Global Blue Reports Q2 and H1 FY2425 Financial Results
Intellectia.AI2024-11-22
Global Blue Reports Q2 and H1 FY24/25 Financial Results
Global Blue Group Holding AG (NYSE: GB) has published its financial results for the second quarter and six-month period ending September 30, 2024.
Key Financial Metrics
| Metric | Q2 FY24/25 | Q2 FY23/24 YoY Change | H1 FY24/25 | H1 FY23/24 YoY Change |
|---|---|---|---|---|
| Revenue | €132 million | +17% | €250 million | +20% |
| Adjusted EBITDA | €59 million | +25% | €102 million | +36% |
| Adjusted EBITDA Margin | 44.5% | +2.8 pts | 40.7% | +4.6 pts |
The financial results demonstrate strong year-over-year growth across the board. The substantial increase in adjusted EBITDA highlights the company's effective cost management and operational scaling, leading to improved margins.
Revenue Breakdown by Segment
| Segment | H1 FY24/25 Revenue | YoY Change |
|---|---|---|
| Tax Free Shopping Solutions | €193 million | +25% |
| Payments | €43.7 million | +12% |
| Post-Purchase Solutions | €13 million | -6% |
Tax Free Shopping Solutions led the revenue increase, with notable growth in both Continental Europe and Asia Pacific. Despite a 6% decline in Post-Purchase Solutions, the management's focus on higher contribution margin contracts has borne fruit.
Key Developments and Operational Highlights
- Share Buy-back Program: Increased from $10 million to $15 million, with an extension to November 2025.
- Net Leverage Ratio: Reduced to 2.9x from 4.5x, tracking towards a long-term target of <2.5x.
Management Commentary
Jacques Stern, CEO, highlighted the firm's outperformance in the luxury market, principally driven by exposure to high-net-worth international shoppers. Additionally, strategic technology initiatives have been successfully implemented, laying a foundation for sustained growth despite broader market slowdowns.
Dividends and Share Repurchase Program
Global Blue has announced a revision and extension of its share repurchase program to $15 million, extending the timeline to November 30, 2025.
Forward Guidance
For FY24/25, Global Blue revised its adjusted EBITDA guidance to a range of €185 million to €200 million, factoring in strategic investments for future growth and broader luxury market conditions.
Stock Price Reaction
Following the earnings release, Global Blue's stock showed a notable post-event change with an increase of over 12%.
In summary, Global Blue's solid financial performance, strategic initiatives, and market positioning suggest a robust outlook despite luxury market challenges. The expanded share buyback program accentuates the company's confidence in its financial health and future growth trajectories.
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