Virgin Active owner Brait returns to full-year profit, but local gym membership growth remains sluggish

Brait Investment Holdings has reported a strong full-year performance, underpinned by the operational performances from Virgin Active and food company Premier.

The company reported headline earnings per share (HEPS) of 5 cents for the 12 months to end-March 2025 compared with a 13 cent loss in 2024.

For Virgin Active, revenue increased by 13% driven by growth in memberships (2%) and yields (8%).

In Southern Africa, which makes up 35% of group revenue, sales growth was partially offset by terminations.

This resulted in net membership growth of 10,000.

Premier delivered revenue and EBITDA growth of 7% and 15% respectively, year-on-year.

Stephen Grootes asks Brait CEO Peter Hayward-Butt about the reasons their local gym membership is not increasing apace.

He cites the two main drivers as financial pressure on consumers, and then the very human inclination to drop something when it proves difficult.

"One group is people who, at the end of the month find there's no money in their account to run a debit order and can't afford it - I'd say that's roughly 50-60% of terminations. That is very difficult to counter."

Peter Hayward-Butt, CEO - Brait Capital

"Then obviously you get those who start off at the beginning of the year with great resolutions to see it through and then decide after a few months it's not for them."

Peter Hayward-Butt, CEO - Brait Capital

To win back these lapsed members, their focus remains on continuing to improve the quality of sales and enhance member engagement.

"It's all about trying to get them back into the gym and give them a programme which is suited to them; to keep them engaged, really."

Peter Hayward-Butt, CEO - Brait Capital

Scroll up to the audio player to listen to the interview