Birkenstock Reports Record Second Quarter Revenue, up 23% Y/Y, Driven by Strong Consumer Demand Across All Segments, Channels and Categories; Company Raises Full-Year Revenue Growth Guidance to 20%
Birkenstock reported a record second quarter for fiscal 2024, with a revenue increase of 23% year-over-year, driven by strong consumer demand across all segments. The company raised its full-year revenue growth guidance to 20%. Financial highlights include revenue of EUR 481 million, a net profit of EUR 72 million, and an adjusted EBITDA of EUR 162 million. Despite strong revenue growth, gross profit margin fell to 56.3% due to production expansion costs and wage adjustments. The company continues to invest in production capacity and opened 11 new stores globally. Cash flow from operations dropped to EUR 50 million, attributed to higher trade receivables. Birkenstock also announced a refinancing plan, which includes early loan repayment.
- Revenue increased by 23% year-over-year.
- Net profit of EUR 72 million, up 45% year-over-year.
- Adjusted EBITDA of EUR 162 million, up 7%.
- Revenue growth driven by double-digit increases across all segments, including a 42% increase in APMA.
- Increased full-year revenue growth guidance to 20%.
- Opened 11 new stores globally in the second quarter.
- Strong balance sheet with cash and cash equivalents of EUR 176 million.
- Gross profit margin decreased to 56.3%, down 320 basis points.
- Adjusted EBITDA margin fell to 33.7%, down 470 basis points.
- Cash flows from operating activities decreased to EUR 50 million, down from EUR 57 million.
- Higher depreciation and amortization from recent capital investments.
- Increased production and administrative costs impacted margins.
Insights
Birkenstock's financial performance in the second quarter of fiscal 2024 showcases a robust, well-executed growth strategy. The revenue increase of
Key financial metrics such as a net profit rise of
Birkenstock's strategic investment, including
Birkenstock's performance across different geographies and consumer segments paints a picture of pervasive brand strength. The
The significant uptick in DTC revenue by
Birkenstock’s approach to identifying and capitalizing on 'white space' markets and expanding usage occasions is particularly noteworthy. This strategy not only diversifies revenue streams but also reduces dependency on any single market segment. The company's confidence in its long-term profitability objectives and strategic store expansions further reinforce its growth trajectory.
LONDON, UK / ACCESSWIRE / May 30, 2024 / Birkenstock Holding plc ("BIRKENSTOCK", the "Company" or "we"), (NYSE:BIRK) today announces financial results for the second quarter of fiscal 2024, ended March 31, 2024. The Company reports record second quarter 2024 revenue and year-over-year growth of
As a result of the strength in the first half of fiscal 2024 and continued demand growth, BIRKENSTOCK is increasing its fiscal 2024 revenue growth guidance to
Financial highlights for the second fiscal quarter 2024 ended March 31, 2024, (compared to the fiscal quarter ended March 31, 2023, unless otherwise stated):
- Revenue of EUR 481 million, an increase of
22% on a reported basis and23% on a constant currency basis - Strong double-digit revenue growth across all segments including revenue growth of
21% in the Americas,21% in Europe and42% in APMA on a constant currency basis - DTC revenue growth of
32% and B2B revenue growth of20% on a constant currency basis - Gross profit margin of
56.3% , down 320 basis points from59.5% primarily due to the temporary impact of production capacity expansion and planned, inflation-related wage adjustments and one-time bonuses for employees at the Company's production facilities - Net profit of EUR 72 million, up
45% year-over year from EUR 49 million; EPS of EUR 0.38, up41% from EUR 0.27 - Adjusted Net profit of EUR 77 million, up
3% , and Adjusted EPS of EUR 0.41, flat year-over-year, due to higher depreciation and amortization from recent capital investments and IPO-related share increase - Adjusted EBITDA of EUR 162 million, up
7% . Adjusted EBITDA margin of33.7% was down 470 basis points from38.4% a year ago with the decrease consisting of 320 basis points from the decline in Gross profit margin and the remainder split between incremental public company and administrative costs and investments in retail expansion - Cash flows from operating activities of EUR 50 million, compared to EUR 57 million a year ago, reflecting an increase in trade receivables due to the growth in wholesale shipments (expected to be monetized in the third quarter)
Oliver Reichert, CEO of BIRKENSTOCK Group and Member of the Board of Directors of the Company: "Our results for the second quarter of 2024 once again demonstrate the strength of our business model and growing demand for our products. Given our engineered distribution model, demand continues to outpace supply in all segments, channels and categories. We see strong demand growth in the largely untapped white space areas we have identified across geographies, channels, categories and usage occasions. At the same time, we continue to see very strong growth in our established markets and products. Revenue from our five core silhouettes (most of which have been in market for close to 50 years) grew above
Fiscal second quarter 2024 results demonstrate continued strong consumer demand
BIRKENSTOCK reports record second quarter revenue of EUR 481 million, up
During the fiscal second quarter, BIRKENSTOCK saw strong growth across all segments and channels and continued to benefit from significant geographic expansion, increased usage occasions and distribution white space. The Company opened 6 new owned stores, bringing the total number of owned retail stores to 57.
