ADvTECH CEO on how to look at the half-year numbers

ADvTECH, a leading education company, has recently announced a 37 per cent increase in headline earnings for the half-year ended June. Despite facing challenges amidst intermittent lockdowns due to the ongoing battle against the coronavirus pandemic, the company was able to raise revenue and increase student numbers. CEO Roy Douglas shared insights into the company's performance in a recent interview on CNBC Africa. Douglas highlighted the 6% growth in student numbers year on year and a 5% increase in the 2-she division, attributing the success to the focused brands delivering value to students and parents. He acknowledged that external factors such as foreign exchange issues and transitioning from contracting to agency had an impact on the revenue but emphasized that the overall performance was strong, driven by significant volume growth. In terms of revenue performance, Africa outperformed South Africa due to the complete shutdown of the academic year in certain regions last year. However, the company successfully transitioned students to online learning in South Africa, ensuring continuity in education. Despite challenges in Kenya with government-mandated school closures, the company saw growth and demand, indicating a resilient performance in the African markets. ADvTECH's emphasis on academic excellence and delivering value to consumers has been pivotal in achieving a 37% jump in the bottom line despite a marginal revenue gain of 1%. The company's focus on efficiency, cost reduction, and passing on savings to consumers has been instrumental in driving positive financial results. In terms of capital allocation and growth strategies, ADvTECH has invested significantly in aligning its brand portfolio and capacity expansion to meet growing demand. The company's capital programs are strategically directed to cater to market segments and ensure scalability. Looking ahead, ADvTECH remains cautious yet optimistic about investment opportunities in Africa, citing the continent's demographic potential, economic growth, and rising disposable incomes. The company plans to evaluate opportunities carefully and pursue strategic investments to drive future growth and earnings. With a strong commitment to academic excellence, value delivery, and strategic investments, ADvTECH continues to navigate through challenges and position itself for sustained success in the education sector.