||||||||||
| Operating margin (EBIT), % | 6.6% | 7.7% | 8.8% | 8.2% | 9.1% | 8.0% | 9.0% | 9.6% | 8.0% | 8.4% |
| Adjusted EBIT | 203 | 151 | 279 | 264 | 263 | 194 | 281 | 279 | 225 | 153 |
| Adjusted EBIT, % | 5.0% | 4.9% | 7.2% | 6.9% | 7.0% | 6.7% | 7.7% | 7.8% | 6.5% | 5.8% |
| Adjusted EBITDA | 323 | 256 | 382 | 367 | 365 | 284 | 374 | 372 | 315 | 235 |
| Adjusted EBITDA, % | 8.0% | 8.2% | 9.9% | 9.7% | 9.7% | 9.8% | 10.2% | 10.4% | 9.2% | 8.9% |
| Net margin, % | 2.7% | 3.0% | 4.3% | 4.1% | 4.9% | 3.4% | 4.9% | 5.3% | 3.9% | 3.5% |
| Return on equity, % (12 months) 1 | 10.4% | 11.6% | 12.0% | 12.6% | 13.9% | 13.1% | 13.3% | 13.9% | 14.0% | 12.9% |
| Return on capital employed, % (12 Months) 1 | 11.1% | 11.8% | 12.6% | 12.7% | 13.2% | 12.8% | 12.6% | 12.4% | 11.7% | 10.8% |
| Equity/assets ratio, %1 | 54.8% | 54.3% | 55.3% | 54.4% | 53.0% | 53.5% | 53.3% | 52.0% | 50.2% | 51.4% |
| Net debt/Adjusted EBITDA (12 months) 1 | 1.0 | 1.0 | 0.7 | 0.9 | 0.9 | 1.1 | 0.9 | 1.2 | 1.4 | 1.6 |
| Interest coverage ratio1 | 21.8 | 26.4 | 31.6 | 32.3 | 33.0 | 31.0 | 27.9 | 23.5 | 21.6 | 18.4 |
| Other | ||||||||||
| Free cash flow | 282 | -64 | 397 | 19 | 606 | -99 | 341 | 246 | 572 | -42 |
| Cash flow from operating activities | 354 | 24 | 517 | 59 | 675 | -26 | 435 | 275 | 621 | 26 |
| Cash flow from investing activities | -146 | -170 | -217 | -93 | -120 | -106 | -128 | -61 | -236 | -12 |
1 Net debt/EBITDA and interest coverage ratio are important key performance indicators in AcadeMedia's business which from 1 July 2019 are calculated adjusted for the effect of IFRS 16 Leases to reflect a comparable measure to key performance indicators from previous periods.
Quarterly data, segment
| SEK million, unless otherwise stated | 2022/23 | 2021/22 | 2020/21 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Preschool (SE, NO, DE, NL) | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Number of children/students (average) | 24,842 | 22,702 | 23,651 | 23,020 | 21,982 | 20,999 | 22,265 | 21,891 | 20,969 | 20,664 | ||
| Net sales | 1,252 | 956 | 1,184 | 1,128 | 1,061 | 808 | 1,068 | 1,020 | 958 | 755 | ||
| of which Sweden | 363 | 274 | 365 | 351 | 339 | 253 | 349 | 343 | 328 | 247 | ||
| of which Norway preschool | 553 | 417 | 582 | 574 | 520 | 377 | 552 | 524 | 481 | 364 | ||
| of which Germany | 293 | 231 | 215 | 203 | 201 | 178 | 168 | 153 | 149 | 144 | ||
| of which Netherlands | 15 | 8 | 8 | - | - | - | - | - | - | - | ||
| of which Sandviks | 28 | 27 | 15 | - | - | - | - | - | - | - | ||
| EBITDA | 46 | 24 | 73 | 91 | 45 | 33 | 104 | 93 | 40 | 28 | ||
| EBITDA margin, % | 3.7% | 2.5% | 6.2% | 8.1% | 4.2% | 4.1% | 9.7% | 9.1% | 4.2% | 3.7% | ||
| Depreciation/amortization | -31 | -27 | -26 | -26 | -23 | -24 | -24 | -22 | -20 | -22 | ||
| Operating profit/loss (EBIT) | 15 | -3 | 47 | 65 | 22 | 9 | 79 | 71 | 19 | 7 | ||
| EBIT margin, % | 1.2% | -0.3% | 4.0% | 5.8% | 2.1% | 1.1% | 7.4% | 7.0% | 2.0% | 0.9% | ||
| Items affecting comparability | -11 | - | -21 | - | - | - | - | - | - | - | ||
