Global Blue Group Holding AG (GB) Earnings call transcript analyses

Company name

Global Blue Group Holding AG (NYSE:GB) Q2 2023 Earnings Conference Call December 1, 2022 9:00 AM ET

Company Participants

Jacques Stern - CEO

Roxane Dufour - CFO

Conference Call Participants

Jacques Stern

Good morning, good afternoon. I am Jacques Stern, the CEO of Global Blue, and I will be joined today by Roxane Dufour, CFO of Global Blue, and we will share the presentation of this H1 financial statement.

Before I give the floor to Roxane, let me first introduce this H1 figures and mention six point which are important.

So, first, we have seen in H1 and, more in particular, in Q2 a strong improvement of our results on the back of a strong recovery, in particular, in Continental Europe where, for the first time, we have reached 2019 figures with 101%, which had led the capability to improve the EBITDA by €26.2 million at a level of 25.8 million for the Q2, i.e., from July to September.

Second point to have in mind is that we have a strong cash position of €221 million, Roxane will come back on that, at the end of September on the back of the equity raise that we have done with Certares & Knighthead in June 2022.

Third point to have in mind is that, in October, the Tax Free shopping figures have shown an acceleration in terms of recovery in APAC with an increase of 17 point to reach for the first time the level of 68% versus 51% in Q2.

Fourth element to have in mind is that beside this recovery, which is as you’ve seen stronger in Q2 versus Q1, Global Blue will further benefit from the reopening of China when it will be the case, within particular -- an expected strong pent-up demand from Mainland Chinese traveller.

Fifth element to have in mind, and I will come back to that at the end, given the long-term setting that we have implemented in 2020 and ’21, Global Blue will have a higher EBITDA margin than pre-COVID.

And last but not least, in a situation worldwide where we have strong inflation and potential risk of recession, I will come back on the fact that why Global Blue is well hedged against those two risk.

With that in mind, I now let the floor to Roxane, who will present you Q2 and H1. Roxane?

Roxane Dufour

Okay. Thank you, Jacques. So, yeah, I'm Roxane Dufour, the CFO of Global Blue, and I will take you through the Group's financial performance for the second quarter and the first half of the year ended September 30, 2022.