FY23/24 Outlook: The company expects adjusted EBITDA of €145 million to €165 million (+85%-115% Y/Y) on travel recovery and technology initiatives.

GB anticipates a strong recovery in travel for the rest of the year in FY23/24, while inflation is expected to continue to be a tailwind, with luxury goods selling at a nominal average price premium of 25% versus 2019. 

FY24/25 Guidance: GB projects adjusted EBITDA of over €200 million thanks to a continued spending recovery from Asian shoppers and product investments.

The company thinks it is well-positioned to continue to benefit from the return of Asian shoppers in FY24/25 vs. 2019 levels, mainly Mainland Chinese, and projects the demand from non-Asian travelers to normalize.

Starting FY25/26, the company expects a normalization in growth and targets long-term revenue growth of 8%-12% and 'Revenue-to-Adjusted EBITDA drop-through' of over 50%, with a net leverage target of less than 2.5x net debt / LTM adjusted EBITDA.

"Our focus on continuing to digitalize and enhance the Tax Free Shopping journey is driving a better experience for merchants, international shoppers, and all other stakeholders in the ecosystem; this is also delivering demonstrable financial benefits to Global Blue and supporting new merchant wins, allowing us to maintain our leadership position," he added

Price Action: GB shares closed lower by 4.32% at $5.76 on Friday.

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