Group 1 - Global Blue Group Holding AG (GB) is a notable stock in the Business Services sector, which is currently ranked 1 within the Zacks Sector Rank [2] - The Zacks Rank system focuses on earnings estimates and revisions, with GB holding a Zacks Rank of 2 (Buy), indicating a positive earnings outlook [3] - Over the past three months, the Zacks Consensus Estimate for GB's full-year earnings has increased by 30.3%, reflecting stronger analyst sentiment [4] Group 2 - Year-to-date, GB has gained approximately 5.2%, outperforming the average gain of 2.8% in the Business Services group [4] - GB is part of the Financial Transaction Services industry, which consists of 35 companies and is currently ranked 55 in the Zacks Industry Rank [6] - Stocks in the Financial Transaction Services industry have gained about 5.4% this year, indicating that GB is slightly underperforming its industry [6] Group 3 - Another stock in the Business Services sector, Gorilla Technology Group Inc. (GRRR), has returned 34.4% year-to-date and has a Zacks Rank of 1 (Strong Buy) [5] - The Technology Services industry, to which GRRR belongs, is ranked 51 and has seen a gain of 9.4% this year [7] - Both GB and GRRR are showing solid performance, making them noteworthy for investors interested in Business Services stocks [7]

Company Overview - Global Blue is a leader in tax-free shopping, operating at the intersection of travel and luxury retail, with a simple revenue model based on a percentage of tax-free spending[12] - The company estimates its enterprise value to be approximately €1.8 billion, calculated from an equity value of ~€1.2 billion plus net debt and other debt-like items of ~€0.6 billion[12, 13] - Global Blue's Tax Free Shopping (TFS) Sales in Store (SiS) completed amounted to €20 billion in FY23/24[15] - The company has a 70% market share in Tax Free Shopping[12, 26] Financial Performance - The company achieved over €200 million in annualized Adjusted EBITDA[11, 36] - Global Blue has historically demonstrated strong cash conversion, with over 80% cash conversion rate[12] - In FY23/24, Global Blue experienced a 36% year-over-year increase in Group Revenue and a 91% year-over-year increase in Adjusted EBITDA[34, 35] - Q1 FY24/25 results show a 25% year-over-year revenue growth and a 55% year-over-year Adjusted EBITDA growth, with an Adjusted EBITDA margin of 37%[37] Growth and Future Targets - The company is targeting long-term revenue growth of 8% to 12%[49, 50] - Global Blue is aiming for a long-term capital structure with net debt to LTM EBITDA ratio of less than 25x[51, 52] - The company is guiding for more than €200 million in EBITDA for the current financial year[49, 50]

Core Viewpoint - The article emphasizes the importance of value investing and highlights specific stocks, Global Blue Group and PagSeguro Digital, as strong value picks based on their financial metrics and Zacks Rank [2][8]. Group 1: Global Blue Group (GB) - Global Blue Group has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential as a value stock [4]. - The stock is currently trading with a P/E ratio of 17.33, significantly lower than its industry's average P/E of 22.16 [4]. - GB's P/CF ratio stands at 10.66, which is attractive compared to the industry's average P/CF of 17.51, suggesting it may be undervalued [5]. Group 2: PagSeguro Digital (PAGS) - PagSeguro Digital also holds a Zacks Rank of 2 (Buy) and a Value grade of A, making it another appealing value investment [6]. - The company has a Forward P/E ratio of 6.86 and a PEG ratio of 0.61, both of which are favorable compared to the industry's average P/E of 22.16 and PEG ratio of 1.63 [6]. - PAGS's price-to-earnings ratio has fluctuated between 4.84 and 9.72 over the past year, with a median of 6.55, indicating potential undervaluation [7].

Group 1 - Global Blue Group (GB) is currently rated 2 (Buy) by Zacks and has a Value grade of A, indicating strong investor interest [4][6] - The stock is trading at a P/E ratio of 22.48, which is lower than the industry average of 23.67, suggesting potential undervaluation [4] - Over the past year, GB's Forward P/E has fluctuated between a high of 22.71 and a low of 11.72, with a median of 16.92, indicating variability in market perception [4] Group 2 - GB has a P/CF ratio of 14.52, which is favorable compared to the industry's average P/CF of 18.86, further supporting the notion of undervaluation [5] - The P/CF ratio for GB has ranged from a high of 19.51 to a low of 10 over the past year, with a median of 14.46, reflecting its cash flow performance [5] - Overall, the metrics suggest that Global Blue Group is likely undervalued and stands out as one of the strongest value stocks in the market [6]

Core Viewpoint - Global Blue Group Holding AG has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, driven by institutional investors who adjust their valuations based on these estimates [3][5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects stock prices [3]. Company Performance Indicators - For the fiscal year ending March 2026, Global Blue Group is expected to earn $0.43 per share, reflecting a year-over-year increase of 22.9% [7]. - Over the past three months, the Zacks Consensus Estimate for Global Blue Group has risen by 30.3%, indicating a positive trend in earnings expectations [7]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - The upgrade to Zacks Rank 2 places Global Blue Group in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [9].

