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

Executive Summary This section provides a high-level overview of Global Blue's strong financial performance and the Shift4 acquisition Overall Performance Highlights 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] - 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] 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 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] - On February 16, 2025, Global Blue and Shift4 entered into a definitive agreement for Shift4 to acquire 100% of Global Blue shares[10] 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] Financial Performance This section details Global Blue's Q4 and FY24/25 financial results, including revenue, EBITDA, and cash flow Q4 FY24/25 Performance 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) 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] - Payments revenue growth was predominantly driven by pricing increases, outperforming nearly flat Sales-in-Store performance[16] Contribution (Q4) 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] Adjusted EBITDA (Q4) 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] FY24/25 Performance 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) 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] - Payments revenue growth was ahead of the 4% growth in Sales-in-Store, driven by increased margin on treasury gains and pricing evolution[21] Contribution (FY) 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] Adjusted EBITDA (FY) 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] Adjusted Profit before Tax (FY) 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] Cash Flow, Balance Sheet, and Net Debt 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][27] Financial Reconciliations and Definitions This section provides detailed reconciliations for key financial metrics and definitions of non-IFRS measures Adjusted EBITDA Reconciliation 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] Free Cash Flow Reconciliation 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 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 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] - Net Leverage refers to Net Debt divided by the last 12 months Adjusted EBITDA[29] - Contribution refers to revenue less variable costs[29] - Sales-in-Store refers to the Issued Sales-In-Store (Spend), like-for-like (at constant merchant scope and exchange rates)[29] Additional Information This section provides details on accessing further company information, disclaimers, and Global Blue's business overview Webcast and Annual Report 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] - 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] Non-IFRS Measures and Forward-Looking Statements 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] - 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] About Global Blue 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] - 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] 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 |