Birkenstock plc(US:BIRK)2024-02-29 11:23Revenue Performance - Revenue for the three months ended December 31, 2023, was €302.9 million, representing a 22% increase year-over-year and a 26% increase on a constant currency basis[53]. - Revenue growth by region included 19% in the Americas, 33% in Europe, and 51% in the APMA segment on a constant currency basis[53]. - Revenue increased by €54.4 million, or 22%, to €302.9 million for the three months ended December 31, 2023, compared to €248.5 million in 2022, with strong demand across all product categories and segments[78]. - Revenue from the B2B channel rose by €22.6 million, or 19%, to €140.4 million, driven by strong growth across all regions[81]. - Revenue from the DTC channel increased by €31.2 million, or 24%, to €160.7 million, attributed to growth in APMA and higher average order values[81]. - Revenue for the Americas segment increased by €21.7 million, or 14%, to €181.5 million, driven by strong sales in the DTC channel[95]. - Revenue for the APMA segment increased by €12.6 million, or 47%, to €39.5 million, supported by new retail store openings and strong online sales[95]. Profitability Metrics - Gross profit margin was 61.0%, a slight decrease from 61.7% due to unfavorable currency translation and temporary under-absorption from ongoing capacity expansion[53]. - Adjusted EBITDA grew by 12% from €72.4 million to €81.4 million, with an adjusted EBITDA margin of 26.9%, down from 29.1%[53]. - Adjusted profit before tax was €32.6 million, an increase from €26.9 million, with an adjusted profit before tax margin of 10.8%[64]. - Adjusted net profit for the three months ended December 31, 2023, was €16.7 million, down from €26.5 million in 2022, reflecting a margin decrease from 10.7% to 5.5%[66]. - Profit from operations for the three months ended December 31, 2023, was €35.6 million, a substantial increase of 150% compared to €14.2 million in 2022[77]. - Net loss for the three months ended December 31, 2023 decreased by €2.0 million, or 22%, to €7.2 million, with a net loss margin of 2.4%[90]. - Adjusted earnings per share for the quarter were €0.09, down from €0.15 in 2022, reflecting the overall decline in profitability[69]. Expenses and Cost Management - Cost of sales rose by 24% to €118.1 million, up from €95.2 million in the same period last year, contributing to a gross profit of €184.9 million, a 21% increase[77]. - Selling and distribution expenses increased by 20% to €103.5 million, while general administrative expenses surged by 55% to €34.4 million[77]. - Selling and distribution expenses rose by €17.4 million, or 20%, to €103.5 million, primarily due to higher fulfillment costs associated with increased DTC penetration[84]. - General administration expenses increased by €12.3 million, or 55%, to €34.4 million, driven by one-time IPO costs and increased personnel expenses[86]. Cash Flow and Financing - Cash flows used in operating activities for Q4 2023 were €45.4 million, an improvement from €53.2 million in Q4 2022[99]. - Cash flows used in investing activities decreased to €8.6 million from €25.9 million year-over-year, due to reduced capital expenditures[101]. - Cash flows used in financing activities increased significantly to €119.8 million, driven by loan repayments of €522.5 million[101]. - Total cash and cash equivalents decreased by €173.8 million in Q4 2023 compared to a decrease of €128.3 million in Q4 2022[99]. - As of December 31, 2023, total loans and borrowings amounted to €1,316.2 million, down from €1,853.0 million as of September 30, 2023[102]. - The company made early repayments of €100.0 million on its Vendor Loan and $450.0 million on its USD TLB Facility during Q4 2023[101]. - Interest payable as of December 31, 2023, was €20.4 million, down from €30.0 million as of September 30, 2023[102]. Strategic Initiatives - The company completed its IPO in October 2023, raising $473.6 million, which was used to repay €100 million of a Vendor Loan and $450 million of borrowings under the USD TLB Facility[52]. - The company operates a multi-channel distribution strategy, optimizing growth and profitability through both DTC and B2B channels[50]. - The company maintains a selective wholesale strategy, creating scarcity in the market and obtaining favorable economic terms on wholesale distribution[52]. - The company anticipates continued growth driven by expanding its DTC and B2B channels, alongside ongoing product innovation and market expansion strategies[78]. - The company is focused on executing its direct-to-consumer growth strategy and expanding retail stores, while managing competition and consumer preferences[106]. Market Risks and Forward-Looking Statements - The company faces market risks including foreign currency risk, interest rate risk, and credit risk, which could impact financial performance[101]. - Forward-looking statements indicate potential risks including economic conditions, supply chain disruptions, and regulatory matters that could affect future performance[106].