BIRKENSTOCK REPORTS RECORD SECOND QUARTER REVENUE, UP 23% Y/Y, DRIVEN BY
STRONG CONSUMER DEMAND ACROSS ALL SEGMENTS, CHANNELS AND CATEGORIES; COMPANY
RAISES FULL-YEAR REVENUE GROWTH GUIDANCE TO 20%
EQS-News: Birkenstock Holding plc / Key word(s): Quarter Results/Half Year
Report
BIRKENSTOCK REPORTS RECORD SECOND QUARTER REVENUE, UP 23% Y/Y, DRIVEN BY
STRONG CONSUMER DEMAND ACROSS ALL SEGMENTS, CHANNELS AND CATEGORIES; COMPANY
RAISES FULL-YEAR REVENUE GROWTH GUIDANCE TO 20%
30.05.2024 / 11:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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PRESS RELEASE
LONDON, UNITED KINGDOM || MAY 30, 2024
BIRKENSTOCK REPORTS RECORD SECOND QUARTER REVENUE, UP 23% Y/Y, DRIVEN BY
STRONG CONSUMER DEMAND ACROSS ALL SEGMENTS, CHANNELS AND CATEGORIES; COMPANY
RAISES FULL-YEAR REVENUE GROWTH GUIDANCE TO 20%
Birkenstock Holding plc ("BIRKENSTOCK", the "Company" or "we", NYSE: BIRK)
today announces financial results for the second quarter of fiscal 2024,
ended March 31, 2024. The Company reports record second quarter 2024 revenue
and year-over-year growth of 23% on a constant currency basis, driven by
continued strong consumer demand for its products across all segments,
channels and categories.
As a result of the strength in the first half of fiscal 2024 and continued
demand growth, BIRKENSTOCK is increasing its fiscal 2024 revenue growth
guidance to 20% in constant currency, up from prior guidance of 17-18% and
expects an Adjusted EBITDA margin in the range of 30.0-30.5%. The Company
remains confident in its medium to long-term profitability objectives,
including a gross profit margin of approximately 60% and an adjusted EBITDA
margin over 30%.
Financial highlights for the second fiscal quarter 2024 ended March 31,
2024, (compared to the fiscal quarter ended March 31, 2023, unless otherwise
stated):
* Revenue of EUR 481 million, an increase of 22% on a reported basis and
23% on a constant currency basis
* Strong double-digit revenue growth across all segments including revenue
growth of 21% in the Americas, 21% in Europe and 42% in APMA on a
constant currency basis
* DTC revenue growth of 32% and B2B revenue growth of 20% on a constant
currency basis
* Gross profit margin of 56.3%, down 320 basis points from 59.5% primarily
due to the temporary impact of production capacity expansion and
planned, inflation-related wage adjustments and one-time bonuses for
employees at the Company's production facilities
* Net profit of EUR 72 million, up 45% year-over year from EUR 49 million;
EPS of EUR 0.38, up 41% from EUR 0.27
* Adjusted Net profit of EUR 77 million, up 3%, and Adjusted EPS of EUR
0.41, flat year-over-year, due to higher depreciation and amortization
from recent capital investments and IPO-related share increase
* Adjusted EBITDA of EUR 162 million, up 7%. Adjusted EBITDA margin of
33.7% was down 470 basis points from 38.4% a year ago with the decrease
consisting of 320 basis points from the decline in Gross profit margin
and the remainder split between incremental public company and
administrative costs and investments in retail expansion
* Cash flows from operating activities of EUR 50 million, compared to EUR
57 million a year ago, reflecting an increase in trade receivables due
to the growth in wholesale shipments (expected to be monetized in the
third quarter)
Oliver Reichert, CEO of BIRKENSTOCK Group and Member of the Board of
Directors of the Company: "Our results for the second quarter of 2024 once
again demonstrate the strength of our business model and growing demand for
our products. Given our engineered distribution model, demand continues to
outpace supply in all segments, channels and categories. We see strong
demand growth in the largely untapped white space areas we have identified
across geographies, channels, categories and usage occasions. At the same
time, we continue to see very strong growth in our established markets and
products. Revenue from our five core silhouettes (most of which have been in
market for close to 50 years) grew above 20%, in-line with our overall
growth - proof of our limited exposure to fashion cycles and the longevity
of our brand's relevance. Given the strong results we have achieved in the
first half of fiscal 2024, we are pleased to be raising our fiscal 2024
revenue growth guidance. We now expect revenue growth of 20% in constant
currency, up from our prior guidance of 17-18%, continuing our 10-year trend
of 20% compound annual growth in revenue. We expect our Adjusted EBITDA
margin for fiscal 2024 to be in the range of 30-30.5%. We remain confident
in our ability to deliver on our medium to long-term objectives for gross
profit margin of approximately 60% and Adjusted EBITDA margin of over 30%."
