Curro boosts profit as it adds over 1,000 more learners
Curro has reported strong growth in revenue and profitability for the year ending 31 December 2023, with 1,307 more learners in 2023 compared to the previous year.
In its financial report for the 2023 financial year, Curro Holdings reported a year of solid growth, with recurring headline earnings up by 29% to R426 million (2022: R330 million).
The group’s operating margin expanded to 17.8% (2022: 15.5%).
Curro’s weighted average number of learners for 2023 increased by 2% to 72,031 (2022: 70,724), and revenue increased by 15% to R4 764 million (2022: R4 156 million).
Additionally, the group added 1,128 learners as of February 2024 compared to year-end 2023.
The group said that tuition fees also increased by 12% due to the growth in learner numbers, price-mix improvement across grades, and annual fee increases.
Revenue growth was supported by an increase in ancillary revenue, which was R120 million and 33% higher than in the previous year. Discounts were well controlled.
Other notable results included:
- Schools’ EBITDA increased by 21% to R1 448 million in 2023, while group EBITDA (after head office expenditure) increased by 25% to R1 155 million (2022: R926 million).
- Headline earnings per share (HEPS) increased by 19% from 61.4 cents to 73.2 cents. Recurring headline earnings per share increased by 32% to 73.2 cents (2022: 55.4 cents).
- Earnings per share (EPS) of 7.0 cents for the year under review was impacted by impairment charges and decreased by 83% from the 40.1 cents in the previous year.
Curro also noted impairments of R378 million (2022: R127 million), net of tax, relating to lower-yielding school assets.
Nevertheless, the board declared a final dividend of 14.64 cents per share (2022: 11.08 cents), reinforcing its confidence in Curro’s growth trajectory and commitment to delivering shareholder value.
Outlook
Curro is in a healthy financial position after another credible operating performance and strong cash flows during the 2023 financial year.
Despite higher tax and interest payments, the group generated R875 million in cash from its operating activities, 9% higher than in the previous year.
The group also noted it invested R715 million back into the business in the year, reinforcing its commitment to enhancing its educational facilities.
Curro CEO Cobus Loubser highlighted that the 1.6% increase in learner numbers since the end of 2023 – amid the challenging economic conditions for constrained consumers – reflects its customers’ strong confidence in Curro’s education and facilities.
He added Curro also plans to invest up to R700 million in 2024 to enhance and expand its facilities, meeting the growing demand for private high school education.
“With a mature network of schools and serving a diverse community, Curro is poised for continued success.
“Our strategic investments and innovative responses to market dynamics will ensure we remain at the forefront of independent education in Southern Africa,” he said.
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