Tourism Tax Refund Company Anticipates Travel Surge With Asian Shoppers' Return

Global Blue Group Holding AG GB plans financial guidance and long-term targets for the next three years.

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.

Jacques Stern, Global Blue's CEO said, "We believe our investments in Added Value Payment Solutions and Retail Tech Solutions are gaining traction, increasing our relevance to retailers, merchant acquirers, and hoteliers as they serve not only international travellers but also domestic consumers. We are excited to announce the successful launch of three new technology solutions in these areas: hospitality & retail payments gateway, data analytics, and digital marketing." 

"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

Last month, GB reported Q1 FY23/24 revenue growth of 68% Y/Y to €95 million and adjusted EBITDA increase of 300% Y/Y to €28 million on recovery in travel and enhancement in technology. 

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

Now Read: Tesla CEO Elon Musk Is So Impressed By Apple's iPhone 15 Photos That He Tells Tim Cook, 'I'm Buying One'

Photo: Shutterstock