Holmes Place International (HLMS) Q4 2024 earnings summary

Executive summary

• Operates Israel's largest health and fitness club network with 69 clubs and 194,000 members as of Dec 31, 2024.

• Two main segments: Holmes Place (premium/family/energy clubs) and Icon Fitness (low-cost premium).

• Continued expansion with new club openings, especially in the Family and Icon segments.

• No material operational or financial impact from the Iron Swords war as of report date.

• Maintains strong brand, diversified offerings, and leading market position.

Financial highlights

• Revenue for 2024: NIS 552.2 million, up from NIS 508.5 million in 2023.

• EBITDA (Non-GAAP, including equity-accounted investees): NIS 96.2 million in 2024, up from NIS 84.2 million in 2023.

• Net income attributable to shareholders: NIS 46.5 million in 2024, up from NIS 40.1 million in 2023.

• Gross margin improved to 17.1% in 2024 (NIS 94.0 million gross profit).

• Cash flow from operations: NIS 167.6 million in 2024.

Outlook and guidance

• Strategic plan targets EBITDA of NIS 136–146 million by 2027.

• Plans to open 5–8 new Icon clubs and 1–2 Family clubs in the next 12–24 months.

• Expects continued growth in membership and club count, with focus on both organic and selective inorganic expansion.

• No material expected impact from the Iron Swords war unless escalation occurs.