The following is a summary of the Global Blue Group Holding AG (GB) Q1 2025 Earnings Conference Call Transcript:

Financial Performance:

• Global Blue reported a Q1 revenue increase of 25% year-over-year to €180 million, driven by strong performance in their Tax Free Shopping Solution.

• Adjusted EBITDA increased by 55% to €43 million, reflecting the company's high operating leverage and ongoing focus on cost control.

• Adjusted net income increased from €2 million last year to €6 million this year.

• Operating leverage and cost control efforts resulted in a 7-point increase in adjusted EBITDA margin to 36.5%.

Business Progress:

• Tax Free Shopping Solutions accounted for 78% of Group revenue, with significant sales growth in Continental Europe and Asia-Pacific.

• The Payments division also showed solid performance with revenue growth outpacing Sales-in-Store growth due to increased margins.

• Post-Purchase Solutions reported strong contribution growth despite a revenue decline, benefiting from strategic shifts in service offerings.

Opportunities:

• The recovery in Mainland China and the high elasticity related to currency fluctuations present opportunities for increased Chinese consumer spending abroad, especially in Japan given the weak yen.

• Long-term growth driven by a balance between market growth and deliberate management initiatives, including digitalization and international expansion.

Risks:

• The seasonal nature of the business creates variable working capital needs, with significant capital tied up in traveler refunds.

• Dependence on the economic stability and spending habits of high-net-worth individuals, positioning the company in a niche market that may limit broader market opportunities.

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