Leejam posts lifetime high profit in Q4 2021, eyes 15 new branches in 2022: Chairman

Ali Al-Sagri, Chairman of Leejam Sports Co.

Leejam Sports Co. (Fitness Time) reported a strong set of results for the fourth quarter of 2021, the highest since its inception. These results were buoyed by higher revenue and the company’s cost control efforts, which had a positive impact on profit margins, Chairman Ali Al-Sagri told Argaam in a phone interview.

The gym operator turned a profit in 2021 after the losses incurred in 2020, due to the COVID-19 closures. Despite the closure of the company’s clubs in February, it recorded a robust profit for 2021.

Replying to a question about the financial impact of expanding the Xpress Fitness Centers brand, Al-Sagri said: “The results of the Xpress Fitness Centers segment matched the feasibility study in terms of profitability. Overall, we expect a positive impact on Leejam’s profitability in the medium and long term.” The total number of the Xpress Fitness Centers have reached 17 to date, including 14 for men.

Elsewhere, Al-Sagri explained that Leejam reduced its debts to SAR 365 million in 2021 from SAR 488 million a year earlier.

The total number of branches stood at 146 until February 2022, including three solely owned by the company. Leejam is always working with the owners of leased properties to agree on the best terms for both parties.

On the company’s 2022 objectives, the top executive said: “We have a clear expansion strategy. We aim to add no less than 15 clubs for men and women in 2022, to realize the company’s vision and become the fitness club of choice for everyone. Leejam eyes more growth, compared to 2021, while maintaining, if not marginally increasing, its profit margins.”

Leejam reported a 10% increase in the number of subscribers to 292,000 in 2021, from 265,000 in 2020, Al-Sagri concluded.

Leejam swung to a net profit after Zakat and tax of SAR 206 million in 2021, versus a net loss of SAR 58.7 million a year earlier, Argaam reported.