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Benefit Systems SABenefit Systems expects CAPEX excluding M&A at PLN 340-350 mln in ‘24, similar in subsequent years
Listed employee benefit schemes provider Benefit Systems expects CAPEX excluding M&A transactions to reach PLN 340-350 million (EUR 78.7-81.02 mln) in 2024. In the next three years, organic growth expenditure may be similar or slightly higher, management board member Marcin Fojudzki told a videoconference.
"CAPEX in 2024, excluding M&A, will be around PLN 340-350 million. We will see how the expansion and organic growth of the sports clubs goes by the end of the year," Fojudzki said.
"In 2025-27 I would expect, in terms of organic growth, similar or a little bit higher levels as far as the group as a whole is concerned. If we want to grow near 300 sports clubs, there is an amount of around PLN 1.5-1.7 billion to spend on organic growth over the course of three years, counting around PLN 5-5.5 million per club," he added.
Benefit Systems Group has published a strategy until 2027, which aims to achieve: 2.9-3.1 million sports card users and 600-650 own fitness clubs.
By comparison, at the end of 2024, the number of sports card users is expected to be 2.1 million and the number of fitness clubs is assumed to be 330.
"As a matter of principle, we want to follow the strategy. If any new pieces of the jigsaw emerge to support our strategic objectives, acquisitions outside the fitness club sphere may happen, but this will serve to implement the basic development directions," Fojudzki said when asked about acquisitions outside the fitness club area.
He did not rule out entering medium-sized cities in Poland with fitness clubs, but on the condition of, among other things, an appropriate number of employers and demographic development in a given market.
The company wants to expand in foreign markets where it is already present, but is also open to looking for new markets. However, it does not assume that new markets will be the dominant element of growth in the coming years.
Benefit Systems hopes to be the market leader in employee benefits in the sports and wellbeing card categories, as well as the leading operator of fitness clubs in all markets where it operates.
"Employers still want to invest in their employees. They aim to do so relatively comfortably, seeking to work with providers that integrate different benefit categories and segments," Marcin Fojudzki said.
The company estimates that in Poland alone, the potential for growth in sports and fitness cards is 2.5-2.8 million users.
The group's strategy is to achieve consolidated revenues of between PLN 5.7 billion (EUR 1.3 bln) and PLN 6.3 billion (EUR 1.5 bln) in 2027 and an operating profit margin (excluding potential incentive programme costs; adjusted for one-off events) of between 17 percent and 18 percent.
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In the third quarter of 2024, Benefit Systems' revenues amounted to PLN 835.9 million (EUR 193.5 mln), up from PLN 693.9 million (EUR 160.6 mln) in the prior year period. The PAP Biznes consensus was for revenues of PLN 834.8 million (EUR 193.3 mln).
The group posted an operating profit of PLN 183.9 million (EUR 42.6 mln), up from PLN 171.1 million (EUR 39.6 mln) a year earlier. The PAP Biznes consensus had assumed EBIT of PLN 181.3 million (EUR 42 mln).
The number of cards in Poland during the period exceeded 1.5 million, up by 82,000 since the beginning of the year. User activity remained at a similarly high level to the prior year period's.
The offer of Benefit Systems' own fitness clubs - 230 facilities at the end of September 2024 - is currently used by more than 260,000 users (in the B2C model).
pel/ nl/