Free Bird Institute Ltd (FBL), an English language school catering to international students, has announced a net profit before taxes of $360,980 for the six-month period ending June 30, 2024. This is a decrease from the $422,299 profit reported during the same timeframe last year.
FBL’s Chief Financial Officer, Roqiqi Korodrau, noted that total income for the current period was $2,013,633, a 4 percent drop from $2,099,203 in the previous year. He explained that this decline is attributed to a 7 percent decrease in service fees, which is tied to a 4 percent reduction in student enrollment.
In light of the revenue shortfall, the management team has taken proactive steps to implement cost-saving measures. Korodrau mentioned that personal expenses have been cut by 7 percent and direct operating expenses by 9 percent, culminating in an overall expense reduction of 9 percent. He emphasized the company’s dedication to fiscal responsibility despite navigating a difficult economic environment.
Even with the revenue decline, disciplined expense management has led to a 14 percent increase in operating profit, reaching $533,856. However, the institute faces ongoing challenges due to foreign exchange losses, particularly as the Japanese yen has hit its lowest point since the early 1990s. This situation has raised international travel costs, consequently lowering the number of students studying abroad and further increasing foreign exchange losses for those who do.
As a result, net finance costs have surged by $177,876. Korodrau reported that net assets have reached $6.7 million, marking a 6 percent rise since December last year, while total assets have increased to $8.7 million — a 3 percent improvement from the same period last year. Net assets have also shown a growth of 6 percent compared to the previous year.
The CFO concluded that this growth is indicative of the company’s strategic financial management and its commitment to improving overall financial stability.