| Adjusted operating profit/loss (EBIT) | 26 | -3 | 68 | 65 | 22 | 9 | 79 | 71 | 19 | 7 | ||
| Adjusted EBIT margin, % | 2.1% | -0.3% | 5.7% | 5.8% | 2.1% | 1.1% | 7.4% | 7.0% | 2.0% | 0.9% | ||
| Number of preschool units | 312 | 303 | 292 | 289 | 285 | 278 | 273 | 270 | 267 | 266 |
| SEK million, unless otherwise stated | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million, unless otherwise stated | 2022/23 | 2021/22 | 2020/21 | |||||||
| Compulsory School | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Number of children/students (average) | 28,520 | 28,416 | 28,052 | 27,965 | 27,867 | 27,697 | 27,374 | 27,046 | 26,193 | 26,170 |
| Net sales | 986 | 746 | 954 | 940 | 937 | 713 | 888 | 877 | 851 | 644 |
| EBITDA | 76 | 78 | 108 | 72 | 113 | 43 | 81 | 68 | 69 | 52 |
| EBITDA margin, % | 7.7% | 10.5% | 11.3% | 7.7% | 12.1% | 6.0% | 9.1% | 7.8% | 8.1% | 8.1% |
| Depreciation/amortization | -24 | -22 | -21 | -21 | -21 | -18 | -18 | -18 | -18 | -16 |
| Operating profit/loss (EBIT) | 53 | 57 | 86 | 51 | 92 | 24 | 63 | 50 | 52 | 36 |
| EBIT margin, % | 5.4% | 7.6% | 9.0% | 5.4% | 9.8% | 3.4% | 7.1% | 5.7% | 6.1% | 5.6% |
| Items affecting comparability | -10 | 6 | 6 | -12 | 18 | -30 | - | - | - | 3 |
| Adjusted operating profit/loss (EBIT) | 63 | 51 | 80 | 63 | 74 | 54 | 63 | 50 | 52 | 33 |
| Adjusted EBIT margin, % | 6.4% | 6.8% | 8.4% | 6.7% | 7.9% | 7.6% | 7.1% | 5.7% | 6.1% | 5.1% |
| Number of education units | 116 | 116 | 116 | 116 | 116 | 116 | 116 | 116 | 112 | 112 |
SEK million, unless otherwise stated
| SEK million, unless otherwise stated | 2022/23 | 2021/22 | 2020/21 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Upper Secondary School | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Number of children/students (average) | 44,405 | 44,716 | 41,605 | 42,106 | 42,513 | 42,735 | 40,394 | 40,753 | 38,765 | 38,808 |
| Net sales | 1,361 | 1,025 | 1,284 | 1,280 | 1,278 | 964 | 1,223 | 1,202 | 1,142 | 856 |
| EBITDA | 166 | 124 | 180 | 153 | 168 | 129 | 147 | 170 | 144 | 121 |
| EBITDA margin, % | 12.2% | 12.1% | 14.0% | 12.0% | 13.1% | 13.4% | 12.0% | 14.1% | 12.6% | 14.1% |
| Depreciation/amortization | -59 | -50 | -50 | -53 | -51 | -41 | -45 | -48 | -47 | -40 |
| Operating profit/loss (EBIT) | 107 | 74 | 130 | 100 | 118 | 87 | 102 | 122 | 97 | 81 |
| EBIT margin, % | 7.9% | 7.2% | 10.1% | 7.8% | 9.2% | 9.0% | 8.3% | 10.1% | 8.5% | 9.5% |
| Items affecting comparability | - | - | 0 | -15 | -0 | -0 | -10 | 6 | - | 8 |
| Adjusted operating profit/loss (EBIT) | 107 | 74 | 130 | 115 | 118 | 87 | 112 | 116 | 97 | 73 |
| Adjusted EBIT margin, % | 7.9% | 7.2% | 10.1% | 9.0% | 9.2% | 9.0% | 9.2% | 9.7% | 8.5% | 8.5% |
| Number of education units | 152 | 152 | 151 | 151 | 151 | 151 | 150 | 150 | 146 | 147 |
| Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
|---|---|---|---|---|---|---|---|---|---|
| 438 | 377 | 429 | 450 | 498 | 427 | 492 | 488 | 484 | 385 |
| 33 | 49 | 41 | 44 | 64 | 71 | 63 | 68 | 79 | 61 |
