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Highlights

  • Nido Education reported a 74% YoY revenue growth to AUD 167 million in FY24.
  • In FY24, EBITDA turned positive to AUD 22 million from a negative AUD 15.4 million in FY23.
  • The company launched an AUD 5 million share buy-back program

Nido Education Limited (ASX: NDO) is an ASX-listed company that provides early childhood education and care services in Australia. In the 12 months ending 31 December 2024 (FY24), the company recorded a 74% YoY increase in annual revenue, reaching AUD 167 million, driven by an 8% rise in learning days during the second half of FY24.

In FY24, Nido’s occupancy rates reached an average of 78% for the year and a peak of 80%. EBITDA saw a remarkable turnaround in FY24, improving from negative AUD 15.4 million in FY23 to positive AUD 22 million in FY24, while net profit reached AUD 19.5 million, a significant recovery from the previous year’s loss of AUD 14.9 million. In a milestone move, Nido announced its maiden dividend of 5.8 cents per share (35% franked).

Share Buy-Back Program

In a recent update, Nido announced about an on-market share buy-back program valued at up to AUD 5 million. The company plans to repurchase up to 22.57 million shares for cash consideration. Moelis Australia Securities Pty Ltd has been appointed as the broker for the buy-back initiative.

Outlook for FY25

Entering FY25, Nido has maintained momentum with a 40% rise in service-based EBITDA in January 2025. While economic conditions continue to influence enrolment rates, the company expects to see growth through strategic adaptability and focus on operational efficiency.

Government policy changes, particularly childcare subsidy reforms, are expected to fuel demand for early childhood education services. Additionally, the 2025 Australian federal election may bring further sector-wide benefits.

Growth prospects for consumer discretionary sectors

Nido’s expansion aligns with Australia’s rising population, which grew by 1.8% in the year to 30 September 2024, according to data released by the Australian Bureau of Statistics (ABS) on 20 March 2025.

During the reported period, net natural population increased by 104,200 people and overseas migration contributed 379,800 people. This demographic trend bodes well for consumer discretionary sectors, including early childhood education.

Top 10 shareholders of NDO

The top 10 shareholders of NDO have nearly 75.14% shareholding in the company. Mathew Edwards holds the maximum stake in the firm with shareholding of around 51.80%, followed by AustralianSuper with 10.40% shareholding.

Share performance of NDO

NDO shares closed 1.22% higher at AUD 0.83 per share on 24 March 2025. Over the past year, NDO’s share price has decreased by approximately 10.75% and in a month, it has increased by around 7.79%.

52-week high of NDO is AUD 0.965, recorded on 10 April 2024 and 52-week low is AUD 0.725, recorded on 22 November 2024.

Support and Resistance Summary

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 24 March 2025. The reference data in this report has been partly sourced from EODHD/Others.

 

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.