Fiscal second quarter 2024 results demonstrate continued strong consumer
demand
BIRKENSTOCK reports record second quarter revenue of EUR 481 million, up 23%
compared to fiscal second quarter 2023 on a constant currency basis,
continuing its track record of strong double-digit revenue growth. Top-line
growth was the result of strong consumer demand supported by new production
capacity and category expansion. Revenue growth benefitted from increased
sales of closed-toe silhouettes, which increased to over 25% of total
revenue compared to the high-teens a year ago.
During the fiscal second quarter, BIRKENSTOCK saw strong growth across all
segments and channels and continued to benefit from significant geographic
expansion, increased usage occasions and distribution white space. The
Company opened 6 new owned stores, bringing the total number of owned retail
stores to 57.
DTC revenue grew 32% on a constant currency basis in fiscal second quarter
2024 compared to fiscal second quarter 2023, resulting in a DTC penetration
rate of 24%, an increase of 200 basis points year over year. B2B revenue
grew 20% year-over-year as wholesale demand, supported by strong
sell-through, remains very strong. The second quarter is the seasonally
highest B2B quarter due to sell-in for the Spring Summer seasons.
Broad-based double-digit revenue growth across all segments, channels and
categories
In the Americas, strong consumer momentum and demand for the brand continued
to drive record sales in the fiscal second quarter of 2024. In a relatively
flat US consumer market, BIRKENSTOCK delivered constant currency revenue
growth of 21% in the second quarter, supported by continued strength in both
the DTC and B2B channels, with DTC penetration in the US increasing by 200
basis points to 29% compared to 27% in the prior year second quarter.
Sell-through at strategic wholesale accounts grew by 33% as these retailers
continue to allocate more shelf space to BIRKENSTOCK in response to strong
consumer demand for additional styles and usage occasions. Revenue growth
was driven by both strong volume growth and ASP growth as premium and
closed-toe silhouette penetration continues to improve year-over-year.
In Europe, BIRKENSTOCK continues to see market-leading growth and share
gains across the region. Europe grew 21% on a constant currency basis,
driven by strong demand in both the DTC and B2B channels. Sell-through rates
at key retail partners increased an average of 24%, with some up well over
50%. This strength is directly related to the Company's transformation
efforts in the region designed to increase shelf space and ASP through
strategic, disciplined distribution that drives more premium-priced
products. ASP grew at a double-digit rate in the quarter as demand for
premium styles priced at over EUR 100 grew by over 60% and demand for closed
toe shoes grew by over 80%. The spring and summer orderbook proved very
strong and resulted in the highest quarterly deliveries ever for the region.
In the APMA region, BIRKENSTOCK achieved revenue growth of 42% on a constant
currency basis for the fiscal second quarter 2024, due to strong, emergent
consumer demand throughout the region. Revenue growth in the region was
driven equally by volume and ASP growth. Following the overall company
trend, demand for closed-toe shoes was especially strong, up nearly 100%
from the prior year second quarter. The Company opened 5 new owned stores,
including 4 in India and 1 in Japan, bringing the total in the APMA region
to 20. Additionally, the Company added 11 new mono-brand partner stores.
