Nido Education (NDO) H1 2024 earnings summary

Executive summary

• Achieved first half EBITDA of AUD 7.5 million, with consistent week-on-week revenue growth and profit before tax of AUD 7 million.

• Revenue for the half-year ended 30 June 2024 increased by 117.8% to AUD 75.5 million, nearly 1.5x higher year-over-year, driven by acquisitions and maturing centers.

• Net profit attributable to shareholders was AUD 3.4 million, a turnaround from a AUD 3.3 million loss in the prior year.

• Managing 99 centers, with 52 owned, and an average daily fee of AUD 171 after discounts.

• CEO Renee Bowman resigned effective 26 July 2024.

Financial highlights

• Center-based EBITDA of AUD 12 million, around 10x higher than the prior year, with a 16% margin.

• Group EBITDA (pre-AASB16) was AUD 7.5 million, compared to a loss of AUD 1.9 million in H1 CY23.

• Net operating cash flows were AUD 16.2 million, up from AUD 0.4 million in the prior period.

• Net assets at 30 June 2024 were AUD 113 million, up from AUD 109 million at 31 December 2023.

• Basic EPS was 1.47 cents, compared to a loss of 3.91 cents per share last year.

Outlook and guidance

• Full year EBITDA forecast at AUD 23.2 million; NPAT forecast at AUD 20.2 million, AUD 3.3 million ahead of pro forma.

• Dividend of AUD 0.058 per share expected, representing a 5.8% yield, payable in March 2025.

• 14 center openings and AUD 3.5 million in establishment fees delayed to 2025 due to construction timing.

• Average occupancy for CY24 forecast at 80%, slightly below previous 82% due to sector softening, offset by fee increases.

• Management expects positive operating cash flows for at least the next 12 months.