Swedish camping operator Nordic Camping announced a strong set of Q2 numbers this morning. Net sales amounted to SEK 20.5m, up 29% y-o-y. The total sales increase for H1 2015 amounted to 20%. Organically, H1 sales were up by 10%. According to management, the increase is due to increased focus on its chain concept and active revenue management in order to increase occupancy even outside the regular main season. Business from Swedish immigration department “Migrationsverket” contributed with around 1/5 of the increase.
Q2 2015 EBIT amounted to SEK 0.7m, up from SEK 0.3m in Q2 2014. Traditionally, Q1, Q2 and Q4 are quarters which burden the results within the camping industry in general, as they oftentimes show lower results and a high degree of fixed costs. In light of this, Nordic Camping H1 2015 result is very encouraging. The increasing number of camping sites under management increases the seasonal burden for Nordic Camping, especially with new sites where occupancy outside the summer season is initially still low.
During Q2, Nordic Camping has concluded the construction of City Camp Stockholm and Ställplats Stockholm, Sweden’s most modern site for mobile homes. According to management, there is significant potential in this site, as is in all of the new sites; Stensö Camping which is well located in the very attractive and active summer town Kalmar, Halmstad Camping in the region Tylösand, and Nynäsham Camping which has the prerequisites to increase its occupancy rate even outside the summer season.
Elsewhere, Nordic Camping has during Q2 successfully negotiated with Helsingborgs municipality about the development of Stenbrogårdens camping into a modern site for mobile homes.
Commenting briefly on the conduced share emission, which has been dragging down the share price ever since, management reiterates that SEK 21m were added to the company’s war chest, as the most important task is quoted as being continued growth at a high pace by doing good acquisitions and the right investments into existing camping sites.
In the report, management also comments on the weather which has been worse in July compared to previous years, but nevertheless, net sales during the most important month of the year (July) has increased by 2% compared with last year. The weather during the second half of August has so far been much better, which primarily affects the weekend camping business and visitors from abroad.
We see it as very positive that Nordic Camping has also continued its discussion with Swedish migration department Migrationsverket and seems set to add yet another camping site to the off-season business. So far, Nordic Camping rented six of its camping sites to Migrationsverket and in the report, the company states that an additional site has been approved for rental in the upcoming autumn.