ADvTECH (ADH) investor relations material

Executive summary

• Revenue increased 10% year-over-year to R4,683 million, with operating profit up 14% to R982 million and operating margin rising to 21%.

• Headline earnings per share rose 15% to 112.7 cents, normalized EPS up 16% to 113.0 cents, and dividend increased 18% to 45.0 cents per share.

• Education now contributes 84% of revenue and 95% of profit, with a strategic pivot toward tertiary education and robust enrolment growth across all divisions.

• Expanded international footprint with acquisitions in Ethiopia and Kenya, and the opening of a new university college in Ghana.

• Continued investment in technology, teaching, and learning reinforced leadership in private education across Africa.

Financial highlights

• Five-year CAGRs: revenue 13%, operating profit 18%, normalized EPS 20%.

• Cash generated by operating activities increased up to 18% year-over-year, reaching R2,303 million.

• Free operating cash flow before capex per share up 19% to 349.2 cents.

• Education margin rose to 23.8%, with schools at 21.8% and tertiary at 25.9%.

• NEPS in US dollars up 90% year-over-year, compounding at 13% over five years.

Outlook and guidance

• Strong demand for quality education and distance learning persists, especially in tertiary, supported by demographic and supply-demand tailwinds.

• Continued investment in capacity expansion, academic excellence, and African operations, with dividend cover target of 2x maintained.

• University status expected to positively impact enrollments and financials, though timing is uncertain.

• Confident in maintaining growth trajectory due to robust balance sheet and cash generation.