The Group delivered Adjusted EBITDA of EUR101.7 million in H1 FY24/25, a 36% year-over-year increase, reflecting strong revenue growth and the high operating leverage profile of the business. This resulted in a margin improvement of 4.6pts to 40.7% and a 64% drop-through. Consequently, there has been a solid acceleration in the LTM Adjusted EBITDA to EUR175 million, up from EUR164 million in the previous quarter.

Adjusted Profit before Tax

The Group delivered Adjusted Profit Before Tax of EUR48.9 million in H1 FY24/25, a 50% year-over-year increase. High growth reflects the increase in Adjusted EBITDA, partially offset by a EUR4.8 million increase in net finance costs due to higher interest expenses during the period, and a EUR5.6 million increase in depreciation and amortization, largely attributed to increased capital expenditure in improving technology base over the last two years.

Cash Flow, Balance Sheet and Net Debt

Adjusted EBITDA less capital expenditure rose EUR19.0 million year-over-year to EUR76.1 million. In parallel, reflecting the normalization of Working Capital, Pre-tax unlevered Free Cash Flow reached EUR57.1 million vs. EUR11.7 million in the same period last year.

As at September 30, 2024, Group Net Debt came down to EUR515.6 million, consisting of Gross Financial Debt of EUR610.0 million and Cash & Cash Equivalents of EUR94.4 million, resulting in a net leverage ratio of 2.9x, a significant improvement from 4.5x at September 30, 2023.

LATEST TAX FREE SHOPPING TRENDS IN OCTOBER 2024

In October 2024, following on from the strong performance in Q2 FY24/25, Tax Free Shopping like-for-like Worldwide Issued Sales-in-Store experienced a year-over-year growth rate of 17%.

In Continental Europe, October 2024 Sales-in-Store increased by 12% compared to the same period last year, driven by a 14% increase in the number of shoppers and a 2% decrease in the average spend per shopper.

In Asia Pacific, October 2024 Sales-in-Store increased by 29% compared to the same period last year. This was driven by a 32% increase in the number of shoppers and a 2% decrease in the average spend per shopper.

FINANCIAL GUIDANCE AND LONG-TERM TARGETS

The macro and microeconomic environment in which Global Blue operates remains highly favorable. The travel industry is experiencing positive trends, particularly in the high-end segment, and Global Blue has made significant progress in implementing strategic technology initiatives to further penetrate the market. In parallel, Global Blue has continued to outperform in the luxury market, driven by its unique exposure to affluent and high-net-worth international shoppers. That said, considering the recent luxury market slowdown and taking into account the Group's decision to accelerate EUR5 million of investments (fixed costs) in future growth initiatives (expansion into new countries, adaptation of Japan's business model and Hospitality Gateway), we have adjusted our FY24/25 Adjusted EBITDA guidance to EUR185 million - EUR200 million.

Long-term targets include 8-12% revenue growth, >50% drop-through, and a net leverage ratio of <2.5x.

(1) The table below provides a reconciliation between Profit and Adjusted EBITDA.

 
                                 For the three months     For the six months 
                                  ended September 30       ended September 30 
 EURM                              2024        2023         2024        2023 
 Profit for the period             16.6         1.8         43.7        11.4 
 Profit margin (%)                12.6%        1.6%        17.5%        5.5% 
 Income Tax Expense                10.9         8.8         22.6        12.8 
 Net Finance Costs                 14.2        13.9         29.4        24.6 
 Exceptional Items*                3.4         12.7        (19.6)       6.0 
 Depreciation & Amortization       13.6        10.0         25.7        20.1 
 Adjusted EBITDA                   58.7        47.2        101.7        75.0 
 Adjusted EBITDA Margin (%)       44.5%        41.7%       40.7%       36.1% 
 

*Exceptional Items consist of items which Global Blue does not consider indicative of its ongoing operating and financial performance, not directly related to ordinary business operations and which are not included in the assessment of management performance.

(2) Drop-through refers to the portion of Revenue growth that drops through to the Adjusted EBITDA line.

(3) A reconciliation of the foregoing guidance for the non-IFRS metric of Adjusted EBITDA to net income (loss) cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future IFRS financial results.

(4) Net Leverage refers to Net Debt divided by the last 12 months Adjusted EBITDA excluding Post-Purchase Solutions Adjusted EBITDA losses.

(5) Contribution refers to revenue less variable costs.

(6) Sales-in-Store refers to the Issued Sales-In-Store (Spend), like-for-like (at constant merchant scope and exchange rates).

WEBCAST INFORMATION

An audio recording of commentary on the results, along with supplemental financial information, can be accessed via the Investor Relations section of the company's website at Global Blue Group Holding AG - Investor Relations.

NON-IFRS FINANCIAL MEASURES

This press release contains certain Non-IFRS Financial Measures. These non-IFRS measures may not be indicative of Global Blue's historical operating results nor are such measures meant to be predictive of Global Blue's future results. Not all companies calculate non-IFRS measures in the same manner or on a consistent basis. As a result, these measures and ratios may not be comparable to measures used by other companies under the same or similar names. Accordingly, undue reliance should not be placed on the non-IFRS measures presented in this press release.

FORWARD-LOOKING STATEMENTS

This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding Global Blue or its management's expectations, hopes, beliefs, intentions, or strategies regarding the future. The words "anticipate," "believe", "continue", "could", "estimate", "expect", "intends", "may", "might", "plan", "possible", "potential", "predict", "project", "should", "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are based on Global Blue's current expectations and beliefs concerning future developments and their potential effects on Global Blue. There can be no assurance that the future developments affecting Global Blue will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Global Blue's control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These include commercial expectations and other external factors, including political, legal, fiscal, market and economic conditions and factors affecting travel and traveller shopping, including the global COVID-19 pandemic and applicable legislation, regulations and rules (including, but not limited to, accounting policies and accounting treatments), movements in foreign exchange rates, inflation and other factors described under "Risk Factors" in Global Blue's Annual Report on Form 20-F/A for the fiscal year ended March 31, 2024 filed with the Securities and Exchange Commission (the "SEC"), and in other reports we file from time to time with the SEC, all of which are difficult to predict and are beyond Global Blue's control. Except as required by law, Global Blue is not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

ABOUT GLOBAL BLUE

Global Blue is the business partner for the shopping journey, providing technology and services to enhance the experience and drive performance.

With over 40 years of expertise, today we connect thousands of retailers, acquirers, and hotels with nearly 80 million consumers across more than 50 countries, in three industries: Tax Free Shopping, Payments and Post-Purchase solutions.

With c2,000 employees, Global Blue generated EUR28bn Sales-in-Store and EUR422M revenue in FY 2023/24. Global Blue is listed on the New York Stock Exchange.

For more information, please visit www.globalblue.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20241122117779/en/

 
    CONTACT:    FOR FURTHER INFORMATION 

Frances Gibbons, Head of Investor Relations

+44 (0) 7815 034 212

fgibbons@globalblue.com

(END) Dow Jones Newswires

November 22, 2024 06:09 ET (11:09 GMT)