AcadeMedia combines all preschools in one segment to capitalise on growth opportunities
AcadeMedia is one of the leading preschool operators in Sweden and internationally. Bringing all pre-school units together in one segment enables us to focus and capture growth opportunities within the fast growing European pre-school market.
AcadeMedia has through analysis of the European preschool market identified substantial growth potential due to the expansion of publicly funded preschools in several European countries. Access to a high quality preschool is crucial for a country’s sustainable development and growth. Availability of preschools contributes to increased equality, improved labour supply and income while also laying the foundation for future education and life-long learning.
“Our Nordic preschool model, which builds on a combination of care and learning, is highly appreciated by the German market and we see good opportunities for continued growth in Germany and across the rest of Europe. Bringing all preschools into one segment enables us to focus and increase the scalability of this business area,” says Marcus Strömberg, CEO of AcadeMedia.
This reorganisation includes all preschools and means that all Swedish and international preschools will be combined in one new segment which will include approximately 250 preschools across Sweden, Norway and Germany. Pro-forma measured over rolling 12 months, net sales of the new segment will amount to approximately SEK 3.5 billion and has an adjusted EBIT-margin of approximately 5 percent. The new preschool segment plans to open 10-15 new preschools in Germany in year 2019/20. Moreover, current our pipeline includes an additional 10-15 new openings planned for fiscal year 2020/21.
The Preschool Segment will initially be led by AcadeMedia’s CEO Marcus Strömberg. During 2020 a new segment head will be appointed. Veronica Rörsgård will continue in her role as Head of Preschool in Sweden, Marit Lambrechts as Head of Preschool in Norway and Kristofer Hammar as Head of Preschool in Germany.
As a result AcadeMedia’s compulsory schools will be a separate segment. Jens Eriksson, who currently manages AcadeMedia’s Upper Secondary School Segment, also lead AcadeMedia’s Compulsory School segment.
Demographic development in Sweden implies that a large number of primary and secondary schools will be needed in the next five years. The purpose of a joint management for compulsory and upper secondary schools is to capture synergies within our Swedish school operations. In the short term, the synergies will primarily be in management and support functions and amount to approximately SEK 5 million in 2019/20. Over the long term, the aim is to strengthen development capabilities with the goal of developing new standards and taking a leading role in the development of modern educational tools and methods. The overall goal is to achieve a higher sales growth and margin.
As of 1 July, 2019, AcadeMedia's operations will thus be run in four segments:
| Number of units | Net sales* | Adj, EBIT* | Adj, EBIT margin | |||||
| 2018/19 Q3 |
2017/18 | 2018/19 R12 Q3 |
2017/18 | 2018/19 R12 Q3 |
2017/18 | 2018/19 R12 Q3 |
2017/18 | |
| Preschool | 255 | 249 | 3 534 | 3 226 | 179 | 181 | 5,1% | 5,6% |
| Compulsory School | 109 | 111 | 2 828 | 2 685 | 127 | 122 | 4,5% | 4,5% |
| Upper Secondary School | 143 | 141 | 3 686 | 3 229 | 354 | 292 | 9,6% | 9,0% |
| Adult Education | - | - | 1 493 | 1 666 | 23 | 137 | 1,5% | 8,2% |
| Group adj., parent company | - | - | 5 | 5 | -74 | -62 | - | - |
| Total | 507 | 501 | 11 546 | 10 810 | 609 | 670 | 5,3% | 6,2% |
| * SEK m | ||||||||
AcadeMedia's Group Management is unchanged.
For more information, please contact:
Marcus Strömberg, CEO
Telephone: +46 8 794 4200
E-mail: marcus.stromberg@academedia.se
Eola Änggård Runsten, CFO
Telephone: +46 8 794 4240
E-mail: eola.runsten@academedia.se
About AcadeMedia
AcadeMedia creates opportunities for people to develop. The 17,500 employees at our 660 preschools, compulsory schools, upper secondary schools and adult education centres share a common focus on quality and development. Our 179,900 children and students are provided with a high quality education, giving them the best conditions to attain both learning objectives and their full potential as individuals. AcadeMedia is Northern Europe ́s largest education company, with locations/facilities/presence in Sweden, Norway and Germany. Our size gives us the capacity to be a robust, long term partner to the communities we serve. More information about AcadeMedia is available on www.academedia.se