Birkenstock plc(US:BIRK)2025-12-18 11:01Customer Concentration - As of September 30, 2025, one customer, Birkenstock Australia Pty. Ltd., accounted for 14% of the Company's consolidated accounts receivables balance, which was settled upon acquisition[444]. Foreign Exchange Impact - The Company experienced a foreign exchange loss from currency translation of €2.0 million for the year ended September 30, 2025, compared to €19.6 million for the year ended September 30, 2024[448]. - In fiscal 2025, revenues would have been €27.8 million higher if foreign exchange rates from the prior year had been applied[467]. Revenue and Profitability - In fiscal 2025, USD-denominated revenues were $1,062.3 million, and a 10% depreciation of the USD against the Euro would result in lower revenues of €87.3 million and lower adjusted EBITDA of €59.5 million[450]. - A one hundred basis points increase in market interest rates would negatively affect net profit by €5.4 million for the year ended September 30, 2025[452]. - Cost of sales increased by €113.7 million, or 15%, to €857.7 million in fiscal 2025, primarily due to an increase in the number of units sold and a higher share of closed-toe silhouettes[465]. - The Americas accounted for 52% of revenues in fiscal 2025, while EMEA accounted for 37% and APAC represented 11%[461]. Strategic Initiatives - The Company plans to continue investing in product innovation and the development of new silhouettes and product categories to deepen its product reach[459]. - The Company intends to leverage its engineered distribution model to expand in existing geographies and enter new markets[463]. Credit Risk Management - The Company has credit insurance agreements in Spain, Canada, and the US to mitigate credit risk exposure[445]. Taxation and Accounting - The Company forecasts future taxable income by legal entity to determine the amount of the deferred tax asset that can be recognized[473]. - Financial forecasts used for projections are approved by the board of directors and consider statutory tax rates[473]. - Significant judgment is applied in identifying uncertainties over income tax treatments and adjusting uncertain tax provisions accordingly[473]. - Tax and other provisions are established for recognizable risks and uncertain liabilities, measured at the settlement amount required[473]. - Recent accounting standards may potentially impact the Company's financial position and results of operations[474].