DTC revenue grew
Broad-based double-digit revenue growth across all segments, channels and categories
In the Americas, strong consumer momentum and demand for the brand continued to drive record sales in the fiscal second quarter of 2024. In a relatively flat US consumer market, BIRKENSTOCK delivered constant currency revenue growth of
In Europe, BIRKENSTOCK continues to see market-leading growth and share gains across the region. Europe grew
In the APMA region, BIRKENSTOCK achieved revenue growth of
Investing in production capacity to meet consumer demand and expand footprint
BIRKENSTOCK continues to invest in increased production capacity to better meet the increasing consumer demand for BIRKENSTOCK products and expand in white-space markets. The Company invested EUR 17 million in capital expenditures in the quarter, bringing the total year-to-date to EUR 35 million. As previously communicated, the ongoing capacity expansion, including the new Pasewalk production facility provides the Company with the bandwidth and flexibility to expand its footprint into underpenetrated segments and categories. The Company estimates the temporary impact of this investment in reduced gross margin and Adjusted EBITDA margin by 220 basis points in the second quarter.
BIRKENSTOCK continues to have a strong balance sheet with cash and cash equivalents of EUR 176 million and net leverage of 2.6x as of March 31, 2024. On May 28, 2024, the Company announced its subsidiaries' refinancing of the existing term loans and the replacement of the undrawn ABL facility with a new revolving credit facility, including the voluntary early repayment of approximately USD 50 million. The closing of the transaction and the associated actual repayment of the existing financing is expected to take place within the next 3 months. The Company remains committed to further deleveraging its balance sheet with free cash flow.
Financial outlook
Given the strong first half of 2024 and continued demand growth, the Company is raising its fiscal 2024 guidance. The Company now expects fiscal 2024 reported revenue of EUR 1.77-1.78 billion, reflecting overall revenue growth of approximately
Conference call information
BIRKENSTOCK will host a call to discuss fiscal second quarter 2024 results on May 30, 2024, at 8:00 a.m. Eastern Time (1:00 p.m. Greenwich Mean Time). A webcast of the call will be accessible on the Company's Investor Relations website at https://www.birkenstock-holding.com. To join the phone line, please dial 1-888-506-0062 (US) or 1-973-528-0011 (International). The access code for the call is 291165. To access the phone line replay after the conclusion of the call, please dial 1-877-481-4010 (US) or 1-919-882-2331 (International). The access code for the replay is 50256. An archive of the webcast will also be available on BIRKENSTOCK's Investor Relations website.
