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Highlights

  • In 1HFY24, the company reported a 117.78% YoY increase in revenue and 413.93% YoY growth in EBITDA.
  • The company reported a net profit of AUD 3.35 million in 1HFY24, reversing a loss of AUD 3.30 million in the prior period.
  • For FY24, Nido expects AUD 160.9 million in revenue and AUD 33.1 million in EBITDA.

Nido Education Limited (ASX:NDO) is an ASX listed company that owns, operates and manages long-term early childhood education and care services. The services are offered to children from six weeks old up to school age. In the first half of the financial year 2024 (1HFY24), the company recorded a turnaround in its bottom line and a notable surge in the group revenue and net profit

During the six months ended 30 June 2024, the company saw a 117.78% YoY rise in its revenue to AUD 75.49 million, largely driven by higher centre revenue and additional revenue from other centres. EBITDA increased by 413.93% YoY to AUD 17.49 million in 1HFY24.

The period saw a net profit of AUD 3.35 million, compared to a loss of AUD 3.30 million in the previous corresponding period. 

Growth prospects for consumer stocks

According to the data released by the Australian Bureau of Statistics (ABS) on 19 December 2024, Australia’s household wealth recorded its eighth quarterly increase in the September 2024 quarter with a rise of 2.4% to AUD 16.9 trillion. On an annual basis, household wealth has recorded a gain of 9.9% in the quarter.

The increase in household wealth was driven by residential land and dwellings, and growth in stock market which enhanced the value of superannuation assets.  

Company outlook

In FY24, the company expects to deliver revenue of AUD 160.9 million and AUD 33.1 million of centre EBITDA. Profit before tax is expected to reach AUD 21.7 million and net profit after tax is projected to touch AUD 20.2 million in FY24.

Share performance of NDO

NDO shares closed 1.30% higher at AUD 0.78 per share on 6 January 2024. Over the past year, NDO’s share price has dropped by almost 21.61%, while in the last one month, it has increased by 1.30%.

52-week high of NDO is AUD 1.00, recorded on 27 January 2024 and 52-week low is AUD 0.725, recorded on 22 November 2024.

echnical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 06 January 2025. The reference data in this report has been partly sourced from EODHD/Others.