Dynamic growth in revenues and profits – Benefit Systems sums up the first quarter of 2023
In the first quarter of 2023 the Benefit Systems Group’s sales revenue amounted to PLN 625.3 million and the operating profit was PLN 65.7 million. At the end of March this year, sports cards were used by over 1,309,000 people in Poland and 462,000 in foreign markets. According to the Group’s estimates, in April and May the number of sports cards will increase by another 35,000, including 25,000 in Poland and 10,000 in other markets. At the end of May, the number of passes in the Group’s own networks (including recent acquisitions) will reach almost 210,000. The company maintains its expectations regarding further improvement in operating profitability and an increase in the number of cards by 280,000–300,000 in 2023.
In the first quarter of this year Benefit Systems Group’s sales revenues amounted to PLN 625.3 million and were 56% higher than in the corresponding period in 2022. The company recorded PLN 65.7 million of operating profit and PLN 52.4 million of net profit attributable to shareholders of the parent company (compared to PLN 8.1 million of net profit a year earlier).
– We had very successful first three months and the second quarter is looking even better. The dynamic growth of profits reflects positive trends in all key areas of our business – says Bartosz Józefiak, Management Board Member at Benefit Systems, and adds: – In the first quarter of this year we had a relatively high user activity in Poland which confirms our belief that physical activity is very important for Poles. In April and May, the number of sports cards will increase by a total of 35,000, which translates into almost 190,000 cards since the beginning of the year. Thanks to the effects of operating leverage, but also growing average revenue per user in all markets we expect further and abrupt improvement in operating profitability throughout the year. The strong results in the first quarter additionally support these expectations.
Poland Segment: In the first quarter the sales revenues of the Poland Segment amounted to PLN 435.4 million, which means an increase of 49% year-on-year. The number of cards in this period reached 1,309,000 (increase by 122,000 since the beginning of the year). Despite cost pressure, the Group’s own fitness networks achieved a record level of operating profit in the amount of PLN 15.4 million. In April, the company took over the Saturn Fitness network, which has six clubs (Warsaw, Kraków, Gdynia, Łódź, Chorzów, Gorzów Wielkopolski), thus increasing the base of its own clubs to 191 facilities.
– The beginning of the year in our fitness networks was very good in terms of sales. The pass base increased by 19% compared to the first quarter of last year. At the same time, we were the first on the market to successfully increase the pass prices. We were also very active in the development of the network. In January we opened two clubs in Krakow. In February we acquired 16 Calypso Fitness clubs and in April – six Saturn Fitness clubs. We currently have 191 facilities where nearly 210,000 pass holders train – explains Bartosz Józefiak. – Our own clubs meet the needs of customers, and the combination of a great product offer, convenient location, quality of the clubs and competent staff has a significant impact on the purchasing decisions of new customers. Together with effective cost management, this resulted in the best operating result in history. This is a very good prognosis for the whole of 2023 and beyond.
The company continues to develop its key products, both in terms of the product offer and IT solutions. At the end of March this year the MyBenefit cafeteria was used by 653,100 people who have a wide range of products and services in such categories as tourism, sports, and entertainment at their disposal. Sales activities connected with the MultiLife product, supported by the marketing campaign („Good morning with MultiLife”), have been intensified. The new product offers courses, workshops as well as various services and mobile applications in the field of psychology, nutrition, health, and development.
Foreign Countries Segment: at the end of March there were 462,000 active cards (increase by 30,000 since the beginning of the year). The revenues of the Foreign Countries Segment amounted to PLN 189.9 million, and the operating profit was PLN 16.4 million. The Group continues to develop its partner network (currently over 400 facilities) and sell MultiSport cards on the Turkish market.
– Since the end of the pandemic, our foreign markets have confirmed their result potential. In 2022, the Foreign Countries Segment reported PLN 25 million in operating profit, and in the first quarter of this year – the most demanding season-wise – EBIT exceeded PLN 16 million and already accounted for about a quarter of the Group’s result – adds Bartosz Józefiak.
Additional information:
Commentary by Małgorzata Kloka, Financial Director responsible for investor relations and financing at Benefit Systems S.A.: Since last year the company has maintained high sales dynamics on all markets, generating record results. We have a strong balance sheet with over PLN 200 million net cash, which allows us to think about development and investments in further growth, but also about profit distribution. We assess our prospects – both short-term and long-term – as very good. We continue to see significant growth potential in all our markets. We are supported by health care trends, the growing activity of the population and crisis-resistant labour markets in the region. It can also be slowly seen that expenses related to physical activity are shifting in the consumer’s basket and becoming more noncyclical in nature.
Financial statement of Benefit Systems for the first quarter of 2023: https://www.benefitsystems.pl/en/for-investors/
Presentation of financial results for the first quarter of 2023 along with outlook: https://www.benefitsystems.pl/en/for-investors/data-presentations/presentations/
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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 the wellbeing of employees. The company is the creator of the MultiSport Programme, which allows its users to take up physical activity in sports facilities all over 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 in the Czech Republic, Slovakia, Bulgaria, and Croatia. The Benefit Systems Group also operates over 200 fitness clubs in four markets (in Poland it is responsible for the Zdrofit, Fitness Academy, My Fitness Place, Fabryka Formy, StepONE, S4 Fitness, Total Fitness, FitFabric and Saturn Fitness 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. 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 www.benefitsystems.pl/en/.
Head of CommunicationsBenefit Systems
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