Revenue Growth - Revenue for the three months ended December 31, 2024, was €361.7 million, representing a 19% increase on both a reported and constant currency basis[107] - Strong revenue growth across all segments: 16% in the Americas, 17% in EMEA, and 47% in APAC, all on a reported and constant currency basis[107] - Revenue for the three months ended December 31, 2024 increased by €58.8 million, or 19%, to €361.7 million from €302.9 million for the same period in 2023[148] - B2B revenue increased by €41.6 million, or 30%, to €182.0 million for the three months ended December 31, 2024, driven by strong growth across all regions[152] - DTC revenue increased by €17.9 million, or 11%, to €178.5 million for the three months ended December 31, 2024, resulting in a DTC penetration of 49%[153] - Revenue in the APAC segment increased by €15.0 million, or 47%, to €47.1 million, driven by growth in both B2B and DTC channels[172] Profitability - Adjusted EBITDA for the period was €102.1 million, a 25% year-over-year increase, with an adjusted EBITDA margin of 28.2%, up 130 basis points from the previous year[107] - Net profit reached €20.1 million, a significant recovery from a net loss of €7.2 million in the prior year, with earnings per share (EPS) of €0.11[107] - Adjusted net profit was €33.3 million, up 99% from €16.7 million, resulting in an adjusted net profit margin of 9.2%[107] - Adjusted net profit for the three months ended December 31, 2024 was €33.3 million, compared to €16.7 million for the same period in 2023, reflecting a significant increase[125] - Net profit for the three months ended December 31, 2024 was €20.1 million, a turnaround from a net loss of €7.2 million in the same period of 2023[148] - Gross profit for the three months ended December 31, 2024 was €218.0 million, an increase of €33.2 million, or 18%, compared to the same period in 2023[148] Cost and Expenses - Gross profit margin was 60.3%, a decrease of 70 basis points from 61.0% in the first quarter of 2024, primarily due to an increase in B2B share[107] - Cost of sales for the three months ended December 31, 2024 increased by €25.6 million, or 22%, to €143.7 million, primarily due to an increase in the number of units sold[155] - General and administrative expenses decreased by €10.3 million, or 30%, to €24.1 million for the three months ended December 31, 2024[148] - Selling and distribution expenses increased by €14.7 million, or 14%, to €118.2 million, while as a percentage of revenue, these expenses decreased to 32.7% from 34.2%[160] - General and administrative expenses decreased by €10.3 million, or 30%, to €24.1 million, primarily due to non-recurring IPO-related costs incurred in the previous year[161] Cash Flow and Financing - Cash flows used in operating activities improved to €11.6 million from €45.4 million a year ago[107] - Cash flows used in operating activities for Q4 2024 were €11.6 million, a decrease of 74.5% from €45.4 million in Q4 2023, driven by a net profit of €20.1 million and cash outflows from working capital of €67.7 million[182][183] - Cash flows used in investing activities increased to €15.0 million in Q4 2024 from €8.6 million in Q4 2023, primarily due to a decrease in government grant receipts by €6.9 million[184] - Cash flows used in financing activities decreased significantly to €33.0 million in Q4 2024 from €119.8 million in Q4 2023, mainly due to lower loan repayments of €522.4 million and reduced cash interest paid of €16.2 million[185] - Total loans and borrowings as of December 31, 2024, amounted to €1,202.7 million, reflecting an increase from €1,194.6 million as of September 30, 2024[188][189] Market and Operational Risks - The company is exposed to market risks, particularly foreign exchange and interest rate risks, which could impact financial performance[191] - The company faces intense competition and must adapt to changing consumer preferences to maintain market share[198] - Future growth strategies include expanding direct-to-consumer (DTC) channels and enhancing e-commerce platforms[198] - The company faces risks related to regulations governing the use and processing of personal data, as well as potential disruptions and security breaches affecting IT systems[201] - Economic conditions impacting consumer spending, such as inflation, pose significant risks to the company's performance[201] - Currency exchange rate fluctuations are a concern for the company's financial stability[201] - The company is exposed to risks related to litigation, compliance, and regulatory matters[201] - Corporate responsibility and ESG-related risks and costs are factors that the company must manage[201] - The company faces risks associated with its level of indebtedness and the ability to repay its debt[201] - Material weaknesses identified in the company's internal control over financial reporting need to be remediated[201] - The company operates as a foreign private issuer and a "controlled company," which presents unique risks under NYSE rules[201] - Inadequate insurance coverage or increased insurance costs could impact the company's financial health[201] - Tax-related risks are also a consideration for the company's overall risk profile[201]
Birkenstock plc(BIRK) - 2025 Q1 - Quarterly Report