| 7.5% | 13.0% | 9.6% | 9.8% | 12.9% | 16.6% | 12.8% | 13.9% | 16.3% | 15.8% |
| -6 | -5 | -5 | -4 | -4 | -4 | -4 | -4 | -4 | -4 |
| 28 | 45 | 37 | 40 | 60 | 67 | 59 | 64 | 75 | 57 |
| 6.4% | 11.9% | 8.6% | 8.9% | 12.0% | 15.7% | 12.0% | 13.1% | 15.5% | 14.8% |
| 0 | -0 | - | - | -11 | - | - | - | - | - |
| 28 | 45 | 37 | 40 | 71 | 67 | 59 | 64 | 75 | 57 |
| 6.4% | 11.9% | 8.6% | 8.9% | 14.3% | 15.7% | 12.0% | 13.1% | 15.5% | 14.8% |
| 2022/23 | 2021/22 | 2020/21 |
| SEK million, unless otherwise stated | 2022/23 | 2021/22 | 2020/21 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Group-OH and adjustments | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales | 4 | 0 | 0 | 4 | 0 | 0 | 0 | 4 | 1 | 1 |
| EBITDA | 419 | 410 | 386 | 400 | 388 | 380 | 346 | 350 | 328 | 341 |
| Depreciation/amortization | -355 | -344 | -349 | -342 | -337 | -333 | -319 | -311 | -297 | -299 |
| Operating profit/loss (EBIT) | 64 | 66 | 37 | 57 | 51 | 46 | 27 | 39 | 32 | 42 |
| Items affecting comparability | - | - | - | - | - | - | -4 | - | -9 | - |
| Adjusted operating profit/loss (EBIT) | -20 | -16 | -35 | -18 | -21 | -23 | -32 | -22 | -18 | -17 |
| SEK million, unless otherwise stated | 2022/23 | 2021/22 | 2020/21 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Group | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Number of children/students (average) | 97,767 | 95,834 | 93,308 | 93,092 | 92,363 | 91,431 | 90,032 | 89,691 | 85,927 | 85,642 |
| Net sales | 4,041 | 3,104 | 3,851 | 3,802 | 3,774 | 2,911 | 3,672 | 3,591 | 3,436 | 2,641 |
| EBITDA | 740 | 687 | 787 | 760 | 778 | 655 | 741 | 750 | 660 | 603 |
| EBITDA margin, % | 18.3% | 22.1% | 20.4% | 20.0% | 20.6% | 22.5% | 20.2% | 20.9% | 19.2% | 22.8% |
| Depreciation/amortization | -474 | -448 | -450 | -447 | -436 | -421 | -411 | -404 | -386 | -380 |
| Operating profit/loss (EBIT) | 266 | 239 | 337 | 313 | 342 | 233 | 330 | 346 | 275 | 222 |
| EBIT margin, % | 6.6% | 7.7% | 8.8% | 8.2% | 9.1% | 8.0% | 9.0% | 9.6% | 8.0% | 8.4% |
| Items affecting comparability | -21 | 6 | -14 | -27 | 7 | -30 | -14 | 6 | -9 | 10 |
| Effect of IFRS 16 on operating profit | 84 | 82 | 72 | 75 | 72 | 69 | 63 | 61 | 59 | 59 |
| Adjusted operating profit/loss (EBIT) | 203 | 151 | 279 | 264 | 263 | 194 | 281 | 279 | 225 | 153 |
| Adjusted EBIT margin, % | 5.0% | 4.9% | 7.2% | 6.9% | 7.0% | 6.7% | 7.7% | 7.8% | 6.5% | 5.8% |
| Net financial items | -122 | -120 | -114 | -113 | -108 | -106 | -100 | -98 | -100 | -104 |
| Profit/loss after financial items | 144 | 119 | 223 | 200 | 234 | 127 | 231 | 249 | 174 | 118 |
| Tax | -35 | -25 | -59 | -44 | -48 | -27 | -50 | -58 | -40 | -26 |
| Profit/loss for the period | 109 | 94 | 164 | 155 | 186 | 100 | 181 | 191 | 134 | 93 |
| Number of full-time employees (period) | 14,510 | 13,982 | 14,022 | 13,904 | 13,847 | 13,543 | 13,733 | 13,767 | 13,127 | 12,814 |
| Number of units | 580 | 571 | 559 | 556 | 552 | 545 | 539 | 536 | 525 | 525 |
Reconciliation of alternative key performance indicators
