Bright Scholar Announces Unaudited Financial Results for the First Fiscal Quarter of Fiscal 2024

Core Viewpoint - Bright Scholar Education Holdings Limited reported a solid financial performance for the first fiscal quarter ended November 30, 2023, with significant year-over-year increases in revenue, gross profit, operating income, and net income, indicating a recovery in its business operations, particularly in the Overseas Schools segment [1][14]. Financial Performance Highlights - Revenue for the first fiscal quarter was RMB572.7 million, a 7.6% increase from RMB532.5 million in the same quarter last year [3][16]. - Gross profit increased by 13.1% to RMB203.4 million, with a gross margin improvement to 35.5% from 33.8% [3][18]. - Operating income rose by 14.8% to RMB74.5 million, with an operating margin of 13.0%, up from 12.2% [3][19]. - Net income for the quarter was RMB59.2 million, reflecting a 40.9% increase from RMB42.0 million year-over-year [3][19]. Segment Performance - Overseas Schools generated revenue of RMB252.9 million, a 28.4% increase from RMB196.9 million, accounting for 44.2% of total revenue [9][16]. - Complementary Education Services reported revenue of RMB210.0 million, a 12.8% increase from RMB186.2 million, representing 36.7% of total revenue [10][16]. - Domestic Kindergartens & K-12 Operation Services saw a revenue decline of 26.4% to RMB109.8 million, contributing 19.1% to total revenue [11][16]. Adjusted Financial Metrics - Adjusted gross profit was RMB206.8 million, a 12.6% increase from RMB183.6 million [4][18]. - Adjusted operating income reached RMB77.8 million, up 13.3% from RMB68.7 million [4][19]. - Adjusted net income for the quarter was RMB61.9 million, a 37.3% increase from RMB45.0 million [4][19]. - Adjusted EBITDA was RMB90.8 million, a slight increase of 0.8% from RMB90.1 million [4][22]. Earnings Per Share - Basic and diluted earnings per share were RMB0.46, compared to RMB0.32 in the same quarter last year, marking a 43.8% increase [5][20]. - Adjusted basic and diluted earnings per share were RMB0.48, up from RMB0.35, a 37.1% increase [5][21]. Management Commentary - The newly appointed CEO highlighted the company's strong market opportunities and the ongoing recovery of its business, particularly in the UK, despite macroeconomic challenges [14]. - The CEO emphasized the importance of operational optimizations and cost efficiencies in driving sustainable revenue growth and enhancing cash flows [14].