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Global Blue Group Holding AG (GB) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Th ...

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].

Group 1 - Global Blue Group's shares increased by 17.5% to close at $7.32, following a notable trading volume, contrasting with a 14.7% loss over the past four weeks [1][2] - The stock price rise is linked to the acquisition announcement by Shift4, which is expected to close by Q3 2025, creating a global leader in commerce and payment technologies across over 50 countries [2] - Shift4 will finance the acquisition with cash and a $1.8 billion bridge loan [2] Group 2 - Global Blue Group holds approximately 70% market share in tax-free shopping and has a strong presence in more than 50 countries [3] - The company utilizes a proprietary cloud-based technology platform for seamless payments and transaction processing, maintaining long-standing relationships with top-tier merchants [3] - The upcoming quarterly earnings are expected to be $0.09 per share, reflecting a year-over-year increase of 125%, with revenues projected at $133.59 million, up 13.4% from the previous year [4] Group 3 - The consensus EPS estimate for Global Blue Group has been revised 20% lower over the last 30 days, indicating a negative trend in earnings estimate revisions [5] - Despite the recent stock price jump, a negative trend in earnings estimate revisions typically does not lead to price appreciation [5] - Global Blue Group is part of the Zacks Financial Transaction Services industry, with Repay Holdings being another stock in the same sector, which has shown a decline of 0.8% over the past month [5][6]

Financial Performance - H1 revenue increased by 20% to €250 million, with adjusted EBITDA rising 36% to €102 million [2][11] - Adjusted EBITDA margin improved by 4.6 points to 40.7%, with a 64% drop-through from revenue to EBITDA [2][11] - Q2 revenue grew 17% to €132 million, with adjusted EBITDA up 25% to €58.7 million and a margin improvement of nearly 3 points to 44.5% [5][10] - Net income for H1 increased 66% to €27 million, while Q2 net income rose to €21 million from €14 million last year [5][11] Business Line Performance Tax Free Shopping Solutions (TFS) - TFS accounted for 77% of group revenue in Q2, with revenue growth of 18% to €102 million and sales-in-store growth of 15% [6] - H1 TFS revenue increased 25% to €193 million, with sales-in-store growth of 27% [12] - Contribution margin for TFS remained strong at 86% in Q2 and 85% in H1 [6][12] Payments - Payments revenue grew 16% in Q2 to €23.4 million, outpacing sales-in-store growth of 9% [7] - H1 Payments revenue increased 12% to €43.7 million, driven by higher margin on treasury gains [13] - FX solutions contributed €12 million in Q2 with a 96% margin, while acquiring contributed €1 million with a 10% margin [8] Post-Purchase Solutions - Post-Purchase Solutions revenue declined 1% in Q2 to €6.7 million, with flat contribution growth at €4 million [9] - H1 revenue for this segment fell 6% to €13 million, though contribution growth improved by 7% [14] Market Performance - Europe saw a 12% increase in sales-in-store in October, with Italy and Spain remaining strong, while France recovered to pre-Olympics levels [25] - APAC growth slowed to 29% in October from 40% in Q2, primarily due to Japan's performance [27] - Mainland China contributed 36% of APAC business, with a 50% growth in October, aligning with Q2 figures [27] Strategic Direction and Industry Competition - The company has adapted its financial guidance for FY24-25 to €185 million - €205 million, reflecting strong travel industry trends and management initiatives [28][29] - Investments in new markets, Japan's regulatory changes, and payment solutions are expected to drive future growth [30][31][32] - Long-term targets include 8%-12% revenue growth, 50% drop-through, and a net leverage ratio below 2.5x [33] Management Commentary on Operating Environment and Outlook - The company remains resilient to inflation and recession risks, benefiting from its exposure to high-net-worth individuals and affluent networks [34][35] - The luxury market slowdown has not significantly impacted Global Blue, thanks to its strong positioning in the high-end segment [29] - The company is accelerating investments in future growth drivers, including new country expansions and Japan's regulatory changes [30][31] Other Key Information - Share buyback program increased from $10 million to $15 million, extended until November 2025 [2] - Net debt stood at €516 million, with a net leverage ratio of 2.9x, down from 4.5x last year [21][22] - CapEx for H1 was €26 million, primarily related to technology development [20] Q&A Summary - No specific questions or answers were provided in the transcript [37]

Financial Update Q2 & H1 FY24/25 November 22nd, 2024 Global Blue Disclaimer Forward Looking Statements. This presentation (this "Presentation") 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 Group Holding AG's ("Global Blue", "we" or "us") or its management's expectations, hopes, beliefs, in ...

分组1 - Global Blue Group reported quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.11 per share, but showing an increase from $0.08 per share a year ago, resulting in an earnings surprise of -9.09% [1] - The company posted revenues of $145.03 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 6.69%, compared to $123.18 million in the same quarter last year [2] - Global Blue Group shares have increased approximately 32.1% year-to-date, outperforming the S&P 500's gain of 24.7% [3] 分组2 - The earnings outlook for Global Blue Group is uncertain, with current consensus EPS estimates at $0.13 for the upcoming quarter and $0.38 for the current fiscal year, alongside revenues of $129.81 million and $516.22 million respectively [7] - The Zacks Rank for Global Blue Group is currently 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions [6] - The Financial Transaction Services industry, to which Global Blue Group belongs, is currently in the top 33% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]