Fitness stocks to look at in September 2021: VVA, AHI, CAT


  • The gym and fitness industry has been impacted significantly during COVID-19 due to lockdown and government restrictions.
  • The ease in the lockdown restrictions and economic recovery in the coming days may support revenue growth.

Representing a market size in billions, the gym and fitness industry houses more than 6000 businesses and employs over 20,000 people. Due to COVID-19 related lockdown restrictions in the country, the revenue of Australian fitness businesses was adversely impacted, straining industry revenue. However, during unlock periods, the establishments did open with restricted conditions.

Fitness stocks to look at in September 2021

Experts believe that the revenue of this industry would grow in the coming five years with the ease in the lockdown restrictions, and the country recovers from the effect of the subsequent downturns. In addition, the increase in the population and the rising fitness awareness in the people should drive the future revenue of the industry.

RELATED READ: How covid is changing our fitness habits

In this backdrop, let us look at three stocks from the fitness space and see how they are positioned now.

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Viva Leisure Limited (ASX:VVA)

Founded in 2004, Viva Leisure operates health clubs within the health and leisure industry. The Company provide its customers with several unique membership choices and various facilities, starting from big box fitness facilities to boutique fitness facilities.

Despite challenging FY2021 year where all the facilities of the Company were open for just two months, the EBITDA increased by 97% compared to the previous corresponding period. Revenue improved by 104.8% to AU$83.7 million. NPAT for the period was AU$0.90, up 4.6% from FY2020.

Viva Leisure, EBITDA Growth

Operational Achievements:

  • The number of locations increased by 45% during the year. Thus, building a solid foundation for FY2022 and beyond.
  • In the coming days, VVA would continue to focus on the growth of the locations and members in Queensland (QLD) and Victoria (VIC). In FY2021, the number of members in QLD and VIC increased by 50% and 240%, respectively.
  • It invested AU$54.8 million on Acquisitions, Greenfield rollouts & location upgrades.

RELATED READ: Viva Leisure (ASX:VVA) to expand presence in Victoria

In FY2022, COVID snap and lengthy lockdowns impacting momentum. However, VVA expects that the membership enrolment would increase once normality exists in key markets.

On 26 August 2021, VVA concluded AU$11.7 million Institutional Placement to reinforce its balance sheet and support acquisitive growth.

VVA closed at AU$2.170 on 16 September 2021.

Catapult Group International Ltd (ASX:CAT)

Catapult Group create technology to aid athletes and team to perform to their full potential. One of its wearable technology, Catapult One, is an affordable fitness tracking solution for individuals and teams. It identifies improvements and increases the performance, trace the players in training & matches with its 10 core metrics, comprising distance, sprints, and speed.

On 13 September 2021, Catapult Group announced that VfB Stuttgart chose Catapult for a multi-year subscription to Vector (CAT’s wearable solution that provides performance understandings). VfB Stuttgart is amongst the most successful German football clubs.

FY2021 was a challenging period for the Company’s customers as they faced financial challenging. CAT remained focused on customer retention, high margin subscription sales, and efficiency improvements despite these challenges.

  • Annualized Contract Value improved by 16.5%.
  • In the APAC and EMEA region, ACV growth was 57% and 34%, respectively.
  • Out of the total revenue during the period, 79% was from subscriptions.
  • FY2021 was the second consecutive year of positive and increasing Free Cash Flow, underlining CAT’s long-term cash generation capacity.

ALSO READ: Why is Catapult Group (ASX:CAT) share price on watch today?

CAT’s Board is excited about the Company’s growth potential, long-term strategy of increasing ACV to 10 times its existing size. In the coming days, CAT would focus on accelerating prospects that it is exclusively positioned to capture.

CAT closed at AU$1.980 on 16 September 2021.

Advanced Human Imaging Ltd (ASX:AHI)

Advanced Human Imaging Ltd is a human imaging company. It offers smartphone-based human scanning technology with several data-driven applications in Fitness, mHealth, Insurance, Apparel and Life & Health.

On 14 September 2021, AHI announced the submission of the Health Cube app into the top 10 China app stores with Tinjoy Biotech Limited. Tinjoy has submitted The Health Cube app to several Android and Apple app stores which would release this week into the China market.

During FY2021, the Company experienced a net loss of AU$14,060,992. The loss includes AU$10,108,653 related to impairment charges and share-based payments to suppliers, directors, and employees under the incentive plans of the Company.

Revenue from continuing activities improved by 86.5% to AU$ 1,244,466.

AHI closed at AU$1.260 on 16 September 2021.

What Next?

Many businesses from the health and fitness space managed to sail through the situation in FY2021. With uncertainty in terms of rising COVID-19 cases and lockdowns, it would be interesting to see how these businesses will position themselves in the coming days.





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