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Global Blue Reports Q2 and H1 FY2425 Financial Results

authorIntellectia.AI

2024-11-222mins

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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