G8 Education releases trading statement ahead of end of calendar year

ASX listed early childhood education and care (ECEC) provider G8 Education has released a brief trading statement in which it confirms its estimated operating profit for 2023 and updates on current occupancy levels. 

 

The Group confirmed that estimated operating EBIT (after lease interest) will be in the range of $99 million to $102 million and operating NPAT (net profit after tax) in the range of $62 million to $64 million for the full year. 

 

This compares to $80.3 million of operating EBIT and $36.6 million of NPAT reported in 2022, marking a substantial year on year improvement largely driven by effective wage management and reduction of agency usage and delivery on other cost disciplines. 

 

Current year to date occupancy of 70.5 per cent was broadly in line with 2022 but still 2.2 per cent lower than 2019, with spot occupancy of 74.8 per cent recorded last week. 

 

Notably, the Group provided an update on the portfolio optimisation initiative announced in October 2023 in which an agreement to divest 31 centres was confirmed. 

 

To date principal or formal consent to assign seven of the 31 centre’s leases has been obtained with the team working with the relevant landlords and stakeholders to address the balance. 

 

G8 also confirmed that seven other centres, not included in this cohort and that were underperforming, have had their leases surrendered and have been effectively closed down. 

 

To read the trading statement please click here.