ADvTECH (ADH) H2 2024 earnings summary

Executive summary

• Revenue increased by 8% year-over-year, with operating profit up 14% and operating margin improving to 21%.

• Headline and normalised EPS up 16%, with EPS surpassing ZAR 2 and dividend exceeding ZAR 1 for the first time.

• Total group enrollments grew 13% year-over-year, surpassing 100,000, with tertiary enrollments breaking 60,000.

• Expanded African footprint with the acquisition of Flipper International School in Ethiopia and new campus openings in Ghana and South Africa.

• Continued investment in infrastructure, academic quality, and preparation for university status.

Financial highlights

• Revenue increased by 8% year-over-year to R8,521 million, and operating profit rose 14% to R1,791 million, with operating margin improving to 21%.

• Headline and normalised EPS up 16% to 202.2 and 202.5 cents, respectively.

• Dividend increased 16% to ZAR 1.01 per share, maintaining a 2x cover policy.

• Cash generated from operations grew 13% to R2,266 million, supporting investment and shareholder returns.

• Five-year CAGRs: 12% for revenue, 19% for operating profit, and 15% for NEPS in USD terms.

Outlook and guidance

• Confident in maintaining growth trajectory, supported by demographic tailwinds and strong demand for quality education.

• Focus remains on expanding African operations, growing distance tertiary, and securing university status.

• Expect continued margin improvement in tertiary from operational leverage.

• Continued investment in new opportunities and infrastructure.