Investing in production capacity to meet consumer demand and expand
footprint
BIRKENSTOCK continues to invest in increased production capacity to better
meet the increasing consumer demand for BIRKENSTOCK products and expand in
white-space markets. The Company invested EUR 17 million in capital
expenditures in the quarter, bringing the total year-to-date to EUR 35
million. As previously communicated, the ongoing capacity expansion,
including the new Pasewalk production facility provides the Company with the
bandwidth and flexibility to expand its footprint into underpenetrated
segments and categories. The Company estimates the temporary impact of this
investment in reduced gross margin and Adjusted EBITDA margin by 220 basis
points in the second quarter.
BIRKENSTOCK continues to have a strong balance sheet with cash and cash
equivalents of EUR 176 million and net leverage of 2.6x as of March 31,
2024. On May 28, 2024, the Company announced its subsidiaries' refinancing
of the existing term loans and the replacement of the undrawn ABL facility
with a new revolving credit facility, including the voluntary early
repayment of approximately USD 50 million. The closing of the transaction
and the associated actual repayment of the existing financing is expected to
take place within the next 3 months. The Company remains committed to
further deleveraging its balance sheet with free cash flow.
Financial outlook
Given the strong first half of 2024 and continued demand growth, the Company
is raising its fiscal 2024 guidance. The Company now expects fiscal 2024
reported revenue of EUR 1.77-1.78 billion, reflecting overall revenue growth
of approximately 19% on a reported basis and 20% on a constant currency
basis, up from its prior guidance of EUR 1.74-1.76 billion, growth of 17-18%
(in constant currency). Adjusted EBITDA is expected EUR 535-545 million, up
from prior guidance of EUR 520-530 million, resulting in an Adjusted EBITDA
margin of 30-30.5%. The Company is reiterating its medium to long-term
profitability objectives for gross profit margin of approximately 60% and
adjusted EBITDA margin over 30%.
Conference call information
BIRKENSTOCK will host a call to discuss fiscal second quarter 2024 results
on May 30, 2024, at 8:00 a.m. Eastern Time (1:00 p.m. Greenwich Mean Time).
A webcast of the call will be accessible on the Company's Investor Relations
website at https://www.birkenstock-holding.com. To join the phone line,
please dial 1-888-506-0062 (US) or 1-973-528-0011 (International). The
access code for the call is 291165. To access the phone line replay after
the conclusion of the call, please dial 1-877-481-4010 (US) or
1-919-882-2331 (International). The access code for the replay is 50256. An
archive of the webcast will also be available on BIRKENSTOCK's Investor
Relations website.
ABOUT BIRKENSTOCK
Birkenstock Holding plc is the ultimate parent Company of Birkenstock Group
B.V. & Co. KG and its subsidiaries (the "Birkenstock Group"). BIRKENSTOCK is
a global brand which embraces all consumers regardless of geography, gender,
age and income and which is committed to a clear purpose - encouraging
proper foot health. Deeply rooted in studies of the biomechanics of the
human foot and backed by a family tradition of shoemaking that can be traced
back to 1774, BIRKENSTOCK is a timeless «super brand» with a brand universe
that transcends product categories and ranges from entry-level to luxury
price points while addressing the growing need for a conscious and active
lifestyle. Function, quality and tradition are the core values of the
Zeitgeist brand which features products in the footwear, sleep systems and
natural cosmetics categories. BIRKENSTOCK is the inventor of the footbed and
has shaped the principle of walking as intended by nature ("Naturgewolltes
Gehen").
INVESTOR & MEDIA CONTACT
Birkenstock Holding plc
ir@birkenstock-holding.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute "forward-looking"
statements and information within the meaning of Section 27A of the
Securities Act of 1933, as amended, Section 21E of the Securities Exchange
Act of 1934, as amended, and the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
relate to our current expectations and views of future events, including our
current expectations and views with respect to, among other things, our
operations and financial performance. In particular, such forward-looking
statements include statements relating to our fiscal year 2024 outlook.