[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides a high-level overview of Global Blue's strong financial performance and the Shift4 acquisition [Overall Performance Highlights](index=1&type=section&id=Overall%20Performance%20Highlights) Global Blue achieved 20% revenue growth and 36% Adjusted EBITDA increase to €202 million, reducing net leverage to 2.4x - CEO Jacques Stern noted a 'strong yearly performance with **20% revenue growth**, in line with Sales-in-Store growth,' significantly outperforming the luxury market[4](index=4&type=chunk) - Robust growth and high operating leverage led to a **36% increase in Adjusted EBITDA**, reaching **€202 million**, marking a 45-year milestone for Global Blue[5](index=5&type=chunk) Overall Performance Metrics | Metric | FY24/25 | YoY Change | | :----- | :------ | :--------- | | Revenue | €508 million | +20% | | Adjusted EBITDA | €202 million | +36% | | Adjusted EBITDA Margin | 39.8% | +4.6pts | | Net Leverage Ratio | 2.4x | From 3.4x (FY23/24) | [Shift4 Acquisition](index=1&type=section&id=Shift4%20Acquisition%20of%20Global%20Blue) Shift4 announced its acquisition of Global Blue for approximately $2.5 billion, with a definitive agreement signed on February 16, 2025 - Shift4's acquisition of Global Blue is expected to close during the **third quarter of calendar year 2025**[7](index=7&type=chunk) - On February 16, 2025, Global Blue and Shift4 entered into a definitive agreement for Shift4 to acquire **100% of Global Blue shares**[10](index=10&type=chunk) Acquisition Share Details | Share Type | Acquisition Price | Premium | | :--------- | :---------------- | :------ | | Common Share | $7.50 per share | 15% premium to Feb 14, 2025 closing price | | Series A Preferred | $10.00 per share | N/A | | Series B Preferred | $11.81 per share | N/A | - The acquisition has been unanimously approved by the boards of directors of Shift4 and Global Blue, with Global Blue's board recommending shareholders accept the tender offer[13](index=13&type=chunk) [Financial Performance](index=3&type=section&id=FINANCIAL%20PERFORMANCE) This section details Global Blue's Q4 and FY24/25 financial results, including revenue, EBITDA, and cash flow [Q4 FY24/25 Performance](index=3&type=section&id=Q4%20FY24%2F25%20Financial%20Performance) In Q4 FY24/25, Global Blue achieved a 20% year-over-year revenue increase to €126.8 million, with Adjusted EBITDA growing 43% Q4 FY24/25 Key Financials | Metric | Q4 FY23/24 | Q4 FY24/25 | YoY Change | | :----- | :--------- | :--------- | :--------- | | Revenue | €105.2 million | €126.8 million | +20% | | Contribution | €78.3 million | €97.7 million | +25% | | Adjusted EBITDA | €33.9 million | €48.5 million | +43% | | Adjusted EBITDA Margin | 32.3% | 38.2% | +5.9pts | | Adjusted Net Income Group Share | €1.6 million | €14.1 million | +769% | [Revenue Breakdown (Q4)](index=3&type=section&id=Q4%20Revenue%20Breakdown) Q4 revenue growth was broad-based, with Tax Free Shopping Solutions up 22%, Payments up 12%, and Post-Purchase Solutions up 25% Q4 Revenue by Solution | Solution | Q4 FY23/24 | Q4 FY24/25 | YoY Change | | :------- | :--------- | :--------- | :--------- | | Tax Free Shopping Solutions | €76.6 million | €93.7 million | +22% | | Payments | €21.7 million | €24.4 million | +12% | | Post-Purchase Solutions | €6.9 million | €8.7 million | +25% | - Tax Free Shopping Solutions benefited from strong progression of Sales-in-Store, with Continental Europe up **24%** and Asia Pacific up **15%**[15](index=15&type=chunk) - Payments revenue growth was predominantly driven by pricing increases, outperforming nearly flat Sales-in-Store performance[16](index=16&type=chunk) [Contribution (Q4)](index=3&type=section&id=Q4%20Contribution) Q4 contribution increased by 25% YoY to €97.7 million, reflecting strong variable cost optimization and high margins Q4 Contribution | Metric | Q4 FY23/24 | Q4 FY24/25 | YoY Change | | :----- | :--------- | :--------- | :--------- | | Contribution | €78.3 million | €97.7 million | +25% | - Maintained high contribution margins: Tax Free Shopping Solutions at **88%**, FX Solutions at **94%**, and Post-Purchase Solutions at **50%**[17](index=17&type=chunk) [Adjusted EBITDA (Q4)](index=3&type=section&id=Q4%20Adjusted%20EBITDA) Adjusted EBITDA for Q4 rose 43% YoY to €48.5 million, with the margin expanding by 5.9 percentage points to 38.2% Q4 