Curro Holdings (COH) investor relations material

Executive summary

• Revenue increased by up to 5% year-over-year to R2,709 million for the six months ended 30 June 2025, despite a 1.4% decrease in average learner numbers to 71,749.

• Cash generated from operating activities rose by over 10% to R688 million, supporting share repurchases and dividend payments.

• Recurring headline earnings per share and headline earnings per share were stable at 40.3 cents, while EPS dropped 36.1% to 25.7 cents due to a R74.1 million impairment on land.

• A 60% premium buyout offer was announced by the Jani Maton Stochner Foundation, subject to shareholder and regulatory approval.

• The business remains resilient with a strong balance sheet, consistent free cash flow, and a focus on long-term value creation.

Financial highlights

• Total revenue rose up to 5% year-over-year, mainly from fee increases and higher ancillary income.

• Ancillary revenue grew 10.8% and has recovered to pre-pandemic levels.

• Operating costs increased by 5.4%, with staff costs up 3.5% and other expenses up 8.8%.

• Net finance costs decreased to R138 million from R157 million year-over-year.

• Cash generated from operations increased from R624 million to R688 million.

Outlook and guidance

• Capacity utilization is at 70%, with significant room to add learners; tuition fees to increase by 4.5% in 2026.

• Capex for 2025 is projected at up to R630 million, with continued investment in capacity expansion and maintenance.

• Fee increases for pre-primary and primary will be contained below 4%, high school fees to rise by about 6%.

• Management remains confident in driving operating margin higher over the medium term and delivering sustainable, future-focused education.

• Focus remains on increasing shareholder returns through operational efficiency, cost containment, and digital initiatives.