1. Bright Scholar's Q1 2025 revenue decreased by 16.1% year-over-year. 2. SG&A expenses fell by 33.0%, improving operational efficiency. 3. Overseas Study Counselling segment grew by 5.8% from last year. 4. A share repurchase plan of $1.2 million was approved. 5. Management highlights a focus on a 'dual-engine' growth strategy.
The reduction in SG&A expenses and a share repurchase plan often lead to investor confidence, potentially boosting BEDU's stock price, similar to other firms that have improved operational efficiency and increased shareholder returns.
The financial results and SG&A reduction are critical for understanding BEDU's operational health, impacting investor sentiment and stock performance.
The recent financial results and announcements will likely influence stock price in the near-term as investors react to current performance metrics and future potential.
Management to hold a conference call today at 7:00 a.m. Eastern Time
Bright Scholar Education Holdings Limited ("Bright Scholar," the "Company," "we" or "our") (NYSE: BEDU), a global premier education service company, today announced its unaudited financial results for its first quarter of fiscal year 2025, ended November 30, 2024.
Effective the first quarter of fiscal year 2025, the Company changed its presentation currency from Renminbi ("RMB") to Great Britain Pound ("GBP") to better align with the Company's business activities and reflect the Company's performance. In this announcement, the unaudited financial results for the quarter ended November 30, 2024, are stated in GBP. Prior period numbers have been recast into the new reporting currency.
| For the first quarter ended | YoY % Change | % of total revenue in F1Q2025 |
|---|---|---|
| Schools | -9.0 % | 57.4 % |
| Overseas Study Counselling | 5.8 % | 21.4 % |
| Others | -40.9 % | 21.2 % |
| Total | -16.1 % | 100.0 % |
Mr. Robert Niu, Chief Executive Officer of Bright Scholar, commented: "We are pleased to deliver solid first quarter results for fiscal year 2025 amid an evolving external environment, demonstrating the effectiveness of our reorganized business structure and focus on our 'dual-engine' growth strategy. During the quarter, we continued to propel the expansion of our Schools business while also improving operational efficiency and quality, freeing our resources to promote educational excellence. In addition, we consistently advanced our global recruitment initiatives aimed at attracting prospective international students, successfully expanding our product and service offerings to more international markets. Looking ahead, we will persist in streamlining our global operations and enhancing efficiency while simultaneously seizing the market's extensive growth opportunities to strengthen our market share and our position as a leading global education service provider."
Ms. Cindy Zhang, Chief Financial Officer of Bright Scholar, added: "Fiscal year 2025 is off to an encouraging start, highlighted by a significant reduction in SG&A expenses and year-over-year growth in our Overseas Study Counselling business in the first quarter. Our total revenue from continuing operations was GBP44.7 million, with Overseas Study Counselling revenue from continuing operations increasing by 5.8% year over year to GBP9.6 million. Moreover, we decreased SG&A expenses by 33.0% year over year through ongoing efforts to optimize our cost structure and streamline operations. In addition, we have initiated a share repurchase plan underscoring our commitment to enhancing shareholder value. By maintaining a healthy balance sheet and consistently executing our 'dual-engine' growth strategy, we are confident of creating sustainable value for our customers and shareholders over the long term."
Revenue was GBP44.7 million, compared to GBP53.3 million for the same quarter last fiscal year.
Cost of revenue was GBP31.7 million, compared to GBP35.4 million for the same quarter last fiscal year.
Gross profit was GBP13.0 million, compared to GBP17.9 million for the same quarter last fiscal year. Gross margin was 29.2%, compared to 33.5% for the same quarter last fiscal year.
Adjusted gross profit from continuing operations was GBP13.2 million, compared to GBP18.0 million for the same quarter last fiscal year.
Total SG&A expenses were GBP8.4 million, representing a 33.0% decrease from GBP12.6 million for the same quarter last fiscal year. The decrease was mainly due to the improvement in operational efficiency in our Schools business.
Net income was GBP4.0 million, compared to GBP6.6 million for the same quarter last fiscal year.
The Company's management will host an earnings conference call at 7:00 a.m. U.S. Eastern Time (8:00 p.m. Beijing/Hong Kong Time) on January 24, 2025.
Participants should dial in at least 5 minutes before the scheduled start time and ask to be connected to the call for "Bright Scholar Education Holdings Limited."