Global Blue AG(GB) - 2025 Q4 - Annual Report

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].