Adjusted EBITDA | Metric | Q4 FY23/24 | Q4 FY24/25 | YoY Change | | :----- | :--------- | :--------- | :--------- | | Adjusted EBITDA | €33.9 million | €48.5 million | +43% | | Adjusted EBITDA Margin | 32.3% | 38.2% | +5.9pts | - Adjusted EBITDA margin expanded by **5.9pts to 38.2%**, with a **68% drop-through**[18](index=18&type=chunk) [FY24/25 Performance](index=4&type=section&id=FY24%2F25%20Financial%20Performance) FY24/25 revenue grew 20% to €507.9 million, Adjusted EBITDA increased 36% to €202.4 million, margin at 39.8% FY24/25 Key Financials | Metric | FY23/24 | FY24/25 | YoY Change | | :----- | :--------- | :--------- | :--------- | | Revenue | €422.3 million | €507.9 million | +20% | | Contribution | €321.9 million | €395.6 million | +23% | | Adjusted EBITDA | €148.7 million | €202.4 million | +36% | | Adjusted EBITDA Margin | 35.2% | 39.8% | +4.6pts | | Adjusted Profit before Tax | €59.0 million | €97.2 million | +65% | | Adjusted Net Income Group Share | €26.9 million | €54.9 million | +104% | [Revenue Breakdown (FY)](index=4&type=section&id=FY%20Revenue%20Breakdown) Full-year revenue growth was primarily driven by Tax Free Shopping Solutions, up 23% to €384.5 million, with Payments up 12% FY Revenue by Solution | Solution | FY23/24 | FY24/25 | YoY Change | | :------- | :--------- | :--------- | :--------- | | Tax Free Shopping Solutions | €311.7 million | €384.5 million | +23% | | Payments | €83.0 million | €93.2 million | +12% | | Post-Purchase Solutions | €27.5 million | €30.2 million | +10% | - Tax Free Shopping Solutions benefited from strong progression in Sales-in-Store, with Continental Europe up **21%** and Asia Pacific up **35%**[20](index=20&type=chunk) - Payments revenue growth was ahead of the **4% growth in Sales-in-Store**, driven by increased margin on treasury gains and pricing evolution[21](index=21&type=chunk) [Contribution (FY)](index=4&type=section&id=FY%20Contribution) Full-year contribution increased by 23% YoY to €395.6 million, maintaining high contribution margins across all solutions FY Contribution | Metric | FY23/24 | FY24/25 | YoY Change | | :----- | :--------- | :--------- | :--------- | | Contribution | €321.9 million | €395.6 million | +23% | - Maintained high contribution margins: Tax Free Shopping Solutions at **86%**, FX Solutions at **94%**, and Post-Purchase Solutions at **56%**[23](index=23&type=chunk) [Adjusted EBITDA (FY)](index=4&type=section&id=FY%20Adjusted%20EBITDA) Full-year Adjusted EBITDA reached €202.4 million, a 36% YoY increase, reflecting strong revenue growth and high operating leverage FY Adjusted EBITDA | Metric | FY23/24 | FY24/25 | YoY Change | | :----- | :--------- | :--------- | :--------- | | Adjusted EBITDA | €148.7 million | €202.4 million | +36% | | Adjusted EBITDA Margin | 35.2% | 39.8% | +4.6pts | - Adjusted EBITDA margin improved by **4.6pts to 39.8%**, with a **63% drop-through**[24](index=24&type=chunk) [Adjusted Profit before Tax (FY)](index=5&type=section&id=FY%20Adjusted%20Profit%20before%20Tax) Adjusted Profit Before Tax for FY24/25 increased by 65% YoY to €97.2 million, driven by strong Adjusted EBITDA growth FY Adjusted Profit before Tax | Metric | FY23/24 | FY24/25 | YoY Change | | :----- | :--------- | :--------- | :--------- | | Adjusted Profit before Tax | €59.0 million | €97.2 million | +65% | - The increase in Adjusted EBITDA was partially offset by a **€10.6 million increase in depreciation and amortization** and a **€4.9 million increase in net finance costs**[25](index=25&type=chunk) [Cash Flow, Balance Sheet, and Net Debt](index=5&type=section&id=Cash%20Flow%2C%20Balance%20Sheet%2C%20and%20Net%20Debt) Free Cash Flow significantly increased by €34.9 million to €57.3 million, reducing Net Debt to €487.7 million and leverage to 2.4x Free Cash Flow | Metric | FY23/24 | FY24/25 | YoY Change | | :----- | :--------- | :--------- | :--------- | | Free Cash Flow | €22.4 million | €57.3 million | +€34.9 million | Net Debt and Leverage | Metric | March 31, 2024 | March 31, 2025 | Change | | :----- | :------------- | :------------- | :----- | | Group Net Debt | €524.3 million | €487.7 million | Decreased | | Net Leverage Ratio | 3.4x | 2.4x | Improved | - The Group successfully achieved its long-term net leverage target of **<2.5x early**[9](index=9&type=chunk)[27](index=27&type=chunk) [Financial Reconciliations and