Education pays off
by David Ramirez
Education providers lead 2015 Latin Trade’s 100 Best Companies in Latin America, a ranking of the region’s best firms according to a composite index of their annual average revenue, profits and net margin (profit/revenue) growth rates in US dollars over the past three years.
Kroton, the biggest for-profit operator of colleges in Brazil (and one of the world’s largest), kept its number one place in Latin Trade’s ranking aided by strong enrollment growth and its merger last year with Anhanguera. Kroton’s revenue and profits soared by an average of 55 and 197 percent a year in 2012-14.
Proving that education is a great business, the second and fourth places in the ranking are held by Brazilian firms Ser Educacional and Estacio. The former –Brazil’s largest private provider of tertiary education in the northeast and north regions– posted annual average growth of 40 and 69 percent in revenues and profits over the last three years. Estacio experienced increases of 14 and 64 percent in each variable in the same period.
In 2015, Brazilian for-profit education operators have continued to benefit from still rising enrolment and the effect of M&As on their corporate balances. This reflected in two-digit growth in revenue, EBITDA and profits through the first half of the year. However, a cast of shadow over the medium term outlook of the sector has fallen following the government’s …
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