Key PointsBirkenstock Holdings stock is stabilizing after a sharp drop after the company's initial earnings report. The company expects margin pressure in 2024 as it expands its retail footprint, but analysts seem to be looking at the upside. BIRK stock has only been trading since October, so investors may not have a clear picture of how to interpret the price action.  5 stocks we like better than BirkenstockShares of Birkenstock Holdings plc NYSE: BIRK made a decent recovery after falling more than 10% fro ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Birkenstock warned its annual earnings will face pressure as it focuses on global expansion, disappointing investors in its first results since IPOing and causing shares to drop by as much as 14%. Executives at the sandal maker revealed plans to increase prices on its products this year, acknowledging they had "underestimated the inflation effects" in fiscal 2023. For 2024, Birkenstock anticipates an underlying earnings margin of approximately 30%, down 2.4 percentage points from 2023, citing a "modest head ...

(146) (85) 15 (4) (26) (1) (28) (28) BIRKENSTOCK September 30, September 30, 20 27 39 83 69 BALANCE SHEET IN € MILLION 2022 2023 | --- | --- | --- | --- | --- | |--------|------------|-----------------------------------------|-------|-------| | | | | | | | | | Goodwill | 1,674 | 1,594 | | | | Intangible assets (other than goodwill) | 1,815 | 1,706 | | | NON-CURREM | Property, plant and equipment | 205 | 286 | | | | Other assets | 134 | 161 | | | | Total non-current assets | 3,829 | 3,747 | | ASSETS | | Inve ...

Financial Data and Key Metrics Changes - The company achieved remarkable revenue growth of 20% in fiscal 2023, with fourth-quarter growth of 22% [14][116] - Gross profit margin for fiscal 2023 was 62.1%, up 180 basis points compared to fiscal 2022, although it slightly decreased by 20 basis points when adjusting for prior year effects [14][15] - Adjusted EBITDA for fiscal 2023 was EUR 483 million, up 11% compared to fiscal 2022, with an adjusted EBITDA margin of 32.4% [18][117] - Pro forma fully diluted adjusted earnings per share for fiscal 2023 were EUR 1.10, representing growth of 19% [20] Business Line Data and Key Metrics Changes - Direct-to-consumer (DTC) revenues grew by 26% in fiscal 2023, significantly outperforming B2B growth [32] - In the fourth quarter, revenues increased by 40%, primarily driven by a strong B2B quarter with 73% growth [33] - DTC revenue growth in Europe was 24%, significantly outperforming B2B, which saw 15% growth [46][44] Market Data and Key Metrics Changes - The Americas region achieved a revenue growth of 20% in fiscal 2023, making it the largest contributor to overall revenue growth [119] - The APMA segment showed the highest growth rates of all segments in fiscal 2023 with 27% [49] - In Europe, fiscal 2023 revenues increased by 18%, with DTC penetration reaching 40% [42][117] Company Strategy and Development Direction - The company aims to provide guidance on a full-year basis rather than quarterly, reflecting a long-term success strategy [27] - The company plans to invest approximately EUR 150 million in capital expenditures in fiscal 2024, primarily for production capacity expansion and global retail store expansion [30] - The company is focused on maintaining scarcity in the market to drive demand, with a disciplined approach to distribution [36][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong consumer demand for the brand and a unique position in the market [116][100] - The company anticipates modest headwinds to adjusted EBITDA margins in fiscal 2024 due to planned ramp-up costs and initial under-absorption [29] - Management noted that inflationary pressures were underestimated, impacting margins, but they remain confident in their pricing power [80][105] Other Important Information - The company achieved cash flow from operating activities of EUR 359 million, up 53% compared to the prior year [23] - The company has been actively deleveraging post-IPO, reducing leverage to below 2.5 [26] - The new factory in Pasewalk is expected to significantly increase production capacity, with benefits anticipated in fiscal 2024 and beyond [28][104] Q&A Session Summary Question: Clarification on fiscal 2024 revenue growth expectations - Management indicated that