The Clap
CIRA Education announced that it recorded a 3% annual decrease in its net profits during Q1 of 2022/2023, to reach EGP 104.7 million.
What
This decrease in profits came despite the increase in the company’s revenues during the same period by 25% on an annual basis, recording EGP 536 million.
So What
Profits were hit due to the increase in the cost of financing as a result of the increase in interest rates.
The increase in revenues was largely due to an increase in the number of enrolled students during this period, which came as a result of the company’s recent expansions into the various stages of education.
Now What
The CEO of the company said that inflationary pressures pose a major challenge to the company’s expansion plans, potentially pushing back some expansions.