ABOUT BIRKENSTOCK
Birkenstock Holding plc is the ultimate parent Company of Birkenstock Group B.V. & Co. KG and its subsidiaries (the "Birkenstock Group"). BIRKENSTOCK is a global brand which embraces all consumers regardless of geography, gender, age and income and which is committed to a clear purpose - encouraging proper foot health. Deeply rooted in studies of the biomechanics of the human foot and backed by a family tradition of shoemaking that can be traced back to 1774, BIRKENSTOCK is a timeless «super brand» with a brand universe that transcends product categories and ranges from entry-level to luxury price points while addressing the growing need for a conscious and active lifestyle. Function, quality and tradition are the core values of the Zeitgeist brand which features products in the footwear, sleep systems and natural cosmetics categories. BIRKENSTOCK is the inventor of the footbed and has shaped the principle of walking as intended by nature ("Naturgewolltes Gehen").
INVESTOR & MEDIA CONTACT
Birkenstock Holding plc
ir@birkenstock-holding.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute "forward-looking" statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to our current expectations and views of future events, including our current expectations and views with respect to, among other things, our operations and financial performance. In particular, such forward-looking statements include statements relating to our fiscal year 2024 outlook. Forward-looking statements include all statements that do not relate to matters of historical fact. In some cases, you can identify these forward-looking statements by the use of words such as "anticipate," "believe," "could," "expect," "should," "plan," "intend," "estimate" and "potential," "aim," "anticipate," "assume," "continue," "could," "expect," "forecast," "guidance," "intend," "may," "ongoing," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would" or similar words or phrases, or the negatives of those words or phrases. The forward-looking statements contained in this press release are based on the Company's management's current expectations and are not guarantees of future performance. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward- looking statements. Our actual results could differ materially from those expected in our forward-looking statements for many reasons, including: our dependence on the image and reputation of the BIRKENSTOCK brand; the intense competition we face from both established companies and newer entrants into the market; our ability to execute our DTC growth strategy and risks associated with our e-commerce platforms; our ability to adapt to changes in consumer preferences and attract new customers; harm to our brand and market share due to counterfeit products; our ability to successfully operate and expand retail stores; losses and liabilities arising from leased and owned real estate; risks relating to our non-footwear products; failure to realize expected returns from our investments in our businesses and operations; our ability to adequately manage our acquisitions, investments or other strategic initiatives; our ability to manage our operations at our current size or manage future growth effectively; our dependence on third parties for our sales and distribution channels; risks related to the conversion of wholesale distribution markets to owned and operated markets and risks related to productivity or efficiency initiatives; operational challenges relating to the distribution of our products; deterioration or termination of relationships with major wholesale partners; global or regional health events such as the COVID-19 pandemic; seasonality, weather conditions and climate change; adverse events influencing the sustainability of our supply chain or our relationships with major suppliers or increases in raw materials or labor costs; our ability to effectively manage inventory; unforeseen business interruptions and other operational problems at our production facilities; disruptions to our shipping and delivery arrangements; failure to attract and retain key employees and deterioration of relationships with employees, employee representative bodies and stakeholders; risks relating to our intellectual property rights; risks relating to regulations governing the use and processing of personal data; disruption and security breaches affecting information technology systems; natural disasters, public health crises, political crises, civil unrest and other catastrophic events beyond our control; economic conditions impacting consumer spending, such as inflation; currency exchange rate fluctuations; risks related to litigation, compliance and regulatory matters; risks and costs related to corporate responsibility and ESG matters; inadequate insurance coverage, or increased insurance costs; tax- related risks; risks related to our indebtedness; risks related to our status as a foreign private issuer and a "controlled company"; and the factors described in the sections titled "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 20-F filed with the Securities and Exchange Commission on January 18, 2024 as updated by our reports on Form 6-K that update, supplement or supersede such information. Any forward-looking statement made by us in this press release speaks only as of the date of this press release and is expressly qualified in its entirety by the cautionary statements included in this press release. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by law.
NON-IFRS FINANCIAL INFORMATION
This press release includes "non-IFRS measures" that are financial measures that either exclude or include amounts that are not excluded or included in the most directly comparable measures calculated and presented in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS"). Specifically, we make use of the non-IFRS financial measures Adjusted EBITDA, Adjusted EBITDA Margin, Constant Currency Revenue, Adjusted EPS, Adjusted Net profit, Net leverage and Net debt, which are not recognized measures under IFRS and should not be considered as alternatives to net income (loss), as a measure of financial performance or any other performance measure derived in accordance with IFRS.