The table below presents the data from which the alternative performance indicators used in the report are calculated. See definitions for more information.
| SEK million, unless otherwise stated | Second quarter | Half year | Full year | |||||
|---|---|---|---|---|---|---|---|---|
| 2022/23 | 2021/22 | 2022/23 | 2021/22 | 2021/22 | 2020/21 | 2019/20 | 2018/192 | |
| Adjusted operating profit | ||||||||
| Operating profit | 266 | 342 | 504 | 575 | 1,224 | 1,174 | 973 | 635 |
| - Items affecting comparability | -21 | 7 | -16 | -23 | -64 | -7 | 36 | 1 |
| - IFRS 16 impact | 84 | 72 | 166 | 141 | 288 | 243 | 209 | - |
| = Adjusted operating profit | 203 | 263 | 354 | 457 | 1,001 | 939 | 728 | 634 |
| Adjusted EBIT margin | ||||||||
| Adjusted operating profit | 203 | 263 | 354 | 457 | 1,001 | 939 | 728 | 634 |
| Divided by /Net sales | 4,041 | 3,774 | 7,146 | 6,685 | 14,339 | 13,340 | 12,271 | 11,715 |
| = Adjusted EBIT margin | 5.0% | 7.0% | 5.0% | 6.8% | 7.0% | 7.0% | 5.9% | 5.4% |
| Adjusted EBITDA | ||||||||
| Adjusted operating profit | 203 | 263 | 354 | 457 | 1,001 | 939 | 728 | 634 |
| - Depreciation excluding depreciation relating to property rental agreements |
-120 | -102 | -225 | -192 | -398 | -357 | -338 | -296 |
| = Adjusted EBITDA | 323 | 365 | 579 | 649 | 1,398 | 1,295 | 1,066 | 930 |
| Net debt | ||||||||
| Non-current interest-bearing liabilities | 9,628 | 8,781 | 9,628 | 8,781 | 8,211 | 8,344 | 8,260 | 2,205 |
| + Current interest-bearing liabilities | 1,599 | 1,628 | 1,599 | 1,628 | 2,386 | 1,272 | 1,279 | 592 |
| - Interest-bearing receivables | - | - | - | - | - | - | - | 4 |
| - Cash and cash equivalents | 818 | 1,084 | 818 | 1,084 | 1,137 | 966 | 528 | 527 |
| = Net debt including IFRS 16 | 10,409 | 9,324 | 10,409 | 9,324 | 9,460 | 8,650 | 9,011 | 2,266 |
| - IFRS 16 Non-current and current lease liabilities1 | ||||||||
| 9,052 | 8,109 | 9,052 | 8,109 | 8,474 | 7,428 | 7,214 | - | |
| = Net debt excluding IFRS 162 | 1,357 | 1,216 | 1,357 | 1,216 | 987 | 1,222 | 1,797 | 2,266 |
| Property-adjusted net debt | ||||||||
| Net debt (as described above) | 1,357 | 1,216 | 1,357 | 1,216 | 987 | 1,222 | 1,797 | 2,266 |
| - non-current property loans | 744 | 738 | 744 | 738 | 722 | 671 | 597 | 644 |
| - current property loans | 32 | 26 | 32 | 26 | 28 | 25 | 62 | 89 |
| = Property adjusted net debt excluding IFRS 162 | 582 | 451 | 582 | 451 | 237 | 526 | 1,138 | 1,533 |
| Return on capital employed %, 12 months | ||||||||
| Adjusted EBIT | 898 | 1,018 | 898 | 1,018 | 1,001 | 939 | 728 | 634 |
| + Interest income | 3 | 0 | 3 | 0 | 1 | 0 | 0 | 1 |
| divided by | ||||||||
| Average equity | 5,592 | 5,135 | 5,592 | 5,135 | 5,531 | 5,047 | 4,690 | 4,426 |
| + average non-current interest-bearing liabilities | 9,204 | 8,697 | 9,204 | 8,697 | 8,277 | 8,302 | 5,232 | 2,207 |
| + average current interest-bearing liabilities | 1,614 | 1,575 | 1,614 | 1,575 | 1,829 | 1,276 | 935 | 632 |
| - IFRS 16 average equity1 | -300 | -212 | -300 | -212 | -256 | -165 | -59 | - |
