Global Blue’s Preliminary Results Signal Resilient Growth Amid Post-Pandemic Recovery

Global Blue, a leading provider of tax-free shopping and payment solutions for travelers, has unveiled preliminary financial results for its fiscal year ended March 31, 2025 (FY24/25), painting a picture of robust growth amid a recovering global travel market. The Swiss-based company reported record sales and margins, though it cautioned that final figures remain subject to audit. Here’s what investors need to know.

Financial Highlights: A Strong Fiscal Year

Global Blue’s core metric, Sales in Store (SiS)—which tracks the value of goods purchased by tourists eligible for tax refunds—jumped to an estimated €32.8–€33.0 billion, up from €28.0 billion in FY23/24. This reflects a surge in international travel and consumer spending, with the company serving over 80 million shoppers annually across 53+ countries.

On the profitability front, revenue rose 20% year-over-year to €506–510 million, driven by strong demand for its tax-free services and payment solutions. Meanwhile, Adjusted EBITDA surged 36% to €201–204 million, with margins expanding to 40% from 35% in FY23/24. This margin expansion suggests effective cost management and operational leverage.

The company also reported its first substantial profit since its 2023 IPO, with net income projected at €93–95 million—a stark contrast to its €21 million profit in FY23/24 and a €23 million loss in FY22/23. The profit margin is now estimated at 18%, compared to just 5% the previous year.

Key Drivers and Risks

The results underscore the sustained rebound in global tourism, which has been a tailwind for tax-free shopping platforms like Global Blue. The company’s strategy to expand its digital payment solutions and post-purchase services—such as cashback offers and loyalty programs—appears to be paying off. For instance, its payments business now contributes meaningfully to revenue, as travelers increasingly rely on digital transactions.

However, the preliminary results carry caveats. The figures are unaudited and subject to adjustments, as noted by PricewaterhouseCoopers (PwC), which has yet to finalize its audit. Additionally, Adjusted EBITDA excludes key costs, such as income tax (€41–42 million) and depreciation (€54 million), which investors should consider when evaluating the company’s true profitability.

Profitability and Liquidity: A Solid Foundation

Global Blue’s liquidity position remains healthy, with cash and equivalents estimated at €123–125 million, sufficient to cover its modest CAPEX of €50–51 million—a figure aligned with its focus on maintaining, rather than aggressively expanding, infrastructure. The company’s ability to generate strong cash flows suggests it can weather short-term volatility, such as potential declines in travel demand or regulatory changes.

Conclusion: A Promising Outlook, But Caution Remains

Global Blue’s preliminary results highlight its success in capitalizing on the post-pandemic travel boom. With Adjusted EBITDA up 36% and revenue growth of 20%, the company is demonstrating resilience and operational discipline. Its expanded profit margin to 18%—a near fourfold increase from FY23/24—signals improved efficiency, while the €93–95 million net income marks a significant turnaround from its prior-year performance.

However, investors should remain cautious. The results are preliminary, and final figures could shift due to pending audits or adjustments. Additionally, risks such as geopolitical tensions, currency fluctuations, and a potential slowdown in travel demand could pressure future growth.

For now, the data paints a compelling picture: Global Blue is positioned to benefit from the ongoing recovery in international tourism, provided it maintains its market leadership and navigates regulatory challenges. While the stock’s recent performance (as shown in the visual above) reflects investor optimism, the final audited results—expected later in 2025—will be critical to confirming these trends.

In short, Global Blue’s preliminary results are a positive sign for shareholders, but the journey to sustained profitability will depend on execution, market conditions, and the company’s ability to adapt to an evolving travel landscape.