Basic Fit (BFIT) CMD 2026 summary

Strategic Direction and Growth Opportunities

• Focus on market leadership in every country, leveraging scale, brand, and technology to drive growth and efficiency, with a three-pronged strategy: organic expansion, disciplined inorganic acquisitions, and franchise rollout.

• Franchise model expansion in Germany and France aims for critical mass by 2027, supporting asset-light growth and national marketing.

• Significant white space remains in core and new markets, with fitness penetration in key countries rising from 10.6% in 2016 to 13.8% in 2026, and expectations to add 8–9 million members in the next 10 years.

• Multi-vertical approach leverages organic club rollout, strategic M&A, and franchising, focusing on capital efficiency and market leadership in 12 countries.

• Ongoing focus on operational excellence, cost control, and capital allocation to maximize group ROCE in the medium term.

Operational Model and Market Positioning

• Maintains the lowest cost base in the industry, with a break-even point of 1,400–1,500 members per club, enabled by automation and lean staffing.

• Cluster strategy ensures high visibility and accessibility, supporting rapid fill-up of clubs and strong brand recognition (over 90% in mature markets).

• Data-driven marketing and AI-powered creative systems have reduced cost per joiner by 9% and increased joiners per club by 10% since 2023, with marketing spend optimized at around 5% of revenue.

• Enhanced member retention through habit-building, personalized communication, and improved club experience, resulting in a 9% increase in average length of stay to 24 months and extended member lifetime by over 9% (2025 vs 2023).

• Secondary revenue streams and upselling (e.g., Ultimate membership, retail media, vending) drive yield growth, with over 40% of new joiners choosing premium options and yield per member up 6% (2025 vs 2023).

Financial Framework and Capital Allocation

• Transitioning from rapid expansion to disciplined, return-focused growth, with group ROCE as the key metric, targeting low to mid-teens in 3–5 years (currently ~6%), and mature club ROIC targets above 30%.

• Organic growth remains core, but pace is moderated to allow club maturation and margin improvement; existing clubs are expected to deliver €150 million in additional revenue as they mature.

• Inorganic growth (M&A) is focused on bolt-on acquisitions in Germany, Austria, and other core markets, with recent deals (e.g., clever fit, McFIT) showing strong EBITDA and margin uplift.

• Franchise expansion is capital-light and expected to become a major driver of ROCE and group profitability over the long term, with a goal to eventually have more franchise than owned clubs.

• Capital allocation prioritizes organic growth (if ROIC >30%), selective M&A, and franchise, while maintaining a net debt ratio below 2 and considering shareholder distributions only if growth opportunities are limited.