Global Blue Reports a Strong Operational Performance With Improved Financial Position and Stengthened Balance Sheet
- Strong YoY growth in Group Revenue of 36% to €422m, alongside a 91% increase in Adjusted EBITDA to €149m in line with short-term guidance
- Improvement in Adjusted EBITDA margin of 10ppts to 35.2% and a 64% drop-through(1)
-
Strengthened balance sheet, with meaningful net leverage ratio(2) improvement to 3.4x in
March 2024 (vs. 6.5x inMarch 2023 ) and extension of debt maturity to 2030
-
Continuation of the Tax Free Shopping recovery in April/
May 2024 with recovery in Continental Europe at 141% and 223% inAsia Pacific vs 128% and 166% respectively in Q4 FY23/24
- Solid progress against strategic initiatives with focus on increased digitalization, commercial gains, and product development
- Financial guidance reaffirmed – FY24/25 Adjusted EBITDA of >€200m
SIGNY,
Global Blue’s CEO,
“FY23/24 was a year of significant progress for
“We delivered our financial guidance, with €149m Adjusted EBITDA (91% YoY growth). This translated well into cashflow, with pre-tax unlevered free cash flow of €95m, representing a reversion to the high cash generation witnessed pre-COVID. Together, this allowed us to reduce the Group's net leverage ratio(2) to 3.4x (vs. 6.5x
“With strong progress in our strategic initiatives and continued benefits from the acceleration of the Tax Free Shopping recovery, particularly in
EXECUTIVE SUMMARY
FY23/24 financial results showed a significant improvement against operational and strategic objectives.
Strong operational performance
The Group delivered a 36% YoY increase in Revenue to €422m and a 91% YoY increase in Adjusted EBITDA to €149m, in line with the short-term guidance. The increase in Adjusted EBITDA implied an improvement in margin of 10.2ppts to 35.2% and a 64% drop-through(1).
Rapid deleveraging and solid Balance Sheet
The Group delivered a significant improvement in the net leverage ratio(2) to 3.4x at end
To further strengthen the balance sheet, in
Continuation of the improvement in the Tax Free Shopping recovery
In April/
The recovery in Continental Europe reached 141% in April/
In
Solid progress against strategic initiatives
During the period, the Group made significant strides in its focus on digitalization, commercial gains, and product development.
In Tax Free Shopping Solutions, the ongoing digitalization initiative resulted in a 4-point increase in the Success Ratio(4) to 56% in FY23/24, contributing an additional 8% growth in Tax Free Shopping Revenue. Additionally, the division increased its market share against its competitors, with a net retention rate(5) of 102.8% over the last five years.
In Payments,
Confirmation of guidance and long-term targets
Building on the successes of FY23/24 and with the acceleration of the Tax Free Shopping recovery, in particular in
FINANCIAL PERFORMANCE
Q4 FY23/24 Financial Performance
€M |
Q4 FY21/22 |
Q4 FY22/23 |
Q4 FY23/24 |
Q4 FY23/24 vs. Q4 FY22/23 (%) |
Revenue Tax Free Shopping Solutions Payments Post-Purchase Solutions |
28.1 7.3 3.8 |
62.4 17.7 6.7 |
76.6 21.7 6.9 |
|
Revenue |
39.2 |
86.8 |
105.2 |
21% |
Variable costs |
(7.9) |
(22.0) |
(26.9) |
|
Contribution |
31.3 |
64.8 |
78.3 |
21% |
Fixed costs |
(33.3) |
(43.5) |
(44.4) |
|
Adjusted EBITDA Adjusted EBITDA Margin(%) |
(2.1) |
21.3 24.5% |
33.9 32.2% |
60%
|
Adjusted Depreciation & Amortisation |
(9.9) |
(9.7) |
(11.8) |
|
Net Finance Costs |
(5.9) |
(9.0) |
(13.8) |
|
Adjusted Profit before Tax |
(17.9) |
2.5 |
8.4 |
|
Adjusted Income Tax Expense |
1.3 |
(3.1) |
(5.5) |
|
Non-Controlling Interests |
(0.1) |
(0.4) |
(1.3) |
|
Adjusted Net Income Group Share |
(16.4) |
(1.0) |
1.6 |
|
Revenue
The Group delivered Revenue of €105.2m in Q4 FY23/24, a 21% YoY increase, reflecting a strong performance across all business lines.
Tax Free Shopping Solutions delivered Revenue of €76.6m in Q4 FY23/24, a 23% YoY increase. Revenue in Continental Europe reached €62.7m, a 16% LfL YoY increase, while Revenue in
Payments delivered Revenue of €21.7m in Q4 FY23/24, a 23% YoY increase, reflecting a strong performance across both business segments. Revenue in
Post-Purchase Solutions delivered Revenue of €6.9m in Q4 FY23/24, a 3% YoY increase. Whilst Revenue growth was moderate after management’s decision to move away from certain low-contribution ZigZag carriage contracts, the LfL Contribution growth of the segment (after carrier costs) was strong at 31%.
Adjusted EBITDA
The Group delivered Adjusted EBITDA of €33.9m in Q4 FY23/24, a 60% YoY increase, reflecting the significant improvement in Revenue together with the ongoing focus on the cost base. This implied an improvement in margin of 7.7ppts to 32% and a 69% drop-through(1). On that basis, Quarterly Annualized Adjusted EBITDA(6) has shown a consistent improvement to €164m in Q4 FY23/24.
