Global Blue Group Holding AG Announces Q1 Earnings Results for FY2425
Intellectia.AI2024-08-28
Global Blue Group Holding AG Announces Q1 Earnings Results for FY24/25
Global Blue Group Holding AG (NYSE: GB) reported its financial results for the first quarter ended June 30, 2024, showcasing a solid financial performance and operational progress across major segments.
Key Financial Metrics
| Metric | Q1 FY24/25 (€) | Q1 FY23/24 (€) | YoY Change (%) | Q4 FY23/24 (€) | QoQ Change (%) |
|---|---|---|---|---|---|
| Revenue | 117.8m | 94.2m | +25% | 106.4m | +10.7% |
| Adjusted EBITDA | 43.0m | 27.7m | +55% | 39.6m | +8.6% |
| Adjusted EBITDA Margin | 36.5% | 29.5% | +7ppts | 37.2% | –0.7ppts |
| Annualized Adjusted EBITDA(2) | 205m | 134m | +53.0% | 164m | +25.0% |
Interpretation: Global Blue experienced a robust 25% YoY growth in revenue and a remarkable 55% YoY increase in adjusted EBITDA. The adjusted EBITDA margin improved by 7 percentage points to 36.5%. This growth reflects high operating leverage and a focus on cost management.
Revenue Performance by Segment
| Segment | Q1 FY24/25 (€) | YoY Change (%) | Per Previous Guidance |
|---|---|---|---|
| Tax Free Shopping Solutions | 91.1m | +33% | In line |
| Payments | 20.3m | +8% | Ahead |
| Post-Purchase Solutions | 6.3m | -11% | Below |
Interpretation: Tax Free Shopping Solutions led the revenue increase, with a 33% YoY growth mainly driven by Mainland China and Asia Pacific. Payments grew by 8% YoY, ahead of guidance, while Post-Purchase Solutions saw an 11% decline due to strategic shifts in contracts.
Key Developments and Operational Highlights
- Net Leverage Improvement: Reduced net leverage to 3.4x in Q1 FY24/25 from 5.7x in Q1 FY23/24.
- July 2024 Tax Free Sales Growth: 25% YoY increase in Sales-in-Store, driven by a significant performance in Asia Pacific (+64%) and Mainland China (+97%).
- Guidance Reaffirmation: Maintaining FY24/25 adjusted EBITDA guidance of more than €200m.
- Share Repurchase Program: Announced a $10 million share buyback program.
Executive Comments
Jacques Stern, CEO of Global Blue, highlighted the robust start to FY24/25, characterized by a 25% YoY growth in revenue and significant improvements in adjusted EBITDA. He attributed this success to the company's focus on cost management and high operational efficiency. Stern reaffirmed the financial guidance for FY24/25 and announced a $10 million share repurchase program, aimed at capitalizing on robust free cash flow and operational improvements.
Financial Guidance and Dividends
Global Blue reiterated its financial guidance for FY24/25, projecting adjusted EBITDA of over €200m. Looking ahead, the company targets 8-12% revenue growth, >50% drop-through, and a net leverage ratio of less than 2.5x.
Stock Price Movement
Following the earnings release, Global Blue's stock experienced a modest increase of 0.0212%, reflecting investor confidence in the company's strong operational and financial performance.
For more information and detailed financial data, visit Global Blue Group Holding AG's investor relations section on their website.
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