Global Blue AG(GB)2024-11-22 21:39Financial Performance - H1 revenue increased by 20% to €250 million, with adjusted EBITDA rising 36% to €102 million [2][11] - Adjusted EBITDA margin improved by 4.6 points to 40.7%, with a 64% drop-through from revenue to EBITDA [2][11] - Q2 revenue grew 17% to €132 million, with adjusted EBITDA up 25% to €58.7 million and a margin improvement of nearly 3 points to 44.5% [5][10] - Net income for H1 increased 66% to €27 million, while Q2 net income rose to €21 million from €14 million last year [5][11] Business Line Performance Tax Free Shopping Solutions (TFS) - TFS accounted for 77% of group revenue in Q2, with revenue growth of 18% to €102 million and sales-in-store growth of 15% [6] - H1 TFS revenue increased 25% to €193 million, with sales-in-store growth of 27% [12] - Contribution margin for TFS remained strong at 86% in Q2 and 85% in H1 [6][12] Payments - Payments revenue grew 16% in Q2 to €23.4 million, outpacing sales-in-store growth of 9% [7] - H1 Payments revenue increased 12% to €43.7 million, driven by higher margin on treasury gains [13] - FX solutions contributed €12 million in Q2 with a 96% margin, while acquiring contributed €1 million with a 10% margin [8] Post-Purchase Solutions - Post-Purchase Solutions revenue declined 1% in Q2 to €6.7 million, with flat contribution growth at €4 million [9] - H1 revenue for this segment fell 6% to €13 million, though contribution growth improved by 7% [14] Market Performance - Europe saw a 12% increase in sales-in-store in October, with Italy and Spain remaining strong, while France recovered to pre-Olympics levels [25] - APAC growth slowed to 29% in October from 40% in Q2, primarily due to Japan's performance [27] - Mainland China contributed 36% of APAC business, with a 50% growth in October, aligning with Q2 figures [27] Strategic Direction and Industry Competition - The company has adapted its financial guidance for FY24-25 to €185 million - €205 million, reflecting strong travel industry trends and management initiatives [28][29] - Investments in new markets, Japan's regulatory changes, and payment solutions are expected to drive future growth [30][31][32] - Long-term targets include 8%-12% revenue growth, 50% drop-through, and a net leverage ratio below 2.5x [33] Management Commentary on Operating Environment and Outlook - The company remains resilient to inflation and recession risks, benefiting from its exposure to high-net-worth individuals and affluent networks [34][35] - The luxury market slowdown has not significantly impacted Global Blue, thanks to its strong positioning in the high-end segment [29] - The company is accelerating investments in future growth drivers, including new country expansions and Japan's regulatory changes [30][31] Other Key Information - Share buyback program increased from $10 million to $15 million, extended until November 2025 [2] - Net debt stood at €516 million, with a net leverage ratio of 2.9x, down from 4.5x last year [21][22] - CapEx for H1 was €26 million, primarily related to technology development [20] Q&A Summary - No specific questions or answers were provided in the transcript [37]