Report
Basic-Fit Strategy shift: giving up growth for FCF
Basic-Fit reports FY24 results below our expectations. The underlying EBITDA less rent came in at EUR 312.9m vs EUR 319.7m KBCSe. The difference comes from higher employee expenses driven by more 24/7 openings in France in 2H24. On a net results basis the expectations were not met due to 10% higher financing costs. Both the expansion and maintenance capex per club are higher than initially guided. The higher maintenance capex impacted the FCF per share at EUR 2.36 vs EUR 2.60-2.95 guided (EUR 2.64 KBCSe). For FY25/26 Basic-Fit comes with a strategy shift to open less clubs. This saves them approx. EUR 97.5m in expansion capex which will be used to do a EUR 40.0m SBB. We understand the reasoning given the low share price but would have preferred to see a buffer for the bond repayment in FY26 (put option) or FY28, especially now that European interest rates are rising. We will have to update our model and believe it will take some time to rebuild trust after most FY23 CMD targets are not met.
Underlying
Basic-Fit NV
Basic-Fit NV is an operator of fitness centers based in the Netherlands. The Company operates more than 350 fitness clubs in the Netherlands, Belgium, France and Spain.
Provider
KBC Securities
We are a financial services provider for several types of professional clients, each with distinct needs.
Lynn Hautekeete
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