National Learning net profit soars 43% to SAR 101.8M in FY 2022/23; Q4 at SAR 20.9M

National Learning net profit soars 43% to SAR 101.8M in FY 2022/23; Q4 at SAR 20.9M

26/11/2023 Argaam Exclusive

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National Company for Learning and Education (NCLE) reported a net profit of SAR 101.8 million for the fiscal year (FY) ended Aug. 31, 2023, up 43% from SAR 71.1 million in the year-earlier period.



Financials (M)

Item 2022 2023 Change‬
Revenues 315.69 461.96 46.3 %
Gross Income 126.51 195.91 54.9 %
Operating Income 78.99 111.75 41.5 %
Net Income 71.05 101.78 43.3 %
Average Shares 43.00 43.00 -
EPS (Riyals) 1.65 2.37 43.3 %

This came amid a 37% rise in the number of students enrolled in the company’s schools to 23,400 by the end of the current FY, from 17,100 a year ago.

 

This is in addition to the opening of a new educational campus, affiliated with NCLE under the umbrella of Tarbyh Namouthajiyah International Schools (TNIS), in Dhahran, Eastern Province, at the beginning of FY 2022/2023. Also, the acquisition of Al-Salam Private Schools during the current FY contributed to the increase in the company’s revenues and student count.

 

During the same FY, government grants and subsidies also soared YoY due to this year’s elevated benefit from the Saudization wage subsidy program, undertaken by the Human Resources Development Fund, compared to the year before.

 

This was despite the YoY hike in financing costs during the current FY as NCLE obtained a new loan this year to partially fund Al-Salam Private Schools’ acquisition. Besides, in FY 2022/2023, the company started to feel the impact of lease contracts for new projects in Hittin, Al Narjis and Qurtuba districts, Riyadh, although gains from short-term Murabaha surged YoY.

 

In Q4 2022/23, net profit grew 29.3% to SAR 20.92 million, from SAR 16.18 million a year earlier.

 

Sequentially, net profit fell 24.3% from SAR 27.62 million in Q3.



Current Quarter Comparison (M)

Compared With The
Item Q4 2022 Q4 2023 Change‬
Revenues 81.97 119.35 45.6 %
Gross Income 34.34 52.99 54.3 %
Operating Income 18.28 23.02 25.9 %
Net Income 16.18 20.92 29.3 %
Average Shares 43.00 43.00 -
EPS (Riyals) 0.38 0.49 29.3 %

Total shareholders’ equity, no minority interest, increased to SAR 704.72 million by the end of the fiscal year, from SAR 650.54 million a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 - - - - - - -
Q2 2014 - - - - - - -
Q3 2014 - - - - - - -
Q4 2014 - - - - - - -
Q1 2015 - - - - - - -
Q2 2015 - - - - - - -
Q3 2015 - - - - - - -
Q4 2015 - - - - - - -
Q1 2016 - - - - - - -
Q2 2016 - - - - - - -
Q3 2016 - - - - - - -
Q4 2016 - - - - - - -
Q1 2017 59.74 - 23.32 - 15.06 - 0.50
Q2 2017 60.43 - 22.14 - 15.82 - 0.53
Q3 2017 58.07 - 22.32 - 13.27 - 0.44
Q4 2017 58.48 - 33.38 - 23.74 - 0.79
Q1 2018 55.47 (7.2 %) 20.36 (12.7 %) 11.01 (26.9 %) 0.37
Q2 2018 54.00 (10.6 %) 18.98 (14.3 %) 11.42 (27.9 %) 0.38
Q3 2018 56.41 (2.9 %) 22.05 (1.2 %) 12.86 (3.1 %) 0.43
Q4 2018 54.08 (7.5 %) 20.95 (37.2 %) 13.59 (42.7 %) 0.45
Q1 2019 52.53 (5.3 %) 21.08 3.5 % 11.48 4.2 % 0.27
Q2 2019 52.22 (3.3 %) 21.37 12.6 % 12.17 6.6 % 0.28
Q3 2019 51.36 (8.9 %) 21.32 (3.3 %) 13.46 4.7 % 0.31
Q4 2019 51.22 (5.3 %) 23.56 12.5 % 13.29 (2.2 %) 0.31
Q1 2020 52.10 (0.8 %) 20.23 (4.0 %) 11.64 1.4 % 0.27
Q2 2020 56.49 8.2 % 24.22 13.3 % 13.44 10.5 % 0.31
Q3 2020 57.21 11.4 % 24.44 14.6 % 12.13 (9.9 %) 0.28
Q4 2020 59.49 16.1 % 36.35 54.3 % 20.59 54.9 % 0.48
Q1 2021 44.45 (14.7 %) 13.91 (31.2 %) 3.79 (67.5 %) 0.09
Q2 2021 46.60 (17.5 %) 16.51 (31.8 %) 4.56 (66.0 %) 0.11
Q3 2021 48.85 (14.6 %) 18.52 (24.2 %) 9.15 (24.6 %) 0.21
Q4 2021 47.30 (20.5 %) 21.47 (40.9 %) 6.96 (66.2 %) 0.16
Q1 2022 74.38 67.3 % 30.38 118.4 % 18.10 377.9 % 0.42
Q2 2022 77.29 65.9 % 29.80 80.5 % 18.21 298.9 % 0.42
Q3 2022 82.05 68.0 % 31.99 72.8 % 18.56 102.9 % 0.43
Q4 2022 81.97 73.3 % 34.34 59.9 % 16.18 132.5 % 0.38
Q1 2023 105.05 41.2 % 44.62 46.9 % 25.87 42.9 % 0.60
Q2 2023 116.81 51.1 % 48.51 62.8 % 27.37 50.4 % 0.64
Q3 2023 117.70 43.5 % 49.79 55.7 % 27.62 48.8 % 0.64
Q4 2023 119.35 45.6 % 52.99 54.3 % 20.92 29.3 % 0.49
2023 461.96 46.3 % 195.91 54.9 % 101.78 43.3 % 2.37

