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

Company name

Global Blue Group Holding AG (NYSE:GB) Q3 2024 Results Conference Call February 23, 2024 8:00 AM ET

Company Participants

Jacques Stern - CEO

Roxane Dufour - CFO

Frances Gibbons - Head of IR

Jacques Stern

Good morning. Good afternoon. I am, today with Roxanne Dufour, CFO of the group. I am Jacques Stern, the CEO of the group, and we will comment to you our Q3 figures. I will start by an executive summary to draw the main key points to have in mind.

First, the first nine months of the year has been strong in terms of revenue with 41% increase. The EBITDA at the end of nine months have increased by 103% at €115 million and this translates a drop through of the revenue into adjusted EBITDA of 62.8%. We are also in this Q3, seeing an acceleration of the annualized adjusted EBITDA at €159 million.

Roxane will comment on that. And if we go to January figures, the January have confirmed the strength of the recovery in continental Europe with a recovery of 125% versus 118% in Q3, and same in APAC with a recovery which is now reaching 161% of 2019 in January versus from 115% in Q3. I will give you much more information on that in the coming minutes.

Just to mention in this main takeaway, you may remember that we have closed the refinancing by early December 2023, which resulted into a new senior debt of €610 million and FCF of almost €100 million with a maturity of seven years, and alongside also to mention that, we see a very strong improvement of the net leverage ratio at 3.6x versus more than 6x last year. And we confirm our objective to go below 2.5x in terms of net leverage ratio.

These are really the takeaway and now I will give the floor to Roxane to give you more detail on Q3 and the nine months financial performance.

Roxane Dufour

Thank you, Jacques. I'm Roxane Dufour, the CFO of Global Blue and I will take you through the group's financial performance for the sub-quarter nine months period ended 31st of December 2023. As a reminder, our financial year runs from April to March and all the reconciliations to the nearest IFRS metrics are included into the appendix.

Let's move to Slide 7 for our adjusted P&L of the third quarter. We are pleased here to report another solid quarter with significant progress across the business. TFS and AVPS reported sales in store increased by €1.5 billion an increase of 27.7% versus Q3 last year, group revenue increased by 26.2% to €109.4 million versus the same period last year.