Birkenstock plc(US:BIRK)2025-08-14 10:03Revenue Performance - Revenue for the three months ended June 30, 2025, was €635.0 million, an increase of 12% on a reported basis and 16% in constant currency compared to the same period in 2024[111]. - The Americas segment accounted for 49% of revenue, while EMEA represented 41% for the three months ended June 30, 2025[102]. - DTC revenue grew by 9% on a reported basis and 12% in constant currency, while B2B revenue increased by 15% on a reported basis and 18% in constant currency[111]. - The APAC segment showed significant growth potential, with reported revenue growth of 21% on a reported basis and 24% in constant currency for the three months ended June 30, 2025[111]. - Revenue from the Americas segment for the three months ended June 30, 2025, was €312,266 thousand, a 10% increase from €282,865 thousand in 2024[123]. - APAC revenue grew by 21% to €63,178 thousand in the three months ended June 30, 2025, compared to €52,044 thousand in 2024[123]. - Revenue for the nine months ended June 30, 2025 increased by €222.2 million, or 16%, to €1,571.1 million, with strong growth in the APAC segment at 31%[160]. Profitability Metrics - Net profit reached €129.2 million, a 73% increase from €74.6 million, with EPS rising to €0.69, up 75% from €0.40[119]. - Adjusted EBITDA was €218.3 million, reflecting a 17% year-over-year increase, with an adjusted EBITDA margin of 34.4%, up 140 basis points from the previous year[119]. - Adjusted net profit for the same period was €116,025 thousand, up from €91,870 thousand in 2024, leading to an adjusted net profit margin of 18.3%[129]. - Net profit for the three months ended June 30, 2025 increased by €54.6 million, or 73%, to €129.2 million[157]. - Adjusted EBITDA for Q3 2025 increased by €31.9 million, or 17%, to €218.3 million, with an adjusted EBITDA margin of 34.4%, up from 33.0% in Q3 2024[181]. - Net profit for Q3 2025 improved by €54.6 million to €129.2 million, with a net profit margin of 20.3%, up from 13.2% in Q3 2024[179]. Cost and Expenses - Gross profit margin improved to 60.5%, up 100 basis points from 59.5% in the same period last year, driven by sales price adjustments and better absorption of new manufacturing capacity[111]. - Cost of sales for the three months ended June 30, 2025 increased by €22.1 million, or 10%, to €251.0 million, primarily due to an increase in the number of footwear pairs sold[164]. - Selling and distribution expenses for the three months ended June 30, 2025 increased by €13.6 million, or 9%, to €162.8 million, driven by online revenue growth and retail expansion[169]. - General and administrative expenses for the three months ended June 30, 2025 increased by €5.6 million, or 20%, to €33.0 million, reflecting growth as a publicly traded company[152]. - Income tax expense for Q3 2025 increased by €14.2 million, or 39%, to €50.5 million, driven by higher taxable income in Germany and the United States[177]. Cash Flow and Financing - Cash flows from operating activities totaled €260.6 million, although operating cash flow decreased by €20.9 million year-over-year due to tax payment timing and working capital development[119]. - Cash flows used in investing activities for Q2 2025 were €21.1 million, an increase of €3.9 million from Q2 2024, primarily due to higher property, plant, and equipment purchases[203]. - Cash flows used in financing activities for Q2 2025 were €210.1 million, significantly higher than €35.8 million in Q2 2024, mainly due to share repurchases of €176.4 million[205]. - As of June 30, 2025, total loans and borrowings amounted to €1,181.7 million, slightly down from €1,194.6 million in 2024[208]. - The company expects to finance its operations and working capital needs for the next 12 months from cash generated through operations[195]. Market and Operational Risks - The company is exposed to market risks primarily associated with foreign exchange and interest rate fluctuations[211]. - The company faces intense competition from both established companies and new market entrants[218]. - The company aims to execute its direct-to-consumer (DTC) growth strategy while managing risks related to its e-commerce platforms[218]. - The company is dependent on the reputation of the BIRKENSTOCK brand, which is crucial for maintaining market share[218]. - The company has identified risks related to the expansion of retail stores and the management of leased and owned real estate[218]. - The company is focused on adapting to changes in consumer preferences to attract new customers[218]. - The company faces potential losses from counterfeit products affecting its brand and market share[218]. - The company is subject to risks related to global health events that could impact operations[218]. - The company must manage relationships with major wholesale partners to avoid deterioration or termination[218]. - The company is aware of the economic conditions impacting consumer spending, including inflation and trade policy actions[220].