Scandic’s year-end report 2022 - Stable quarter ends a strong year
fourth quarter in summary
- Net sales rose to 5,228 MSEK (3,783), an increase of 38.2 percent compared with the fourth quarter of 2021.
- Average occupancy increased to 57.0 percent compared with 51.1 percent during the fourth quarter of 2021.
- Average revenue per available room (RevPAR) grew to 695 SEK (510) driven by higher occupancy and positive price development.
- Adjusted EBITDA amounted to 476 MSEK (436).
- Excluding IFRS 16, earnings per share totaled 0.49 SEK (0.65).
- Free cash flow was 945 MSEK (831).
- Interest-bearing net debt/adjusted EBITDA amounted to 0.6 x (1.1 x including the convertible loan).
- Scandic opened two hotels: Scandic München Macherei in Germany with 234 rooms and Scandic Opus Horsens in Denmark with 132 rooms.
january – december 2022 in summary
- Net sales rose by 90.7 percent to 19,230 MSEK (10,086).
- Adjusted EBITDA amounted to 2,536 MSEK (6). Excluding direct state aid and non-recurring items, adjusted EBITDA was 2,103 MSEK, corresponding to an adjusted EBITDA margin of 11.1%.
- Excluding IFRS 16, earnings per share totaled 4.10 SEK (-5.75).
- Free cash flow was 2,202 MSEK (185).
- For 2022, the Board of Directors proposes than no dividend be paid.
EVENTS AFTER REPORTING DATE
- Scandic signed an agreement for external financing with a total credit facility of 3,450 MSEK until December 31, 2025.
Stable quarter ends a strong year
We concluded the year with a stable quarter with continued good demand and increasing price levels. Net sales increased 38 percent compared with the same period in 2021, and adjusted EBITDA improved to 476 (436) MSEK. For the full year, net sales increased to 19,230 MSEK, almost twice what we reported in 2021 and slightly higher than 2019.
Adjusted for state aid and other non-recurring items of 433 MSEK, we delivered a slightly improved full year result compared with 2019, with an adjusted EBITDA margin of 11.1 percent in line with our financial profitability target. Including non-recurring items, we reported our best full year result ever, with an adjusted EBITDA margin of 13.2 percent. Results were impacted positively by non-recurring items, but at the same time, we should remember that 2022 started with a very weak quarter impacted by restrictions in several of our markets. We are satisfied with the results, which was mainly driven by our commercial ability to meet the growing demand and that we maintained a sharp focus on efficiency and cost control.
Our free cash flow was strong during the quarter at 945 MSEK and 2,202 MSEK for the full year. During the year, we have gradually reduced our indebtedness, which at the end of the year was lower than before the pandemic, including the convertible loan.
Continued good demand from corporate and leisure travelers
During the fourth quarter, demand remained good from both corporate and leisure travelers. The average occupancy rate in the fourth quarter was 57 percent, compared with 51 and 62 percent for the corresponding periods in 2021 and 2019 respectively. The slightly lower occupancy rate compared with 2019 was mainly due to lower demand for intercontinental travel from and to Asia where several countries continued to be impacted by pandemic restrictions.
Average room prices increased to SEK 1,219 compared with SEK 999 and SEK 1,080 respectively for the same periods in 2021 and 2019. Average revenue per available room (RevPAR) increased to SEK 695 compared with SEK 510 and SEK 672 for the corresponding periods in 2021 and 2019 respectively. It should also be noted that at the end of the quarter, the number of rooms was roughly six percent higher than in 2019.
High portfolio activity during the year
As we previously have announced, we opened two hotels during the fourth quarter: Scandic München Macherei in Germany and Scandic Opus in Horsens, Denmark. In total, we opened 10 hotels during the year, adding around 2,850 rooms, and we are satisfied with the way the hotels were received by the market. In pace with the recovery of the hotel market, we have increased our focus on adding more high-quality hotels to our pipeline.
Stable start of the year
The start of the year has been stable and based on current booking situation we expect continued good price development, and stable occupancy rates at a slightly lower level than for the first quarter of 2019. I look forward to a new year with confidence and with a stable financial position and high operational efficiency, we are well positioned for the future.
To conclude, I’d like to thank all Scandic’s team members for their efforts during the year and thank our guests for having confidence in us.
President & CEO
This information is information that Scandic Hotels Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07.30 CET on February 16, 2023.
For more information, please contact:
Rasmus Blomqvist, Director Investor Relations, Scandic Hotels Group
Telephone: +46 702 335 367
Åsa Wirén, Chief Financial Officer, Scandic Hotels Group
Telephone: +46 706 444 533
The report will be presented in a webcast and teleconference at 09.00 CET today.
A presentation of the report will take place at 09.00 CET today, February 16. Scandic’s President & CEO Jens Mathiesen will present the report together with CFO Åsa Wirén in a webcast and telephone conference.
Time: Thursday, February 16, 2023, at 09.00 CET.
Location: Webcast and telephone conference.
Telephone number: SE: +46 8 5051 6386 | UK: +44 20 3198 4884 | US: +1 412 317 6300
Pin code: 5310435#
Please call in five minutes before the start.
Follow the webcast live on this link.
You can also view the webcast at www.scandichotelsgroup.com, where the interim report and presentation will be made available.
Please join us to listen and ask questions.
About Scandic Hotels Group
Scandic is the largest hotel company in the Nordic countries with a network of about 280 hotels with 58,000 rooms in operation and under development, in more than 130 destinations. The company is the leader when it comes to integrating sustainability in all operations and its award-winning Design for All concept ensures that Scandic hotels are accessible to everyone. Well loved by guests and employees, the Scandic Friends loyalty program is the largest in the Nordic hotel industry and the company is one of the most attractive employers in the region. Scandic is listed on Nasdaq Stockholm. www.scandichotelsgroup.com