Definitions](index=6&type=section&id=Financial%20Reconciliations%20and%20Definitions) This section provides detailed reconciliations for key financial metrics and definitions of non-IFRS measures [Adjusted EBITDA Reconciliation](index=6&type=section&id=Adjusted%20EBITDA%20Reconciliation) The report provides a reconciliation of Profit for the period to Adjusted EBITDA, detailing various adjustments for Q4 and FY Adjusted EBITDA Reconciliation | Metric | FY23/24 | FY24/25 | | :----- | :--------- | :--------- | | Profit for the period | €20.9 million | €93.6 million | | Income Tax Expense | €26.6 million | €41.8 million | | Net Finance Costs | €50.3 million | (€0.7 million) | | Exceptional Items | €7.0 million | €13.3 million | | Depreciation & Amortization | €43.8 million | €54.4 million | | **Adjusted EBITDA** | **€148.7 million** | **€202.4 million** | - Exceptional Items are defined as items not indicative of ongoing operating and financial performance, not directly related to ordinary business operations, and excluded from management performance assessment[28](index=28&type=chunk) [Free Cash Flow Reconciliation](index=6&type=section&id=Free%20Cash%20Flow%20Reconciliation) A reconciliation of Free Cash Flow is provided, showing the net increase in cash and cash equivalents adjusted for various movements Free Cash Flow Reconciliation | Metric | FY23/24 | FY24/25 | | :----- | :--------- | :--------- | | Net increase / (decrease) in cash and cash equivalents | (€153.1 million) | €36.3 million | | Net payments / (proceeds) from loans and borrowings, and related costs | €204.7 million | €4.2 million | | Net payments / (proceeds) from issuance of share capital, and related costs | (€44.0 million) | €1.5 million | | Dividends | €3.2 million | €2.8 million | | Other movements | €15.6 million | €7.6 million | | **Free Cash Flow** | **€22.4 million** | **€57.3 million** | [Net Debt Reconciliation](index=6&type=section&id=Net%20Debt%20Reconciliation) The report reconciles IFRS Net Debt to Net Debt, including adjustments for lease liabilities, capitalized financing costs, and debt modification gain Net Debt Reconciliation | Metric | FY23/24 | FY24/25 | | :----- | :--------- | :--------- | | IFRS Net Debt | €525.0 million | €444.5 million | | Lease liabilities - repayable within one year | (€8.8 million) | (€12.1 million) | | Lease liabilities - repayable after one year | (€14.8 million) | (€23.4 million) | | Capitalized financing cost | €23.8 million | €23.6 million | | Gain from debt modification | N/A | €55.9 million | | Borrowings - repayable within one year | (€0.9 million) | (€0.8 million) | | **Net Debt** | **€524.3 million** | **€487.7 million** | [Key Financial Definitions](index=6&type=section&id=Key%20Financial%20Definitions) This section provides definitions for key non-IFRS financial measures used in the report to ensure clarity and consistent understanding - Drop-through refers to the portion of Revenue growth that drops through to the Adjusted EBITDA line[29](index=29&type=chunk) - Net Leverage refers to Net Debt divided by the last 12 months Adjusted EBITDA[29](index=29&type=chunk) - Contribution refers to revenue less variable costs[29](index=29&type=chunk) - Sales-in-Store refers to the Issued Sales-In-Store (Spend), like-for-like (at constant merchant scope and exchange rates)[29](index=29&type=chunk) [Additional Information](index=7&type=section&id=Additional%20Information) This section provides details on accessing further company information, disclaimers, and Global Blue's business overview [Webcast and Annual Report](index=7&type=section&id=WEBCAST%20INFORMATION) Information is provided for accessing results commentary and the Annual Report on Form 20-F via the company's Investor Relations website - 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[32](index=32&type=chunk) - Global Blue's Annual Report on Form 20-F can be accessed by visiting either the SEC's website at www.sec.gov or the Company's website[33](index=33&type=chunk) [Non-IFRS Measures and Forward-Looking Statements](index=7&type=section&id=NON-IFRS%20FINANCIAL%20MEASURES) The report includes disclaimers regarding Non-IFRS Financial Measures and Forward-Looking Statements, highlighting potential risks and comparability issues - The press release contains Non-IFRS Financial Measures, which may not be indicative of historical operating