FY23/24 Financial Performance
€M |
FY21/22 |
FY22/23 |
FY23/24 |
FY23/24 vs. FY22/23 (%) |
Revenue Tax Free Shopping Solutions Payments Post-Purchase Solutions |
89.6 23.3 13.1 |
228.8 61.8 20.9 |
311.7 83.0 27.5 |
|
Group Revenue |
125.9 |
311.5 |
422.3 |
36% |
Variable costs |
(26.7) |
(78.8) |
(100.4) |
|
Contribution |
99.2 |
232.7 |
321.9 |
38% |
Fixed costs |
(109.2) |
(154.8) |
(173.3) |
|
Adjusted EBITDA Adjusted EBITDA Margin(%) |
(9.9) |
78.0 25.0% |
148.7 35.2% |
91% |
Adjusted Depreciation & Amortisation |
(40.2) |
(36.7) |
(39.4) |
|
Net Finance Costs |
(24.6) |
(36.6) |
(50.3) |
|
Adjusted Profit before Tax |
(74.7) |
4.7 |
59.0 |
|
Adjusted Income Tax Expense |
5.7 |
(10.6) |
(25.1) |
|
Non-Controlling Interests |
(0.6) |
(2.1) |
(7.0) |
|
Adjusted Net Income Group Share |
(69.6) |
(8.1) |
26.9 |
|
Revenue
The Group delivered Revenue of €422.3m in FY23/24, a 36% YoY increase reflecting a strong performance across all business lines.
Tax Free Shopping Solutions delivered Revenue of €311.7m in FY23/24, a 36% YoY increase. Revenue in Continental Europe reached €264.8m, a 28% LfL YoY increase; while Revenue in
Payments delivered Revenue of €83.0m in FY23/24, a 34% YoY increase, reflecting a strong performance across both business segments. Revenue in
Post-Purchase Solutions delivered Revenue of €27.5m in FY23/24, a 32% YoY increase, reflecting strong organic growth of 18% (€3.7m), and the remainder from the consolidation of ShipUp, acquired on
Adjusted EBITDA
The Group delivered Adjusted EBITDA of €148.7m in FY23/24, a 91% YoY increase reflecting the significant improvement in Contribution (revenue less variable costs) together with the ongoing focus on the cost base, with fixed costs below 2019 levels on a LfL basis. Furthermore, considering the €25.4m impact of the abolishment of the
The increase in Adjusted EBITDA implied an improvement in margin of 10.2ppts to 35.2% and a 64% drop-through(1).
Adjusted Profit before Tax
The Group delivered Adjusted Profit Before Tax of €59.0m in FY23/24, a €54.3m YoY increase, mainly reflecting the significant increase in Adjusted EBITDA partially offset by an increase of €13.8m in net finance costs, related to higher interest costs in the period.
Cash Flow, Balance Sheet, and Net Debt
The Group delivered an increase of €100.3m in pre-tax unlevered free cash flow to €95.2m, resulting in a positive cash flow for the first time since FY19/20, and in line with the Group’s historical performance. As at
EVENTS AFTER THE REPORTING PERIOD
Repricing of Term Loan and RCF
In
LATEST TAX FREE SHOPPING TRENDS
Sales-in-Store(3) Volumes well ahead of 2019 levels
In April/
In Continental Europe, the recovery reached 141%, up from 128% in Q4 FY23/24. The recovery was driven by US, GCC and regional European shoppers, with respective recoveries of 319%, 298%, and 283%. Mainland
In
Year-on-Year Performance with high volume growth
Year-on-year Sales-in-Store(3) is increasing at high double digit growth in Continental Europe and triple digit growth in
In April/
In
FY23/24 ACHIEVEMENTS
During the period, the Group made significant strides in its focus on digitalization, commercial gains, and product development.
In Tax Free Shopping Solutions, the ongoing digitalization efforts across the issuing, validation, and refunding processes resulted in a 4ppts increase in the Success Ratio(4) to 56% in FY23/24. The division's two main differentiators, Payment Integration and Mobile Customer Care, have enabled the acquisition of many key clients during the year, reinforcing its leading market position with a net retention rate(5) of 102.8% in the last 5 years. This focus on digitalization and commercial dynamics has allowed
The Payments business also maintained a strong retention rate, with a net retention rate(5) of 104.8% in the last 4 years. The payment gateway initiative, launched in FY22/23, has continued to ramp up, securing 5 Acquirers, and rolling out more than 350 hotels in the period, generating c€2m in Adjusted EBITDA.
FINANCIAL GUIDANCE AND LONG-TERM TARGETS
In
______________________________________________
1Refers to the portion of Revenue growth that drops through to the Adjusted EBITDA line.
2Net Leverage refers to Net Debt divided by the last 12 months Adjusted EBITDA excluding Post-Purchase Solutions Adjusted EBITDA losses.
3Refers to the Issued Sales-In-Store (Spend), like-for-like (at constant merchant scope and exchange rates).
4Refers to the percentage of eligible Tax Free Shopping transactions that are issued and refunded, calculated on the basis of the Issue Ratio: the percentage of eligible transactions that are issued a tax free form, and the Refund Ratio: the percentage of transactions for which a tax free form has been issued and successfully refunded.
5Net Retention Rate for a given year is a percentage calculated as: 1 + the Sales-in-Store gained from new accounts and store openings in the given year, net of lost accounts and store closures, divided by the total Sales- in-Store for the given year. Net Retention Rate does not adjust for luxury inflation through the period.
6Annualized extrapolation includes Tax Free Shopping, Payments, and Post-Purchase Solutions performance in Q1, Q2, Q3 and Q4 FY22/23, and Q1, Q2, Q3 and Q4 FY23/24, applied to the year.
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
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,
For more information, please visit www.globalblue.com
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FOR FURTHER INFORMATION
+44 (0) 7815 034 212
fgibbons@globalblue.com
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