G8 Education Reports 14.8% EBIT Growth and Strategic Gains at 2025 AGM

Solid Financial Recovery and Strategic Foundations

At its 2025 Annual General Meeting, G8 Education Limited (ASX: GEM) presented a comprehensive review of its 2024 performance, underscoring a significant 14.8% rise in statutory Earnings Before Interest and Tax (EBIT) to $152.8 million and a Net Profit After Tax (NPAT) of $67.7 million. Chair Debra Singh described 2024 as a year dedicated to building a "fit core," focusing on operational consistency and laying the groundwork for sustainable growth amid a challenging external environment marked by inflationary pressures and regulatory scrutiny.

The company’s commitment to quality was evident, with 93% of its long day care centres meeting or exceeding National Quality Standards, outperforming the sector average by 2%. The launch of the integrated compliance system, 1Place Childcare, further demonstrated G8’s investment in operational excellence.

Advocacy and Sector Leadership

G8 Education positioned itself as a leading voice in the early childhood education and care (ECEC) sector, actively engaging with government reforms and sector-wide initiatives. The company welcomed the Productivity Commission’s recommendations aimed at universal access to early learning and care and played a pivotal role in securing Australia’s first Multi-Employer Agreement (MEA), which delivered a 15% award rate pay increase for ECEC workers over two years. Managing Director Pejman Okhovat emphasized that these reforms represent an investment in future generations and the broader economy.

Operational Highlights and Team Investment

Despite labour market challenges easing, G8 maintained a strong focus on staff retention and development, reporting improved employee engagement at 78% and team retention rising to 77%. The company’s Study Pathways program engaged over 2,300 team members in further education, supported by the new WonderLab learning platform. Safety remained paramount, with a 36% reduction in Lost Time Injuries and robust child protection policies underpinning centre operations.

Occupancy for 2024 averaged 70.7%, supported by increased attendance frequency. However, early 2025 saw occupancy dip to 64.7%, down 3.8 percentage points year-on-year, reflecting ongoing cost-of-living pressures and delayed family engagement. Management remains confident in mitigating these challenges through cost efficiencies, procurement strategies, and portfolio optimisation.

Governance and Shareholder Resolutions

The AGM saw strong shareholder support for key governance items, including the re-election of directors Debra Singh and Stephen Heath, and the approval of 716,534 performance rights to CEO Pejman Okhovat under the Executive Incentive Plan. Conversely, shareholder proposals to amend the company’s constitution to allow advisory resolutions on director powers and to implement a paid parental leave policy were not supported by the board.

Looking Ahead

G8 Education’s strategic focus is now shifting to the "Enhancing and Optimising" phase, targeting six core areas: team, safety and compliance, education and quality, family experience and branding, operating model, and financial stability. The company anticipates earnings growth in the first half of 2025, buoyed by easing inflation, expected interest rate cuts, and increased government childcare subsidies. While cautious, management’s outlook reflects confidence in navigating sector headwinds and delivering value to stakeholders.