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

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.

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.

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.

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