| - IFRS 16 average non-current and current lease liabilities1 | 8,580 | 7,882 | 8,580 | 7,882 | 7,951 | 7,321 | 3,607 | - |
| = Return on capital employed excluding IFRS 162 , % |
11.1% | 13.2% | 11.1% | 13.2% | 12.6% | 12.6% | 10.0% | 8.7% |
| Return on equity %, 12 months | ||||||||
| Profit/loss after tax | 522 | 657 | 522 | 657 | 605 | 599 | 431 | 431 |
| - IFRS 16 profit/loss after tax | -89 | -88 | -89 | -88 | -88 | -95 | -117 | - |
| divided by | ||||||||
| Average equity | 5,592 | 5,135 | 5,592 | 5,135 | 5,531 | 5,047 | 4,690 | 4,426 |
| - IFRS 16 average equity1 | -300 | -212 | -300 | -212 | -256 | -165 | -59 | - |
| = Return on equity2 , % |
10.4% | 13.9% | 10.4% | 13.9% | 12.0% | 13.3% | 11.6% | 9.7% |
| Debt ratio, incl IFRS 16 | ||||||||
| Net debt incl IFRS 16 | 10,409 | 9,324 | 10,409 | 9,324 | 9,460 | 8,650 | 9,011 | - |
| divided by | ||||||||
| Total assets | 19,592 | 18,318 | 19,592 | 18,318 | 18,864 | 17,401 | 16,500 | - |
| -cash and cash equivalents | 818 | 1,084 | 818 | 1,084 | 1,137 | 966 | 528 | - |
| =Debt ratio incl IFRS 16 | 55% | 54% | 55% | 54% | 53% | 53% | 56% | - |
| Debt ratio, excl IFRS 16 | ||||||||
| Net debt excl IFRS 16 | 1,357 | 1,216 | 1,357 | 1,216 | 987 | 1,222 | 1,797 | - |
| divided by | ||||||||
| Total assets | 11,173 | 10,696 | 11,173 | 10,696 | 10,951 | 10,353 | 9,551 | - |
| -cash and cash equivalents =Debt ratio excl IFRS 16 |
818 13% |
1,084 13% |
818 13% |
1,084 13% |
1,137 10% |
966 13% |
528 20% |
- - |
| 2022/23 | 2021/22 | 2019/20 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| SEK million, unless otherwise stated | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Interest coverage ratio | ||||||||||
| Adjusted operating profit EBIT (12 months) | 898 | 958 | 1,001 | 1,003 | 1,018 | 980 | 939 | 936 | 881 | 806 |
| + Interest income (12 months) | 3 | 1 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| + Other financial income (12 months) | 9 | 3 | 0 | -0 | 3 | 3 | 3 | 3 | 4 | 4 |
| divided by | ||||||||||
| Interest expense (12 months) | -470 | -449 | -432 | -421 | -409 | -402 | -399 | -403 | -404 | -404 |
| - Interest expense (12 months) IFRS 161 | -428 | -412 | -401 | -390 | -378 | -370 | -365 | -363 | -363 | -360 |
| = Interest coverage ratio (excl. IFRS 16) | 21.8 | 26.4 | 31.6 | 32.3 | 33.0 | 31.0 | 27.9 | 23.5 | 21.6 | 18.4 |
1 Amounts relate to adjustments and reclassifications made to reverse the adjustments associated with implementation of the accounting standard, IFRS 16 Leases, to reflect an accounting practice applied in previous accounting periods (IAS 17).
2 Relates to financial statements with application of accounting policies for financial years earlier than 1 July 2019. This entails accounting with application of leases under IAS 17, i.e., effects from leases of real estate are recognised as rent and not as finance leases.
Definitions of key performance indicators
