Q3 2025 Global Blue Group Holding AG Earnings Call - Pre Recorded

Going to the detail of the account.

Obviously I will walk you through the major events of last week, which has been.

The announcement of the acquisition by shift of 100% of global.

I gave you the main matrix of the transaction, so purchase price of $7 $5 per common shares.

Which is a 15% premium versus the closing share price.

$10 for preferred shares series, a and 11 81 priest our shares.

The series B.

This value global Blue.

Enterprise value of $2 5 billion, which is a multiple of EBITDA, which is around 13 times.

Obviously.

Closing.

Or the or global grew share will not be any more listed on the New York stock exchange.

A couple of more information on the transaction.

Global Laborde: Global Laborde.

Many of them easily reach.

Global Laborde: Recommended to the global Blue shareholder to accept the tender offer and obviously this transaction has also been approved by the shift will vote.

Global Laborde: Closing is expected on the third quarter.

Global Laborde: 2025.

Global Laborde: After regulatory approval and other customary closing condition and also sub.

Global Laborde: Subject to a minimum tender of 90% of the global <unk> issued and outstanding common shares and preferred shares.

Global Laborde: So this has been a big event for us.

Global Laborde: And we are looking forward.

Global Laborde: To the combination with <unk> or as it's a very complementary between she for which is the U S leader in India, <unk> payment and Commerce technology player in global Louisville, which is mainly based as you know in Europe and in APAC with a strong food hall in of the TFS.

Global Laborde: Business, but also.

Global Laborde: Our strong positioning statements. So we are looking forward for the closing of this transaction. So now let's go back to the Q3 and nine months.

Speaker Change: Figures and for that I give the floor to <unk>.

Global Laborde: Thank you Zack.

Global Laborde: Hudson just filled the CFO of.

Global Laborde: Globally.

Global Laborde: I will take you through the group financial performance called the soft quarter and nine months period ended on the 31st.

Global Laborde: 2020 fall.

Global Laborde: As a reminder of our financial year runs from April to March. So this is our Q3 and nine months announcements and all the reconciliation to the nearest isi's metrics I'll hand to dig into the appendix.

Global Laborde: Let's start with the I just to P&L highlights to our third quarter.

Global Laborde: We are very pleased to report another solid quarter with significant progress across the business when comparing performance that's in the <unk>.

Global Laborde: <unk>.

Global Laborde: So shipping solutions and payments reported self install increased by 1 billion an increase of 18%.

Global Laborde: The group revenue of 131 general.

Global Laborde: The central Hong of increase driven by solid performance across all divisions.

Global Laborde: Given the strong focus on viable cost optimization, the group believes or the contribution of 101, Daniel the 21% year on your increase.

Global Laborde: Then he plating cycle than your growth in the high operating leverage profile of the business. The good thing about that not just to the Brazil 52 million, you'll certainly 1% you hung or increase this resulted in an improvement in adjusted EBITDA margin of three four points to 79, 7% with a 56%.

Speaker Change: Russell <unk>.

Speaker Change: Finally, we recorded group adjusted net income of Pops in media, which is a 58% increase compared to the 9 million your whole lecture.

Speaker Change: Turning now to the detail on the divisional performance.

Speaker Change: With that special solution, which accounted for 74% of Copel the new in the quarter.

Speaker Change: The division David the strong performance with competitive self installed cost of 21% and then your growth of 22% to 19 8 million you'll.

Speaker Change: As with Q2, we are we bought them because when you've lost their head of sales to stock off.

Speaker Change: Important to point out here, the positive mix effect and additional revenues, which have increased the overhead PFS revenue by 5%.

Speaker Change: Those costs rise that were somewhat offset by a slight negative continental it makes off took us up.

Speaker Change: Then moving to contribution yeah, we didn't give out the 24% increase to 85 million Euro which is with a strong improvement in both Europe and Asia Pacific.

Speaker Change: CFS has a strong culture vishal messaging of 87% with a viable costs, mainly relating to airports with funding cost.

Speaker Change: Turning now to payments.

Speaker Change: Payments accounted for 19% on coupon during the quarter.

Speaker Change: Overall payments any how you teed off and you have 25 million euro representing a 17% year on year increase these growth outpaced the 8% increase in sales installs and is primarily attributed to a mix effect in the acquiring business, where we have observed a higher proportion of internet.

Speaker Change: Final cats compared to domestic transactions last year.

Speaker Change: Do you see international accounts have a higher margin than domestic transactions.

Speaker Change: On ethics solution. It is important to note that we lost it seems you can clients in Japan at the beginning of the year, which negatively impacts the comparison versus last year.

Speaker Change: Excluding this impact the oven you both in ethics solutions would have been 8%. That's just one point to 8% now on a reported basis.

Speaker Change: Looking at the contribution growth of four 5%. This is below the revenue growth due to the mix effect between business lines.