the fourth-quarter growth rate of 22% is a good indicator for early fiscal 2024 revenue growth, with a full-year guidance of 17% to 18% [12][27] Question: Insights on the new factory's impact on unit volume growth - Management confirmed that the new factory will enhance distribution and capacity, with benefits expected to materialize later in fiscal 2024 [12][28] Question: Discussion on land grabs in the U.S. market - Management explained that "land grabs" refer to aggressively capturing market share, particularly in challenging consumer spending environments [36] Question: Changes in U.S. consumer demand - Management noted that despite challenges, the demand for their products remains strong, with intentional purchasing patterns observed [64][83] Question: Regional growth expectations for fiscal 2024 - Management indicated that Europe and the Americas are growing at similar rates, while APMA is experiencing higher growth due to increased DTC penetration [79] Question: Insights on inventory levels and SKU performance - Management reported a decrease in inventory compared to revenue, with over 75% of inventory already allocated to customers [98]

[Fiscal Year 2023 Financial Results and 2024 Outlook](index=1&type=section&id=Fiscal%20Year%202023%20Financial%20Results%20and%202024%20Outlook) [Fiscal Year 2023 Performance Highlights](index=1&type=section&id=Fiscal%20Year%202023%20Performance%20Highlights) The company achieved strong 20% revenue growth to €1.492 billion, with healthy Adjusted Net Profit and EBITDA growth | Financial Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | €1.492 billion | €1.243 billion | +20% | | **Gross Profit Margin** | 62.1% | 60.3% | +180 bps | | **Net Profit** | €75 million | €187 million | -60% | | **EPS** | €0.41 | €1.02 | -60% | | **Adjusted Net Profit** | €207 million | €175 million | +18% | | **Pro-forma Adjusted EPS** | €1.10 | €0.93 | +18% | | **Adjusted EBITDA** | €483 million | €435 million | +11% | | **Adjusted EBITDA Margin** | 32.4% | 35.0% | -260 bps | | **Cash Flow from Operations** | €359 million | €234 million | +53% | [Detailed Financial Analysis for Fiscal Year 2023](index=2&type=section&id=Detailed%20Financial%20Analysis%20for%20Fiscal%20Year%202023) Revenue grew 20% to €1.492 billion, driven by unit and ASP increases, strong DTC channel performance, and robust operating cash flow [Revenue and Channel Performance](index=2&type=section&id=Revenue%20and%20Channel%20Performance) Revenue growth was driven by increased units and ASP, with DTC channel revenue growing 29% and reaching 40% of total revenue - Number of units sold increased by **6%**[2](index=2&type=chunk) - Average Selling Price (ASP) increased by **14%**[2](index=2&type=chunk) - The Direct-to-Consumer (DTC) channel showed strong performance, with revenue increasing by **29%** on a constant currency basis. This led to DTC penetration expanding by **200 basis points** to **40%** of total revenue[2](index=2&type=chunk) [Profitability and Earnings](index=2&type=section&id=Profitability%20and%20Earnings) Net Profit decreased to €75 million, but Adjusted Net Profit grew to €207 million, and Adjusted EBITDA increased by 11% to €483 million | Profitability Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | **Net Profit** | €75 million | €187 million | | **Adjusted Net Profit** | €207 million | €175 million | | **EPS** | €0.41 | €1.02 | | **Pro-forma Adjusted EPS** | €1.10 | €0.93 | | **Adjusted EBITDA** | €483 million | €435 million | | **Adjusted EBITDA Margin** | 32.4% | 35.0% | [Cash Flow and Capital Structure](index=2&type=section&id=Cash%20Flow%20and%20Capital%20Structure) Operating cash flow increased 53% to €359 million, fully covering €101 million in capex, and post-IPO debt repayment reduced net leverage below 2.5x - Cash flows from operating activities increased by **53%** to €359 million, driven by strong operational performance and lower inventory buildup compared to FY 2022[4](index=4&type=chunk) - Capital expenditures of €101 million, primarily for production capacity expansion, were completely covered by operating cash flows[5](index=5&type=chunk) - Post-IPO, the company utilized proceeds and existing cash to repay **USD 450 million** and **EUR 100 million** of debt, reducing net leverage to **below 2.5 times**[5](index=5&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) All