results or predictive of future results, and may not be comparable to measures used by other companies[34](index=34&type=chunk) - The press release contains 'forward-looking statements' that involve risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied[35](index=35&type=chunk) [About Global Blue](index=7&type=section&id=ABOUT%20GLOBAL%20BLUE) Global Blue is a business partner for the shopping journey, providing technology and services in Tax Free Shopping, Payments, and Post-Purchase solutions - Global Blue is a business partner for the shopping journey, providing technology and services to enhance the experience and drive performance[36](index=36&type=chunk) - The company connects thousands of retailers, acquirers, and hotels with nearly **80 million consumers** across more than **53 countries** in three industries: Tax Free Shopping, Payments, and Post-Purchase solutions[36](index=36&type=chunk) Global Blue Company Overview | Metric | Value | | :----- | :---- | | Employees | Over 2,000 | | Sales-in-Store (FY24/25) | €32.9 billion | | Revenue (FY24/25) | €507.9 million | | Stock Exchange | New York Stock Exchange |

Financial Performance - Total revenue increased by EUR85.6 million, or 20.3%, to EUR507.9 million for the financial year ended March 31, 2025, from EUR422.3 million for the financial year ended March 31, 2024[241]. - Operating profit increased by EUR36.8 million, or 37.5%, to EUR134.7 million for the financial year ended March 31, 2025, from EUR97.9 million for the financial year ended March 31, 2024[240]. - Profit for the period increased by EUR72.6 million, or 347.0%, to EUR93.6 million for the financial year ended March 31, 2025, from EUR20.9 million for the financial year ended March 31, 2024[253]. - Adjusted EBITDA increased by EUR53.7 million to EUR202.4 million for the financial year ended March 31, 2025, compared to EUR148.7 million for 2024, with an adjusted EBITDA margin of 39.8%[260]. - Profit attributable to owners of the parent rose to EUR84.3 million for the financial year ended March 31, 2025, up from EUR14.0 million in 2024, reflecting a 504.3% increase[262]. - Adjusted net income (Group Share) improved by EUR28.0 million, or 104.2%, to EUR54.9 million for the financial year ended March 31, 2025, from EUR26.9 million in 2024[262]. Revenue Segments - TFS Sales in Store (SiS) increased by EUR4.5 billion, or 23.4%, to EUR24.1 billion for the financial year ended March 31, 2025, from EUR19.6 billion for the financial year ended March 31, 2024[236]. - The revenue of the TFS segment increased by EUR72.8 million, or 23.3%, to EUR384.5 million for the financial year ended March 31, 2025, from EUR311.7 million for the financial year ended March 31, 2024[242]. - The revenue of the Payments segment increased by EUR10.2 million, or 12.2%, to EUR93.2 million for the financial year ended March 31, 2025, from EUR83.0 million for the financial year ended March 31, 2024[243]. - Payments SiS increased by EUR0.3 billion, or 4.3%, to EUR6.6 billion for the financial year ended March 31, 2025, from EUR6.3 billion for the financial year ended March 31, 2024[237]. - The revenue of the PPS segment increased by EUR2.7 million, or 9.7%, to EUR30.2 million for the financial year ended March 31, 2025, from EUR27.5 million for the financial year ended March 31, 2024[245]. - Post-Purchase Solutions SiS decreased by EUR0.2 billion, or 9.0%, to EUR2.2 billion for the financial year ended March 31, 2025, from EUR2.4 billion for the financial year ended March 31, 2024[238]. Operating Expenses - Operating expenses increased by EUR48.8 million, or 15.0%, to EUR373.2 million for the financial year ended March 31, 2025, from EUR324.4 million for the financial year ended March 31, 2024[247]. - Total adjusted operating expenses increased by EUR31.9 million, or 11.7%, to EUR305.5 million for the financial year ended March 31, 2025, from EUR273.6 million in 2024[267]. - Variable adjusted operating expenses rose by EUR11.9 million, or 11.9%, to EUR112.3 million for the financial year ended March 31, 2025, driven by increased volumes[268]. - Fixed adjusted operating expenses increased by EUR19.9 million, or 11.5%, to EUR193.2 million for the financial year ended March 31, 2025, primarily due to investments in strategic areas and inflation effects[269]. Cash Flow and Debt - Net cash from operating activities increased to