Germany's Birkenstock's FY24 revenue up 21% YoY, exceeding projections

Strong double-digit revenue growth was recorded across all segments, including 19 per cent in the Americas, 21 per cent in Europe, and 42 per cent in Asia-Pacific, Middle East, and Africa (APMA) on a constant currency basis. Direct-to-consumer (DTC) revenue grew by 21 per cent, while business-to-business (B2B) revenue increased by 23 per cent, Birkenstock said in a press release.

The gross profit margin stood at 58.8 per cent, a decline of 330 basis points from 62.1 per cent. Net profit rose by 155 per cent YoY to €192 million (~$201.79 million), with earnings per share (EPS) up 149 per cent to €1.02. Adjusted net profit reached €240 million, a 16 per cent increase, and adjusted EPS grew 13 per cent to €1.28.

The company’s adjusted EBITDA rose 15 per cent to €555 million (~$583.41 million), with a margin of 30.8 per cent, exceeding the 30-30.5 per cent forecast. Operating cash flows totalled €429 million, up from €359 million last year, resulting in a net leverage ratio of 1.8x LTM EBITDA as of September 30, 2024.

“I am proud to be reporting very strong 2024 results, with both revenue and adjusted EBITDA coming in ahead of our expectations. I want to thank the Birkenstock team for their hard work and strong execution in 2024. We closed the year with 22 per cent revenue growth, reaching over €1.8 billion in our first year as a public company, continuing our decade-long track record of more than 20 per cent revenue growth,” said Oliver Reichert, chief executive officer (CEO) of Birkenstock Group and member of the board of directors of the company. “We are delivering on the commitments we made during our IPO by expanding profitably into the white-space opportunities we identified: Closed-toe silhouettes, orthopaedics, professional, outdoor, the APMA region and our own retail.”

Fourth quarter (Q4) financials

The company reported revenue of €456 million (~$479.47 million) in the fourth quarter of FY24, representing a 22 per cent increase on both a reported and constant currency basis. Strong double-digit revenue growth was seen across all segments, with 21 per cent growth in the Americas, 19 per cent in Europe, and 38 per cent in APMA on a constant currency basis. DTC revenue rose by 18 per cent, while B2B revenue grew by 26 per cent.

The gross profit margin was 59.0 per cent, down 640 basis points compared to 65.4 per cent in the fourth quarter of FY23. Net profit of the company reached €52 million, a significant turnaround from a net loss of €28 million, with EPS improving to €0.28 from €0.15.

Adjusted net profit rose 118 per cent to €55 million, with adjusted EPS increasing by 107 per cent to €0.29. Adjusted EBITDA grew 31 per cent year-over-year to €125 million, with the adjusted EBITDA margin rising 190 basis points to 27.4 per cent from 25.5 per cent a year ago.

Outlook for fiscal 2025

For fiscal 2025, Birkenstock projects revenue growth of 15-17 per cent in constant currency compared to FY24. The adjusted EBITDA margin is expected to range between 30.8-31.3 per cent, marking an increase of up to 50 basis points compared to fiscal 2024. Gross profit margin is anticipated to improve with higher utilisation of new production facilities, approaching the long-term target of 60 per cent. The effective tax rate is estimated at approximately 30 per cent, with planned capital expenditures of around €80 million. The company aims to achieve a targeted net leverage ratio of approximately 1.5x by September 30, 2025.

ALCHEMPro News Desk (SG)