Companies

Strong full year 2024 for Birkenstock

Dec 23, 2024 Germany

The German-based company has reported a strong set of results for its fiscal year 2024, driven by strong consumer demand across all regions and a focus on a solid financial position

“I’m 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% revenue growth, reaching over EUR 1.8 billion in our first year as a public company, continuing our decade-long track record of 20%+ revenue growth”, commented Oliver Reichert, CEO of the company.

Full Year Results

In the twelve months to the 30^th of September, Birkenstock reported a revenue of 1.8 billion euros, an increase of 21% on a reported basis and 22% on a constant currency basis, “ahead of projected constant currency growth of 20%”.

This growth was driven by strong consumer demand, supported by new production capacity and category expansion, with average selling prices up by 8% on a constant currency basis.

This performance was also consistent across geographies, as the company recorded double-digit revenue growth in all areas, including 19% in the Americas, 21% in Europe and 42% in APMA, on a constant currency basis. From a channel perspective, the company also recorded revenue growth of 21% and B2B revenue growth of 23% on a constant currency basis.

In fiscal year 2024, Birkenstock’s gross profit margin declined year-on-year by 330 basis points to 58.8%, mainly due to the foreseen temporary impact of production capacity expansion, channel mix shift, currency translation and other impacts

It’s worth highlighting that the company’s full year adjusted EBITDA was 555 million euros, up by 15% year-on-year, resulting in an adjusted EBITDA margin of 30.8%, above the projected range of 30 to 30.5%.

Overall, full year net profit came in at 192 million euros, up by 155% year-on-year, while full year adjusted net profit came in at 240 million euros, up 16% year-on-year.

In the twelve months to the end of September, Birkenstock invested 74 million euros in capital expenditure, mainly to expand production capacity and open more of its own stores, ending the year with cash and cash equivalents of 356 million euros and net debt of 1.8 times earnings. The company repaid 662 million euros in loans this year and plans to further reduce its debt.

“As we look into 2025 and beyond, we are confident in our ability to deliver on our medium to long-term objectives for mid-to-high teens revenue growth, gross profit margin of around 60% and Adjusted EBITDA margin of over 30%”, concluded Oliver Reichert.

Image Credits: wlgwh.shop

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