Implementation of IFRS16 has a major impact on AcadeMedia in that all leases must be capitalised as lease assets and liabilities, respectively. Several important key performance indicators have the same definition as previously and are not affected by IFRS 16. AcadeMedia uses prospective application from 1 July 2019, which means that the previous year's accounts have not been restated.
| KPIs | Definition | Purpose4 |
|---|---|---|
| Number of children/students |
Average number of children/students enrolled during the specified period. Adult education participants are not included in the Group's total figures for number of children/students. |
The number of children/students is the most important driver for revenue. |
| Number of education units |
Refers to the number of preschools, compulsory schools and/or upper secondary schools operating in the period. Integrated units where preschools and compulsory schools are combined are counted as two units as they each hold their own permit. |
The number of education units indicates how the Company grows over time through new establishments and acquisitions minus discontinued units. |
| Number of full time employees |
Average number of full-time employees during the period, full-time equivalent (FTE). |
The number of employees is the main cost driver for the Company. |
| Return on equity5 | Profit/loss for the most recent 12-month period according to IAS 17 i.e., excluding the effects of the implementation of IFRS16, divided by average equity applying IAS 17 (opening balance + closing balance)/2. |
Return on equity is a profitability measure used to set profit (loss) in relation to shareholders' paid-in and earned capital. |
| Return on capital employed2 |
Adjusted operating profit/loss (EBIT) for the most recent 12-month period plus interest income, divided by average capital. |
Adjusted return on capital employed is used to set adjusted operating profit/loss in relation to total tied up capital regardless of type of financing. |
| EBITDA | Operating profit/loss before depreciation/amortisation and impairment of non-current assets and right-of-use assets. This KPI is only used for monitoring the segments which accounts for leasing of properties in accordance with IAS 17. |
EBITDA is used to measure profit (loss) from operating activities, regardless of depreciation/amortisation. |
| EBITDA margin | EBITDA as a percentage of net sales. | EBITDA margin is used to set EBITDA in relation to sales. |
| Equity excl. IFRS162 |
Equity according to IAS 17 i.e., excluding the effects of the implementation of IFRS16. |
Equity excluding IFRS16 is used to be able to calculate return on equity consistently. |
| Net financial items | Financial income less financial expenses. | The measure Net financial items is used to illustrate the outcome of the Company's financial activities. |
| Free cash flow2 | Cash flow from operating activities and changes in working capital inclusive of property lease payments less investments in operating activities. Investments in operating activities relate to all investments in property, plant and equipment and intangible assets except buildings and acquisitions. |