We discuss non-IFRS financial measures in this press release because they are a basis upon which our management assesses our performance, and we believe they reflect underlying trends and are indicators of our business. Additionally, we believe that such non-IFRS financial measures and similar measures are widely used by securities analysts, investors and other interested parties as a means of evaluating a Company's performance.
Our non-IFRS financial measures may not be comparable to similarly titled measures used by other companies. Our non-IFRS financial measures have limitations as analytical tools, as they do not reflect all the amounts associated with our results of operations as determined in accordance with IFRS. Our non-IFRS financial measures should not be considered in isolation, nor should they be regarded as a substitute for, or superior to, measures calculated and presented in accordance with IFRS. A reconciliation is provided in the tables accompanying this press release for each non-IFRS financial measure in this press release to the most directly comparable financial measure stated in accordance with IFRS. A reconciliation is not provided for any forward-looking non-IFRS financial measures as such a reconciliation is not available without unreasonable efforts.
Birkenstock Holding plc
Consolidated Statements of Profit
(Unaudited, In thousands of Euros, except share and per share information)
| Six months ended March 31, | Three months ended March 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue | 784,168 | 644,173 | 481,244 | 395,683 | ||||||||||||
Cost of sales | (328,140 | ) | (255,403 | ) | (210,084 | ) | (160,233 | ) | ||||||||
Gross profit | 456,028 | 388,770 | 271,160 | 235,450 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling and distribution expenses | (216,639 | ) | (172,867 | ) | (113,155 | ) | (86,748 | ) | ||||||||
General administration expenses | (54,377 | ) | (54,524 | ) | (19,986 | ) | (32,391 | ) | ||||||||
Foreign exchange gain (loss) | (17,138 | ) | (47,754 | ) | (5,483 | ) | (16,924 | ) | ||||||||
Other income (expense), net | 206 | 3,945 | (25 | ) | 3,945 | |||||||||||
Profit (loss) from operations | 168,080 | 117,570 | 132,511 | 103,332 | ||||||||||||
Finance cost, net | (63,439 | ) | (54,664 | ) | (27,389 | ) | (29,566 | ) | ||||||||
Profit (loss) before tax | 104,641 | 62,906 | 105,122 | 73,766 | ||||||||||||
Income tax expense | (40,144 | ) | (22,699 | ) | (33,470 | ) | (24,373 | ) | ||||||||
Net profit (loss) | 64,497 | 40,207 | 71,652 | 49,393 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | 0.34 | 0.22 | 0.38 | 0.27 | ||||||||||||
Diluted | 0.34 | 0.22 | 0.38 | 0.27 | ||||||||||||
Shares | 187,370,399 | 182,721,369 | 187,825,592 | 182,721,369 | ||||||||||||
Birkenstock Holding plc
Consolidated Statements of Financial Position
(Unaudited, In thousands of Euros)
| March 31, | September 30, | |||||||
| 2024 | 2023 | |||||||
Assets | ||||||||
Non-current assets | ||||||||
Goodwill | 95 | 1,593,917 | ||||||
Intangible assets (other than goodwill) | 1,676,609 | 1,705,736 | ||||||
Property, plant and equipment | 303,871 | 286,053 | ||||||
Right-of-use assets | 164,121 | 122,984 | ||||||
Other assets | 50,621 | 38,234 | ||||||
Total non-current assets | 3,772,117 | 3,746,924 | ||||||
Current assets | ||||||||
Inventories | 650,963 | 595,092 | ||||||
Right to return assets | 1,395 | 1,132 | ||||||
