Benefit Systems has adopted a new 2023-2025 dividend policy which assumes the payment of at least 60 percent of consolidated net profit. The change reflects better results, a strong balance sheet and good prospects for the Benefit Systems Capital Group.
– At the end of the third quarter we had PLN 50 million net cash and the operating results for the last four quarters have already exceeded the level from the last year before the pandemic, that is 2019. We perceive the prospects for the coming years as very good, even assuming the deterioration of the macroeconomic environment. We see potential for growth both in Poland and on foreign markets while maintaining a reasonable level of investment expenditures, of course. Our business is characterised by a high conversion of profits into operating cash flow. After nine months of this year, we have 90 percent EBITDA conversion. In addition, the last pandemic years have shown our efficiency in cash flow management. After three years without a dividend, we want to return to regular sharing of profit with our shareholders – says Bartosz Józefiak, Management Board Member responsible for the finances of the Benefit Systems Group.
Since 2012, Benefit Systems has regularly shared its profits with shareholders. The exception was the years 2020-2022 when, due to COVID-19, lockdowns, and the period of business recovery after the pandemic, the group had a more conservative approach to liquidity management. The new 2023-2025 dividend policy assumes the exclusion of unrealised exchange differences from the consolidated net profit. The recommendation of the Management Board on the distribution of profit will consider the financial and liquidity situation as well as the Capital Group’s development prospects and investment needs.
– We had three good quarters with an increase in operating profit by 10% compared to 2019 and we are not slowing down in the fourth quarter. In October and November, we added 95,000 sports cards in Poland and 41,000 in foreign markets. November was also record-breaking in terms of the number of passes for individual customers in our fitness club networks which exceeded 180,000. In December, which historically has always been a month without increases, we also expect growth in the number of cards, although lower than in November or October. All this means that we will want to recommend a dividend payment for 2022 well above the minimum 60% of net profit adopted in the new policy – explains Bartosz Józefiak.
Wicedyrektor PR Benefit Systems