This measure shows how much cash flow the business generates after the necessary investments have been made. This cash flow can be used for purposes such as expansion, amortisation, or dividends. |
| Acquired growth | Increase of net sales due to larger acquisitions during the last 12 months. | Indicates growth generated from acquisitions in contrast to organic growth and currency effects. |
| Adjusted EBITDA2 | Operating profit/loss according to the previous standard IAS 17 i.e., excluding the effects of IFRS16 and before amortisation/depreciation of intangible assets and property, plant, and equipment, and excluding items affecting comparability. |
Adjusted EBITDA is used to measure underlying profit from operating activities, excluding depreciation/amortisation and items affecting comparability. |
| Adjusted EBITDA margin2 |
Adjusted EBITDA as a percentage of net sales. | Adjusted EBIT margin sets underlying operating profit excluding amortisation in relation to sales. |
| Adjusted net debt2 | Net debt less real estate-related | Adjusted net debt shows the portion of loans that finance the business, while property loans are linked to a building asset that can be separated off and sold. |
| Adjusted net debt/Adjusted EBITDA2 |
Adjusted net debt divided by adjusted EBITDA for the past 12 months | Net debt/adjusted EBITDA is a theoretical measure of how many years it would take, with current earnings (adjusted EBITDA), to pay off the Company's liabilities, including property-related loans. It shows the loan-to value ratio of the business excluding real assets such as real estate. |
| Adjusted EBIT2 | Operating profit/loss (EBIT) according to the previous standard IAS 17 i.e., excluding the effects of the implementation of IFRS 16, adjusted for items affecting comparability. |
Adjusted EBIT is used to get a better picture of the underlying operating profit. |
| Adjusted EBIT margin2 |
Adjusted EBIT as a percentage of net sales. | Adjusted EBIT margin sets underlying operating profit in relation to sales. |
| Items affecting comparability |
Items affecting comparability are income and cost of an irregular nature such as larger (>SEK 5 million) retroactive income related to prior financial years, to property-related items such as capital gains, major property damage not covered by insurance, advisory costs relating to larger acquisitions or fundraising, major integration costs resulting from |
Items affecting comparability are used to illustrate the profit/loss items that are not included in ongoing operating activities, to obtain a clearer picture of the underlying profit trend. |
4 According to ESMA guidelines on performance measures, each performance measure must be motivated.
5 The key indicator was calculated applying IAS 17 i.e., excluding effects from implementing IFRS 16, as the implementation had a significant impact on assets and liabilities as well as items in the income statement. By excluding the IFRS 16 effects continuity is achieved.
