Virgin Active and Premier boost Brait’s first-half profit
Investment holding company returns to the black after completing its recapitalisation plan
13 November 2024 - 09:15
byJacqueline Mackenzie
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A member is seen exercising in the Virgin Active gym in Soweto. Picture: THE TIMES/ALON SKUY
Investment holding company Brait returned to the black at the halfway stage after the group completed its recapitalisation plan and reported strong operational performances at Virgin Active and Premier.
The group reported a comprehensive profit of R724m for the six months to end-September after a loss of R300m a year ago, it said in a statement on Wednesday.
Headline earnings per share (HEPS) rose to 39c from 1c a year ago.
Brait’s key reporting metric of net asset value per share is R3.10, which increased by 8% compared with March 2024 on a like-for-like basis, after adjusting for the recapitalisation.
Brait completed its recapitalisation in August, which included three-year extensions on the maturities of its bonds and a fully underwritten rights offer of R1.5bn.
The group said the performance was driven by a 6% year-on-year increase in active members at Virgin Active, which resulted in a 16% increase in revenue, excluding Kauai, and 23% including Kauai. Italy grew revenue by 19%, SA by 16% and Singapore by 34%, which was offset by lower growth in the UK of 11%.
Virgin Active comprises 61% of Brait’s total assets.
SA’s fast-moving consumer goods manufacturer Premier, which makes up 28% of Brait’s total assets, reported a strong operational performance with revenue growth of 3.7% and earnings before interest, tax, depreciation and amortisation (ebitda) growth of 13.5% year on year.
All business units, excluding CIM, contributed to overall growth in profitability with a focus on margin management, cost saving initiatives and the delivery of material operational efficiencies across manufacturing and the logistics and distribution channels.
Fashion retailer New Look, which comprises 5% of Brait’s total assets, experienced difficult trading conditions in the UK fashion market with significant discounting as retailers look to drive sales among cost-conscious and under pressure consumers. The unit’s gross profit increased slightly on the prior year, however, inflation-linked cost increases have put pressure on the ebitda performance, which was down 23%.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Virgin Active and Premier boost Brait’s first-half profit
Investment holding company returns to the black after completing its recapitalisation plan
Investment holding company Brait returned to the black at the halfway stage after the group completed its recapitalisation plan and reported strong operational performances at Virgin Active and Premier.
The group reported a comprehensive profit of R724m for the six months to end-September after a loss of R300m a year ago, it said in a statement on Wednesday.
Headline earnings per share (HEPS) rose to 39c from 1c a year ago.
Brait’s key reporting metric of net asset value per share is R3.10, which increased by 8% compared with March 2024 on a like-for-like basis, after adjusting for the recapitalisation.
Brait completed its recapitalisation in August, which included three-year extensions on the maturities of its bonds and a fully underwritten rights offer of R1.5bn.
The group said the performance was driven by a 6% year-on-year increase in active members at Virgin Active, which resulted in a 16% increase in revenue, excluding Kauai, and 23% including Kauai. Italy grew revenue by 19%, SA by 16% and Singapore by 34%, which was offset by lower growth in the UK of 11%.
Virgin Active comprises 61% of Brait’s total assets.
SA’s fast-moving consumer goods manufacturer Premier, which makes up 28% of Brait’s total assets, reported a strong operational performance with revenue growth of 3.7% and earnings before interest, tax, depreciation and amortisation (ebitda) growth of 13.5% year on year.
All business units, excluding CIM, contributed to overall growth in profitability with a focus on margin management, cost saving initiatives and the delivery of material operational efficiencies across manufacturing and the logistics and distribution channels.
Fashion retailer New Look, which comprises 5% of Brait’s total assets, experienced difficult trading conditions in the UK fashion market with significant discounting as retailers look to drive sales among cost-conscious and under pressure consumers. The unit’s gross profit increased slightly on the prior year, however, inflation-linked cost increases have put pressure on the ebitda performance, which was down 23%.
mackenziej@arena.africa
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