Global Blue Group Holding AG (NYSE:GB) Q2 2024 Earnings Call Transcript November 29, 2023
Global Blue Group Holding AG beats earnings expectations. Reported EPS is $0.08, expectations were $0.06.
Jacques Stern: Good morning — good afternoon. I am Jacques Stern, CEO of Global Blue, and I’m with Roxane Dufour, the CFO of the group and we will comment today the Q2 figures for the financial year ’23-’24. Before giving the floor to Roxane, let me give you an overview of this presentation. First of all, you will see that the Q2 and H1 financial results have shown a significant increase, both in terms of growth and profitability. And this is driving a continuous improvement of the annualized quarterly adjustment, EBITDA, to EUR142 million. Roxane will come back in detail on that. Second, in November, Global Blue have concluded two important capital structure transactions. The first one, whereby Tencent have agreed to invest $100 million in Global Blue, consisting in 50% primary and 50% secondary, for a total stake of 7.6%.
This is significant because, one, it validates our leadership. Second, it reflects the confidence in the ongoing travel recovery, in particular from Chinese. And finally, it supports the de-leveraging of the company. Second transaction is the refinancing of all of our debt, which ends up with a new facility of EUR610 million qualified term loan B and a new RCF of EUR97.5 million. And they’re also significant because it extends the maturity of our debt to 2030. Last but not least, following the reporting of Q2, we are pleased to reiterate our financial guidance of the adjusted EBITDA for the fiscal year ’23-’24, 245-265. So with this overview in mind, I now give the floor to Roxane for a detailed presentation of the Q2 financial year.
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 second quarter and half year period, ended on the 30th of September 2023. Again, as a reminder, our financial year runs from April to March. Hence, this is our Q2 and H1 results announcement. Our reconciliation to the nearest IFRS metrics are included into the appendix. Let’s move to slide 8 for the adjusted P&L related to our second quarter. We are pleased here to report a solid start to the year with significant progress against all of our key metrics. TFS and AVPS reported Celsius stores increased by EUR2 billion, an increase of 42% versus Q2 last year. Group revenue increased by 38% to EUR113 million versus the same period last year.
Turning to adjusted EBITDA, we have delivered a significant improvement to EUR47.2 million versus EUR25.8 million in the same period last year. Finally, we recorded an adjusted net income for the group of EUR14 million. Again, a significant improvement versus negative of EUR2.1 million in Q2 last year. Let’s turn now to slide 9 to go into the revenue performance. Here you can see that we have a solid start to the year with strong growth across the business. We delivered a 38.2% increase in revenue versus last year. I will go into the detail per division on the following slides, but you can see here for TFS, AVPS and RTS that they have contributed to a further EUR31 million in revenue in the period with a further EUR1.7 million scope effect from TFS new countries and cheap up acquisitions reported under RTS.
We then have a EUR1.7 million impact related to the FX, which gets us at the end to EUR113.2 million of revenue in Q2 this year versus EUR82 million in the same period last year. Turning now to the revenue performance per division, starting with TFS, accounting for 76% of group revenue in Q2 this year. TFS delivered a strong performance with an increase in revenue of 38% on a reported basis to EUR86.2 million. On a like-for-like basis, revenue in continental Europe increased by 28.5% to EUR75 million, while revenue in Asia Pacific increased by 155% to EUR11.2 million. This strong performance reflect the ongoing recovery across all origin nationalities with the reopening of Chinese border in January, 2023, being the key driver of the revenue improvement, especially in Asia where sales install of shoppers from mainland China has already recovered to 109% versus 2019.
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