EUR160.9 million for the financial year ended March 31, 2025, up from EUR120.1 million in 2024[282]. - Cash and cash equivalents amounted to EUR123.8 million as of March 31, 2025, with additional available liquidity of EUR101.0 million from credit facilities[278]. - As of March 31, 2025, adjusted net debt was EUR487.7 million, improved from EUR524.3 million in 2024, with net debt at EUR444.5 million[273]. - Global Blue recorded a net working capital inflow of EUR1.2 million for the financial year ended March 31, 2025, reflecting improved cash management[297]. - The company drew down EUR610 million from the Term Loan Facility in December 2023 to fully repay its previous loans[302]. - Global Blue's capital expenditure increased by EUR11.5 million or 29.0% to EUR50.9 million for the financial year ended March 31, 2025[300]. Tax and Regulatory Matters - The adjusted effective tax rate decreased to 33.9% for the financial year ended March 31, 2025, down from 42.6% in 2024, driven by improved interest tax efficiency[265]. - Global Blue may face a Swiss federal withholding tax of 35% on distributions unless made from confirmed capital contribution reserves, which may limit its ability to make dividend distributions[172]. - The company is subject to potential adverse U.S. federal income tax consequences if classified as a passive foreign investment company (PFIC), although it does not expect to be classified as such in the foreseeable future[160]. - Global Blue's ability to repurchase shares for capital reduction may also be subject to 35% Swiss withholding tax, impacting its capital management strategies[174]. Market and Competitive Position - The number of international travelers to Global Blue Tax-Free destinations grew by 9% compared to the financial year ended March 31, 2024[330]. - Average spend-per-traveler increased by approximately 23%, driven by luxury brands' pricing strategies and a skew towards affluent shoppers[331]. - Global Blue is well-positioned to capitalize on the increasing demand for digital and mobile payment solutions[334]. - The company has more than 50 new products in the pipeline aimed at enhancing traveler and merchant experiences[327]. - Global Blue has been granted patents for contactless payments and cross-border currency conversion in several countries, enhancing its competitive position[336]. Shareholder and Governance Matters - Silver Lake beneficially owns approximately 60.9% of Global Blue's ordinary shares, allowing it to exert significant control over the company[163]. - Global Blue is classified as an "emerging growth company," which allows it to take advantage of reduced disclosure and governance requirements, potentially making its shares less attractive to investors[171]. - The company has outstanding Global Blue Warrants to purchase an aggregate of 30,735,950 ordinary shares at a price of $11.50 per share, which may lead to dilution for existing shareholders[175]. - The Company’s ordinary shares rank junior to Series A and Series B Preferred Shares regarding dividends and liquidation payments[177]. - In the event of liquidation, Series A Preferred Shares holders receive the higher of $10.00 per share or the conversion value, while Series B holders receive the higher of $8.50 per share or the conversion value[178]. Risks and Volatility - The trading price of the Company's securities may be volatile and subject to fluctuations due to various market factors[180]. - Factors affecting the trading price include market expectations, operating results, competition, and changes in financial estimates by analysts[181]. - Reports from analysts that differ from actual results could adversely affect the price and trading volume of the Company's ordinary shares[183]. - Global Blue's stock price may experience significant volatility due to various external factors, including economic conditions and negative media coverage[162]. - The Articles of Association may limit the availability of attractive takeover proposals, requiring majority approval for certain transactions[187]. Internal Controls - Effective internal controls are necessary for reliable financial reporting; failure to maintain them could negatively impact the Company's market price[188]. - Undetected material weaknesses in internal controls could lead to financial statement restatements and additional remediation costs[190].

