Back to the complete issue
Sunday, 29 January 2023

CIRA sees higher revenues in 1Q 2022-2023 but rising rates hit net income

CIRA Education reports higher revenues, lower bottomline in 1Q 2022-2023: EGX-listed education services provider CIRA Education reported EGP 104.7 mn in adjusted net income in 1Q 2022-2023, down 3% y-o-y, according to the company’s earnings release (pdf). Revenues, meanwhile, jumped 25% to EGP 536.1 mn on rising student enrollment rates. It reported double-digit growth of enrollment at its two universities and 6% across its 25 K-12 schools. The company’s fiscal year begins on September 1, in line with the academic year.

Enrollment growth was boosted by new academic institutions: CIRA Education opened the Futures Language School in Qena in September and officially launched BUA with 7 new faculties. As a result, overall student capacity grew 36% y-o-y at its higher education institutions and 3% at its schools in 1Q 2022-2023.

Costs were driven up by depreciation + higher borrowing costs: High levels of depreciation were spurred by new and ongoing projects, particularly BUA, the release says. Rising interest rates, meanwhile, caused net interest expenses to more than double from a year earlier.

CIRA Education on weathering the economic storm: “Our growing margins amid significant inflationary and currency pressures is attributed to a greater level of economies of scale, which enabled us to absorb double-digit growth in costs during the same period,” said CEO Mohamed El Kalla.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.