geographic segments reported double-digit constant currency revenue growth, with Americas at 20%, Europe at 18%, and APMA leading at 27% | Region | Reported Growth | Constant Currency Growth | | :--- | :--- | :--- | | **Americas** | 21% | 20% | | **Europe** | 18% | 18% | | **APMA** | 24% | 27% | - The APMA region's high growth was primarily driven by acceleration in the key strategic markets of China and India[6](index=6&type=chunk) [Fourth Quarter (Q4) 2023 Performance](index=2&type=section&id=Fourth%20Quarter%20(Q4)%202023%20Performance) Q4 2023 revenues grew 16% reported and 22% constant currency, with Americas B2B revenue surging 73% constant currency - Q4 2023 revenues grew by **16%** on a reported basis and **22%** on a constant currency basis compared to Q4 2022[7](index=7&type=chunk) - The Americas segment reported the highest growth in Q4, with B2B revenues in the region growing **61%** (reported) and **73%** (constant currency)[7](index=7&type=chunk) [Fiscal Year 2024 Outlook](index=3&type=section&id=Fiscal%20Year%202024%20Outlook) FY2024 outlook projects revenues of €1.74-€1.76 billion (17-18% growth), Adjusted EBITDA of €520-€530 million (30% margin), and €150 million in capex | Metric | FY 2024 Guidance | | :--- | :--- | | **Revenues (Constant Currency)** | €1.74 billion to €1.76 billion (+17% to +18% YoY) | | **Adjusted EBITDA (Constant Currency)** | €520 million to €530 million | | **Adjusted EBITDA Margin** | Approximately 30% | | **Capital Expenditure** | Approximately €150 million | | **Effective Tax Rate** | Approximately 30% | - The Adjusted EBITDA margin is expected to face a modest headwind due to planned ramp-up costs and initial underabsorption at the new Pasewalk facility[10](index=10&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Profit (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Profit%20(Loss)) Revenue grew to €1.492 billion, but net profit declined to €75 million due to higher operating expenses and €107 million in net finance costs | (In thousands of Euros) | Year ended Sep 30, 2023 | Year ended Sep 30, 2022 | | :--- | :--- | :--- | | **Revenue** | 1,491,911 | 1,242,833 | | **Gross profit** | 925,793 | 749,802 | | **Profit from operations** | 260,688 | 363,027 | | **Finance cost, net** | (107,036) | (112,503) | | **Profit before tax** | 153,652 | 250,524 | | **Net profit** | 75,022 | 187,111 | | **EPS (Basic)** | 0.41 | 1.02 | [Consolidated Statements of Financial Position](index=6&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) Total assets were €4.83 billion, with shareholders' equity at €2.40 billion and liabilities at €2.43 billion, including significant intangible assets | (In thousands of Euros) | September 30, 2023 | September 30, 2022 | | :--- | :--- | :--- | | **Total non-current assets** | 3,746,924 | 3,828,721 | | **Total current assets** | 1,080,546 | 959,906 | | **Total assets** | 4,827,470 | 4,788,627 | | **Total shareholders' equity** | 2,400,589 | 2,357,818 | | **Total non-current liabilities** | 2,048,300 | 2,106,843 | | **Total current liabilities** | 378,581 | 323,966 | | **Total liabilities** | 2,426,881 | 2,430,809 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to €359 million, while investing activities used €101 million and financing activities used €199 million | (In thousands of Euros) | Year ended Sep 30, 2023 | Year ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash from operating activities** | 358,733 | 234,136 | | **Net cash used in investing activities** | (100,732) | (71,646) | | **Net cash used in financing activities** | (199,285) | (105,317) | | **Net increase in cash** | 58,716 | 57,173 | | **Cash at end of period** | 344,408 | 307,078 | [Reconciliation of Non-IFRS Financial Measures](index=7&type=section&id=Reconciliation%20of%20Non-IFRS%20Financial%20Measures) [Reconciliation of Revenue](index=7&type=section&id=Reconciliation%20of%20Revenue) FY2023 total revenue grew 20% to €1.492 billion, with DTC channel growing 29% and APMA region leading with 27% constant currency growth | FY 2023 Revenue Growth vs FY 2022 | Growth (%) | Constant Currency Growth (%) | | :--- | :--- | :--- | | **B2B Channel** | 15% | 15% | | **DTC Channel** | 28% | 29% | | **Total Revenue** | 20% | 20% | | **AMERICAS Region** | 21% | 20% | | **EUROPE Region** | 18% | 