Trade and other receivables | 200,206 | 91,764 | ||||||
Current tax assets | 9,734 | 10,361 | ||||||
Other current assets | 37,650 | 37,789 | ||||||
Cash and cash equivalents | 175,728 | 344,408 | ||||||
Total current assets | 1,075,676 | 1,080,546 | ||||||
Total assets | 4,847,793 | 4,827,470 | ||||||
Shareholders' equity and liabilities | ||||||||
Shareholders' equity | 2,554,102 | 2,400,589 | ||||||
Non-current liabilities | ||||||||
Loans and borrowings | 1,298,763 | 1,815,695 | ||||||
Tax receivable agreement liability | 345,302 | - | ||||||
Lease liabilities | 139,203 | 103,049 | ||||||
Provisions for employee benefits | 2,923 | 2,716 | ||||||
Other provisions | 2,088 | 2,074 | ||||||
Deferred tax liabilities | 112,252 | 109,794 | ||||||
Deferred income | 13,477 | 10,634 | ||||||
Other liabilities | 4,927 | 4,338 | ||||||
Total non-current liabilities | 1,918,935 | 2,048,300 | ||||||
Current liabilities | ||||||||
Loans and borrowings | 29,105 | 37,343 | ||||||
Lease liabilities | 34,136 | 27,010 | ||||||
Trade and other payables | 121,323 | 123,012 | ||||||
Accrued liabilities | 30,489 | 38,645 | ||||||
Other financial liabilities | 4,542 | 7,085 | ||||||
Other provisions | 21,320 | 36,495 | ||||||
Contract liabilities | 9,878 | 7,018 | ||||||
Tax liabilities | 108,627 | 83,332 | ||||||
Deferred income | - | 2,680 | ||||||
Other current liabilities | 15,336 | 15,961 | ||||||
Total current liabilities | 374,756 | 378,581 | ||||||
Total liabilities | 2,293,691 | 2,426,881 | ||||||
Total shareholders' equity and liabilities | 4,847,793 | 4,827,470 | ||||||
Birkenstock Holding plc
Consolidated Statements of Cash Flows
(Unaudited, In thousands of Euros)
| Six months ended March 31, | ||||||||
Cash flows from operating activities | 2024 | 2023 | ||||||
Net income (loss) | 64,497 | 40,207 | ||||||
Adjustments to reconcile net profit (loss) to net cash flows from operating activities | ||||||||
Depreciation and amortization | 47,384 | 40,574 | ||||||
Change in expected credit loss | (128 | ) | 1,056 | |||||
Finance cost, net | 63,438 | 54,664 | ||||||
Net exchange differences | 17,138 | 48,255 | ||||||
Non-cash operating items | 2,394 | 3,380 | ||||||
Income tax expense | 40,144 | 22,699 | ||||||
Income tax paid | (10,153 | ) | 922 | |||||
MIP personal income tax paid | (11,426 | ) | - | |||||
Changes in Working capital: | ||||||||
- Inventories | (65,902 | ) | (89,079 | ) | ||||
- Right to return assets | (278 | ) | 1,162 | |||||
- Trade and other receivables | (109,140 | ) | (111,436 | ) | ||||
- Trade and other payables | 21 | (3,649 | ) | |||||
- Accrued liabilities | (7,809 | ) | 8,137 | |||||
- Other current financial liabilities | 863 | (8,566 | ) | |||||
- Other current provision | (14,982 | ) | (6,934 | ) | ||||
- Contract liabilities | 2,874 | 2,096 | ||||||
- Prepayments | (8,231 | ) | - | |||||
- Other | (6,094 | ) | 593 | |||||
Net cash flows provided by operating activities | 4,611 | 4,080 | ||||||
Cash flows from investing activities | ||||||||
Interest received | 2,164 | - | ||||||
Purchases of property, plant and equipment | (34,931 | ) | (50,297 | ) | ||||
Proceeds from sale of property, plant and equipment | - | 556 | ||||||
Purchases of intangible assets | (2,303 | ) | (728 | ) | ||||
Receipt of government grant | 8,739 | - | ||||||
Net cash flows (used in) investing activities | (26,331 | ) | (50,469 | ) | ||||
Cash flows from financing activities | ||||||||
