MindChamps PreSchool reported a net profit of $4.9 million for FY2023, 65% higher than the $2.9 million in 2022.
This follows higher revenue, which increased 13% to $69.6 million. This is attributable to an increase in franchise income in the US and Western Australia, an increase in school fees revenue as well as an increase in royalty revenue, among others.
Cost of sales improved by 4% y-o-y to $31.7 million. Gross profit grew by 33% y-o-y to $37.87 million.
As at Dec 31, 2023, cash and cash equivalents stood at $5.77 million.
MindChamps signed two Master Franchise Agreements in the US in March and September 2023 respectively.
In addition to its company owned centres in Australia, MindChamps currently has a total of 26 new franchisees and expanded its footprint from Sydney to its first Melbourne centre this year, as well as an upcoming flagship centre in Perth, slated for the second half of this year.
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The tailwinds such as growing demand for better education in the preschool sector has contributed to the growth in FY2023 and will continue its growth momentum into FY2024, the company says in its outlook.
“The group remains cautiously optimistic about the outlook for FY2024 in the face of high interest rates and inflation in operating costs, which the Group monitors closely and has implemented strategies such as school fees adjustment from FY2024 to cushion some of these challenges.
“The group will continue to ride on the good momentum established in the past year and take active steps to build and expand its business in the coming years to create a more sustainable growth,” it adds.
Shares in MindChamps closed 0.5 cents lower or 2% down on Feb 29 at 23.5 cents.
