Global Blue AG(GB) - 2025 Q2 - Quarterly Report

Market Position and Operations - Global Blue holds approximately 70% market share in the tax-free shopping segment, significantly larger than its next competitor[16]. - The company operates in over 50 countries, facilitating millions of transactions and providing VAT refunds to international shoppers[16]. Sales and Revenue Growth - Total Sales in Store (SiS) for the three months ended September 30, 2024, reached EUR 8.3 billion, a 13.7% increase from EUR 7.3 billion in the same period of 2023[22]. - Tax-Free Shopping (TFS) SiS increased by EUR 0.8 billion, or 15.2%, to EUR 6.1 billion for the three months ended September 30, 2024, compared to EUR 5.3 billion in 2023[23]. - Payments SiS rose by EUR 0.1 billion, or 9.0%, to EUR 1.7 billion for the three months ended September 30, 2024, from EUR 1.6 billion in 2023[24]. - Post-Purchase Solutions (PPS) SiS increased by EUR 0.1 billion, or 18.0%, to EUR 0.5 billion for the three months ended September 30, 2024, compared to EUR 0.4 billion in 2023[25]. - For the six months ended September 30, 2024, Total SiS was EUR 16.4 billion, up 21.5% from EUR 13.5 billion in the same period of 2023[22]. - Revenue increased by EUR 18.8 million, or 16.6%, to EUR 132.0 million for the three months ended September 30, 2024, compared to EUR 113.2 million for the same period in 2023[30]. - TFS revenue rose by EUR 15.7 million, or 18.2%, to EUR 101.9 million for the three months ended September 30, 2024, from EUR 86.2 million in the prior year[30]. - Payments revenue increased by EUR 3.2 million, or 15.6%, to EUR 23.4 million for the three months ended September 30, 2024, compared to EUR 20.2 million for the same period in 2023[30]. - For the six months ended September 30, 2024, total revenue reached EUR 249.7 million, a 20.2% increase from EUR 207.7 million in the same period of 2023[132]. Profitability and Financial Performance - Profit for the period increased to EUR 16.6 million for the three months ended September 30, 2024, compared to EUR 1.8 million in the same period last year[30]. - Operating profit rose by EUR 17.2 million, or 70.2%, to EUR 41.7 million for the three months ended September 30, 2024, from EUR 24.5 million in the previous year[30]. - Profit for the period increased by EUR 14.8 million, or 829.1%, to EUR 16.6 million for the three months ended September 30, 2024, compared to EUR 1.8 million for the same period in 2023[44]. - Adjusted EBITDA rose by EUR 11.6 million, or 24.5%, to EUR 58.7 million for the three months ended September 30, 2024, from EUR 47.2 million for the same period in 2023[46]. - Adjusted EBITDA for the six months ended September 30, 2024, increased by EUR 26.8 million, or 35.7%, to EUR 101.7 million from EUR 75.0 million for the same period in 2023[46]. - Operating profit for the six months ended September 30, 2024, was EUR 68.43 million, up 40.2% from EUR 48.86 million in the prior year[99]. - Profit before tax for the six months ended September 30, 2024, was EUR 66,276 thousand, compared to EUR 24,286 thousand in the same period of 2023, an increase of 173%[112]. Expenses and Costs - Operating expenses increased by EUR 1.6 million, or 1.8%, to EUR 90.3 million for the three months ended September 30, 2024, from EUR 88.7 million in the previous year[33]. - Adjusted operating expenses rose by EUR 7.2 million, or 10.9%, to EUR 73.2 million for the three months ended September 30, 2024, compared to EUR 66.0 million for the same period in 2023[37]. - Total operating expenses for the six months ended September 30, 2024, were EUR 181,288 thousand, up from EUR 158,797 thousand in the same period of 2023[135]. - Fixed costs for the six months ended September 30, 2024, amounted to EUR 94.8 million, an increase from EUR 84.5 million in the same period of 2023[134]. Cash Flow and Liquidity - For the six months ended September 30, 2024, net cash from operating activities was EUR 63.6 million, compared to EUR 27.0 million for the same period in 2023, reflecting significant operational inflows[59]. - Net cash used in investing activities was EUR 23.6 million for the six months ended September 30, 2024, primarily driven by an outflow of EUR 22.2 million for intangible assets[61]. - Net cash used in financing activities was EUR 33.4 million for the six months ended September 30, 2024, mainly related to interest paid of EUR 16.5 million[65]. - As of September 30, 2024, the Group had cash and cash equivalents of EUR 94.4 million, with additional available liquidity of EUR 101.0 million from a Revolving Credit Facility[58]. - The company believes its cash and cash equivalents, combined with additional available liquidity, are sufficient to meet liquidity needs for at least the next 12 months[58]. Debt and Financing - Global Blue drew down EUR 610.0 million from the Term Loan Facility to fully repay its senior secured term loan and revolver facilities[75]. - As of September 30, 2024, total interest-bearing loans and borrowings amounted to EUR 561.6 million, a decrease from EUR 588.9 million as of March 31, 2024[91]. - The interest rate margin for Facility B was reduced by 100 basis points to a maximum of 4.00% following a successful repricing in May 2024[80]. - The Facility B has a maturity date of December 5, 2030, while the Revolving Credit Facility matures on June 5, 2030[77]. - The Group entered into an Interest Rate Swap for EUR 305.0 million of Facility B, fixing the rate at 2.778% for two years starting January 5, 2024[84]. - The financial covenant associated with the senior term debt requires a Total Net Leverage lower than 8.00x[93]. Shareholder and Equity Information - Global Blue's Board of Directors authorized a share repurchase program of up to USD 10.0 million, with 126,610 shares repurchased for USD 0.6 million during the three months ended September 30, 2024[17]. - The Amended Repurchase Program increased to USD 15.0 million and extended for an additional 9 months until November 30, 2025[17]. - The company issued 1,101,176 series B preference shares during the six months ended September 30, 2024, compared to 847,059 in the same period of 2023[144]. - The closing balance of issued shares as of September 30, 2024, was 251,126,874, an increase from 240,087,730 as of September 30, 2023[144]. - The total number of ordinary shares as of September 30, 2024, was 10,446,467, with a total of 10,446,703 shares including preference shares A[146]. Employee and Operational Metrics - Employee benefit expenses increased from EUR 35,967 thousand in Q3 2023 to EUR 40,468 thousand in Q3 2024, reflecting a rise in the average number of employees from 1,907 to 2,038[137]. - Depreciation and amortization expenses rose to EUR 13,605 thousand in Q3 2024 from EUR 9,998 thousand in Q3 2023, primarily due to increased depreciation of right-of-use assets[137]. - The company maintained a similar level of material merchants and acquirers compared to March 31, 2024, indicating stability in its business operations[126]. Fair Value and Financial Instruments - The Group recognized a fair value loss of EUR 1.4 million associated with warrant liabilities during the six months ended September 30, 2024[167]. - The Group reported a fair value loss of EUR 5.0 million under other comprehensive income for the six months ended September 30, 2024, related to two equity investments[169]. - The fair value of financial instruments not traded in an active market is determined using valuation techniques that maximize observable market data[166].