Benefit Systems Group: strong 2020 balance sheet and good development prospects

In 2020 the Benefit Systems Group implemented several measures to reduce the negative impact of the pandemic on key areas of its activity. Already during the first lockdown, processes securing the Group’s long-term financial liquidity, including the optimization of the cost base, while adjusting the MultiSport Programme to the regulations in Poland and expanding the online offer with products and services necessary in the pandemic, were implemented. As a result of the actions taken, a significant part of the sports card base was maintained in 2020. At the same time, the Group recorded another increase in revenues and the number of users in the cafeteria segment.

25/03/2021

– We are well prepared to rebuild the financial results of the Group after the epidemic situation stabilises and sports facilities in Poland as well as in other markets where we are developing the MultiSport Programme resume their operations. The third COVID-19 wave has a negative impact on the results of key areas of our business, but we hope that in the coming weeks the situation will be brought under control and that we will be able to support employers in caring for the psychophysical health of their employees. Since last year, we have been intensively working on new solutions, using many years of our experience, synergy of areas and analyses of changes in the field of non-financial benefits and health prevention. We strongly believe in the trend of conscious health care and we see it as an opportunity for further development and rebuilding our results after many months of limitations in business – explains Bartosz Józefiak, Management Board Member at Benefit Systems, responsible for the finances in the Benefit Systems Capital Group.

As a result of restrictions in the operation of sports facilities, in 2020 Benefit Systems Group’s sales revenues amounted to PLN 1,033.7 million and were 32% lower than in 2019. Gross profit on sales amounted to PLN 218.5 million (decrease by 46% Y/Y), which translated into an operating loss of PLN 3.4 million. However, this result is additionally burdened by one-off events – without their impact, the Group’s operating profit in 2020 would have amounted to PLN 13.4 million.

In the fourth quarter of 2020, the Poland Segment recorded sales revenues of PLN 124 million, and the Foreign Segment – PLN 34.0 million. At the end of this quarter, there were 475,400 MultiSport cardholders in Poland and 253,800 on foreign markets (including 134,800 in the Czech Republic, 18,400 in Slovakia, 86,900 in Bulgaria and 13,700 in Croatia). – We are very grateful for the trust and loyalty of our customers and users, which provide significant support in the pandemic and motivation to implement further initiatives. We receive numerous positive comments on our offer and inquiries about new solutions, which is the best gratification for us and a good prognosis for the future – adds Bartosz Józefiak.
Due to the pandemic, in the fourth quarter of last year sports and recreational facilities were closed again in all markets which the Group operates in. During this period, Benefit Systems managed 159 clubs in Poland and 24 abroad (including 15 facilities in the Czech Republic, 1 in Slovakia and 8 in Bulgaria).

Benefit Systems Group’s cafeteria platforms did not see the negative impact of the pandemic on their activities, recording a 10% increase in the number of users (to 508,000), as well as an 18% increase in revenues (PLN 40.4 million).

The Benefit Systems Capital Group’s consolidated report 2020 is available athttps://www.benefitsystems.pl/en/for-investors/.