Forward-looking statements include all statements that do not relate to
matters of historical fact. In some cases, you can identify these
forward-looking statements by the use of words such as "anticipate,"
"believe," "could," "expect," "should," "plan," "intend," "estimate" and
"potential," "aim," "anticipate," "assume," "continue," "could," "expect,"
"forecast," "guidance," "intend," "may," "ongoing," "plan," "potential,"
"predict," "project," "seek," "should," "target," "will," "would" or similar
words or phrases, or the negatives of those words or phrases. The
forward-looking statements contained in this press release are based on the
Company's management's current expectations and are not guarantees of future
performance. Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors and are based on potentially
inaccurate assumptions that could cause actual results to differ materially
from those expected or implied by the forward- looking statements. Our
actual results could differ materially from those expected in our
forward-looking statements for many reasons, including: our dependence on
the image and reputation of the BIRKENSTOCK brand; the intense competition
we face from both established companies and newer entrants into the market;
our ability to execute our DTC growth strategy and risks associated with our
e-commerce platforms; our ability to adapt to changes in consumer
preferences and attract new customers; harm to our brand and market share
due to counterfeit products; our ability to successfully operate and expand
retail stores; losses and liabilities arising from leased and owned real
estate; risks relating to our non-footwear products; failure to realize
expected returns from our investments in our businesses and operations; our
ability to adequately manage our acquisitions, investments or other
strategic initiatives; our ability to manage our operations at our current
size or manage future growth effectively; our dependence on third parties
for our sales and distribution channels; risks related to the conversion of
wholesale distribution markets to owned and operated markets and risks
related to productivity or efficiency initiatives; operational challenges
relating to the distribution of our products; deterioration or termination
of relationships with major wholesale partners; global or regional health
events such as the COVID-19 pandemic; seasonality, weather conditions and
climate change; adverse events influencing the sustainability of our supply
chain or our relationships with major suppliers or increases in raw
materials or labor costs; our ability to effectively manage inventory;
unforeseen business interruptions and other operational problems at our
production facilities; disruptions to our shipping and delivery
arrangements; failure to attract and retain key employees and deterioration
of relationships with employees, employee representative bodies and
stakeholders; risks relating to our intellectual property rights; risks
relating to regulations governing the use and processing of personal data;
disruption and security breaches affecting information technology systems;
natural disasters, public health crises, political crises, civil unrest and
other catastrophic events beyond our control; economic conditions impacting
consumer spending, such as inflation; currency exchange rate fluctuations;
risks related to litigation, compliance and regulatory matters; risks and
costs related to corporate responsibility and ESG matters; inadequate
insurance coverage, or increased insurance costs; tax- related risks; risks
related to our indebtedness; risks related to our status as a foreign
private issuer and a "controlled company"; and the factors described in the
sections titled "Cautionary Statement Regarding Forward-Looking Statements"
and "Risk Factors" in our Annual Report on Form 20-F filed with the
Securities and Exchange Commission on January 18, 2024 as updated by our
reports on Form 6-K that update, supplement or supersede such information.
Any forward-looking statement made by us in this press release speaks only
as of the date of this press release and is expressly qualified in its
entirety by the cautionary statements included in this press release. We
undertake no obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future developments, or
otherwise, except as required by law.
NON-IFRS FINANCIAL INFORMATION
This press release includes "non-IFRS measures" that are financial measures
that either exclude or include amounts that are not excluded or included in
the most directly comparable measures calculated and presented in accordance
with International Financial Reporting Standards as issued by the
International Accounting Standards Board ("IFRS"). Specifically, we make use
of the non-IFRS financial measures Adjusted EBITDA, Adjusted EBITDA Margin,
Constant Currency Revenue, Adjusted EPS, Adjusted Net profit, Net leverage
and Net debt, which are not recognized measures under IFRS and should not be
considered as alternatives to net income (loss), as a measure of financial
performance or any other performance measure derived in accordance with
IFRS.