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 - - -
Q2 2014 - - -
Q3 2014 - - -
Q4 2014 - - -
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 - - -
Q4 2017 42.73 % 34.24 % 28.68 %
Q1 2018 42.25 % 33.42 % 27.47 %
Q2 2018 42.05 % 33.99 % 26.30 %
Q3 2018 42.24 % 35.66 % 26.31 %
Q4 2018 37.43 % 31.21 % 22.22 %
Q1 2019 38.27 % 31.36 % 22.73 %
Q2 2019 39.70 % 31.02 % 23.27 %
Q3 2019 40.30 % 29.79 % 22.93 %
Q4 2019 42.12 % 29.36 % 23.10 %
Q1 2020 41.80 % 29.20 % 23.23 %
Q2 2020 42.30 % 29.27 % 23.36 %
Q3 2020 42.60 % 29.89 % 23.27 %
Q4 2020 46.71 % 32.78 % 25.66 %
Q1 2021 45.45 % 31.09 % 22.95 %
Q2 2021 43.91 % 29.84 % 19.77 %
Q3 2021 42.78 % 30.15 % 19.10 %
Q4 2021 37.61 % 26.13 % 13.07 %
Q1 2022 40.01 % 30.58 % 17.86 %
Q2 2022 40.42 % 33.10 % 21.15 %
Q3 2022 40.44 % 33.63 % 22.00 %
Q4 2022 40.07 % 33.47 % 22.51 %
Q1 2023 40.64 % 33.22 % 22.76 %
Q2 2023 41.32 % 32.97 % 22.80 %
Q3 2023 42.05 % 33.18 % 23.02 %
Q4 2023 42.69 % 32.16 % 22.18 %
2023 42.41 % 31.83 % 22.03 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 - - - -
Q2 2014 - - - -
Q3 2014 - - - -
Q4 2014 - - - -
Q1 2015 - - - -
Q2 2015 - - - -
Q3 2015 - - - -
Q4 2015 - - - -
Q1 2016 - - - -
Q2 2016 - - - -
Q3 2016 - - - -
Q4 2016 - - - -
Q1 2017 30.00 - - 10.20
Q2 2017 30.00 - - -
Q3 2017 30.00 - - 10.58
Q4 2017 30.00 2.26 2.26 11.30
Q1 2018 30.00 2.13 2.13 11.63
Q2 2018 30.00 1.98 1.98 11.22
Q3 2018 30.00 1.97 1.97 11.65
Q4 2018 30.00 1.63 1.63 11.42
Q1 2019 43.00 1.15 1.15 13.51
Q2 2019 43.00 1.16 1.16 13.44
Q3 2019 43.00 1.18 1.12 13.78
Q4 2019 43.00 1.17 1.11 14.08
Q1 2020 43.00 1.18 1.12 14.44
Q2 2020 43.00 1.21 1.15 13.83
Q3 2020 43.00 1.17 1.17 14.13
Q4 2020 43.00 1.34 1.34 14.53
Q1 2021 43.00 1.16 1.16 14.59
Q2 2021 43.00 0.96 0.96 13.89
Q3 2021 43.00 0.89 0.89 14.14
Q4 2021 43.00 0.57 0.57 14.30
Q1 2022 43.00 0.90 0.90 14.68
Q2 2022 43.00 1.22 1.22 14.30
Q3 2022 43.00 1.44 1.44 14.78
Q4 2022 43.00 1.65 1.65 15.13
Q1 2023 43.00 1.83 1.83 15.79
Q2 2023 43.00 2.05 2.05 15.22
Q3 2023 43.00 2.26 2.26 15.85
Q4 2023 43.00 2.37 2.37 16.39