Speaker Change: You're acquiring business growing faster than ethics solutions as low margin of 10%, which they get negatively impacted overall gross of contribution.

Speaker Change: Nevertheless, 85% of the payment contribution comes from FX solutions, which has a strong contribution margin of 94%.

Speaker Change: Turning now to prospective solutions.

Speaker Change: But especially solutions accounting for 7% of coupons when you're in the quarter. This business achieved a 26% year on year hub in golf with an 8% increase in contribution and a 55% margin.

Speaker Change: The things that is driving the division growth by sending new car, yet contracts with lower contribution margin than just us holding the stream is emptying your husband your growth outpacing contribution goes.

Speaker Change: Turning now to detail on adjusted EBITDA.

Speaker Change: As I say the only other significant improvement in revenue together with the high operating leverage profile of the business led to a 31% increasing adjusted EBITDA in the quarter with 56% drop through.

Speaker Change: Looking at last year, we begin with our adjusted EBITDA, which was 40 million annual.

Speaker Change: Then with the additional contribution of 17 million your whole coming from all the business lines. It fixed cost and foreign exchange impact of 5 million Daniel that we'll deliver an adjusted EBITDA of 52 million with an increase in adjusted EBITDA margin of treatment four points to almost 40% stunning.

Speaker Change: Turning now to detail on the nine months period.

Speaker Change: Yeah, we are showing the adjusted P&L for the first nine months of the year and again, we see the same positive trends as well as the soft quarter.

Speaker Change: Shipping solutions and payments reported self installs increased by 4 billion, you're a solid increase of 21%.

Speaker Change: The room thinking about all of the new AV 381 million Youll, the 20% year on year increase this is driven particularly by a strong performance in tax free shopping solutions.

Speaker Change: Again, given the strong focus on diabetic cluster optimization. The good thing about the contribution of 298 million Youll. The 22% you hung your inquiries.

Speaker Change: Turning to adjusted EBITDA and there was a significant improvement here with an increase of 34% to $154 million.

Speaker Change: This boosted the adjusted EBITDA margin by more than four points above 40% today with the strong drop through of 61%.

Speaker Change: Finally, we achieved a 62% increase in group I just in net income to 41 million, you'll that's just 25 mcdaniel hole in the semi or less true.

Speaker Change: Turning now to the divisional performance, starting with tax official P D.

Speaker Change: And then even with the strong performance with an increase in completed six of 25% and an increase in revenue of 24%.

Speaker Change: The official thing solutions, either and you perceive any of 291 million or up 24% year on year.

Speaker Change: Continental Europe contributed 240 Fund me Daniel the Sony 21% increase while Asia Pacific achieved 47 million you're holding her venue.

Speaker Change: Cable was 43% growth driven by a strong self install performance.

Speaker Change: You can see here the slight difference in completed six gross of 25% and then what would your gross of 24%.

Speaker Change: And Seth this is due to the positive trends in mix effect and some additional venues of 5%, which is mainly offset by a negative constant mix of 6% that was particularly important in Q1.

Speaker Change: This is because Asia Pacific growing faster than Europe, with self install today at 34% versus 28% last year and as a reminder, the VAT rate in Asia Pacific is much lower at around 10%, that's just 20% in Europe.

Speaker Change: Then.

Speaker Change: We are delivering a 26% increase in contribution to.

Speaker Change: 249 million annual we just tone called Super sudden margin of 86%.

Speaker Change: Turning now to payments.

Speaker Change: Payments Junior Aikido Avenue of 16, 9 million, you're marking a 12% year on year increase which seems he can see outpaced the 6% growth in self install this performance was primarily driven by higher margin on treats all the games in ethics solutions and an increased <unk>.

Speaker Change: <unk> international transactions in the acquiring business, which contributed to higher overhead and messaging as I explained earlier during the call.

Speaker Change: FX solutions generated 73 million you Horton venue.

Speaker Change: It's 7% increase year on year.

Speaker Change: When you go to such a 4 million, you're reflecting a 17% increase while he otane gateway business achieved $1 3 million your whole venue as such he took a central and your increase.

Speaker Change: We didn't even have a strong contribution costs across all business lines or waiver of the contribution growth is lower than the 11 rose due to the mix of the business in the overhaul contributions has mentioned earlier the acquiring business is growing faster than ethics sufficient but it is a significantly lower contribution margin.

Speaker Change: Turning now to the statistical nuisance.

Speaker Change: Yeah, the business they need at their venue of 22 million annual the cypher central hung out increase with a contribution growth of 7%.

Speaker Change: Then turning now to <unk>.

Speaker Change: I just see D D.

Speaker Change: We begin with our adjusted EBITDA, which was 150 million you'll hold last year.

