Global Blue Delivers a Strong Q3 FY23/24 Financial Performance, With Continued Double-digit Growth, Healthy Profitability, and Active de-Leveraging
- Strong YoY growth in Adjusted EBITDA of 65.2% to €39.8m in Q3 FY23/24 and 102.3% to €114.7m in 9M FY23/24, with 9M Adjusted EBITDA margin of 36.2%
- Continued improvement in the Group’s Annualized Adjusted EBITDA(1) to €159m in Q3 FY23/24 vs. €142m in Q2 FY23/24
- Strengthened balance sheet, with a strong improvement in LTM net leverage ratio(2) to 3.6x
- Financial guidance reiterated — FY23/24 Adjusted EBITDA of €145-165m
SIGNY,
Global Blue’s CEO,
“We are pleased to report another strong performance for the Group, with continued progress across the business through the third quarter and first nine months of the year.
“We delivered a 26.2% YoY increase in Revenue and a 65.2% YoY increase in Adjusted EBITDA in Q3 FY23/24, supporting an annualized quarterly Adjusted EBITDA(1) of €159mand giving us increased confidence in our FY23/24 Adjusted EBITDA guidance of €145-165m.
“Towards the latter part of the quarter, as previously communicated, we took two strategic steps towards improving our capital structure; we welcomed Tencent as a shareholder following their
“We have meaningfully deleveraged the Group, with a net leverage ratio(2) at 3.6x at the end of the quarter vs. 6.5x at the end of
EXECUTIVE SUMMARY
Q3 and 9M FY23/24 financial results showed a strong increase in both growth and profitability.
The Group delivered a 26.2% YoY increase in Revenue to €109.4m and an 65.2% YoY increase in Adjusted EBITDA to €39.8m in Q3 FY23/24, resulting, for 9M FY23/24, in a 41.1% YoY increase in Revenue to €317.1m and a 102.3% YoY increase in Adjusted EBITDA to €114.7m, taking the Adjusted EBITDA margin to 36.2%. This drove a continued improvement of the Group’s annualized quarterly Adjusted EBITDA(1) to €159m in Q3 FY23/24, from €142m in Q2 FY23/24 and €134m in Q1 FY23/24.
Furthermore, as announced previously, the Group completed two significant capital structure transactions in the latter part of the period. First, Tencent agreed to invest
In
All this considered,
In conclusion, the Group reiterates the financial guidance and long-term targets issued on
FINANCIAL PERFORMANCE
Q3 FY23/24 Financial Performance
€M |
Q3 FY21/22 |
Q3 FY22/23 |
Q3 FY23/24 |
Q3 FY23/24 vs. Q3 FY22/23 (%) |
Revenue Tax Free Shopping Solutions Added Value Payment Solutions Retail Tech Solutions |
29.4 5.9 3.6 |
64.4 16.2 6.1 |
80.3 22.3 6.8 |
|
Group Revenue |
38.9 |
86.7 |
109.4 |
26.2% |
Adjusted Operating Expenses |
(35.6) |
(62.6) |
(69.6) |
|
Adjusted EBITDA Adjusted EBITDA Margin(%) |
3.3 8.4% |
24.1 27.8% |
39.8 36.3% |
65.2%
|
Adjusted Depreciation & Amortisation |
(10.1) |
(9.2) |
(9.7) |
|
Net Finance Costs |
(6.2) |
(3.7) |
(12.0) |
|
Adjusted Profit before Tax |
(13.0) |
11.1 |
18.1 |
|
Adjusted Income Tax Expense |
(0.4) |
(3.7) |
(7.0) |
|
Non-Controlling Interests |
(0.3) |
(0.8) |
(1.9) |
|
Adjusted Net Income Group Share |
(13.8) |
6.6 |
9.1 |
|
Revenue
The Group delivered Revenue of €109.4m in Q3 FY23/24, a 26.2% YoY increase, reflecting a strong performance across all business lines.
Tax Free Shopping Solutions delivered Revenue of €80.3m in Q3 FY23/24, a 24.8% YoY increase. Revenue in Continental Europe reached €68.1m, a 17.7% LfL YoY increase, while Revenue in
Added Value Payment Solutions delivered Revenue of €22.3m in Q3 FY23/24, a 37.4% YoY increase, reflecting a strong performance across both business segments. Revenue in
Retail Tech Solutions delivered Revenue of €6.8m in Q3 FY23/24, an 11.6% YoY increase, reflecting organic growth of 3.9% (€0.2m), with the remainder related to the consolidation of ShipUp, acquired on
Adjusted EBITDA
The Group delivered Adjusted EBITDA of €39.8m in Q3 FY23/24, a 65.2% YoY increase, reflecting the significant improvement in Revenue together with the ongoing focus on the cost base. This implied an improvement in margin of 8.5pts to 36.3% and a Revenue drop-through(6) to Adjusted EBITDA of 69.2%.
Furthermore, annualized Adjusted EBITDA(1) has shown a consistent improvement to €159m in Q3 FY23/24, from €35m in Q1 FY22/23, €84m in Q2 FY22/23, €98m in Q3 FY22/23, €115m in Q4 FY22/23, €134m in Q1 FY23/24 and €142m in Q2 FY23/24.