We discuss non-IFRS financial measures in this press release because they
are a basis upon which our management assesses our performance, and we
believe they reflect underlying trends and are indicators of our business.
Additionally, we believe that such non-IFRS financial measures and similar
measures are widely used by securities analysts, investors and other
interested parties as a means of evaluating a Company's performance.
Our non-IFRS financial measures may not be comparable to similarly titled
measures used by other companies. Our non-IFRS financial measures have
limitations as analytical tools, as they do not reflect all the amounts
associated with our results of operations as determined in accordance with
IFRS. Our non-IFRS financial measures should not be considered in isolation,
nor should they be regarded as a substitute for, or superior to, measures
calculated and presented in accordance with IFRS. A reconciliation is
provided in the tables accompanying this press release for each non-IFRS
financial measure in this press release to the most directly comparable
financial measure stated in accordance with IFRS. A reconciliation is not
provided for any forward-looking non-IFRS financial measures as such a
reconciliation is not available without unreasonable efforts.
Birkenstock Holding plc
Consolidated Statements of Profit
(Unaudited, In thousands of Euros, except share and per share information)
Six months Three
ended March 31, months
ended March
31,
2024 2023 2024 2023
Revenue 784,168 644,173 481,244 395,683
Cost of sales (328,140) (255,403) (210,084) (160,233)
Gross profit 456,028 388,770 271,160 235,450
Operating
expenses
Selling and (216,639) (172,867) (113,155) (86,748)
distribution
expenses
General (54,377) (54,524) (19,986) (32,391)
administration
expenses
Foreign (17,138) (47,754) (5,483) (16,924)
exchange gain
(loss)
Other income 206 3,945 (25) 3,945
(expense), net
Profit (loss) 168,080 117,570 132,511 103,332
from
operations
Finance cost, (63,439) (54,664) (27,389) (29,566)
net
Profit (loss) 104,641 62,906 105,122 73,766
before tax
Income tax (40,144) (22,699) (33,470) (24,373)
expense
Net profit 64,497 40,207 71,652 49,393
(loss)
Earnings per
share
Basic 0.34 0.22 0.38 0.27
Diluted 0.34 0.22 0.38 0.27
Shares 187,370,399 182,721,369 187,825,592 182,721,369
Birkenstock Holding plc
Consolidated Statements of Financial Position
(Unaudited, In thousands of Euros)
March 31, September 30,
2024 2023
Assets
Non-current assets
Goodwill 1,576,895 1,593,917
Intangible assets (other than goodwill) 1,676,609 1,705,736
Property, plant and equipment 303,871 286,053
Right-of-use assets 164,121 122,984
Other assets 50,621 38,234
Total non-current assets 3,772,117 3,746,924
Current assets
Inventories 650,963 595,092
Right to return assets 1,395 1,132
Trade and other receivables 200,206 91,764
Current tax assets 9,734 10,361
Other current assets 37,650 37,789
Cash and cash equivalents 175,728 344,408
Total current assets 1,075,676 1,080,546
Total assets 4,847,793 4,827,470
Shareholders' equity and liabilities
Shareholders' equity 2,554,102 2,400,589
Non-current liabilities
Loans and borrowings 1,298,763 1,815,695
Tax receivable agreement liability 345,302 -
Lease liabilities 139,203 103,049
Provisions for employee benefits 2,923 2,716
Other provisions 2,088 2,074
Deferred tax liabilities 112,252 109,794
Deferred income 13,477 10,634
Other liabilities 4,927 4,338
Total non-current liabilities 1,918,935 2,048,300
Current liabilities
Loans and borrowings 29,105 37,343
Lease liabilities 34,136 27,010
Trade and other payables 121,323 123,012
Accrued liabilities 30,489 38,645
Other financial liabilities 4,542 7,085
Other provisions 21,320 36,495
Contract liabilities 9,878 7,018
Tax liabilities 108,627 83,332
Deferred income - 2,680
Other current liabilities 15,336 15,961
Total current liabilities 374,756 378,581
Total liabilities 2,293,691 2,426,881
Total shareholders' equity and liabilities 4,847,793 4,827,470
