GB - Global Blue sees FY core profit to be above last year

2023-09-25 07:06:55 ET

Global Blue ( NYSE: GB ) said on Monday it expects its profit for the year to be higher than last year, helped by a recovery in spend from Asian shoppers and increase in travel demand as the effects of the pandemic fades.

The company said it expects adjusted core profit for the year to be €145-165M, which is an 85-115% year-on-year growth.

The tax-free shopping firm was one of the many firms to be affected by the COVID-19 led lockdown, but it is now benefiting from pent-up travel demand, as more tourists look to spend more on travelling.

The company added it sees adjusted core profit for the year ended March 2025 to be more than €200M, primarily driven by recovery in spend from Asian shoppers.

The firm also expects a normalization in growth starting in FY25/26 and is targeting a long-term revenue growth of 8-12%.

In the long-term, the company is also targeting a yearly growth of its tax-free shopping sales in store between 10% to 15%.

"Global Blue expects the travel recovery to be solid for the rest of the year, especially with the progressive return of Mainland Chinese to Asian destinations first and Europe thereafter," the company said.

The company also added it will benefit from a "clear willingness to travel", an increase in air capacity, and a rise in average spend versus 2019.

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