IPO Proceeds, net of transaction costs | 449,214 | - | ||||||
Repayment of loans and borrowings | (525,278 | ) | (3,844 | ) | ||||
Interest paid | (49,453 | ) | (58,632 | ) | ||||
Payments of lease liabilities | (16,656 | ) | (13,664 | ) | ||||
Interest portion of lease liabilities | (3,928 | ) | (2,364 | ) | ||||
Net cash flows (used in) financing activities | (146,101 | ) | (78,504 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (167,821 | ) | (124,893 | ) | ||||
Cash and cash equivalents at beginning of period | 344,408 | 307,078 | ||||||
Net foreign exchange difference | (859 | ) | (10,522 | ) | ||||
Cash and cash equivalents at end of period | 175,728 | 171,663 | ||||||
Birkenstock Holding plc
Reconciliation of Revenue
(Unaudited, In thousands of Euros)
Six months ended March 31, | Constant Currency Growth [%] | |||||||
2024 | 2023 | Growth [%] | ||||||
| B2B | 502,934 | 421,745 | ||||||
| DTC | 278,428 | 219,697 | ||||||
| Corporate / Other | 2,806 | 2,731 | ||||||
| Total Revenue | 784,168 | 644,173 | ||||||
| Americas | 435,499 | 373,351 | ||||||
| Europe | 255,676 | 204,770 | ||||||
| APMA | 90,187 | 63,321 | ||||||
| Corporate / Other | 2,806 | 2,731 | ||||||
| Total Revenue | 784,168 | 644,173 | ||||||
Three months ended March 31, | Constant Currency Growth [%] | |||||||
2024 | 2023 | Growth [%] | ||||||
| B2B | 362,524 | 303,951 | ||||||
| DTC | 117,773 | 90,262 | ||||||
| Corporate / Other | 947 | 1,470 | (36)% | (36)% | ||||
| Total Revenue | 481,244 | 395,683 | ||||||
| Americas | 254,046 | 213,551 | ||||||
| Europe | 175,542 | 144,253 | ||||||
| APMA | 50,709 | 36,409 | ||||||
| Corporate / Other | 947 | 1,470 | (36)% | (36)% | ||||
| Total Revenue | 481,244 | 395,683 | ||||||
| Six months ended March 31, | Three months ended March 31, | |||||||
| 2024 | 2024 | |||||||
Total Revenue | 784,168 | 481,244 | ||||||
USD impact | 12,104 | 3,364 | ||||||
CAD impact | 1,318 | 692 | ||||||
Other currencies impact | 1,562 | 276 | ||||||
Total Revenue @ constant currencies | 799,152 | 485,575 | ||||||
Revenue growth @ constant currencies | 24 | % | 23 | % | ||||
Birkenstock Holding plc
Reconciliation of Net profit to Adjusted Net profit
(Unaudited, In thousands of Euros, except share and per share information)
| Six months ended March 31, | Three months ended March 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
Net profit (loss) | 64,497 | 40,207 | 71,652 | 49,393 | ||||||||||||
Add (Less) Adjustments: | ||||||||||||||||
Share-based compensation expenses(1) | 3,591 | 3,268 | - | 3,268 | ||||||||||||
Relocation expenses(2) | - | 3,771 | - | 2,203 | ||||||||||||
Restructuring expenses(3) | - | 1,953 | - | 1,953 | ||||||||||||
IPO-related costs(4) | 7,460 | 9,492 | 166 | 4,149 | ||||||||||||
Realized and unrealized FX gains / losses(5) | 17,138 | 47,754 | 5,483 | 16,924 | ||||||||||||
Release of capitalized transaction costs(6) | 10,548 | - | - | - | ||||||||||||
Tax adjustment(7) | (9,501 | ) | (4,847 | ) | (282 | ) | (2,802 | ) | ||||||||
Adjusted Net profit(loss) | 93,733 | 101,597 | 77,020 | 75,088 | ||||||||||||
Adj. Earnings per share | ||||||||||||||||
Basic | 0.50 | 0.56 | 0.41 | 0.41 | ||||||||||||
Diluted | 0.50 | 0.56 | 0.41 | 0.41 | ||||||||||||
Shares | 187,370,399 | 182,721,369 | 187,825,592 | 182,721,369 | ||||||||||||
(1) Represents share-based compensation expenses relating to the management investment plan.
