Forecasts This is excellent, it’s mostly good today, because no one will remember for another 6 years what the company said today. The network of fitness clubs
Holmes Place
+8.55%
Base:374.2
opening:382.8
High:408
low:380
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Severely damaged during the corona period but in recent quarters shows recovery. The chain, which operates 55 fitness clubs in Israel and has about 167,000 subscribers, reveals numbers about its plans for the coming years. In a presentation to investors, she expects it to increase to 80-85 fitness clubs by the years 2026-2027, with an EBITDA target of NIS 121-134 million. So of course EBITDA targets are nice, but what about profits? Why is the company afraid to talk about profits within another 6 years from today? And it’s not that the company is not returning to profitability.
Not a high forecast, but when you remember that there was a corona it is a reasonable growth
In any case, when looking at the results of 2019, then the company recorded EBITDA of NIS 55 million, and remember that the company’s forecast for 2020 was to reach EBITDA of NIS 70 million, so the current forecast is not very impressive. The growth the company expected then stood at 27% that year. If we take the company’s new forecast, 121-134 million in 2027, then it is a growth of only 12-15% every year.
But it should be remembered that the company took a very hard hit in Corona. In practice, instead of ending with a positive EBITDA of NIS 70 million, the company ended 2020 with a negative EBITDA of NIS 30 million. In 2021, the company managed to improve its results and recorded a positive EBITDA of NIS 13 million. The company is also talking about a “RUN RATE” of NIS 56 million, which means a quick return to growth. Hence, from that NIS 56 million to reach 121-134, it is already more significant and it is a matter of growth of about 23% per year.
On the positive side (for the company, less for the customers), Holmes Place is building on the fact that following the epidemic, many Israelis have gained weight, and the company expects them to return to the fitness clubs.
Before Corona, the company expected to reach 70 branches by 2024
Pre-Corona Holmes Place planned to reach 70 active branches by 2024 and EBITDA of NIS 100 million. But as mentioned following the corona she had to recalculate a route. Currently, it expects 80-85 branches by 2026-2027 and EBITDA of NIS 121-134 million, with the company building on the return of pre-canceled subscriptions to the routine and the renewal of subscriptions, at the same time, the company expects to open more new fitness clubs, which will contribute They are also for EBITDA.
And more specifically, the company expects in the next 12 months to return to normal activity in 41 clubs that operated before the corona, which will add NIS 13 million to the company’s EBITDA. The company also expects “realization of the potential of 13 clubs opened during the Corona” which will contribute another NIS 14 million to EBITDA, and “realization of the potential of 8 clubs under construction” within a year and a half to two years which will contribute another NIS 21 million, and later – opening 11- 16 more clubs until 2026-2027 and an additional NIS 17-30 million, along with an “examination of additional acquisitions” which the company defines as something it does “permanently”.
Holmes Place is a retail company?
Look at this strange slide in a presentation by Holmes Place: the company claims to have fewer branches than other retailers in Israel. Wait, but Holmes Place is not really a retailer, so what is this all about?
In its latest reports, the fitness club chain reported that in the first quarter of 2022, the company’s revenues amounted to NIS 102 million, an increase of NIS 85 million compared to last year, when it generated NIS 17 million. The increase in revenue was due to the fact that the group’s clubs were open from the beginning of the first quarter of the year compared to last year, so only about 43% of clubs remained open due to the Corona restrictions.
The net profit amounted to NIS 9.4 million, compared with a quarterly loss of NIS 35.4 million in the corresponding quarter. EBITDA amounted to NIS 14.9 million, compared with a loss EBITDA of NIS 27 million in the corresponding quarter. The gross profit for the quarter amounted to NIS 22.5 million, last year the company reported a gross loss of NIS 34.2 million. Operating profit amounted to NIS 13.6 million, last year the company reported an operating loss of close to NIS 40 million.
And what did the company’s CEO say to BizPortal six months ago? Here is the interview.
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