Speaker Change: Then with the additional contribution of 55 million your whole from the business lines and the fixed cost and FX impact of 60 million Youll. The group delivered an adjusted EBITDA of 155 million Youll do that did it increase of 34%, reflecting strong core verticals, how you're operating.

Speaker Change: Leverage profile of the business. Consequently, the adjusted EBITDA margin increased by just over four points and ease of over 40%.

Speaker Change: Turning now to the I'd just T D. You'll have the breakdown of depreciation and amortization here.

Speaker Change: Adjusted D&A has increased by 9 million, you're willing to pay up to 36 million.

Speaker Change: This is mainly due to two factors first there was the $4 million increase in the amortization of capitalized software, which reflect the increase in capex related to software development over the last two years second depreciation of leases increased by 4 million, which included 2 million, you'll hold you to a changing.

Speaker Change: The accounting related to short term leases that are now counting our colleagues who the ifr 16.

Speaker Change: Turning now to the net finance costs.

Speaker Change: Yeah, we are showing an increase of 7 million you whole.

Speaker Change: Net finance costs, that's just December last year.

Speaker Change: This is mainly due to the increase in the interest rates on the senior debt, which was seven 4%.

Speaker Change: In these paillette DCF, that's just six months as bad in the same period last year.

Speaker Change: In December 'twenty fall, we successfully repriced the senior debt.

Speaker Change: For the second time present opinion of her or his or her team and a reduction of the download the interest rate margin by 50 basis points from 375% to 325% per annum.

Speaker Change: So in aggregate over the last 12 months, we have achieved a sort of repricing a 175 basis points for injection in the towel on margin to be now at 325% behind them.

Speaker Change: Turning now to the next slides.

Speaker Change: Here, we are showing the last 12 months adjusted EBITDA over the last nine quarters and you can see here that that there has been a solid acceleration in the last 12 months adjusted EBITDA. We are now at 182 million your whole at the end of December when you fall from 175 million your whole in the play this.

Speaker Change: Water.

Speaker Change: Turning now to the cash flow.

Speaker Change: I found an adjusted EBITDA of 150 pharma in general.

Speaker Change: Level of Capex was 13 7 million, you're going to pay us and this is essentially related to technology development.

Speaker Change: So the group delivered a solid improvement in adjusted EBITDA less Capex to 117 million annual Johann year improvement of 31 million you all.

Speaker Change: In parallel reflecting the normalization of walking kept style the pretax unlevered free cash flow reached 123 million year old that's just 86 million your whole lecture.

Speaker Change: Finally, there has been a decrease in net debt of 34 million, you'll and we've covered this on the next slide.

Speaker Change: As December 31st 20 fall the group net debt reached 488 million.

Speaker Change: Consisting of course financial debt of 610 million, you'll and cash and cash equivalents of 122 million youll visiting at Pigeon opinion, a net leverage ratio of two six times a significant improvement from the three six times in December last year.

Speaker Change: Turning now to the key takeaways.

Speaker Change: First we are pleased to report a very strong performance in the first nine months is a significant 20% increasing revenue, reaching 381 million rural.

Speaker Change: Second reflecting this Hong Kong when your growth and high operating leverage profile of the business. We delivered a strong improvement in adjusted EBITDA to 150, forming Daniel which is an increase of 34% of that is we bought last year was a 61% of drop through.

Speaker Change: Then if we look at the last 12 months I just did a deal there has been a continuous improvement over the last two years, reaching now 188 million you'll up from the 175 million you all at the end of the last quarter.

Speaker Change: Finally, we did even with the strong improvement in the net they've always ratio to two six times. That's just $3 six last year and we are approaching the long term target of being below two five times.

Jack: So this concludes the financial sections and I will now hand over to Jack for the guidance.

Speaker Change: Thank you Roxanne so last slide of this presentation related to the short term guidance for the full year 2004, 25. So we did our guidance over 185 to 205, which we are expecting to achieve it to where the.

Speaker Change: Top half of the range based on the year.

Speaker Change: Most of the last 12 months adjusted EBITDA over the last three quarter.

Speaker Change: With that in mind time for me to conclude so obviously.

Speaker Change: The most important things would be she said that's one of the acquisition of global tubes before next week.

Speaker Change: And we had looking forward.

Speaker Change: For the for the closing.

Speaker Change: Two three.

Speaker Change: We can end the year 'twenty five.

Speaker Change: Akshay and have shown strong performance for nine months.

Speaker Change: In terms of revenue in terms of EBITDA in terms of margin in terms of drop through and with that in mind as I was mentioning should we need to go where we are.

Speaker Change: I'm pleased to reiterate.

Speaker Change: Full year guidance for the year from the 185 to 205 in terms of adjusted EBITDA and we are expecting to achieve.

Speaker Change: This guidance or the <unk>.

Speaker Change: So part of the range.

Speaker Change: Thank you very much for listening.

Speaker Change: Bye.

Speaker Change: [music].