Financial Data and Key Metrics Changes - The Group reported revenue of 131 million Euros, a 20% year-on-year increase driven by solid performance across all divisions [11][49] - Adjusted EBITDA increased by 31% to 52 million Euros, resulting in an adjusted EBITDA margin improvement of 3.4 percentage points to 39.7% [12][58] - Group adjusted net income rose by 58% to 14 million Euros compared to 9 million Euros last year [12][50] Business Line Data and Key Metrics Changes - Tax Free Shopping Solutions accounted for 74% of Group revenue, with revenue growth of 22% to 98 million Euros and completed Sales-in-Stores growth of 21% [13][51] - Payments generated revenue of 25 million Euros, representing a 17% year-on-year increase, outpacing the 8% increase in sales installs [16][54] - Post-Purchase Solutions achieved a 26% year-on-year revenue growth with an 8% increase in contribution [19][57] Market Data and Key Metrics Changes - Sales-in-Store for Tax Free Shopping Solutions increased by 1 billion Euros, an 18% increase [48] - Continental Europe contributed 244 million Euros to Tax Free Shopping Solutions, a 21% increase, while Asia Pacific achieved 47 million Euros, a 43% growth [62] - The Group's net leverage ratio improved to 2.6 times from 3.6 times in December last year [36][75] Company Strategy and Development Direction - The acquisition of Global Blue by Shift4 was announced, with a purchase price of $7.50 per common share, representing a 15% premium [2][4] - The transaction is expected to close in the third quarter of 2025, pending regulatory approval [6][45] - The combination with Shift4 is seen as complementary, enhancing Global Blue's position in Europe and APAC [6][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving full-year guidance of 185 million to 205 million Euros in adjusted EBITDA, expecting to reach the top half of this range [39][76] - The strong performance in the first nine months was highlighted, with a significant 20% increase in revenue [74][75] - Management noted the importance of variable cost optimization contributing to improved margins and net income [11][12] Other Important Information - The Group's net debt decreased by 34 million Euros, reaching 488 million Euros as of December 31, 2024 [36][73] - Adjusted D&A increased by 9 million Euros to 36 million Euros, primarily due to increased amortization of capitalized software [31][69] - The Group's pre-tax unleveraged free cash flow reached 123 million Euros, up from 86 million Euros last year [36][73] Q&A Session Summary Question: What is the outlook for the acquisition by Shift4? - Management is looking forward to the closing of the acquisition in Q3 2025, emphasizing the complementary nature of the two companies [6][45] Question: How does the company plan to achieve its EBITDA guidance? - The company expects to achieve its guidance based on strong revenue growth and high operating leverage observed in recent quarters [39][76]

分组1 - Global Blue Group reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.09 per share, representing an earnings surprise of -33.33% [1] - The company posted revenues of $140.16 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.92%, compared to year-ago revenues of $117.81 million [2] - The current consensus EPS estimate for the coming quarter is $0.04 on $124.75 million in revenues, and for the current fiscal year, it is $0.30 on $518.86 million in revenues [7] 分组2 - The estimate revisions trend for Global Blue Group is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The Financial Transaction Services industry, to which Global Blue Group belongs, is currently in the bottom 49% of the Zacks industries, which may impact stock performance [8] - Another company in the same industry, Payoneer Global Inc., is expected to report quarterly earnings of $0.07 per share, reflecting a year-over-year change of +40% [9]

Financial Performance - Global Blue achieved a TFS Sales in Store (SiS) of EUR6.2 billion for the three months ended December 31, 2024, representing a 20.5% increase from EUR5.1 billion in the same period of 2023[29]. - Total revenue increased by EUR22.0 million or 20.1% to EUR131.4 million for the three months ended December 31, 2024, compared to EUR109.4 million for the same period in 2023[36]. - Payments SiS rose by EUR0.1 billion or 8.2% to EUR1.7 billion for the three months ended December 31, 2024, up from EUR1.6 billion in the same period of 2023[30]. - The revenue from the TFS segment increased by EUR17.4 million or 21.7% to EUR97.8 million for the three months ended December 31, 2024, compared to EUR80.3 million in the same period of 2023[37]. - The company reported a profit before tax of EUR46.1 million for the three months ended December 31, 2024, compared to EUR23.5 million in the same period of 2023[35]. - Profit for the period increased by EUR19.0 million, or 128.1%, to EUR33.9 million for the three months ended December 31, 2024, compared to EUR14.9 million for the same period in 2023[59]. - Adjusted EBITDA rose by EUR12.4 million, or 31.2%, to EUR52.2 million for the three months ended December 31, 2024, from EUR39.8 million in the prior year[62]. - Revenue for the three months ended December 31, 2024, increased to €131,387 thousand, up 20.1% from €109,406 thousand in 2023[135]. - Operating profit for the nine months ended December 31, 2024, rose to €101,623 thousand, a 20.5% increase compared to €84,362 thousand in 2023[135]. - Profit for the period for the three months ended December 31, 2024, was €33,883 thousand, compared to €14,854 thousand in 2023, representing