Learn Africa Plc Delivers Strong FY 2025 Result with 4,142% Surge in Bottom Line

Learn Africa Plc Delivers Strong FY 2025 Result with 4,142% Surge in Bottom Line

Learn Africa Plc has delivered an impressive financial performance for the full year ended 31 March 2025, with profit after tax skyrocketing to ₦474.98 million — a staggering 4,142% increase from ₦11.2 million recorded in FY 2024. This exceptional turnaround was fueled by strong top-line growth, operating efficiency, and improved cost discipline.

Key Highlights: FY 2025 vs FY 2024

Robust Revenue Growth

• Revenue rose by 26.9% year-on-year to ₦5.18 billion (FY 2024: ₦4.08 billion), reflecting increased demand for the company's educational content and improved distribution capacity.
• Gross Profit expanded by 19.3% to ₦2.53 billion, despite a 35% rise in cost of sales, demonstrating resilience in pricing power.

Operational Efficiency Gains

• Other Operating Income surged to ₦170.96 million (FY 2024: ₦55.78 million), likely supported by ancillary revenues and asset optimization.
• Operating Profit rose sharply to ₦767.38 million, a 173.3% increase from ₦280.74 million in the previous year, driven by better control over administrative expenses (down 16.4%) and a measured increase in distribution and selling costs.
• Finance Cost remained relatively flat at ₦30.51 million, while finance income improved modestly to ₦11.34 million.

Bottom Line Breakthrough

• Profit Before Tax (PBT) climbed to ₦748.21 million, up from ₦260.52 million in 2024.
• Profit After Tax (PAT) came in at ₦474.98 million, compared to a meager ₦11.2 million in FY 2024 — a strong signal of earnings recovery.
• Earnings Per Share (EPS) improved significantly to 62 kobo, from just 1 kobo in the previous year.

Balance Sheet Strength

• Total Assets grew by 21.5% to ₦5.91 billion from ₦4.86 billion, supported by:
  • A 151% increase in cash and cash equivalents to ₦1.23 billion.
  • Inventory grew to ₦3.20 billion, indicative of stocking for future revenue growth.
• Equity rose to ₦4.08 billion, a 13.2% improvement driven by retained earnings.
• Current Liabilities also increased to ₦1.83 billion, mainly on the back of higher trade payables and tax liabilities, reflecting business expansion and improved profitability.

Outlook and Strategic Implications

Learn Africa’s FY 2025 performance affirms a strong return to profitability, following a relatively weak prior year. The results demonstrate management’s success in cost control, capital efficiency, and strategic positioning in Nigeria’s growing education sector.

With a solid balance sheet, improved cash reserves, and no current borrowings, the company is well positioned for future investment, dividend potential, and market share expansion. The earnings rebound also improves investor sentiment, and the sharp rise in EPS could attract increased institutional interest.

Conclusion:

Learn Africa Plc has transitioned from a year of marginal profitability to one of strong earnings power. With a robust topline, disciplined cost structure, and growing cash reserves, the company has laid a firm foundation for sustainable growth. FY 2025 has redefined its financial narrative — from stability to profit-driven momentum.