Global Blue Reports Q2 FY23/24 Financial Results, Delivering Growth and an Improved Capital Structure
- Significant YoY growth in Adjusted EBITDA
- Annualized Q2 FY23/24 Adjusted EBITDA reaching €142m
- Improved capital structure with a $100M strategic equity investment from Tencent
- Opportunistic refinancing with new 7-year debt rated B+ / B1
- Financial guidance reiterated for FY23/24 Adjusted EBITDA of €145-165m
- None.
-
Significant YoY growth in Adjusted EBITDA —
82.8% to€47.2m in Q2 FY23/24 and129.7% to€75.0m in H1 FY23/24, taking the H1 EBITDA margin to36% -
Continued growth inflection with annualized Q2 FY23/24 Adjusted EBITDA reaching
€142m (1) -
Improved capital structure:
-
$100M - Opportunistic refinancing with new 7-year debt rated B+ / B1
-
-
Financial guidance reiterated — FY23/24 Adjusted EBITDA of
€145 -165m
SIGNY,
Global Blue’s CEO, Jacques Stern, commented:
“We are pleased to report a strong set of financial results with continued progress in growth and profitability through the second quarter and first half of the year, alongside multiple strategic developments.
“We delivered a
“In parallel, we are pleased to welcome Tencent as a shareholder, following their
EXECUTIVE SUMMARY
Q2 and H1 FY23/24 financial results showed a significant increase in both growth and profitability.
The Group delivered a
In November (post the period-end), Global Blue concluded two significant capital structure transactions. First, Tencent agreed to invest
In October 2023, excluding Mainland China and
Taking this together, Global Blue could achieve Adjusted EBITDA in excess of
In conclusion, the Group reiterates the financial guidance and long-term targets issued on September 25, 2023, with FY23/24 Adjusted EBITDA of
FINANCIAL PERFORMANCE
Q2 FY23/24 Financial Performance
€M |
Q2
|
|
Q2
|
|
Q2
|
|
Q2 FY23/24
|
|
Revenue Tax Free Shopping Solutions Added Value Payment Solutions Retail Tech Solutions |
23.0 5.3 2.9 |
|
62.5 15.3 4.1 |
|
86.2 20.2 6.7 |
|
|
|
Group Revenue |
31.2 |
|
81.9 |
|
113.2 |
|
|
|
Adjusted Operating Expenses |
(31.6) |
|
(56.1) |
|
(66.0) |
|
|
|
Adjusted EBITDA |
(0.4) |
|
25.8 |
|
47.2 |
|
|
|
Adjusted Depreciation & Amortisation |
(10.2) |
|
(9.1) |
|
(8.9) |
|
|
|
Net Finance Costs |
(6.1) |
|
(13.8) |
|
(13.9) |
|
|
|
Adjusted Profit before Tax |
(16.7) |
|
2.9 |
|
24.4 |
|
|
|
Adjusted Income Tax Expense |
1.5 |
|
(4.4) |
|
(8.1) |
|
|
|
Non-Controlling Interests |
(0.4) |
|
(0.6) |
|
(2.3) |
|
|
|
Adjusted Net Income Group Share |
(15.6) |
|
(2.1) |
|
14.0 |
|
|
Revenue
The Group delivered Revenue of
Tax Free Shopping Solutions delivered Revenue of
Added Value Payment Solutions delivered Revenue of
Retail Tech Solutions delivered Revenue of
Adjusted EBITDA
The Group delivered Adjusted EBITDA of
Furthermore, annualized Q2 FY23/24 Adjusted EBITDA (including Retail Tech Solutions) of
H1 FY23/24 Financial Performance
€M |
H1
|
|
H1
|
|
H1
|
|
H1 FY23/24
|
|
Revenue Tax Free Shopping Solutions Added Value Payment Solutions Retail Tech Solutions |
32.1 10.1 5.7 |
|
102.1 27.9 8.0 |
|
154.8 39.0 13.8 |
|
|
|
Group Revenue |
47.9 |
|
138.0 |
|
207.7 |
|
|
|
Adjusted Operating Expenses |
(59.0) |
|
(105.4) |
|
(132.7) |
|
|
|
Adjusted EBITDA |
(11.1) |
|
32.6 |
|
75.0 |
|
|
|
Adjusted Depreciation & Amortisation |
(20.2) |
|
(17.8) |
|
(17.9) |
|
|
|
Net Finance Costs |
(12.5) |
|
(23.8) |
|
(24.6) |
|
|
|
Adjusted Profit before Tax |
(43.8) |
|
(9.0) |
|
32.5 |
|
|
|
Adjusted Income Tax Expense |
4.9 |
|
(3.8) |
|
(12.6) |
|
|
|
Non-Controlling Interests |
(0.4) |
|
(0.9) |
|
(3.7) |
|
|
|
Adjusted Net Income Group Share |
(39.4) |
|
(13.7) |
|
16.1 |
|
|
The Group delivered Revenue of
Tax Free Shopping Solutions delivered Revenue of
Added Value Payment Solutions delivered Revenue of
Retail Tech Solutions delivered Revenue of
Adjusted EBITDA
The Group delivered Adjusted EBITDA of
Adjusted Profit before Tax
The Group delivered Adjusted Profit Before Tax in H1 FY23/24 of
Balance Sheet and Net Debt (prior to the refinancing)
As at September 30, 2023, Group Net Debt reached
SUBSEQUENT FINANCIAL EVENTS
Strategic Equity Investment
On November 16, 2023, the Group announced a
Opportunistic Refinancing
On November 24, 2023, in order to further strengthen the balance sheet in the face of continued growth, the Group refinanced its term loan, revolving credit facilities (RCF), and shareholder liquidity facility. The new debt consists of a 7-year term loan of
LATEST TAX FREE SHOPPING TRENDS
% Recovery Issued Sales in Store(2) Tax Free Shopping |
Q1
|
|
Q2
|
|
October
|
|
October 2023 vs.
