Benefit Systems (BFT) Q1 2025 earnings summary

Executive summary

• Revenue grew 19% year-over-year to PLN 952mn in 1Q25, driven by sport cards and fitness club growth in Poland and abroad, despite ongoing investments and one-off costs related to ESOP and the MAC acquisition.

• Net profit declined 38% year-over-year to PLN 56.7mn, mainly due to higher SG&A, ESOP, and M&A transaction costs.

• Significant expansion in fitness clubs and sport cards, with 101k new cards in Poland and 70k in foreign markets YTD; active sport cards reached 1.68mn in Poland and 591,200 in Foreign EU.

• MAC fitness chain acquisition in Turkey completed for USD 392mn–431.6mn, with planned consolidation from mid-2Q25.

• PLN 1bn in bonds issued and new long-term financing agreement signed for PLN 1.775bn to support growth and acquisitions.

Financial highlights

• Adjusted EBIT margin at 15.6% (down 0.7pp year-over-year); reported EBIT down 18% due to one-off costs.

• Gross profit increased 21% year-over-year to PLN 288.4mn; gross margin on sales improved to 30.3%.

• EBITDA ex. IFRS16 declined 13% year-over-year, but adjusted EBITDA ex. IFRS16 rose 13% to PLN 182.3mn.

• Net cash position at PLN 108mn at end-1Q25, down from PLN 153mn at end-4Q24; cash and cash equivalents rose to PLN 1,254.2mn.

• Earnings per share (EPS) decreased to PLN 18.98 from PLN 31.20 year-over-year.

Outlook and guidance

• Further improvement in results expected for 2025, with projected card volume growth of +130k in Poland and +150k in foreign markets.

• ARPU growth anticipated at low single digits in Poland and stable abroad; Poland profitability to remain comparable or slightly lower than 2024.

• Foreign EU segment margin expected under pressure due to fitness chain investments; MAC consolidation to positively impact Turkey from 2Q25.

• Group targets over 300 new fitness clubs in three years, with more than half outside Poland.

• Market potential estimated at 2.5–2.8mn cards in Poland and 1.7–2.0mn in foreign markets (excluding Turkey).