SkiStar AB Reports Growing Profits and Strong Bookings
Continued Growth and Positive Outlook for SkiStar AB
Overview of the Fourth Quarter
In the fourth quarter, SkiStar AB experienced a slight decline in net sales, dropping by SEK 6 million to SEK 339 million, compared to SEK 345 million in the previous year. However, when adjusted for last year's electricity subsidies amounting to SEK 16 million, the company actually witnessed a net increase of SEK 10 million, translating to a 3% growth. This paints a picture of resilience despite the challenges.
The company's operating profit was affected, posting a loss of SEK 279 million compared to a loss of SEK 239 million from last year, equating to a decrease of 17%. This loss was partly due to an adjustment in accounting policies for properties held within joint ventures, which accounted for a SEK 19 million impact on earnings for the quarter. Excluding this adjustment, the operating loss would have been SEK 260 million.
On a positive note, SkiStar recorded capital gains from exploitation operations which saw an increase to SEK 76 million from SEK 63 million the previous quarter. Additionally, cash flow from operating activities improved, rising by SEK 13 million to register at SEK -234 million compared to -247 million in the fourth quarter last year.
The basic and diluted earnings per share showed a decline, calculated at SEK -3.49 down from SEK -2.75, marking a 27% decrease.
Annual Performance Insights
Looking at the full year, SkiStar reported a notable increase in net sales, which surged by SEK 398 million or 9%, amounting to SEK 4,679 million compared to SEK 4,281 million last year. This increase reflects a strong demand for ski tourism and highlights the effectiveness of the company's strategies despite the challenges in the market.
The operating profit also saw significant growth, increasing by SEK 124 million, or 20%, reaching SEK 740 million up from SEK 616 million the previous year. The same accounting adjustments mentioned previously had an impact, demonstrating the importance of transparency in financial reporting.
Capital gains from exploitation operations remained stable at SEK 67 million when compared to the previous year’s 75 million. Cash flow from operating activities saw a remarkable turnaround with a rise of SEK 415 million, now totaling SEK 1,084 million, an improvement from 669 million.
Furthermore, the company's earning per share increased to SEK 6.03 from 5.28, reflecting a growth of 14%. In light of this strong performance, the Board proposed a dividend increase to SEK 2.80 per share from last year’s 2.60, cumulatively reaching SEK 219 million, which represents 46% of the Group's profit after tax.
Significant Developments and Future Outlook
Throughout the year, SkiStar noted stable demand for mountain holidays leading into the 2024/25 winter season. Booking levels remained steady, with a consistent number of overnight stays booked through their accommodations, indicating a robust market presence.
On a structural note, SkiStar expanded its management team with the addition of Fanny Sjödin as Chief Sustainability Officer as of September. Additionally, the transition in property development leadership will be effective next January, with Henrik Lundmark succeeding Lars-Göran Dahl, who will depart by year-end.
The CEO, Stefan Sjöstrand, emphasized the company’s continued commitment to enhancing their market position in mountain tourism by prioritizing guest satisfaction and activity participation. This dedication is paving the way for sustained success in the forthcoming seasons.
Engagement and Information Sharing
SkiStar will host a conference call session on October 1st at 10:00 a.m. CET that will be accessible via a webcast, allowing for broad participation and inquiries from stakeholders. This transparency reflects the company's modern approach to investor relations.
For those interested, the presentation and a recording will be available on their official webpage, providing an opportunity to revisit the insights shared during the event.
This announcement is obligating SkiStar AB to adhere to the EU Market Abuse Regulation, reinforcing its commitment to compliance and information transparency.
For more details, stakeholders can reach out directly to:
Stefan Sjöstrand, CEO, tel +46 (0)280 841 60.
Martin Almgren, CFO, tel +46 (0)280 841 60.
About SkiStar AB
SkiStar AB (publ) proudly operates on the Mid Cap list of the Nasdaq Stockholm exchange. The Group manages several mountain resorts in Sweden and Norway, including renowned locations such as Sälen, Vemdalen, Åre, and Trysil. SkiStar's operational segments encompass Mountain Resort Management, Property Development and Exploitation, and Hotel Operations.
As a leading holiday tour operator for Scandinavia, SkiStar is committed to delivering unforgettable mountain experiences. They focus on developing sustainable destinations and offering high-quality accommodations, activities, and services. The company’s strategies revolve around ensuring the highest satisfaction for its guests.
Frequently Asked Questions
What were SkiStar AB's net sales for the fourth quarter?
SkiStar AB reported net sales of SEK 339 million for the fourth quarter, a decrease from SEK 345 million the previous year.
How did the company's annual performance compare to last year?
The company saw a 9% increase in net sales for the full year, totaling SEK 4,679 million compared to 4,281 million last year.
Who has joined SkiStar's Group Management?
Fanny Sjödin has joined as the Chief Sustainability Officer, expanding the management team.
What is the proposed dividend for this year?
The Board proposed a dividend of SEK 2.80 per share, an increase from the previous year's SEK 2.60.
When is the conference call being held?
The conference call is scheduled for October 1st at 10:00 a.m. CET, with participation encouraged through their webcast.
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