Birkenstock Holding plc
Consolidated Statements of Cash Flows
(Unaudited, In thousands of Euros)
Six months
ended March
31,
Cash flows from operating activities 2024 2023
Net income (loss) 64,497 40,207
Adjustments to reconcile net profit
(loss) to net cash flows from operating
activities
Depreciation and amortization 47,384 40,574
Change in expected credit loss (128) 1,056
Finance cost, net 63,438 54,664
Net exchange differences 17,138 48,255
Non-cash operating items 2,394 3,380
Income tax expense 40,144 22,699
Income tax paid (10,153) 922
MIP personal income tax paid (11,426) -
Changes in Working capital:
- Inventories (65,902) (89,079)
- Right to return assets (278) 1,162
- Trade and other receivables (109,140) (111,436)
- Trade and other payables 21 (3,649)
- Accrued liabilities (7,809) 8,137
- Other current financial liabilities 863 (8,566)
- Other current provision (14,982) (6,934)
- Contract liabilities 2,874 2,096
- Prepayments (8,231) -
- Other (6,094) 593
Net cash flows provided by operating 4,611 4,080
activities
Cash flows from investing activities
Interest received 2,164 -
Purchases of property, plant and (34,931) (50,297)
equipment
Proceeds from sale of property, plant - 556
and equipment
Purchases of intangible assets (2,303) (728)
Receipt of government grant 8,739 -
Net cash flows (used in) investing (26,331) (50,469)
activities
Cash flows from financing activities
IPO Proceeds, net of transaction costs 449,214 -
Repayment of loans and borrowings (525,278) (3,844)
Interest paid (49,453) (58,632)
Payments of lease liabilities (16,656) (13,664)
Interest portion of lease liabilities (3,928) (2,364)
Net cash flows (used in) financing (146,101) (78,504)
activities
Net increase (decrease) in cash and cash (167,821) (124,893)
equivalents
Cash and cash equivalents at beginning 344,408 307,078
of period
Net foreign exchange difference (859) (10,522)
Cash and cash equivalents at end of 175,728 171,663
period
Birkenstock Holding plc
Reconciliation of Revenue
(Unaudited, In thousands of Euros)
Six months ended Constant Currency
March 31, Growth (%)
2024 2023 Growth
(%)
B2B 502,934 421,745 19% 21%
DTC 278,428 219,697 27% 31%
Corporate / 2,806 2,731 3% 3%
Other
Total 784,168 644,173 22% 24%
Revenue
Americas 435,499 373,351 17% 20%
Europe 255,676 204,770 25% 25%
APMA 90,187 63,321 42% 46%
Corporate / 2,806 2,731 3% 3%
Other
Total 784,168 644,173 22% 24%
Revenue
Three months ended Constant Currency
March 31, Growth (%)
2024 2023 Growth
(%)
B2B 362,524 303,951 19% 20%
DTC 117,773 90,262 30% 32%
Corporate / 947 1,470 (36)% (36)%
Other
Total 481,244 395,683 22% 23%
Revenue
Americas 254,046 213,551 19% 21%
Europe 175,542 144,253 22% 21%
APMA 50,709 36,409 39% 42%
Corporate / 947 1,470 (36)% (36)%
Other
Total 481,244 395,683 22% 23%
Revenue
Six months ended Three months ended
March 31, March 31,
2024 2024
Total Revenue 784,168 481,244
USD impact 12,104 3,364
CAD impact 1,318692
Other currencies impact 1,562 276
Total Revenue @ constant 799,152 485,575
currencies
Revenue growth @ constant 24% 23%
currencies
Birkenstock Holding plc
Reconciliation of Net profit to Adjusted Net profit
(Unaudited, In thousands of Euros, except share and per share information)
Six months Three months
ended March ended March 31,
31,
2024 2023 2024 2023
Net profit 64,497 40,207 71,652 49,393
(loss)
Add (Less)
Adjustments:
Share-based 3,591 3,268 - 3,268
compensation
expenses(1)
Relocation - 3,771 - 2,203
expenses(2)
Restructuring - 1,953 - 1,953
expenses(3)
IPO-related 7,460 9,492 166 4,149
costs(4)
Realized and 17,138 47,754 5,483 16,924
unrealized FX
gains /
losses(5)
Release of 10,548 - - -
capitalized
transaction
costs(6)
Tax (9,501) (4,847) (282) (2,802)
adjustment(7)
Adjusted Net 93,733 101,597 77,020 75,088
profit(loss)
Adj. Earnings
per share
Basic 0.50 0.56 0.41 0.41
Diluted 0.50 0.56 0.41 0.41
Shares 187,370,399 182,721,369 187,825,592 182,721,369
(1) Represents share-based compensation expenses relating to the management
investment plan.
