Benefit Systems (BFT) Q2 2024 earnings summary

Executive summary

• Achieved record EBIT of PLN 202mn (ex. ESOP), up 38% yoy, with revenue at PLN 845mn (+21% yoy) and net cash at PLN 469mn.

• Revenue for H1 2024 reached PLN 1,645.9mn, up 24.4% yoy; net profit at PLN 203.2mn, up 10.7% yoy.

• Operating profit margin improved to 17.0% (20.2% ex. Incentive Scheme costs); Poland segment contributed 83% of EBIT.

• Continued expansion of fitness club network in Poland and abroad, with significant acquisitions and mergers.

• Cash flow from operating activities increased 16.7% to PLN 401.1mn, supporting investments and acquisitions.

Financial highlights

• 2Q24 revenue: PLN 844.8mn (+21% yoy); H1 2024 revenue: PLN 2,774.1mn (+45% yoy); net profit: PLN 108.9mn (-16% yoy); H1 2024 net profit: PLN 201.0mn (+11% yoy).

• EBITDA for H1 2024 was PLN 447.3mn, up from PLN 344.7mn yoy; gross profit: PLN 319.6mn (+35% yoy); gross margin: 37.8% (+4 p.p. yoy).

• Basic earnings per share were PLN 68.03, up from PLN 61.99 yoy.

• Cash and cash equivalents at period end: PLN 521.2mn, up from PLN 434.0mn at year-end 2023.

• Total assets increased to PLN 3,052.8mn, with equity at PLN 872.6mn and total liabilities at PLN 2,180.2mn.

Outlook and guidance

• Targeting +150k cards in Poland and up to +80k in foreign markets for 2024; high single-digit ARPU growth expected in both markets.

• Slight EBIT margin improvement in Poland; foreign segment to face profitability pressure due to investments.

• Planned 15 new club openings in Poland and at least 20 abroad in 2024.

• Management expects continued positive cash flow and sufficient liquidity for at least 12 months.

• Dividends of PLN 399.4mn (PLN 135/share) to be paid in two instalments in September and November 2024.