Taaleem Holdings: Surpassing AED 1.1 Billion Revenue
Taaleem Holdings has achieved a significant milestone by crossing the AED 1.1 billion operating revenue mark, driven by strategic expansions and acquisitions.
Summary
Taaleem Holdings reports a 20.1% revenue increase, reaching AED 1.1 billion, driven by new school launches and acquisitions. The company plans further expansion.
In a landmark year, Taaleem Holdings PJSC, a premier K-12 education provider in the UAE, has reported a remarkable financial performance for the fiscal year 2024/25. The company has crossed the AED 1.1 billion mark in operating revenue, reflecting a 20.1% year-on-year growth. This achievement underscores Taaleem's strategic expansions, including new school launches and acquisitions, amidst a resilient demand for premium education.
Taaleem's financial results reveal a net profit of AED 164.5 million, marking a 19.2% increase from the previous year. This growth trajectory is supported by a 19.3% rise in premium school enrolments, indicating robust demand for quality education in the region. The company's expansion strategy involved increasing its premium school capacity by 28.0%, a move facilitated by the acquisition of LLFPM, the launch of DBS Jumeira, and the expansion of GIS.
The company's EBITDA (excluding Kids First Group) rose by 17.4% to AED 317.9 million, with a margin of 28.0%. Although the margin slightly decreased compared to the previous year due to higher general and administrative expenses and the ramp-up process of new schools, the overall financial health remains strong.
Taaleem's strategic acquisition of a 95% stake in Kids First Group, encompassing 34 nurseries across the UAE and Qatar, is expected to contribute positively from the fiscal year 2025/26. Despite a seasonal impact resulting in a net loss in Q4 2024/25, the investment is projected to be earnings-accretive in the coming quarters.
Looking ahead, Taaleem's expansion plans remain robust. The company has successfully launched DBS Mira for the academic year 2025/26 and is progressing with the construction of Harrow Dubai, set for AY2026/27. Additionally, land has been secured for Harrow Abu Dhabi, with plans for a new premium school in Ghaf Woods.
Given the company's strong financial performance, strategic expansions, and promising future projects, Taaleem Holdings presents a compelling case for investors. However, considering the current market conditions and the company's ongoing expansion projects, a 'hold' recommendation is advisable for potential investors. This approach allows investors to monitor the company's progress and evaluate the impact of its strategic initiatives on future earnings.
Source
Summary
Taaleem Holdings PJSC announced its financial results for FY 2024/25, reporting a 20.1% increase in operating revenue, reaching AED 1.135 billion, and a 19.2% rise in net profit to AED 164.5 million. The growth was driven by a 19.3% increase in premium school enrollments and strategic expansions, including new school launches and acquisitions. The company's EBITDA, excluding Kids First Group (KFG), rose by 17.4% to AED 317.9 million. Taaleem's acquisition of a 95% stake in KFG, which includes 34 nurseries, is expected to contribute positively from FY 2025/26. The company's expansion plans continue with new schools and projects underway in Dubai and Abu Dhabi.
