Global Blue Group (GB) Q1 2025 earnings summary

Executive summary

• Q1 FY24/25 revenue increased 25% year-over-year to €118 million, with Adjusted EBITDA up 55% to €43 million and margin improving by 7 points to 36.5%.

• Annualized Adjusted EBITDA accelerated to €205 million from €164 million in the previous quarter.

• Net leverage ratio improved to 3.4x from 5.7x a year ago, progressing toward a long-term target below 2.5x.

• Board approved a €10 million ($10 million) share repurchase program, funded by existing cash, valid for 6 months, with no participation from Silver Lake or affiliates.

• July 2024 Tax Free Shopping Sales-in-Store grew 25% year-over-year, led by Mainland China (+73%).

Financial highlights

• Group revenue reached €117.8 million, up 25% year-over-year, with Adjusted EBITDA at €43 million, up 55% and margin at 36.5%.

• Adjusted Net Income rose to €6.1 million from €2.1 million year-over-year.

• Net financial debt at end of June 2024 was €566.1 million, leverage ratio at 3.4x.

• Free cash flow improved to -€34 million from -€52.6 million year-over-year.

• Adjusted Profit Before Tax was €16.8 million, up 107% year-over-year.

Outlook and guidance

• FY24/25 Adjusted EBITDA guidance reaffirmed at over €200 million.

• Long-term targets: 8–12% annual revenue growth, >50% drop-through to EBITDA, annual CAPEX of €40–45 million (80% software), tax rate 24–26%, leverage ratio below 2.5x.

• Neutral working capital expected on an annual basis.