Curro posts fall in half-year headline earnings

Private education provider Curro has reported a significant drop in its half-year earnings for the six months ending in June, with a 49% decrease compared to the previous year. Lower ancillary school income has been cited as a key factor weighing on revenue growth, with the Covid-19 pandemic having a significant impact on schools across the country. Despite these challenges, Curro CEO Andries Greyling remains optimistic about the company's future trajectory. In an exclusive interview with CNBC Africa, Greyling discussed the company's performance, investment plans, and decisions surrounding staff vaccinations. Greyling acknowledged the impact of the rights issue on the headline earnings per share but emphasized that the business is still in a growth phase and requires ongoing investment in infrastructure and capacity. He expressed confidence in reaching the R1.1 billion investment target by the end of the year, citing consistent learner growth and strong cash flow generation despite economic challenges. While discussing the impact of the pandemic on student enrollment and revenue, Greyling noted a drop in learner numbers and revenue due to financial strains on parents. However, he remains optimistic about future growth potential as economic conditions improve. Greyling also addressed concerns about staff vaccinations, revealing that Curro has made vaccination mandatory for employees. Over 70% of staff have already been vaccinated, with efforts underway to increase this number. Greyling emphasized the importance of responsible citizenship and ensuring a safe environment for students, staff, and parents. As Curro navigates the ongoing challenges posed by the pandemic, the company remains committed to its long-term growth strategy and the well-being of its community.