|
|
Continental Europe LfL |
|
|
|
|
|
|
(-4ppts) |
|
(excluding |
|
|
|
|
|
|
|
|
APAC LfL |
|
|
|
|
|
|
+13ppts |
|
(same merchant) |
|
|
|
|
|
|
|
|
Group LfL |
|
|
|
|
|
|
- |
|
(excluding |
|
|
|
|
|
|
|
|
Group reported
(including |
|
|
|
|
|
|
+4ppts |
Refers to the issued Sales in Store (spend) compared to Calendar Year 2019.
In October 2023, the recovery in Tax Free Shopping Group reported LfL(2) Issued Sales in Store(3) slightly increased to
In October 2023, excluding Mainland China and
The recovery in Continental Europe slightly softened to
The recovery in
Impact of China Reopening on Global Blue’s profitability
With Mainland China representing approximately
The willingness to travel of Chinese shoppers, based on Global Blue’s proprietary survey, remained above
Finally, as for most nationalities, a strong average spend progression per Chinese shopper is noticeable, reaching
In summary, Global Blue should be well placed to benefit from the progressive reopening of Mainland Chinese international travel. Based on an annualization of Q2 FY23/24 quarter’s results, Global Blue could achieve Adjusted EBITDA in excess of
RECENT ACHIEVEMENTS
During the period, the Group continued to make strategic progress in furtherance of its focus on digitalization, commercial gains, and product development.
Tax Free Shopping Solutions has continued to gain several marquee new clients in H1 FY23/24. This reinforces Global Blue’s leading market position in Tax Free Shopping and highlights its sustainable and differentiated proposition. The division maintained a net retention rate(6) of
Added Value Payment Solutions was also successful in securing market share with new acquirer gains and cross-sales in the period and maintained a net retention rate(6) of
FINANCIAL GUIDANCE AND LONG-TERM TARGETS
In September 2023, the Group issued guidance and long-term targets as it continues to benefit from the strong growth drivers of the business; Global Blue Group Holding AG - Global Blue Introduces Financial Guidance and Long-term Targets.
Global Blue expects Adjusted EBITDA of
Main long-term targets
Tax Free Shopping Solutions: Post the Mainland China recovery (FY25/26), growth in the Overseas Luxury Market is expected to deliver a long-term CAGR of
On that basis, Global Blue is targeting Revenue growth of
Added Value Payment Solutions: Post the recovery, Global Blue is targeting a long-term CAGR Sales in Store(3) growth of its FX Solutions business of
On that basis, Global Blue is targeting FX Solutions Revenue growth between
Retail Tech Solutions
Retail Tech Solutions is targeting continued high Revenue growth of at least
Finally, along with the current and future recovery, Global Blue will continue to benefit from its long-term growth drivers, while remaining well hedged against the risk of worldwide inflation and potential European recession.
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.
1 Annualized 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 and Q2 FY23/24, applied to the year.
2 Refers to the Issued Sales-In-Store (Spend), like-for-like (at constant merchant scope and exchange rates).
3 Sales in Store, in respect to the TFS business, refers to the value (including VAT) of the goods purchased by the international shopper. Sales in Store, in respect to the Added Value Payment Solutions business, refers to the value (including VAT) of the payments made by the international shopper.
4 Simulation 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 Q2 FY23/24 applied to the year.
5 Refers to the portion of Revenue growth that drops through to the EBITDA line.
6 Net 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.
7 Based on Q2 FY23/24 annualized EBITDA excluding Retail Tech.
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, 2023 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 offers innovative solutions in three different fields:
- 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: Global Blue
View source version on businesswire.com: https://www.businesswire.com/news/home/20231129880785/en/
FOR FURTHER INFORMATION
Frances Gibbons, Head of Investor Relations
+44 (0) 7815 034 212
fgibbons@globalblue.com
Source: Global Blue
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