NCLE Records 20% Surge in Profits, Reaching SAR 31 Million in Q1 Ending November 2023

The National Education and Learning Company revealed that net profit after zakat and tax in the first quarter increased to 31 million riyals, compared to 25.8 million riyals in the same quarter of last year, by 20%. This came after today’s announcement of the preliminary financial results for the period ending on November 30, 2023 (3 months).

Operating profit reached 36.3 million riyals in the first quarter, compared to 28.1 million riyals in the same quarter of the previous year, an increase of 29.4%.

Total shareholders’ equity (excluding minority rights) amounted to 735.7 million riyals in the three-month period, compared to 678.7 million riyals in the same period last year, a growth of 8.3%.

Earnings per share in the current period reached 0.72 riyals, compared to 0.6 riyals in the same period last year.

The increase in revenue during the current quarter by 34% compared to the same quarter of the previous year is mainly due to the increase in the number of students enrolled in the company’s schools by 30% from 21.6 thousand students in the same quarter of the previous year to 28 thousand students during the current quarter. In addition, two new educational campuses for TNIS in Al-Arid district and Al-Ghad Private Schools in Al-Qairawan district were opened in the city of Riyadh at the beginning of the current year 2023-2024. Also, the acquisition of Al-Salam Education and Training Company contributed to an increase in revenue and the number of students which were not accounted for in the same quarter of the previous year, as the full Company shares were purchased in the second quarter of the previous year.

The increase in net profit during the current quarter compared to the same quarter of the previous year is due to an increase in revenue by 34% compared to the same quarter of the previous year.

The financing costs have increased during the current quarter compared to the same quarter of the previous year due to the impact of lease contracts for the two educational campuses that were opened at the beginning of the current year, and the lease contracts related to new projects under Progress in the districts of Hetteen, Al-Narjis, and Qurtubah in the city of Riyadh. This quarter’s increase in financing costs has also been attributed to the impact of the financing loan for part of the acquisition transaction of Al-Salam Education and Training Company.

The increase in revenue during the current quarter by 23% compared to the previous quarter is due to the increase in the number of students enrolled in the company’s schools during the current quarter by 20% from 23.4 thousand students in the previous quarter to 28 thousand students During the current quarter. In addition, two new educational campuses for TNIS in Al-Arid district and Al-Ghad Private Schools in Al-Qairawan district were opened in the city of Riyadh at the beginning of the current year 2023-2024.

The increase in net profit during the current quarter compared to the previous quarter is due to an increase in revenue by 23% compared to the previous quarter. Moreover, the marketing and advertising expenses have decreased during the current quarter compared to the previous quarter, which coincides with the marketing campaigns for the next academic year.

The financing costs have increased during the current quarter compared to the previous quarter due to the impact of lease contracts for the two educational campuses that were opened at the beginning of the current year. This is despite the increase in the realized return from short-term Islamic Murabaha during the current quarter compared to the previous quarter.

Additionally, the government grants and subsidies have decreased during the current quarter compared to the previous quarter, as the company received its annual support from the Ministry of Education during the previous quarter.

The Company explained that the Group`s interim condensed consolidated financial statements for the three-month period ended on 30 November 2022 were reviewed by another auditor who expressed an unmodified conclusion on those interim condensed consolidated financial statements on 10 January 2023).