Q3 2025 Scandic Hotels Group AB Earnings Call Transcript
Key Points
- Scandic Hotels Group AB (FRA:10H) reported strong performance with net sales reaching SEK6.4 billion and organic growth over 5% in the quarter.
- The company launched a new app, website, and loyalty program, enhancing its commercial platform and reducing future investment needs.
- The acquisition of Dalata is progressing well, expected to be completed soon, and is anticipated to be highly EPS accretive with significant value creation.
- Scandic's financial position is strong with a net debt of SEK62 million, indicating a leverage of 0x, supporting portfolio growth and dividend policy.
- The Nordic hotel market shows good momentum with strong occupancy rates and stable pricing, particularly in Norway and Denmark.
- Currency effects and higher costs related to commercial development led to a slightly lower EBITDA margin of 17.1% compared to last year.
- Finland faced a weak pricing situation due to a soft macro environment and tough comparables from the previous year's strong event calendar.
- Scandic's average room rate declined slightly compared to last year, primarily due to weak pricing in Finland.
- Central and group costs increased due to investments in commercial and IT capabilities, though expected to decrease as a percentage of sales next year.
- The acquisition of Dalata involves integration and carve-out processes that may incur additional costs and complexities.
Welcome to the Scandic Hotels Group Q3 report 2025 presentation. (Operator Instructions)
Now I will hand the conference over to the speakers, CEO, Jens Mathiesen; and CFO, Par Christiansen. Please go ahead.
Thank you very much, speaker, and good morning, everyone, and thank you for joining us this morning. My name is Jens Mathiesen. I'm the CEO of Scandic, and I'm here, as always, together with Par Christiansen, our CFO.
Please turn to page 2. As you probably understand, we have a packed agenda for today. So we will start with the quarter and some updates on that, and then give you an update on the acquisition of Balata afterward. Let's move straight to the highlights of the quarter, and please turn to page 4.
We delivered a strong performance with good growth results and strong cash flow development. Net sales reached SEK6.4 billion. Excluding negative currency effects, organic growth was over 5% in the quarter. We continue to meet the market with high
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