“In the first three months of FY22, fitness centres were completely shut. However, we had costs of keeping the centres and employees. While gyms reopened in July, they were not allowed to run at 100% capacity. As a result, revenues did not rebound to the full potential," said Naresh Krishnaswamy, business head, Cult.fit in an interview.
During the year, the company made a string of acquisitions to support its inorganic expansion. “The acquisitions have costs associated with it, which added to the losses," said Krishnaswamy.
The health and wellness platform run by CureFit Healthcare Pvt. Ltd posted a 34% growth in revenue to ₹215.7 crore, as per its annual financial statement filed with the Registrar of Companies.
While Cult.fit made significant gains last fiscal, it is yet to surpass its performance in FY20 when it had posted revenue of about ₹496 crore. With the easing of the pandemic, the company is aiming at a rebound this fiscal.
“We are much bigger than what we were pre-pandemic. The fitness business and the fitness products business are driving the growth for the company. These businesses combined will help us to be operationally profitable in FY24," said Krishnaswamy.
