Birkenstock plc(US:BIRK)2025-05-15 10:05Revenue Growth - Revenue for the three months ended March 31, 2025, was €574.3 million, representing a 19% increase on a reported basis and 18% in constant currency compared to the same period in 2024[107]. - Strong revenue growth was observed across all segments: 23% in the Americas, 12% in EMEA, and 30% in APAC for the three months ended March 31, 2025[107]. - B2B revenue growth was 19% on a reported basis and 18% in constant currency for the three months ended March 31, 2025[107]. - DTC revenue also grew by 19% on a reported basis and 17% in constant currency during the same period[107]. - Revenue for the three months ended March 31, 2025 increased by €93.1 million, or 19%, to €574.3 million from €481.2 million for the same period in 2024, with strong growth in the APAC segment at 30%[159]. - Revenue for the six months ended March 31, 2025 increased by €151.9 million, or 19%, to €936.0 million from €784.2 million for the same period in 2024, with APAC segment growth at 38%[160]. - Revenue contribution by segments for the three months ended March 31, 2025, was 54% from the Americas, 37% from EMEA, and 8% from APAC[140]. - Revenue for the Americas segment for the three months ended March 31, 2025 increased by €58.5 million, or 23%, to €312.5 million, driven by growth in both B2B and DTC channels[186]. - Revenue for the EMEA segment for the three months ended March 31, 2025 increased by €23.3 million, or 12%, to €212.8 million, supported by growth in both number of pairs sold and ASP[187]. - Revenue for the APAC segment for the three months ended March 31, 2025 increased by €11.1 million, or 30%, to €47.8 million, driven by growth in both number of pairs sold and ASP[188]. Profitability - Net profit increased by 47% to €105.1 million, with earnings per share (EPS) rising to €0.56, also up 47% from €0.38[107]. - Adjusted EBITDA for the three months ended March 31, 2025, was €200.1 million, a 23% year-over-year increase, with an adjusted EBITDA margin of 34.8%, up 110 basis points from the previous year[107]. - Adjusted net profit margin improved to 17.9% for the three months ended March 31, 2025, compared to 16.0% in 2024[123]. - Adjusted earnings per share (EPS) for the three months ended March 31, 2025, was €0.55, an increase from €0.41 in 2024[129]. - Net profit for the three months ended March 31, 2025, was €105,113 thousand, a 47% increase from €71,652 thousand in the same period of 2024[120]. - Adjusted EBITDA for the three months ended March 31, 2025, was €200,065 thousand, up 23% from €162,296 thousand in 2024[120]. - Net profit for the three months ended March 31, 2025 increased by €33.5 million, or 47%, to €105.1 million, and for the six months, it increased by €60.7 million, or 94%, to €125.2 million[157]. - Adjusted EBITDA in the EMEA segment for the three months ended March 31, 2025 increased by €18.4 million, or 29%, to €81.1 million, with an adjusted EBITDA margin expanding to 38.1% from 33.1%[192]. - Adjusted EBITDA in the APAC segment for the three months ended March 31, 2025 increased by €7.3 million, or 73%, to €17.3 million, with an adjusted EBITDA margin expanding to 36.2% from 27.2%[193]. Costs and Expenses - Gross profit margin improved to 57.7%, up 140 basis points from 56.3% in the second quarter of fiscal 2024, driven by sales price adjustments and better absorption of new manufacturing capacity[107]. - Cost of sales primarily includes raw materials, personnel costs, and overhead, impacting gross profit margins[147]. - Selling and distribution expenses for the three months ended March 31, 2025 increased by €13.3 million, or 12%, to €126.5 million, driven by DTC revenue growth[169]. - General and administrative expenses for the three months ended March 31, 2025 increased by €12.5 million, or 62%, to €32.4 million, primarily due to reclassifications and higher IT and legal expenses[170]. - Finance cost, net for the three months ended March 31, 2025 decreased by €1.8 million, or 6%, to €25.6 million, attributed to lower interest expenses from early repayments[175]. - Cost of sales for the three months ended March 31, 2025 increased by €32.7 million, or 16%, to €242.8 million, driven by an increase in units sold and a higher share of premium products[164]. Cash Flow and Debt - Cash flows used in operating activities were €18.3 million, with operating cash flow down €68.2 million year-over-year, primarily due to the timing of tax payments[107]. - Cash flows used in operating activities for Q1 2025 were €(18.3) million, driven by net profit of €105.1 million and cash outflows from working capital of €150.3 million[198]. - Cash flows used in investing activities for Q1 2025 were €21.0 million, an increase of €3.4 million compared to €17.6 million in Q1 2024, primarily due to increased purchases of property, plant, and equipment[202]. - Cash flows used in financing activities for Q1 2025 were €23.0 million, a decrease from €26.3 million in Q1 2024, mainly due to reduced cash interest paid[204][205]. - Cash flows used in operating activities for the six months ended March 31, 2025 were €(29.9) million, driven by net profit of €125.2 million and cash outflows from working capital of €218.0 million[200]. - Cash flows used in investing activities for the six months ended March 31, 2025 were €36.0 million, an increase of €9.7 million compared to €26.3 million in the same period of 2024[203]. - Cash flows used in financing activities for the six months ended March 31, 2025 were €56.0 million, significantly lower than €146.1 million in the same period of 2024, primarily due to lower loan repayments[206]. - Net debt as of March 31, 2025, was €1,133,547 thousand, compared to €1,006,085 thousand as of September 30, 2024[136]. - Net leverage remained stable at 1.8x as of March 31, 2025, reflecting an increase in adjusted EBITDA[135]. - The USD Term Loan increased to €162.3 million as of March 31, 2025, reflecting changes in the EUR/USD exchange rate[209]. Risks and Challenges - The company is facing increased geopolitical and macroeconomic uncertainty due to tariffs imposed by the U.S. administration, which could adversely affect consumer behavior and demand[106]. - The company faces intense competition from both established firms and new market entrants, impacting its market position[217]. - There are risks associated with the company's direct-to-consumer (DTC) growth strategy and e-commerce platforms[217]. - The company is dependent on the image and reputation of the BIRKENSTOCK brand, which is crucial for maintaining market share[217]. - The company must adapt to changing consumer preferences to attract new customers effectively[217]. - Operational challenges related to product distribution could affect overall performance[220]. - Economic conditions, such as inflation and consumer sentiment, may impact consumer spending and sales[220]. - The company is exposed to risks related to currency exchange rate fluctuations, which could affect financial results[220]. - There are potential risks associated with the management of acquisitions and strategic initiatives[217]. - The company must manage its inventory effectively to avoid losses and liabilities[220]. - The company is subject to various risks related to regulations governing personal data processing and potential security breaches[220].