(2) Represents relocation expenses which are considered non-recurring
expenses and not representative of the operating performance of the
business.
(3) Represents restructuring expenses which are considered non-recurring
expenses and not representative of the operating performance of the
business.
(4) Represents IPO-related costs, which include consulting and legal fees.
(5) Represents the primarily non-cash impact of foreign exchange rates
within profit (loss). We do not consider these gains and losses
representative of operating performance of the business because they are
primarily driven by fluctuations in the USD to Euro foreign exchange rate on
intercompany receivables for inventory and intercompany loans.
(6) Represents the effect of reversing capitalized transaction costs of the
USD Term Loan B due to its early repayment of USD 450 million and the
subsequent impact on finance costs.
(7) Represents income tax effects for the adjustments as outlined above,
except for unrealized foreign exchange gain (loss) and share-based
compensation expenses since these have not been treated as tax deductible in
the initial tax calculation.
Birkenstock Holding plc
Reconciliation of Net profit to EBITDA and Adjusted EBITDA
(Unaudited, In thousands of Euros, except share and per share information)
Six months Three months
ended March 31, ended March 31,
2024 2023 2024 2023
Net profit (loss) 64,497 40,207 71,652 49,393
Add:
Income tax expense 40,144 22,699 33,470 24,373
Finance cost, net 63,439 54,664 27,389 29,566
Depreciation and 47,384 40,574 24,137 20,157
amortization
EBITDA 215,464 158,143 156,648 123,489
Add Adjustments:
Share-based 3,591 3,268 - 3,268
compensation
expenses(1)
Relocation - 3,771 - 2,203
expenses(2)
Restructuring - 1,953 - 1,953
expenses(3)
IPO-related 7,460 9,492 166 4,149
costs(4)
Realized and 17,138 47,754 5,483 16,924
unrealized FX gains
/ losses(5)
Adjusted EBITDA 243,653 224,381 162,297 151,986
(1) Represents share-based compensation expenses relating to the management
investment plan.
(2) Represents relocation expenses which are considered non-recurring
expenses and not representative of the operating performance of the
business.
(3) Represents restructuring expenses which are considered non-recurring
expenses and not representative of the operating performance of the
business.
(4) Represents IPO-related costs, which include consulting and legal fees.
(5) Represents the primarily non-cash impact of foreign exchange rates
within profit (loss). We do not consider these gains and losses
representative of operating performance of the business because they are
primarily driven by fluctuations in the USD to Euro foreign exchange rate on
intercompany receivables for inventory and intercompany loans.
