Brait (BAT) H2 2025 earnings summary

Executive summary

• Completed a ZAR 1.5 billion capital raise and major balance sheet restructuring, including bond extensions, principal reductions, and facility extensions to 2028, resulting in a ZAR 1.378 billion debt reduction and improved financial flexibility.

• Portfolio focus on continued investment in core assets: Virgin Active, Premier, and New Look, with strong operational improvements and strategic repositioning.

• Virgin Active and Premier delivered robust growth, while New Look faced challenging UK retail conditions but advanced its digital transformation and secured a GBP 30 million capital injection.

• NAV per share increased 6% year-over-year to GBP 3.06 (or R3.06), with available liquidity at ZAR 1.1 billion at year-end.

• Premier and Virgin Active posted double-digit EBITDA growth, while New Look's EBITDA declined sharply but digital business grew.

Financial highlights

• Group NAV per share rose 6% year-over-year to GBP 3.06 (R3.06), with total assets of GBP 6.6 billion (62% Virgin Active, 32% Premier, 3% New Look, 3% cash/receivables).

• Profit for the year was ZAR 153 million, reversing a prior year loss of ZAR 171 million; EPS at 5 cents vs. -13 cents YoY.

• Premier reported revenue of ZAR 19.9 billion (+7% YoY), EBITDA of ZAR 2.4 billion (+15% YoY), and ROIC of 24.9%.

• Virgin Active: 13% revenue growth, 45% EBITDA increase year-over-year, EBITDA margin up 400bps to 17%, run-rate EBITDA at GBP 121 million as of April 2025.

• New Look revenue declined 4.4% to GBP 765.9 million, EBITDA fell 67.6% to GBP 12.4 million, but digital sales grew 3.5%.

Outlook and guidance

• Virgin Active targets mid-single-digit yield growth and low to mid-single-digit volume growth, aiming for GBP 180–200 million EBITDA in 2–3 years.

• Premier expects commodity price relief to support consumer demand and aims to replicate 2025's strong earnings algorithm, continuing investment in operational efficiencies and product adjacencies.

• New Look to focus on digital transformation and cost restructuring, with exit options under review and cost savings expected to benefit 2026 results.