Newcomer Birkenstock increases annual sales by twenty percent

The shoe supplier Birkenstock Holding Plc closed the 2022/23 financial year with a significant increase in sales. However, the profit fell short of the previous year’s level due to special charges relating to the IPO in October. This emerges from an annual report that the company published on Thursday.

In the past financial year, which ended on September 30, 2023, group sales amounted to 1.49 billion euros, exceeding the previous year’s level by twenty percent (+20 percent adjusted for currency effects). The company attributed the increase to the increased number of items sold and higher sales prices.

Special effects weigh on profits

All market regions contributed to the strong growth. In Europe, revenues rose by 18 percent (currency-adjusted +18 percent) to 529.5 million euros, in America by 21 percent (currency-adjusted +20 percent) to 804.7 million euros and in the APMA, Asia, Middle East region and Africa, even by 24 percent (currency-adjusted +27 percent) to 152.4 million euros. The company explained that the “crucial growth drivers” were the markets of China and India.

Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted for special effects, grew by eleven percent to 483 million euros compared to the previous year. However, reported net profit fell by 60 percent to 75.0 million euros, mainly due to IPO-related costs and share-based compensation expenses. Adjusted for special effects, the annual profit grew by 19 percent to 207.2 million euros.

Management is targeting further growth for the current year

The company also wants to grow strongly in the current 2023/24 financial year. According to the current forecast, currency-adjusted sales should reach between 1.74 and 1.76 billion euros, increasing by 17 to 18 percent. Further international expansion and the development of new product categories should contribute to this. EBITDA adjusted for special factors and currency effects is expected to grow to between 520 and 530 million euros.