(2) Represents relocation expenses which are considered non-recurring expenses and not representative of the operating performance of the business.
(3) Represents restructuring expenses which are considered non-recurring expenses and not representative of the operating performance of the business.
(4) Represents IPO-related costs, which include consulting and legal fees.
(5) Represents the primarily non-cash impact of foreign exchange rates within profit (loss). We do not consider these gains and losses representative of operating performance of the business because they are primarily driven by fluctuations in the USD to Euro foreign exchange rate on intercompany receivables for inventory and intercompany loans.
(6) Represents the effect of reversing capitalized transaction costs of the USD Term Loan B due to its early repayment of USD 450 million and the subsequent impact on finance costs.
(7) Represents income tax effects for the adjustments as outlined above, except for unrealized foreign exchange gain (loss) and share-based compensation expenses since these have not been treated as tax deductible in the initial tax calculation.
Birkenstock Holding plc
Reconciliation of Net profit to EBITDA and Adjusted EBITDA
(Unaudited, In thousands of Euros, except share and per share information)
| Six months ended March 31, | Three months ended March 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
Net profit (loss) | 64,497 | 40,207 | 71,652 | 49,393 | ||||||||||||
Add: | ||||||||||||||||
Income tax expense | 40,144 | 22,699 | 33,470 | 24,373 | ||||||||||||
Finance cost, net | 63,439 | 54,664 | 27,389 | 29,566 | ||||||||||||
Depreciation and amortization | 47,384 | 40,574 | 24,137 | 20,157 | ||||||||||||
EBITDA | 215,464 | 158,143 | 156,648 | 123,489 | ||||||||||||
Add Adjustments: | ||||||||||||||||
Share-based compensation expenses(1) | 3,591 | 3,268 | - | 3,268 | ||||||||||||
Relocation expenses(2) | - | 3,771 | - | 2,203 | ||||||||||||
Restructuring expenses(3) | - | 1,953 | - | 1,953 | ||||||||||||
IPO-related costs(4) | 7,460 | 9,492 | 166 | 4,149 | ||||||||||||
Realized and unrealized FX gains / losses(5) | 17,138 | 47,754 | 5,483 | 16,924 | ||||||||||||
Adjusted EBITDA | 243,653 | 224,381 | 162,297 | 151,986 | ||||||||||||
(1) Represents share-based compensation expenses relating to the management investment plan.
(2) Represents relocation expenses which are considered non-recurring expenses and not representative of the operating performance of the business.
(3) Represents restructuring expenses which are considered non-recurring expenses and not representative of the operating performance of the business.
(4) Represents IPO-related costs, which include consulting and legal fees.
(5) Represents the primarily non-cash impact of foreign exchange rates within profit (loss). We do not consider these gains and losses representative of operating performance of the business because they are primarily driven by fluctuations in the USD to Euro foreign exchange rate on intercompany receivables for inventory and intercompany loans.
