Benefit Systems (BFT) Q2 2025 earnings summary

Executive summary

• Revenue in 2Q25 reached PLN 1,094m, up 29% year-over-year, and for the six months ended 30 June 2025, revenue was PLN 2,045.97m, up 24% year-over-year, driven by growth in Poland and the MAC Group acquisition in Turkey.

• Adjusted EBIT was PLN 238m (margin 21.7%), up 17% year-over-year, while operating profit for the half-year was PLN 302.5m, up 8% year-over-year.

• Net profit rose 31% year-over-year to PLN 143m in 2Q25, but for the half-year was PLN 199.4m, slightly down due to higher costs including Incentive Scheme and transaction expenses.

• Major acquisitions included the MAC Group in Turkey, eFitness S.A., Fit Academy, and Fitness Zličín, expanding the fitness club network and digital capabilities.

• The Group issued PLN 1 billion in bonds and secured a PLN 1.78 billion long-term credit facility to finance acquisitions and growth.

Financial highlights

• Gross profit increased 23% year-over-year to PLN 393m in 2Q25, with margin on sales at 35.9%; half-year gross profit margin was 33.3%.

• EBITDA ex. IFRS 16 grew 29% year-over-year to PLN 246m in 2Q25; half-year EBITDA reached PLN 525.0m, up 17%.

• Operating cash flow in 2Q25 was PLN 200m; net cash from operating activities for the half-year was PLN 375.5m, down 6.4% year-over-year.

• Total assets increased to PLN 6,033.8m from PLN 3,419.9m at year-end 2024, reflecting acquisitions and capital investments.

• Net debt at quarter-end was PLN 685m, with ND/LTM EBITDA at 0.8x.

Outlook and guidance

• Further improvement in results expected, with card volumes projected to rise by 130k in Poland and 150k in foreign markets in 2025.

• ARPU growth anticipated at low single digits in Poland and stable abroad.

• Margin pressure expected in Foreign EU segment due to investments; positive impact from MAC consolidation in Turkey.

• Management expects continued growth in Poland and Turkey, with further integration of recent acquisitions and ongoing investments in digital platforms.

• Liquidity and access to financing are considered sufficient for at least 12 months, with available credit limits and strong cash position.