| acquisitions or reorganisations according to plan, as well as costs arising from strategic decisions and major restructuring that result in closing units. |
||
|---|---|---|
| Net debt2 | Interest-bearing debt excluding property-related lease liabilities net of cash and cash equivalents and interest-bearing receivables. |
Net debt is used to illustrate the size of the debt less current cash and cash equivalents (which in theory could be used to repay loans). |
| Net debt/ Adjusted EBITDA2 |
Net debt (closing balance for the period) divided by adjusted EBITDA for the past 12 months. . |
Net debt/EBITDA is a theoretical measure of how many years it would take, with current earnings (EBITDA), to pay off the Company's liabilities. |
| Net debt/ Adjusted EBITDA (incl. IFRS 16) |
Net debt (closing balance for the period) divided by adjusted EBITDA for the past 12 months, including the effect of IFRS 16 |
Net debt/EBITDA is a theoretical measure of how many years it would take, with current earnings (EBITDA), to pay off the Company's liabilities, including leased liabilities |
| Organic growth incl. smaller bolt on acquisitions |
Increase of net sales excluding larger acquisitions and changes in currency. | The Company's growth target is to increase net sales including smaller bolt-on acquisitions by 5-7 percent per year. The purpose of the key performance indicator is thus to follow up on this target. |
| Employee turnover |
The average number of employees who left the company during the year, in relation to the average number of employees. (Number of permanent and probationary employees who quit) / (Average number of permanent and probationary employees) Calculated on an aggregated basis over the reporting period. |
Employee turnover is used to measure the proportion of employees who leave the company and who must be replaced every year. |
| Earnings per share |
Profit/loss for the period in SEK, divided by the average number of shares outstanding, basic/diluted calculated according to IAS 33. The key performance indicator is affected by IFRS16 because net profit is affected by elimination of rent and the addition of amortisation and interest expense related to right-of-use assets. |
Earnings per share is used to clarify the amount of profit for the period to which each share is entitled. |
| Interest coverage ratio2 |
Adjusted EBIT for the past 12 months plus financial income, in relation to interest expense excluding interest expense attributable to property-related leasing liabilities. |
Interest coverage ratio is used to measure the Company's ability to pay interest costs. |
| Operating margin (EBIT margin) |
Operating profit/loss as a percentage of net sales. | The operating margin shows the percentage of sales remaining after operating expenses, which can be allocated to other purposes. |
| Operating profit/loss (EBIT) |
Operating profit/loss before net financial items and tax. . | Operating profit/loss (EBIT) is used to measure operating profit before financing and tax. |
| Absence due to illness |
Short-term and long-term absence due to illness recalculated to full-time divided by the number of full-time employees (FTE). Calculated as an average over the reporting period. |
Absence due to illness is used to measure employee absence and provide indications as to employee health. |
| Debt ratio (including IFRS 16) |
Net debt in percent of total assets less cash and cash equivalents. Including effects of IFRS 16 |
Debt ratio including IFRS 16 shows what proportion of the company's total assets (excluding cash and cash equivalents) is financed with borrowed capital and lease liabilities. The measure shows the company's financial position with consideration of leasing commitments. |
| Debt ratio (excluding IFRS 16) |
Net debt in percent of total assets less cash and cash equivalents. Excluding effects of IFRS 16. |
Debt ratio excluding IFRS 16 shows what proportion of the company's total assets (excluding cash and cash equivalents) is financed with borrowed capital. The measure shows the company's financial position. |
| Equity/assets ratio2 |
Equity according to IAS 17 i.e. excluding the effects of the implementation of IFRS16 in percent of total assets excluding property-related right of use assets. |
The equity/assets ratio shows the proportion of the company's total assets financed by shareholders' equity. A high equity/assets ratio is a measure of financial strength. |
| Capital employed excl. IFRS162 |
Total assets, less non-interest-bearing current liabilities, provisions, and deferred tax liabilities adjusted for property-related lease liabilities. Or: Equity plus interest-bearing liabilities but excluding property-related lease liabilities. |
Capital employed indicates how much capital is needed to run the business regardless of type of financing (borrowed or equity). By excluding the IFRS16 effect, continuity can be achieved in the return figure. |
General
All amounts in tables are in SEK million unless otherwise stated. All figures in parentheses () are comparative figures for the same period in the previous year, unless otherwise stated. Totals of amounts in whole figures do not always match reported totals due to rounding. The reported total amounts are correct.