| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 185,318,207 | 173,238,698 | 6.972 | 115,809,769 | 60.019 |
| Gross Profit (Loss) | 82,537,313 | 78,263,167 | 5.461 | 40,547,101 | 103.559 |
| Operational Profit (Loss) | 42,478,213 | 48,732,906 | -12.834 | 10,340,624 | 310.789 |
| Net profit (Loss) | 35,534,334 | 42,877,323 | -17.125 | 5,695,438 | 523.908 |
| Total Comprehensive Income | 35,170,458 | 43,352,623 | -18.873 | 5,028,399 | 599.436 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Shareholders Equity (after Deducting Minority Equity) | 897,161,679 | 836,675,158 | 7.229 |
| Profit (Loss) per Share | 0.83 | 1 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | – | – | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | The increase in revenue during the current quarter by 7% compared to the same quarter of the previous year is mainly due to the increase in the number of students enrolled in the company’s schools by 10% from 31.8 thousand students in the same quarter of the previous year to 35.1 thousand students during the current quarter.
However, revenue growth was impacted by the difference in the number of days recognized for revenue between the two periods; Revenue for the current quarter was recognized based on 79 days out of the total 314 days of the 2025/2026 academic year, whereas revenue for the same quarter of the previous year was recognized based on 85 days out of the total 321 days of the 2024/2025 academic year. This variance resulted from differences in the academic year start dates and the total number of school days in each period, which reduced the positive impact of the increase in student enrollment on the revenue growth rate.
It is worth noting that, had the revenue for the same quarter of the previous year been recognized based on the same number of revenue recognized days applied in the current quarter and in line with the total number of days in the current academic year, revenue growth for the current quarter would be estimated at approximately 13% compared to the same quarter of the previous year. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Although revenue increased by 7% during the current quarter compared to the same quarter of the previous year, net profit declined by 17% compared to the same quarter of the previous year. This decrease is primarily attributable to the difference in the number of days recognized for tuition-fees revenue between the two periods. In contrast, operating costs and expenses are recorded over the full quarterly period of (90 days) irrespective of the number of days recognized for tuition-fees revenue, which resulted in a negative impact on net profit for this particular quarter.
Additionally, government grants and subsidies decreased during the current quarter compared to the same quarter of the previous year, This was mainly due to the decrease in the wage subsidies provided by the Human Resources Development Fund, as well as the fact that the same quarter of the previous year included the receipt of a grant from the Ministry of Education covering two financial years.
The advertising and marketing expenses increased during the current quarter, as marketing campaigns for the current academic year were concentrated mainly in August, while the prior year’s campaigns were distributed between July and August, causing their impact to extend across two financial quarters.
Furthermore, an expected credit loss provision was recorded during the current quarter, driven by a higher proportion of receivables falling within older aging brackets compared to the same quarter of the previous year.
Financing costs also increased during the current quarter compared to the same quarter of the previous year. The increase was driven by borrowings used to finance part of the purchase cost of Al-Rabie District land in Riyadh and North Obhur District land in Jeddah, in addition to the impact of the land lease contract related to Dhahrat Laban project under development in Riyadh.
It is worth noting that, had the revenue for the same quarter of the previous year been recognized based on the same number of revenue-recognized days applied in the current quarter and in line with the total number of days in the current academic year, the net profit growth for the current quarter would be estimated at approximately 3% compared to the same quarter of the previous year. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | The increase in revenue during the current quarter by 60% compared to the previous quarter is mainly due to the increase in the number of students enrolled in the company’s schools by 10% from 31.9 thousand students in the previous quarter to 35.1 thousand students during the current quarter. The increase was also influenced by the difference in the number of days recognized for revenue between the two periods; revenue for the current quarter was recognized based on 79 days out of the total 314 days of the 2025/2026 academic year, whereas revenue for the previous quarter was recognized based on 56 days out of the total 321 days of the 2024/2025 academic year. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | The increase in net profit during the current quarter by 29.8 million Saudi riyals compared to the previous quarter is due to the growth in revenue by 60%, driven by the increase in student enrollment and the difference in the number of days recognized for tuition-fees revenue between the two periods. |
| Statement of the type of external auditor’s report | Notice |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | We draw attention to Note (17) in the notes to the condensed interim consolidated financial statements, which explains in more detail the Group’s revision of the methodology for recognizing education service revenues (tuition fees) in the interim condensed consolidated financial statements in accordance in the light of the interpretation issued by SOCPA on 16 July 2025, whereby these revenues were recognized on the basis of their allocation over the academic year rather than on the basis of their allocation over the fiscal year. This methodology has been applied to the comparative figures for the period under review. Our opinion on this matter has not been modified. |
| Reclassification of Comparison Items | N/A |
| Additional Information | – During the period, the Company reviewed its methodology for recognizing tuition-fees revenue to align revenue recognition with the academic year rather than the financial year. This revision was made in accordance with the requirements of IFRS (15) “Revenue from Contracts with Customers” and the interpretations issued by Saudi Organization for Chartered and Professional Accountants (SOCPA) on 16 July 2025. The review also included recalculation and allocation of leave-related costs for the academic staff to the educational service contracts in accordance with those interpretations.
As a result of reviewing and applying this methodology, a financial impact related to the remeasurement of revenue and the leave-related costs of academic staff was identified, and this impact was adjusted in the comparative figures presented in the interim condensed consolidated financial statements for the three-month period ended 31 October 2024.
– It should be noted that the impact of the change in the tuition-fees revenue recognition methodology is limited to interim quarterly periods in terms of the timing of revenue recognition and does not have any effect on the Company’s annual financial results, as the total tuition-fees revenue for the academic year is recognized in full without any change.
– The company uses a cost model option to measure properties. |
