Taaleem Holdings Reports 33% Enrolment Surge
Taaleem Holdings PJSC showcases robust financial growth in FY 2023/24 with impressive enrolment increases and strategic expansions.
Summary
Taaleem Holdings PJSC has reported significant growth in FY 2023/24, with a 33.1% increase in enrolment and a 32% rise in EBITDA, driven by strategic expansions.
Taaleem Holdings PJSC, a prominent K-12 education provider in the UAE, has once again demonstrated its strong growth trajectory for the fiscal year 2023/24. The company has reported a remarkable 33.1% increase in student enrolment, translating into a substantial revenue growth of 15.5% year-on-year, reaching AED 945.2 million. This impressive performance is attributed to the company's strategic expansions and enhanced economies of scale.
The opening of the Dubai British School (DBS) Jumeira in August 2024 marked a significant milestone for Taaleem, as it became the first school in Dubai to commence operations with over 500 students enrolled. This expansion, along with five other new government partnerships, has effectively increased Taaleem's total capacity by 27% to accommodate 42,891 students.
Financially, Taaleem's EBITDA surged by 32% year-on-year to AED 270.8 million, reflecting a 3.6% expansion in EBITDA margin to 28.6%. This growth is a testament to the company's ability to capitalize on operational leverage and drive enhanced profitability. Furthermore, the company's net profit before tax increased by an impressive 55.1% year-on-year to AED 182 million, showcasing a net profit margin improvement of 4.9% to 19.3%.
Despite increasing its debt to support the development of new schools, Taaleem maintains a negative net debt position of AED 560.3 million, which underscores its robust financial health. The company's free cash flow to the firm was a strong AED 243.6 million, further highlighting its operational efficiency and financial stability.
Looking forward, Taaleem's strategic focus on expanding its school network and enhancing its operational efficiencies positions it well for sustained growth. Investors may find Taaleem's stock an attractive buy opportunity, given its solid financial performance, strategic growth initiatives, and the increasing demand for quality education in the UAE.
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Summary
Taaleem Holdings PJSC announced its financial results for the fiscal year 2023/24, showing significant growth. The company recorded revenues of AED 945.2 million, a 15.5% increase from the previous year, driven by a 33.1% rise in student enrolment. EBITDA increased by 32.0% to AED 270.8 million, with an EBITDA margin of 28.6%. Net profit before tax rose by 55.1% to AED 182.0 million, with a net profit margin of 19.3%. The company expanded its capacity by adding 9,119 students, achieving a total enrolment of 37,930 students. Taaleem also reported a negative net debt of AED 560.3 million, reflecting increased debt to support the development of new schools in Dubai. The company's free cash flow to the firm was AED 243.6 million, indicating strong financial health.
