Alef reports Dhs249m profit in H1 of 2024

Alef Education Holding has reported its financial results for the period ending 30th June 2024. It marks Alef Education’s first set of results since its successful initial public offering on the Abu Dhabi Securities Exchange at the beginning of June 2024.

The Company recorded a 7% increase in adjusted profit before tax for the first six months of Dhs249 million compared to Dhs233 million a year earlier. This translates to an adjusted profit before tax margin of 70%, up by 4 percentage points compared to H1 2023, and remains substantially above industry benchmarks.

Robust top-line performance and continued cost management led to a 4% increase in Adjusted EBITDA to Dhs259 million in the first half. In comparison, costs declined by 6% to Dhs112 million.

Geoffrey Alphonso, Chief Executive Officer of Alef Education, commented, “Alef Education’s solid first half results demonstrate our ability to consistently deliver robust financial performance, which is underpinned by the predictability and stability that stems from our long-term contracts and the confidence our partners have in our ability to improve educational outcomes.

“The Company’s AI-powered products, which empower students to realise their potential, garner strong demand. We continue to harness cutting-edge technology to enhance our existing educational tools and create new bespoke solutions for our growing student and customer base.”

The Company maintained its operational excellence in the first half of 2024, converting 14% of its total 1.1 million users to paid users-151,000 across the Alef Education platform-driven by new contract wins and B2B product sales, which rose twofold during this period.

The strong demand for Alef Education’s initial public offering, which was 39 times oversubscribed, underscored investor confidence in the Company’s future growth and proven track record of improving educational outcomes in the communities it serves.

The first half of 2024 saw Alef Education mark its first entry into the Kuwait market, signing a distribution agreement with Aafaq Distribution Co., a leading provider of educational resources, in line with the Group’s strategy to target markets that share linguistic, cultural, and pedagogical similarities to its core UAE market.

Alef Education’s strategic growth plan is supported by an unlevered balance sheet and strong cash flow generation, enhancing its flexibility to tap attractive inorganic growth opportunities that drive scale.

The Company has a sizeable pipeline of deals for the second half of 2024 and is in ongoing discussions with several governments to expand its offering across its high-growth target markets.