Basic-Fit cuts its losses by 97% and closes to 800 million turnover in 2022
Basic-Fit is on the verge of entering profits in 2022. In the year in which the most gyms have opened in its history (185 openings) and after increasing its subscriber base by 51% to 3.35 million registered, the Dutch chain of sports centers low cost has lost 3.7 million euros. It is 98% less than the previous year due to the return to activity without post-pandemic restrictions.
The reasons that explain why the chain has not returned to profit in a year in which it more than doubled its income are several: the amortization of assets, which increased by 21%, and the depreciation of rental properties, which increased by 16% . All this, due to the strong expansion plan that the chain has carried out.
In fact, without counting depreciation, interest or tax, the company tripled its ebitda to 384.5 million euros. Basic-Fit raised its net debt by 17.3%, up to 2,175 million euros. Of course, the underlying benefit was positive at 11.3 million euros.
Personnel expenses doubled and other operating expenses grew by 67%, but the business grew at a faster rate: from 340.7 million to 794.5 million euros. The company failed to meet the forecast of billing 800 million euros in 2022but he was close to achieving it.
Compared to 2019, before the pandemic, Basic-Fit already invoices 54.3% more because it now operates 436 more sports centers than then. In fact, if only mature clubs are taken into account (those that have been open for two years), the average number of subscribers to these facilities has fallen from 3,326 registered customers to 2,646. “This means that our mature clubs have not yet recovered 100% from the impact of the pandemic,” the company acknowledges in a statement.
The openings and the recovery of customers allowed the company gain 1.13 million customers between January and December 2022. The improvement in business also responded to the increase in the average ticket, since premium rate contracts increased by 50% and now represent 34% of the total, compared to the 23% that they represented at the beginning of 2022.
By markets, Basic-Fit closed the year with 647 centers in France; 231 in the Netherlands; 219 clubs in Belgium; 90 facilities in Spain, 10 gyms in Luxembourg and three more in Germany, a market it entered last year. Spain was the second country in which more stores opened with a total of 34, after France, where it launched 119 centers. By markets, France, Spain and Germany generated sales of 430.1 million euros, while the Benelux area reported 364.5 million euros.