Birkenstock Holding plc
Reconciliation of Net debt and Net leverage
(Unaudited, In thousands of Euros)
| March 31, | September 30, | |||||||
| 2024 | 2023 | |||||||
Loans and borrowings (Non-current) | 1,298,763 | 1,815,695 | ||||||
+ USD Term Loan (Current) | 3,038 | 7,347 | ||||||
+ Lease liabilities (Non-current) | 139,203 | 103,049 | ||||||
+ Lease liabilities (Current) | 34,136 | 27,010 | ||||||
- Cash and cash equivalents | (175,728 | ) | (344,408 | ) | ||||
Net debt | 1,299,412 | 1,608,693 | ||||||
Adjusted EBITDA (LTM) | 501,978 | 482,706 | ||||||
Net leverage | 2.6 | x | 3.3 | x | ||||
Birkenstock Holding plc
2023 Quarterly Reconciliation(6)
(Unaudited, In thousands of Euros)
| 2023 | ||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | FY | ||||||||||||||||
Revenue | 248,490 | 395,683 | 473,195 | 374,543 | 1,491,911 | |||||||||||||||
Cost of sales | (95,170 | ) | (160,233 | ) | (181,129 | ) | (129,585 | ) | (566,117 | ) | ||||||||||
Gross profit | 153,320 | 235,450 | 292,066 | 244,958 | 925,793 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling and distribution expenses | (86,119 | ) | (86,748 | ) | (136,654 | ) | (146,330 | ) | (455,851 | ) | ||||||||||
General administration expenses | (22,133 | ) | (32,391 | ) | (32,313 | ) | (84,552 | ) | (171,388 | ) | ||||||||||
Foreign exchange gain (loss) | (30,830 | ) | (16,924 | ) | (3,596 | ) | 15,294 | (36,056 | ) | |||||||||||
Other income (expense), net | - | 3,945 | (1,491 | ) | (4,263 | ) | (1,810 | ) | ||||||||||||
Profit from operations | 14,238 | 103,332 | 118,011 | 25,107 | 260,688 | |||||||||||||||
Finance cost, net | (25,098 | ) | (29,566 | ) | (26,694 | ) | (25,678 | ) | (107,036 | ) | ||||||||||
Profit (loss) before tax | (10,861 | ) | 73,766 | 91,317 | (571 | ) | 153,652 | |||||||||||||
Income tax expense | 1,674 | (24,373 | ) | (28,215 | ) | (27,716 | ) | (78,630 | ) | |||||||||||
Net profit (loss) | (9,187 | ) | 49,393 | 63,103 | (28,287 | ) | 75,022 | |||||||||||||
| 2023 | ||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | FY | ||||||||||||||||
Net profit (loss) | (9,187 | ) | 49,393 | 63,103 | (28,287 | ) | 75,022 | |||||||||||||
Add: | ||||||||||||||||||||
Income tax expense | (1,674 | ) | 24,373 | 28,215 | 27,716 | 78,630 | ||||||||||||||
Finance cost, net | 25,098 | 29,566 | 26,694 | 25,678 | 107,036 | |||||||||||||||
Depreciation and amortization | 20,417 | 20,157 | 21,233 | 21,606 | 83,413 | |||||||||||||||
EBITDA | 34,654 | 123,489 | 139,245 | 46,713 | 344,101 | |||||||||||||||
Add Adjustments: | ||||||||||||||||||||
Share-based compensation expenses(1) | - | 3,268 | 14,817 | 47,308 | 65,394 | |||||||||||||||
Relocation expenses(2) | 1,569 | 2,203 | (269 | ) | 1,098 | 4,600 | ||||||||||||||
Restructuring expenses(3) | - | 1,953 | - | - | 1,953 | |||||||||||||||
IPO-related costs(4) | 5,343 | 4,149 | 5,247 | 15,863 | 30,603 | |||||||||||||||
Realized and unrealized FX gains / losses(5) | 30,830 | 16,924 | 3,596 | (15,294 | ) | 36,056 | ||||||||||||||
Adjusted EBITDA | 72,395 | 151,986 | 162,637 | 95,689 | 482,706 | |||||||||||||||
(1) Represents share-based compensation expenses relating to the management investment plan.
(2) Represents relocation expenses which are considered non-recurring expenses and not representative of the operating performance of the business.
(3) Represents restructuring expenses which are considered non-recurring expenses and not representative of the operating performance of the business.
(4) Represents IPO-related costs, which include consulting and legal fees.
(5) Represents the primarily non-cash impact of foreign exchange rates within profit (loss). We do not consider these gains and losses representative of operating performance of the business because they are primarily driven by fluctuations in the USD to Euro foreign exchange rate on intercompany receivables for inventory and intercompany loans.
(6) The FY 2023 quarters are being provided here to assist in modeling, trending analysis and year-over-year comparisons.
SOURCE: Birkenstock Holding plc
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