Global Blue Reports 9M FY24/25 Financial Results With Double-digit Growth

Global Blue Group Holding AG (NYSE:GB) has reported strong financial results for the nine months ended December 31, 2024, with double-digit growth in revenue and Adjusted EBITDA. The company's unique exposure to high-net-worth travelers and operational efficiency have driven this impressive performance.

Key highlights from the 9M FY24/25 financial results include:

* Revenue increased by 20% year-over-year to €381 million, driven by a solid performance across all business lines.
* Adjusted EBITDA surged by 34% to €154 million, with an Adjusted EBITDA margin improvement of 4.2 percentage points to 40.4%.
* The net leverage ratio improved to 2.6x from 3.6x year-over-year, approaching the company's long-term target of <2.5x.
* The Term Loan interest rate margin was successfully reduced by 50 basis points to 3.25% p.a., further enhancing free cash flow and net income.

Global Blue's geographic diversification, particularly in the Asia Pacific region, has significantly contributed to its overall growth. Despite ongoing challenges in mainland Chinese outbound travel, Asia Pacific revenue jumped by 43% year-over-year, reaching €16.2 million. This impressive growth was achieved through strong progression of Sales-in-Store and demonstrates the company's ability to tap into the growing consumer base in the Asia Pacific region.

The company's strong momentum and guidance towards the top half of its €185-205 million FY24/25 Adjusted EBITDA range further validate its growth trajectory and margin profile. The acquisition by Shift4 at a valuation of ~$2.5 billion (13x CY2024 EBITDA) also highlights the company's potential for future growth and expansion.

In conclusion, Global Blue's 9M FY24/25 financial results showcase a company executing exceptionally well in the specialized cross-border payments niche, with double-digit growth in revenue and Adjusted EBITDA. The company's unique business model, operational efficiency, and geographic diversification position it well for continued success in the future.