SHERIDAN, WYOMING – July 30, 2024 – Basic-Fit, the renowned low-cost fitness chain, is on a trajectory of unprecedented growth, surpassing four million members and launching a record number of clubs in the first half of 2024. The company's ambitious expansion plans and commitment to sustainability were highlighted by CEO Rene Moos, who reaffirmed the company's target of achieving a 30% return on invested capital (ROIC) for each new club at maturity.
Record-Breaking Expansion and Financial Performance
Basic-Fit's impressive expansion has seen the opening of 135 clubs in the first six months of 2024, bringing the total number of clubs to 1,537. Moos stated, "For each new club, a return on invested capital (ROIC) of at least 30% is expected at maturity." This ambitious goal aligns with the growing trend in the fitness sector, with other major players also aiming for higher ROIC.
Despite the substantial investment in new clubs, Basic-Fit reported a 26% increase in underlying EBITDA (less rent) to €139 million and a 17% revenue increase to €585 million compared to the previous year. Moos acknowledged that the initial investments and losses associated with new club openings impacted profitability in the first half of the year, but he expressed confidence that this trend will reverse in the second half as the new clubs begin to contribute to the bottom line.
Strategic Initiatives and Sustainability Efforts
Basic-Fit's growth strategy extends beyond club openings. The company is actively rebranding acquired McFIT clubs in Spain to the Basic-Fit brand and implementing new management structures in France to optimize club operations and revenue generation. Investments in club enhancements, such as massage chairs and extended opening hours, are also underway.
Furthermore, Basic-Fit is committed to sustainability, having invested €2.5 million in the first half of 2024 on projects aimed at making clubs more environmentally friendly. These efforts include switching to electric water and heating systems and installing solar panels on select clubs.
Smart Refurbishing Initiative: Extending Equipment Lifespan
One of Basic-Fit's innovative initiatives is its Smart Refurbishing program, which extends the lifespan of fitness equipment from eight to 12 years through regular maintenance and refurbishment. This initiative has already resulted in a €5 million reduction in depreciation of fitness equipment for the second quarter of 2024.
Looking Ahead: Continued Growth and Innovation
As Basic-Fit looks towards the remainder of 2024, the company aims to continue its rapid expansion, increase revenues, and boost average revenue per member. Moos expressed optimism about the company's prospects, stating, "It is good to see the year-on-year improvement in profitability in the first half of the year and we look forward to an even stronger second half of the year, during which we expect to achieve all our targets for 2024 as communicated in April."
About Basic-Fit
Basic-Fit is a leading low-cost fitness operator in Europe, offering affordable and accessible fitness solutions to a wide range of members. With a focus on innovation, sustainability, and member satisfaction, Basic-Fit is committed to making fitness a part of everyone's life.