Birkenstock Holding plc
Reconciliation of Net debt and Net leverage
(Unaudited, In thousands of Euros)
March 31, September 30,
2024 2023
Loans and borrowings (Non-current) 1,298,763 1,815,695
+ USD Term Loan (Current) 3,038 7,347
+ Lease liabilities (Non-current) 139,203 103,049
+ Lease liabilities (Current) 34,136 27,010
- Cash and cash equivalents (175,728) (344,408)
Net debt 1,299,412 1,608,693
Adjusted EBITDA (LTM) 501,978 482,706
Net leverage 2.6x 3.3x
Birkenstock Holding plc
2023 Quarterly Reconciliation(6)
(Unaudited, In thousands of Euros)
2023
Q1 Q2 Q3 Q4 FY
Revenue 248,490 395,683 473,195 374,543 1,491,911
Cost of sales (95,170) (160,233) (181,129) (129,585) (566,117)
Gross profit 153,320 235,450 292,066 244,958 925,793
Operating
expenses
Selling and (86,119) (86,748) (136,654) (146,330) (455,851)
distribution
expenses
General (22,133) (32,391) (32,313) (84,552) (171,388)
administration
expenses
Foreign exchange (30,830) (16,924) (3,596) 15,294 (36,056)
gain (loss)
Other income - 3,945 (1,491) (4,263) (1,810)
(expense), net
Profit from 14,238 103,332 118,011 25,107 260,688
operations
Finance cost, net (25,098) (29,566) (26,694) (25,678) (107,036)
Profit (loss) (10,861) 73,766 91,317 (571) 153,652
before tax
Income tax 1,674 (24,373) (28,215) (27,716) (78,630)
expense
Net profit (loss) (9,187) 49,393 63,103 (28,287) 75,022
2023
Q1 Q2 Q3 Q4 FY
Net (9,187) 49,393 63,103 (28,2- 75,0-
prof- 87) 22
it
(los-
s)
Add:
Inco- (1,674) 24,373 28,215 27,71- 78,6-
me 6 30
tax
expe-
nse
Fina- 25,098 29,566 26,694 25,67- 107,-
nce 8 036
cost-
,
net
Depr- 20,417 20,157 21,233 21,60- 83,4-
ecia- 6 13
tion
and
amor-
tiza-
tion
EBIT- 34,654 123,489 139,245 46,71- 344,-
DA 3 101
Add
Adju-
stme-
nts:
Shar- - 3,268 14,817 47,30- 65,3-
e-ba- 8 94
sed
comp-
ensa-
tion
expe-
nses-
(1)
Relo- 1,569 2,203 (269) 1,098 4,60-
cati- 0
on
expe-
nses-
(2)
Rest- - 1,953 - - 1,95-
ruct- 3
urin-
g
expe-
nses-
(3)
IPO-- 5,343 4,149 5,247 15,86- 30,6-
rela- 3 03
ted
cost-
s(4)
Real- 30,830 16,924 3,596 (15,2- 36,0-
ized 94) 56
and
unre-
aliz-
ed
FX
gain-
s /
loss-
es(5-
)
Adju- 72,395 151,986 162,637 95,689 482,706
sted
EBIT-
DA
(1) Represents share-based compensation expenses relating to the management
investment plan.
(2) Represents relocation expenses which are considered non-recurring
expenses and not representative of the operating performance of the
business.
(3) Represents restructuring expenses which are considered non-recurring
expenses and not representative of the operating performance of the
business.
(4) Represents IPO-related costs, which include consulting and legal fees.
(5) Represents the primarily non-cash impact of foreign exchange rates
within profit (loss). We do not consider these gains and losses
representative of operating performance of the business because they are
primarily driven by fluctuations in the USD to Euro foreign exchange rate on
intercompany receivables for inventory and intercompany loans.
(6) The FY 2023 quarters are being provided here to assist in modeling,
trending analysis and year-over-year comparisons.
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Language: English
Company: Birkenstock Holding plc
1-2 Berkeley Square
W1J6EA London
United Kingdom
ISIN: JE00BS44BN30
Listed: NYSE
EQS News ID: 1914563
End of News EQS News Service
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1914563 30.05.2024 CET/CEST