a growth of 128.5%[138]. - Profit before tax for the nine months ended December 31, 2024, was €114,035 thousand, significantly higher than €47,788 thousand in 2023, indicating a growth of 138.5%[144]. - Total comprehensive income for the period was €73,743 thousand for the nine months ended December 31, 2024, compared to €23,838 thousand in 2023, reflecting a growth of 76.5%[138]. Operating Expenses - Operating expenses rose by EUR24.3 million, or 32.9%, to EUR98.2 million for the three months ended December 31, 2024, from EUR73.9 million in the prior year[42]. - Total operating expenses for the nine months ended December 31, 2024, were EUR 279.5 million, compared to EUR 232.7 million for the same period in 2023, reflecting a year-over-year increase of 20.0%[173]. - Fixed costs for the nine months ended December 31, 2024, amounted to EUR 144.0 million, up from EUR 128.9 million in the same period of 2023, representing a 11.8% increase[172]. - Personnel costs for the nine months ended December 31, 2024, were EUR 93.7 million, compared to EUR 84.8 million in the same period of 2023, reflecting a 10.5% increase[172]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, were EUR 121.8 million, an increase from EUR 101.4 million at the end of Q3 2023[81]. - Net cash from operating activities for the nine months ended December 31, 2024, was EUR 133.5 million, compared to EUR 101.1 million for the same period in 2023[83]. - Net cash used in investing activities for the nine months ended December 31, 2024, was EUR 32.1 million, primarily for intangible assets[86]. - Net cash used in financing activities for the nine months ended December 31, 2024, was EUR 68.2 million, mainly due to interest payments of EUR 41.1 million[88]. - Global Blue recorded a net working capital inflow of EUR15.7 million for the nine months ended December 31, 2024, compared to EUR6.1 million for the same period in 2023, reflecting a decrease in trade receivables and an increase in trade payables[95]. - The company had additional available liquidity of EUR 101.0 million as of December 31, 2024, consisting of a Revolving Credit Facility of EUR 97.5 million[78]. Debt and Financing - Adjusted Net Debt as of December 31, 2024, was EUR (489.6) million, an improvement from EUR (524.4) million as of March 31, 2024[71]. - As of December 31, 2024, total interest-bearing loans and borrowings amounted to EUR531.9 million, down from EUR588.9 million as of March 31, 2024[125]. - Global Blue entered into a new Senior Facilities Agreement on November 24, 2023, consisting of a EUR610.0 million term loan and a EUR97.5 million multicurrency revolving credit facility[100]. - The interest rate margin for the Facility B was reduced by 100 basis points in May 2024 and further reduced in November 2024, with the current margin at 3.25% for leverage above 2.00:1[109][111]. - The Group extinguished a Supplemental Liquidity Facility on December 15, 2023, by repaying the full amount of USD75.0 million (EUR70.1 million)[103]. - The Group successfully completed two repricings of its term loan facility, reducing the interest rate margin by a total of 100 basis points, resulting in a gain of EUR 55.9 million recognized in the income statements[211]. Taxation - Income tax expense increased by EUR3.6 million, or 41.7%, to EUR12.3 million for the three months ended December 31, 2024, compared to EUR8.6 million for the same period in 2023[58]. - Income tax expense for the nine months ended December 31, 2024, was EUR 35.2 million, compared to EUR 21.5 million in the same period of 2023, reflecting an increase of 63.8%[183]. - The adjusted effective tax rate decreased to 34.9% for Q3 2024 from 38.9% in Q3 2023, reflecting improved interest tax efficiency[67]. Shareholder Activities - The company issued 1,101,176 series B preference shares during the nine months ended December 31, 2024, compared to 847,059 in the same period of 2023[189]. - The treasury shares increased to 10,951.9 thousand shares as of December 31, 2024, from 10,446.7 thousand shares at the end of Q3 2023, reflecting ongoing buy-back activities[192]. - The company approved a share repurchase program of up to USD 15 million, with 505,155 ordinary shares acquired in Q3 2024[193]. Segment Performance - The TFS segment generated revenue of EUR 290.8 million for the nine months ended December 31, 2024, up from EUR 235.2 million in the prior year, marking a 23.6% growth[169][171]. - The Payments segment reported revenue of EUR 68.8 million for the nine months ended December 31, 2024, compared to EUR 61.3 million in the prior year, a growth of 12.2%[169][171]. - The PPS segment generated revenue of EUR 21.5 million for the nine months ended December 31, 2024, compared to EUR 20.6 million in the same period of 2023, showing a slight increase of 4.4%[169][171]. Other Financial Metrics - Depreciation and amortization increased by EUR3.2 million, or 30.3%, to EUR14.0 million for the three months ended December 31, 2024, from EUR10.8 million in the previous year[44]. - Net finance income increased by EUR24.9 million, or 207.9%, to an income of EUR12.9 million for the three months ended December 31, 2024, from an expense of EUR12.0 million in the previous year[56]. - Employee benefit expenses increased to EUR 41.5 million for Q3 2024, up from EUR 37.3 million in Q3 2023, driven by an increase in average employees from 1,914 to 2,119[174]. - The total fair value of financial liabilities measured at fair value as of December 31, 2024 was EUR 6.8 million, with EUR 3.2 million classified under Level 3 of the fair value hierarchy[214].