The shoe supplier Birkenstock closed the 2023/24 financial year with surprisingly strong increases in sales and earnings. In addition to the current figures, the listed parent company Birkenstock Holding Plc also announced its growth targets for the current year on Wednesday.
In the most recent financial year, which ended on September 30th, group sales reached 1.80 billion euros. This corresponded to growth of 21 percent (currency-adjusted +22 percent) compared to the previous year. The company had previously forecast an increase of 20 percent.
Birkenstock achieved double-digit growth in all market regions. In America, revenues rose by 17 percent (currency-adjusted +19 percent) to 943.7 million euros, in Europe they increased by 22 percent (currency-adjusted +21 percent) to 644.9 million euros. In the APMA region, which includes the Asia-Pacific region, the Middle East and Africa, sales exceeded the previous year’s level by 39 percent (+42 percent adjusted for currency effects) and amounted to 211.8 million euros.
Currency-adjusted sales growth of 15 to 17 percent is expected for the current year
The gross margin, which was 62.1 percent in the previous year, fell to 58.8 percent. The company attributed this to, among other things, the temporary effects of expanding production capacities, changes in the sales channel mix and negative currency effects. Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects only increased by 15 percent to 555 million euros, but exceeded expectations.
However, the reported net profit was more than twice as high as in the previous year. It jumped from 75.0 to 191.6 million euros. Adjusted for special effects, it increased by 16 percent to 240 million euros.
Management also expects strong growth in the current financial year. For 2024/25 it forecasts a currency-adjusted increase in sales in the range of 15 to 17 percent. The target for the EBITDA margin adjusted for special effects, which was most recently at 30.8 percent, is 30.8 to 31.3 percent. An increase in the gross margin is also expected due to the higher utilization of the new production sites.