Hotel Management Network

Scandic Hotels Group’s net profit surges to $102.81m in 2023

Net sales in FY 2023 increased 14.1% to Skr21.93bn ($2.08bn) from Skr19.23bn ($1.83bn) in FY 2022.

Scandic Hotels Group has reported a net profit, excluding IFRS 16, of Skr1.08bn ($102.81m) in fiscal year (FY) 2023, up by 25% from Skr866m ($82.44m) in FY 2022.

For the reported year ending on 31 December 2023, earnings per share (EPS), excluding IFRS 16, increased to Skr5.09 from Skr4.10 in the previous year.

The hotel chain experienced a 14.1% increase in net sales to Skr21.93bn from Skr19.23bn in FY 2022.

This surge in net sales was accompanied by an improved average occupancy rate, which climbed to 61.4% in FY23 from 57.7% in FY 2022.

Additionally, the average revenue per available room (RevPAR) saw a 14.5% increase to Skr782, compared to Skr683 last year, with improvements noted across all markets.

Scandic’s operating profit for the reported year came in at Skr2.78bn, up from Skr2.45bn in FY 2022.

The company’s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) in FY23 totalled Skr2.56bn, slightly higher than the Skr2.53bn recorded a year ago.

As of 31 December 2023, Scandic’s total number of rooms stood at 55,831 while the same was 55,642 at the end of 2022.

In the fourth quarter of FY 2023, Scandic Hotels Group’s net profit, excluding IFRS 16, increased 50% to Skr157m, up from Skr104m in the same quarter of the previous year.

During this quarter from 1 October to 31 December 2023, the company’s EPS, excluding IFRS 16, increased to Skr0.78 from Skr0.49.

Net sales for Q4 FY 2023 grew by 3.5% to Skr5.41bn from Skr5.22bn in last year’s Q4.

The average occupancy rate for Q4 FY 2023 was 57.9%, slightly higher than the 57.0% reported in the same period last year.

RevPAR for Q4 FY23 also went up by 5.5%, reaching Skr734 compared to Skr695 in Q4 FY22.

In Q4 FY23, operating profit totalled Skr502m versus Skr488m in Q4 last year.

Adjusted EBITDA was Skr451m, as against Skr476m in the prior year’s Q4.

Scandic Hotels Group President and CEO Jens Mathiesen said: “Bookings are in line with last year and we have a positive outlook for 2024. With a strong financial position and high ambitions for Scandic, we’re now stepping up the pace to grow the hotel portfolio and create even better guest experiences.”