18% | | **APMA Region** | 24% | 27% | [Reconciliation of Net Profit (Adjusted)](index=8&type=section&id=Reconciliation%20of%20Net%20Profit%20(Adjusted)) IFRS Net Profit of €75 million is adjusted for FX, IPO costs, and share-based compensation, resulting in an Adjusted Net Profit of €207 million | (In thousands of Euros) | Year ended Sep 30, 2023 | | :--- | :--- | | **Net profit** | 75,022 | | Add: Realized and unrealized FX losses | 36,056 | | Add: IPO-related costs | 30,603 | | Add: Share-based compensation | 65,394 | | Add: Other adjustments | 6,552 | | Less: Tax adjustment | (6,475) | | **Net profit (Adjusted)** | **207,152** | [Reconciliation of EBITDA (Adjusted)](index=9&type=section&id=Reconciliation%20of%20EBITDA%20(Adjusted)) Net Profit of €75 million is adjusted for tax, finance costs, D&A, and non-recurring items, yielding an Adjusted EBITDA of €483 million | (In thousands of Euros) | Year ended Sep 30, 2023 | | :--- | :--- | | **Net profit** | 75,022 | | Add: Income tax expense | 78,630 | | Add: Finance cost, net | 107,036 | | Add: Depreciation and amortization | 83,413 | | **EBITDA** | **344,101** | | Add: Adjustments (FX, IPO costs, etc.) | 138,605 | | **Adjusted EBITDA** | **482,706** | [Reconciliation of Gross Profit (Adjusted)](index=10&type=section&id=Reconciliation%20of%20Gross%20Profit%20(Adjusted)) FY2023 reported Gross Profit of €926 million equals Adjusted Gross Profit, while FY2022 Adjusted Gross Profit was €774 million after adjustments - For fiscal year 2023, there were no adjustments to Gross Profit. Reported Gross Profit of **€925.8 million** equals Adjusted Gross Profit[27](index=27&type=chunk) - For fiscal year 2022, Gross Profit was adjusted by **€24.4 million** due to the accounting effect of the Transaction on inventory valuation, increasing Adjusted Gross Profit to **€774.2 million**[27](index=27&type=chunk)

Financial Performance - Total sales for the reportable segments reached €461.775 million, with Americas contributing €223.110 million, Europe €191.226 million, and APMA €47.439 million[32]. - Adjusted EBITDA for the total reportable segments was €152.742 million, with a breakdown of €78.767 million from Americas, €61.649 million from Europe, and €12.326 million from APMA[32]. - The company reported a profit before tax of €(13.777) million, reflecting operational challenges and transaction-related costs[32]. - Cost of sales for the year ended September 30, 2023, was €566.1 million, up from €493.0 million in the previous year[138]. - Personnel costs rose to €153.9 million for the year ended September 30, 2023, compared to €119.3 million in the prior year[138]. - Shipping and handling costs for the fiscal year ended September 30, 2023, amounted to €155.2 million, up from €101.1 million in the previous fiscal year[89]. Acquisitions and Goodwill - The acquisition of the predecessor resulted in a total consideration transferred of €3.751 billion, with identifiable net assets valued at €2.223 billion, leading to goodwill of €1.528 billion[34]. - The company anticipates future growth potential, which is reflected in the goodwill recognized from acquisitions, primarily due to expected future growth and an assembled workforce[37]. - As of September 30, 2023, total goodwill is €1,593,917, a decrease from €1,674,293 in September 30, 2022, reflecting a foreign currency translation impact of €(80,376)[42]. Customer and Revenue Diversification - The company did not have any customers contributing 10% or more to total revenue during the reporting period, indicating a diversified customer base[33]. - As of September 30, 2023, the company had no concentration of receivables exceeding 10% with any single customer, minimizing credit risk[37]. - For the fiscal year ended September 30, 2023, sales through third parties in the B2B channel accounted for 60% of total revenues[81]. Inventory and Receivables - Total inventories as of September 30, 2023, amount to €595,092, an increase from €535,605 in September 30, 2022[48]. - Trade receivables increased to €91,694 as of September 30, 2023, compared to €64,604 in the previous year[49]. Capital Expenditures and Investments - The company invested in a new production facility in Pasewalk, Germany, which commenced operations in September 2023[46]. - The average CapEx investments for 2023-2027 are projected at €39,879, with significant investments planned for the Americas region[43]. Personnel and Operating Expenses - Personnel costs surged to €113,905 thousand in the year ended September 30, 2023, compared to €41,267 thousand in the previous year, an increase of 175.5%[66]. - The company has experienced a significant increase in general administration expenses, primarily due to share-based compensation related to IFRS 2, totaling €171.4 million for the fiscal year ended September 30, 2023[89]. Risks and Compliance - The company is exposed to liquidity risk but manages it by ensuring sufficient liquidity for operations and capital expenditures through operating cash flows and short-term borrowings[38]. - The company faces risks from potential disputes with third-party sales and distribution channels that could damage its brand and reputation[81]. - The company is subject to various privacy laws and regulations, which could lead to additional costs and operational impacts if compliance is not maintained[112]. - The company faces risks related to compliance with security standards for payment card information, which could lead to significant fines and impact its ability to accept payment cards[114]. Debt and Financial Obligations - The company reported a term loan in EUR valued at €375 million and a term loan in USD valued at $781.3 million as of September 30, 2023[102]. - The company has a vendor loan of €299.6 million and senior notes of €428.5 million as of September 30, 2023[102]. - As of November 30, 2023, the company had total indebtedness of €1,306.2 million, primarily from Senior Term Facilities, ABL Facility, Notes, and Vendor Loan[166]. Market and Economic Conditions - The company operates in various international markets, facing risks such as political instability, trade disputes, and economic fluctuations, which could materially impact its operations and financial results[121]. - The company is subject to evolving government regulations regarding internet and e-commerce, which could affect its operations and compliance costs[117]. - The company may face increased costs and operational disruptions due to climate change and extreme weather conditions affecting its supply chain[183]. Internal Controls and Governance - The company has identified two material weaknesses in internal control over financial reporting, one of which has been remediated as of September 30, 2023, while the second remains unremediated[210][211]. - The company is subject to Section 404 of the Sarbanes-Oxley Act, requiring a report on internal control effectiveness in its second annual report on Form 20-F[211]. Strategic Initiatives - The company has a balanced shift towards direct-to-consumer (DTC) channels, promoting direct relationships and capturing real-time customer data[220]. - The company operates a complementary multi-channel distribution strategy, optimizing growth and profitability through both DTC and B2B channels[220].

Table of Contents As filed with the Securities and Exchange Commission on October 4, 2023. Registration No. 333-274483 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 3 to FORM F-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Birkenstock Holding plc (Exact name of Registrant as specified in its charter) Not Applicable (Translation of Registrant's name into English) Jersey 3140 Not Applicable (State or other jurisdiction of incorporation or organization) (Prim ...

Table of Contents As filed with the Securities and Exchange Commission on October 2, 2023. Registration No. 333-274483 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 2 to FORM F-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Birkenstock Holding Limited* (Exact name of Registrant as specified in its charter) Not Applicable (Translation of Registrant's name into English) (State or other jurisdiction of incorporation or organization) Jersey 3140 Not Applicable ...

Table of Contents As filed with the Securities and Exchange Commission on September 15, 2023. Registration No. 333-274483 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Amendment No. 1 to FORM F-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 Birkenstock Holding Limited* Not Applicable (Translation of Registrant's name into English) Jersey 3140 Not Applicable (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Num ...