‎“Fitness Time” profits increased to SR63 mln during Q1, by ‎‎36.3%‎

Leejam Sports Company revealed an increase in net profit after zakat and tax in the first quarter to 62.7 million riyals, compared to 46 million riyals in the same quarter of last year, by 36.3%. This came after today’s announcement of the preliminary summary financial results for the period ending on March 31. 2023 AD (three months).

The operational profit amounted to 77.6 million riyals in the first quarter, compared to 59.1 million riyals in the same quarter of the previous year, with a growth of 31.3%.

The total shareholders’ equity “without minority rights” amounted to 943.1 million riyals in the current period, compared to 805 million riyals in the same period last year, an increase of 17%.

Earnings per share in the current period reached 1.2 riyals, compared to 0.9 riyals in the same period last year.

The company achieved revenues and net profit amounting to 277 million riyals and 63 million riyals, respectively.

The reason for the increase in net profit for the first quarter of the year 2023 AD by 36% compared to the first quarter of the year 2022 AD is mainly due to:

The increase in revenues due to the increase in the number of operating centers, as 10 new centers were opened since the end of the first quarter of 2022 AD. The increase in revenue was as follows:

– An increase in membership revenues by 19% compared to the first quarter of 2022

– An increase in personal training revenues by 29% compared to the first quarter of 2022

This came despite the following:

– An increase in the total cost of revenues by 15% compared to the same quarter of the previous year due to the increase in staff costs, general services and consumption, as a result of adding 10 additional centers since the end of the first quarter of 2022 AD, in addition to the increase in cleaning and maintenance costs due to the increase in the number of subscribers And the continuation of the program to renew sports clubs, “Your club has changed.”

The high cost of financing due to the increase in interest rates compared to the first quarter of the previous year

– The reason for the decrease in net profit for the first quarter of the year 2023 AD compared to the fourth quarter of the year 2022 AD is mainly due to the seasonal nature of the company’s business, in addition to the change in the subscription mix during the two comparative quarters.

Additional information:

Leejam Company ended the first quarter of 2023 with 333 thousand members, an increase of 36% compared to the first quarter of 2022.

The company added 4 centers in the first quarter of 2023 AD and ended the quarter with 160 operating centers.

In the first quarter of 2023 AD, the company recorded a gross profit margin, a profit margin before calculating interest, taxes, depreciation, and amortization, and a net profit margin of 39%, 50%, and 23%, respectively.