Benefit Systems Q1 2025 slides: Revenue surges 19% as MAC acquisition reshapes growth strategy

Introduction & Market Context

Benefit Systems SA (WSE:WA:BFT) presented its first quarter 2025 results on May 27, showcasing strong revenue growth across its segments while highlighting the transformative impact of its recent MAC fitness chain acquisition in Turkey. The company, which specializes in employee benefit programs with a focus on fitness services, continues its expansion strategy across both domestic and international markets despite some margin pressure.

As shown in the following key financial highlights, the company achieved significant revenue growth while maintaining solid profitability metrics:

Quarterly Performance Highlights

Benefit Systems reported Q1 2025 revenue of 952 million, representing a 19% year-over-year increase. The company’s adjusted EBIT reached 149 million, growing 14% compared to the same period last year, though the EBIT margin declined slightly by 0.7 percentage points to 15.6%. This adjustment excludes 22 million in performance management costs and 26.5 million related to the MAC acquisition.

The company’s reported EBIT showed a decline due to these one-time costs, as illustrated in the following breakdown:

The detailed financial results reveal that while gross profit increased by 21% to 288.4 million with margin improvement of 1 percentage point, SG&A expenses (excluding ESOP and MAC costs) grew by 25%. This resulted in adjusted EBITDA (excluding IFRS 16) growing 13% to 182.3 million, while reported net profit decreased by 38% to 56.7 million due to the acquisition-related expenses.

Segment Performance Analysis

The Poland segment remained the strongest performer, with EBIT increasing by 40% year-over-year. This growth was driven by a double-digit increase in gross profit per card and continued expansion of the fitness club network. The number of sport cards in Poland reached 1,676,000 by the end of Q1, with an additional 18,000 added in April-May 2025.

The segment’s performance is detailed in the following financial breakdown:

In the Foreign EU segment, which includes operations in countries like the Czech Republic and Croatia, revenue grew by 21% year-over-year (+26% in local currencies). However, EBIT performance was affected by accelerated expansion of the fitness network, with the company adding three new clubs in Q1 and acquiring four clubs in the Czech Republic.

The Turkey segment, which will be significantly expanded following the MAC acquisition, reported an adjusted EBIT loss of 13.5 million in Q1 2025. The company added 8,000 cards in Turkey year-to-date and continues to build its partner network in preparation for integrating the MAC fitness chain.

Strategic Initiatives & Acquisitions

The most significant strategic development for Benefit Systems was the completion of the MAC fitness chain acquisition in Turkey for approximately $392 million in May 2025. This acquisition substantially expands the company’s presence in the Turkish market, adding 97 clubs and 215,000 B2C memberships to its portfolio.

Beyond the MAC acquisition, Benefit Systems continued its organic and inorganic growth across markets. The company opened five new clubs in Poland and three in foreign EU markets during Q1, while also acquiring four clubs in the Czech Republic and one in Poland. Additionally, the company acquired a software developer for fitness clubs, strengthening its technological capabilities.

The following chart illustrates the key business and financial events that have shaped the company’s trajectory year-to-date:

Financial Position & Outlook

The acquisition of MAC has significantly altered Benefit Systems’ financial position. The company ended Q1 with a net cash position of 108 million, down from 153 million at the end of Q4 2024. However, following the MAC acquisition in May, the company’s financial structure changed substantially.

The following chart illustrates the company’s debt position after the MAC acquisition:

To finance the acquisition and support future growth, Benefit Systems issued 1 billion in 5-year unsecured bonds in March 2025, signed a new financing agreement for 1.8 billion in April, and issued 280,000 series H shares with a total value of 740 million. Despite these significant financial moves, the company’s pro forma leverage ratio remains below 1.0x.

Looking ahead to the remainder of 2025, Benefit Systems expects continued improvement in results, projecting an increase of 130,000 cards in Poland and 150,000 in foreign markets. The company anticipates ARPU growth but warns of potential margin pressure in the Foreign EU segment. The integration of MAC is expected to positively impact results in Turkey, though the company has recommended not paying a dividend as it focuses on growth investments.

With its expanded footprint across Poland, other European markets, and now significantly in Turkey through the MAC acquisition, Benefit Systems is positioning itself for continued growth while managing the short-term financial impacts of its ambitious expansion strategy.

Full presentation:

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