9M FY23/24 Financial Performance
€M |
9M FY21/22 |
9M FY22/23 |
9M FY23/24 |
9M FY23/24 vs. 9M FY22/23 (%) |
Revenue Tax Free Shopping Solutions Added Value Payment Solutions Retail Tech Solutions |
61.5 16.0 9.3 |
166.4 44.1 14.1 |
235.2 61.3 20.6 |
|
Group Revenue |
86.8 |
224.7 |
317.1 |
41.1% |
Adjusted Operating Expenses |
(94.6) |
(168.0) |
(202.4) |
|
Adjusted EBITDA Adjusted EBITDA Margin(%) |
(7.8) (9.0%) |
56.7 25.2% |
114.7 36.2% |
102.3% |
Adjusted Depreciation & Amortisation |
(30.3) |
(27.0) |
(27.6) |
|
Net Finance Costs |
(18.7) |
(27.6) |
(36.6) |
|
Adjusted Profit before Tax |
(56.9) |
2.1 |
50.5 |
|
Adjusted Income Tax Expense |
4.4 |
(7.5) |
(19.6) |
|
Non-Controlling Interests |
(0.7) |
(1.7) |
(5.6) |
|
Adjusted Net Income Group Share |
(53.2) |
(7.1) |
25.3 |
|
Revenue
The Group delivered Revenue of €317.1m in 9M FY23/24, a 41.1% YoY increase reflecting a strong performance across all business lines.
Tax Free Shopping Solutions delivered Revenue of €235.2m in 9M FY23/24, a 41.3% YoY increase. Revenue in Continental Europe reached €202.1m, a 32.7% LfL YoY increase; while Revenue in
Added Value Payment Solutions delivered Revenue of €61.3m in 9M FY23/24, a 38.9% YoY increase, reflecting a strong performance across both business segments. Revenue in
Retail Tech Solutions delivered Revenue of €20.6m in 9M FY23/24, a 45.7% YoY increase, reflecting strong organic growth of 22.3% (€3.7m), and the remainder from the consolidation of ShipUp, acquired on
Adjusted EBITDA
The Group delivered Adjusted EBITDA of €114.7m in 9M FY23/24, a 102.3% YoY increase reflecting the significant improvement in Revenue together with the ongoing focus on the cost base. This implied an improvement in margin of 11ppts to 36.2% and a Revenue drop-through(6) to Adjusted EBITDA of 62.8%.
Adjusted Profit before Tax
The Group delivered Adjusted Profit Before Tax of €50.5m in 9M FY23/24, a €48.4m YoY increase, mainly reflecting the significant increase in Adjusted EBITDA partially offset by an increase of €9.0m in net finance costs, related to higher interest costs in the period.
Balance Sheet and Net Debt
As at
LATEST TAX FREE SHOPPING TRENDS
% Recovery Issued Sales in Store* Tax Free Shopping |
Q1
|
Q2
|
Q3
|
|
|
Continental Europe LfL |
121% |
119% |
118% |
125% |
+7ppts |
(excluding |
|
|
|
|
|
APAC LfL |
111% |
134% |
150% |
161% |
+11ppts |
(same merchant) |
|
|
|
|
|
Group LfL |
118% |
123% |
127% |
135% |
+8ppts |
(excluding |
|
|
|
|
|
Group reported
(including |
103% |
102% |
106% |
110% |
+4ppts |
*Refers to the issued Sales in Store (spend) compared to Calendar Year 2019.
In
In
The recovery in Continental Europe reached 125% in
The recovery in
Impact of
With Mainland China representing approximately 36% of Tax Free Shopping Sales in Storein 2019, the return of Chinese shoppers is an important contributor to the ongoing recovery.
The willingness to travel of Chinese shoppers, based on Global Blue’s proprietary survey, remained strong, reaching 76% in
In conclusion,
FINANCIAL GUIDANCE AND LONG-TERM TARGETS
In
In summary,
1Annualized extrapolation includes Tax Free Shopping Solutions, Added Value Payment Solutions and Retail Tech Solutions performance in Q1, Q2, Q3 and Q4 FY22/23, and Q1, Q2 and Q3 FY23/24, applied to the year.
2Net Leverage refers to Net Debt divided by the last 12 months Adjusted EBITDA excluding Retail Tech Adjusted EBITDA losses.
3 Refers to the Issued Sales-In-Store (Spend), like-for-like (at constant merchant scope and exchange rates).
4Simulation based on illustrative assumptions and should not be relied upon as being indicative of future results. This is not a forecast. This is forward-looking information – see Disclaimer. Yearly extrapolation includes Tax Free Shopping Solutions/ Added Value Payment Solutions performance in Q3 FY23/24 applied to the year.
5100% Mainland China Revenue recovery would require Chinese LfL Issued Sales in Store to reach around 127%.
6Refers to the portion of Revenue growth that drops through to the Adjusted EBITDA line.
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
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
ABOUT
- Tax Free Shopping: Helping retailers at over 300,000 points of sale to efficiently manage 35 million Tax Free Shopping transactions a year, thanks to its fully integrated in-house technology platform. Meanwhile, its industry-leading digital Tax Free shopper solutions create a better, more seamless customer experience
- Payments services: Providing a full suite of foreign exchange and Payments technology solutions that allow acquirers, hotels, and retailers to offer value-added services and improve the customer experience during 31 million payment transactions a year at 130,000 points of interaction
- RetailTech: Offering new technology solutions to retailers, including digital receipts and eCommerce returns, which can be easily integrated with their core systems and allow them to optimise and digitalise their processes throughout the omni-channel customer journey, both in-store and online
In addition, our data and advisory services offer a strategic advisory to help retailers identify opportunities for growth, while our shopper experience and engagement solutions provide data-driven solutions to increase footfall, convert footfall to Revenue and enhance performance.
Pre-pandemic figures FY 19/20. Source:
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FOR FURTHER INFORMATION
+44 (0) 7815 034 212
fgibbons@globalblue.com
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