National Learning profit up 22% to SAR 65.1M in H1 2023/24; Q2 at SAR 34M

National Learning profit up 22% to SAR 65.1M in H1 2023/24; Q2 at SAR 34M

04/04/2024 Argaam Exclusive

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National Company for Learning and Education (NCLE) reported a net profit of SAR 65.1 million for the first half ended Feb. 29, 2024, a jump of 22% from SAR 53.3 million in the year-earlier period.



Financials (M)

Item 6m 2023 6m 2024 Change‬
Revenues 224.91 289.43 28.7 %
Gross Income 93.13 122.36 31.4 %
Operating Income 57.66 74.16 28.6 %
Net Income 53.25 65.05 22.2 %
Average Shares 43.00 43.00 -
EPS (Riyals) 1.24 1.51 22.2 %

The profit increase was attributed to a 29% rise year-on-year (YoY) in revenues, driven by a 21% rise YoY in the number of students enrolled in the company’s schools from 23,400 to 28,200. In addition, two new educational campuses for Trbyh Namouthajiya Schools (TNIS) in Al-Arid and Al-Ghad Private Schools in Al-Qairawan district were opened in Riyadh at the beginning of the current fiscal year 2023/2024.

 

Also, the acquisition of Al-Salam Education and Training Co. contributed to revenue growth during the current period, with its results being included starting from the second quarter of 2023/2024.

 

However, the financing costs increased YoY due to the impact of lease contracts for the two educational campuses that were opened at the beginning of the current year as well as the lease contracts related to company’s new projects under progress in the districts of Hetteen, Qurtubah, and Al-Narjis, Riyadh. This is in addition to the impact of the financing loan for part of the acquisition transaction of Al-Salam Education and Training Co.

 

The company’s net profit jumped 24% to SAR 34 million in the second quarter, compared to SAR 27.37 million in the prior-year period.

 

Sequentially, net profit grew 9.4% from SAR 31.06 million in Q1 2023/24.



Current Quarter Comparison (M)

Compared With The
Item Q2 2023 Q2 2024 Change‬
Revenues 116.81 145.02 24.1 %
Gross Income 48.51 62.78 29.4 %
Operating Income 30.05 38.64 28.6 %
Net Income 27.37 33.99 24.2 %
Average Shares 43.00 43.00 -
EPS (Riyals) 0.64 0.79 24.2 %

Total shareholders’ equity, no minority equity, stood at SAR 700.09 million by the end of the six-month period, compared to SAR 654.27 million a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
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
Q1 2024 144.42 37.5 % 59.58 33.5 % 31.06 20.0 % 0.72
Q2 2024 145.02 24.1 % 62.78 29.4 % 33.99 24.2 % 0.79

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
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 %
Q1 2024 42.32 % 32.18 % 21.47 %
Q2 2024 42.76 % 33.06 % 21.58 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
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
Q1 2024 43.00 2.49 2.49 17.11
Q2 2024 43.00 2.64 2.64 16.28

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
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
Q1 2024 52.82 52.82 7.68
Q2 2024 59.81 59.81 9.70

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 Al-Arid International Model Education Schools Al Ghad National Schools - Kairouan 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)
Q1 2024 22.33 20.71 20.84 19.94 12.00 9.04 7.92 7.67 6.23 4.63 5.26 1.99 5.77 2.08 (1.99)
Q2 2024 22.35 20.80 21.08 19.99 12.28 8.98 7.88 7.55 6.25 4.66 5.28 1.98 5.84 2.08 (1.98)

Current
Market Cap (M Riyal) 7,026.20
Enterprise Value (EV) (M) 7,051.59
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 10.04
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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