Scholastic revenue up 4%

Scholastic revenue grew 4% in the year ending 31 May, according to its fiscal 2023 report.

Scholastic report revenue of US$1.7 billion (A$2.5b), up from US$1.6 billion (A$2.4b) in 2022. Adjusted EBITDA  (earnings before interest, taxes, depreciation and amortisation) grew 4% to US$196 million (A$291m). The growth was attributed to a strong performance in its book fairs channel, up 12% by revenue, which both hosted more fairs and saw more revenue per fair as the channel recovered from cancellations since the pandemic. Revenue from book fairs totalled approximately 85% of pre-pandemic levels.

Scholastic’s children’s books segment grew 5%, ‘outperforming continuing softness in retail, and profitability rose substantially, driven by operational excellence and operating leverage in book fairs’.

International revenues declined 8% on the back of unfavourable foreign currency exchange and the exit of a direct sales business in Asia. Book fairs in the UK and Canada contributed higher revenues, and there was a ‘modest’ recovery of results in Asia.

Scholastic president and CEO Peter Warwick said, ‘Looking ahead, we are committed to protecting margins and sustaining growth in fiscal 2024, as we execute a multi-year plan for growth, impact and shareholder value creation’. ‘Having combined our Book Fairs and Clubs channels into an integrated School Reading Events business last month, we are now in the process of executing against multiple opportunities to grow Scholastic’s reach, serve our customers better and improve efficiencies within Children’s Books,’ Warwick said.

Category: International news