Benefit Systems’ results in Q3 2023 confirm the trends and support the company’s very good prospects
Benefit Systems Group, a provider of non-financial benefits, ended the third quarter with a 43% increase in revenues y/y (PLN 694 million) and operating results unprecedented in the history of the company. Operating profit increased y/y by 148% (to PLN 171.1 million), and EBIDTA – by 91% (to PLN 243.2 million). Net profit in the third quarter increased by 235% (to PLN 115.4 million).
Cumulatively, after three quarters of 2023, the group recorded PLN 2,016.7 million in revenues (+50% y/y) and an operating profit of PLN 380 million (+174%). Net profit from January to September amounted to PLN 297.2 million (+301%). The group maintains its key assumptions for 2023: revenue growth by 45% y/y and operating profitability of approximately 18% (an increase of almost 7% y/y).
- The third quarter is another period in which we had record results and increases in all business segments, as well as a further increase in ARPU. We see significant potential for further development of the fitness market and, to fully exploit it, we are dynamically developing the network of our own clubs, both through acquisitions and new openings. A very strong balance sheet gives us great flexibility when making these decisions - says Marcin Fojudzki, Management Board Member at Benefit Systems.
During the nine months of 2023, the number of group locations increased by 26, reaching 220 clubs in four markets. After the end of the quarter, the number of facilities in the group’s portfolio continues to grow and should reach 239 clubs by the end of the year.
- We see very good development prospects both on the Polish and foreign markets. That is why we are strengthening our product offer, responding to the current needs of employers and users. The continuation of good results can also be seen in the fourth quarter. In the first half of this period, we sold 67,000 cards, which means that as of 14 November, the number of cards in Poland exceeds 1.4 million. In the same period in foreign markets, we had an increase of 20,000 cards. In 2024, we want to continue to grow dynamically, adding approximately 150,000 cards in Poland and 100,000 abroad. We also plan to further expand the network of our own clubs. Our plan for 2024 is to open 15 new facilities in Poland and over 20 on foreign markets - says Marcin Fojudzki.
Poland Segment
Sales revenues of the Poland Segment in the third quarter amounted to PLN 497.5 million (+44% y/y). The number of cards at the end of the period in Poland reached 1,341,700, which means an increase by 12,000 cards in the third quarter alone and 154,000 cards since the beginning of the year. The group’s own fitness club networks generated a high level of operating profit (PLN 8.7 million). At the end of the period in Poland, the group managed 195 fitness clubs, and since the beginning of the year it has acquired 32 new facilities in the largest agglomerations in Poland - in the last three months, these were 5 Calypso Fitness clubs, 2 Gravitan clubs, 2 Manufaktura Zdrowia clubs and one Studio Energia club, and at the beginning of 2023 - 6 Saturn Fitness clubs and 16 Calypso Fitness clubs.
Foreign Countries Segment
The group continues its dynamic development on foreign markets. In the third quarter, sales revenues from the Foreign Countries Segment amounted to PLN 196.3 million (+40% y/y). The number of cards abroad reached 470,000 at the end of the period (unchanged during the quarter). Operating profit only in this segment increased to PLN 50.5 million (+226% y/y), which constitutes 30% of the result of the entire group.
At the end of the third quarter, the group’s net cash amounted to PLN 311 million. At the end of September this year Benefit Systems paid a dividend of PLN 120.3 million (i.e. PLN 41 per share).
Additional information about the transaction is available in the “For Investors” section at https://www.benefitsystems.pl/en
Benefit Systems has been operating on the Polish market for over two decades and is one of the leaders in providing non-financial benefits that support employees’ welfare. The company is the creator of the MultiSport Programme, which enables engaging in physical activity in sports facilities throughout the country. The Benefit Systems portfolio also includes the MyBenefit cafeteria platform and the MultiLife wellbeing programme.
For several years now, the company’s sports offer has been developed on foreign markets, including the Czech Republic, Slovakia, Bulgaria, and Croatia. The Benefit Systems Group also operates over 230 fitness clubs in four markets (in Poland it is responsible for the Zdrofit, Fitness Academy, My Fitness Place, Fabryka Formy, StepONE, Total Fitness, FitFabric, Saturn Fitness, Manufaktura Zdrowia and Gravitan networks).
An important area of Benefit Systems activities is promoting an active lifestyle at every stage of life, which is why the company implements initiatives supporting the physical activity of children, adults, and seniors. These goals are implemented, among others, by the MultiSport Foundation. Since 2018, Benefit Systems has been part of the global B Corp initiative bringing together companies involved in solving the most important social problems. More information about the company can be found at https://www.benefitsystems.pl/en/.
