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Improved sales show Fitness and Lifestyle Group emerging from pandemic impacts

Improved sales show Fitness and Lifestyle Group emerging from pandemic impacts
December 13, 2024

Rising numbers of people exercising in gyms has seen the Fitness and Lifestyle Group (FLG) reduce its losses and improve its sales in the past year.

The latest accounts from FLG owner Quadrant Private Equity have shown a 5% rise in FLG’s sales to $685.6 million from $651.8 million in the previous financial year, while its losses narrowed to $222 million from $290.7 million in the previous year.

As revealed in Quadrant’s accounts lodged with the Australian Securities and Investments Commission, FLG - which Fitness First Australia, Zap Fitness and Goodlife Health Clubs, Jetts Fitness in New Zealand and Thailand, the local Barry’s master franchise and Emily Skye FIT - reveal that strong membership sales and increased yield during the year were achieved against weaker consumer spending with higher interest rates and a slower economy.

The Southeast Asia unit recognised a $33.1 million impairment due to prolonged challenging economic conditions in Vietnam, operations that were subsequently sold after the financial year ending 30th June.

By contrast, better economic conditions, in conjunction with a strong brand presence in Thailand, delivered strong income growth and profitability. Seven new Jetts sites were opened during the current financial year, with a further seven planned for the 2025 financial year.

Subsequently, Jetts has opened its 50th site in Thailand.

The accounts said that while the group has incurred losses before tax, which have contributed to its net liability position, it continues to generate significant cash earnings.

It advised “due to the tenure and structure of the group’s recently refinanced borrowings and its ability to recapitalise if required, the directors have reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future.”

Operating in four countries, FLG has 319 locations, more than 585,000 members and 6000 employees.

Describing itself as Asia Pacific’s largest group of corporately owned health and wellness clubs.

Putting aside the group’s financing costs of $280 million, it generated a $280.3 million operating profit, lower than in the previous financial year after property-related expenses and other costs increased.

As reported by the Australian Business Network, the company’s borrowings are almost $2 billion, increasing from almost $583 million in the previous corresponding year amid a high interest rate environment, while total equity is $1.5 billion.

FLG Group Chief Executive Greg Oliver and FLG Thailand Chief Executive Mike Lamb and the group’s growth in Thailand are the subject of an interviewed in the latest issue of Australasian Leisure Management.

Images: Jetts Thailand (top) and the recently opened Fitness First Platinum Richmond (below).

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30th October 2024 - Jetts Thailand reaches half century of clubs with landmark Bangkok gym opening

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5th October 2024 - Flagship Fitness First club to close after 20 years

9th September 2024 - Jetts New Zealand and Zap Fitness digital access innovation attains 93% uptake

26th August 2024 - Fitness First Australia launches recovery concept at new flagship Melbourne location

22nd August 2024 - Fitness and Lifestyle Group launches affiliate partnership marketing program

12th August 2024 - Fast growing Jetts Thailand extends market dominance

21st May 2024 - Wages victory for staff in battle with Fitness and Lifestyle Group

7th May 2024 - BlueFit and Fitness and Lifestyle Group announce learn to swim partnership

8th February 2024 - VMO renews Fitness and Lifestyle Group advertising account

22nd January 2024 - Fitness and Lifestyle Group ‘the Way We Work’ initiative looks to change scheduling and freeze staff pay

11th November 2023 - Fitness First Middle East names Mark Buchanan as new Chief Executive

20th April 2023 - Report says Fitness and Lifestyle Group looking to sell Jetts Fitness 24/7 New Zealand gyms

31st January 2023 - Gearing up for growth Fitness and Lifestyle Group appoints new Chief Financial Officer

10th January 2023 - Jetts Fitness reaches 40-club milestone in Thailand with flagship opening

6th June 2022 - Fitness and Lifestyle Group to close childminding facilities at Fitness First and Goodlife Health Clubs

6th May 2021 - Digital innovation driving growth of Goodlife Health Clubs

21st April 2021 - Goodlife Health Clubs expands in Queensland

8th December 2020 - Fitness and Lifestyle Group announces exclusive deal with Transaction Services Group for its Fitness First, Zap, Goodlife and Jetts NZ brands


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