Birkenstock (BIRK) Registration Filing summary

Company overview and business model

• Global footwear brand with roots dating back to 1774, focused on function, quality, and tradition.

• Vertically integrated manufacturing, with all footbeds produced in Germany and most products assembled in Germany or the EU.

• Multi-channel “engineered distribution” model balancing wholesale (B2B) and direct-to-consumer (DTC) channels, with DTC penetration reaching 40% of revenues in fiscal 2023.

• Product portfolio anchored by iconic unisex silhouettes, with ongoing innovation in materials and design.

• Brand enjoys high consumer loyalty, with the average U.S. customer owning 3.6 pairs and 86% of recent buyers intending to repurchase.

Financial performance and metrics

• Revenues grew from €962.0 million in fiscal 2021 to €1,491.9 million in fiscal 2023, a 25% two-year CAGR.

• Adjusted EBITDA increased from €292.3 million in fiscal 2021 to €482.7 million in fiscal 2023, with margin expanding from 30.0% to 32.4%.

• Net profit decreased from €81.8 million in fiscal 2021 to €75.0 million in fiscal 2023, with net profit margin contracting from 9.0% to 5.0%.

• For the six months ended March 31, 2024, revenues rose 22% year-over-year to €784.2 million, with net profit up to €64.5 million.

• Cash and cash equivalents stood at €175.7 million as of March 31, 2024, with total assets of €4.85 billion and total equity of €2.55 billion.

Use of proceeds and capital allocation

• No proceeds will be received by the company; all proceeds from the offering go to the selling shareholder.

• Company continues to invest in expanding production capacity, with €180 million spent between October 2021 and end of fiscal 2024 and expected capital expenditures of €100 million for fiscal 2024.

• No plans to pay dividends in the foreseeable future; earnings will be retained to fund business development and expansion.