The price should be over SEK 43.36 in autumn '24. Otherwise, the shares can be bought cheaper from the market.
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I don’t know the basis for the share price reaction, but if I compare this 2022 report to a randomly clicked report from 2018 (January-September), a few small details stand out (Consolidated Balance Sheet):
- Equity per share 11.5 vs 75.1
- Total number of shares 191,304,116 vs 102,985,075.
With my limited understanding of accounting, I could guess that they came very close to bankruptcy, from which they were saved by a massive share issue and likely also state support, and now they will spend a few years trying to accumulate capital before being anywhere near the healthy situation they were in previously.
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One might suspect that quite a few companies hit rock bottom during the shock caused by COVID. In the future, we may hear how many there were and how close to the brink they actually came.
Good point about that dilution, though! I didn’t think to look at that. I think it’s a good move to retain earnings in the company and improve the capital structure. It could be that if the share price remains very low, Scandic will at some point start buying back its own shares from the market, thereby reversing the share count inflation caused by the pandemic.
Q2 results out this morning:
Sales grew, but profitability weakened. As has become a tradition, the market didn’t like it; about a six percent dip today.
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The hotel chain is opening two new hotels with slightly different concepts in connection with the entertainment and sports center to be built next to the old Helsinki Ice Hall. There will be a total of 459 rooms. About half of the rooms will be in a traditional hotel and half in a new type of Scandic Go hotel.
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This has risen steadily throughout the beginning of the year, but it really took off 
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Scandicilla tänään myös CMD. Siellä osataan käyttää voitonjakoa viisaasti. Alla lehdistötiedote aiheesta:
At its Capital Markets Day starting at 13:00 (CET) today, Scandic Hotels Group (“Scandic” or the “Company”), presents an update on its business plan forming the basis of the mid-term targets for 2025 – 2027 as well as the Group’s strategy for 2030.
Jens Mathiesen, Scandic President & CEO, comments:
“In recent years, we have focused on optimization and invested in strengthening our commercial and operational capabilities. We deliver good guest satisfaction, have engaged team members, and we run our business with high efficiency and cost control. In the coming years, our focus will be on growth and continuous improvement to enhance profitability. Through selective portfolio expansion, leveraging our commercial and operational strengths, and a strategic approach to capital allocation, we aim to create an attractive journey for our guests, team members, and shareholders.”
Following the pandemic, Scandic has established a strong operational, commercial, and financial position. In October 2024, the company updated its financial targets and introduced a capital allocation framework for 2024–2026, reflecting its ambition for growth and profitability while maintaining a balanced risk approach in favorable markets. At the Capital Markets Day, Scandic will present the 2030 strategy, focusing on leveraging its portfolio strengths and enhancing its commercial and operational capabilities to drive further value creation.
Strategy for 2030 in brief – A clear path for higher growth
- Strengthen the #1 position in the Nordics by adding ~7,000 rooms to the lease portfolio.
- Selective expansion in Germany, by adding ~3,000 rooms to the lease portfolio, focusing on key destinations in the top ten largest cities.
- Take a leading position in the fast-growing and profitable economy segment through Scandic Go, expected to account for ~50% of signed new rooms.
- Broaden Nordic presence at low risk with high profitability through 30-40 new franchise hotels.
- Drive revenues and loyalty through more relevant and personalized guest experiences.
- Improved operational excellence through investments in new ways of working.
Following today’s announcement of a proposed ordinary dividend of SEK 570 million and the intention to launch a new share buyback program of approximately SEK 500 million. Scandic will distribute a total of approximately SEK 1.9 billion to shareholders through dividends and share buybacks from December 2024 to March 2026.
Scandic will continue to allocate its free cash flow toward attractive investments and dividends while utilizing share buybacks as a recurring tool to optimize shareholder value.
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Scandic’s Q3’25 audiocast can be viewed here:
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