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 - - -
Q2 2014 - - -
Q3 2014 - - -
Q4 2014 - - -
Q1 2015 - - -
Q2 2015 - - -
Q3 2015 - - -
Q4 2015 - - -
Q1 2016 - - -
Q2 2016 - - -
Q3 2016 - - -
Q4 2016 - - -
Q1 2017 - - -
Q2 2017 - - -
Q3 2017 - - -
Q4 2017 - - -
Q1 2018 - - -
Q2 2018 - - -
Q3 2018 - - -
Q4 2018 19.90 19.90 2.84
Q1 2019 19.92 19.92 1.69
Q2 2019 19.31 19.31 1.67
Q3 2019 22.31 23.47 1.91
Q4 2019 24.40 25.68 2.03
Q1 2020 25.09 26.40 2.04
Q2 2020 37.33 39.22 3.25
Q3 2020 41.34 41.34 3.44
Q4 2020 38.83 38.83 3.59
Q1 2021 40.85 40.85 3.25
Q2 2021 64.18 64.18 4.41
Q3 2021 71.80 71.80 4.50
Q4 2021 More than 100 More than 100 4.20
Q1 2022 56.12 56.12 3.45
Q2 2022 48.98 48.98 4.17
Q3 2022 43.12 43.12 4.19
Q4 2022 41.34 41.34 4.51
Q1 2023 54.56 54.56 6.33
Q2 2023 57.18 57.18 7.69
Q3 2023 42.54 42.54 6.06
Q4 2023 49.93 49.93 7.21

Business Segments (Million)

Compared With The
Period EL Rayan School EL Rowaby School Al Qairwan schools Al Nozaha school Al Aridh Schools Al Ghad National Schools Breda Schools Elsalam National school Qortoba School Al-Khoarizmy Schools Al Zahran School Other activities Consolidation adjustments & eliminations
Q1 2017 19.87 19.13 - 14.95 - - - - - - - - -
Q4 2017 20.23 19.48 - 14.97 - - - - - - - - -
Q1 2018 18.99 17.68 - 14.15 - - - - 0.33 - - - -
Q2 2018 17.64 18.36 - 14.22 - - - - 0.31 - - - -
Q3 2018 17.24 20.04 - 14.15 - - - - 0.43 - - - -
Q4 2018 18.60 17.98 - 13.67 - - - - 0.48 - - - -
Q1 2019 18.62 17.86 - 15.27 - - - - 0.78 - - - -
Q2 2019 16.37 19.95 - 14.89 - - - - 1.01 - - - -
Q3 2019 17.22 18.27 - 14.95 - - - - 0.92 - - - -
Q4 2019 17.30 18.47 - 14.70 - - - - 0.75 - - - -
Q1 2020 17.68 18.92 - 13.42 - - 0.44 - 1.64 - - - -
Q2 2020 15.42 19.03 - 15.89 - - 0.49 - 1.67 3.98 - - -
Q3 2020 16.15 18.49 - 14.35 - 2.18 0.48 - 1.62 3.93 - - -
Q4 2020 15.40 17.81 - 13.86 - 6.23 0.63 - 1.64 3.92 - - -
Q1 2021 10.16 12.22 2.37 9.42 - 5.39 1.00 - 1.01 2.90 - - -
Q2 2021 10.49 12.74 2.47 9.61 - 5.29 1.24 - 1.13 2.85 - 0.78 -
Q3 2021 11.05 13.52 3.06 10.15 - 5.89 1.18 - 1.16 2.83 - 1.32 (1.33)
Q4 2021 11.21 13.43 3.02 9.79 - 5.84 0.94 - 1.06 2.77 - 1.70 (2.47)
Q1 2022 14.08 16.18 9.76 12.80 4.44 7.75 2.81 - 2.32 4.26 - 1.80 (1.80)
Q2 2022 14.42 16.26 10.28 13.17 5.25 7.89 2.95 - 2.62 4.44 - 1.85 (1.85)
Q3 2022 15.22 16.88 11.33 13.56 5.96 8.27 3.32 - 3.09 4.41 - 1.84 (1.84)
Q4 2022 15.18 17.19 11.26 13.85 5.86 7.96 3.32 - 2.99 4.37 - 1.95 (1.95)
Q1 2023 18.47 18.63 17.06 17.08 11.01 8.67 5.84 - 4.62 4.74 2.00 1.80 (1.80)
Q2 2023 18.58 19.00 17.15 16.93 11.23 8.83 6.01 7.59 4.64 4.61 2.25 1.85 (1.85)
Q3 2023 18.75 19.15 17.27 16.95 11.41 8.73 6.13 7.54 4.78 4.63 2.37 1.96 (1.96)
Q4 2023 19.25 19.61 17.38 17.21 11.50 8.83 6.22 7.51 4.88 4.75 2.21 2.11 (2.11)

Current
Market Cap (M Riyal) 7,103.60
Enterprise Value (EV) (M) 7,128.99
Shares Outstanding ((M)) 43.00
EPS ( Riyal) (TTM) 2.64
Book Value (BV) ( Riyal) 16.28
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) More than 100
Price/book 10.15
Return on Average Assets (%) (TTM) 9.8
Return on Average Equity (%) (TTM) 16.8

Share Price

National Company for Learning and Education (NCLE)


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