Investment Idea: Global Blue Group Holding AG (GB)
Global Blue Group Holding AG (GB) - Investment Idea
1. Executive Summary
Global Blue presents a compelling investment opportunity driven by the recovery in international tourism and its leading position in Tax Free Shopping Technology Solutions (TFSS). We believe the company is well-positioned to capitalize on increased travel and discretionary spending, coupled with its expansion into complementary retail tech solutions offering long-term growth potential.
2. Investment Thesis (Bull Case)
- Resurgence of International Travel: As international travel rebounds from pandemic-related disruptions, Global Blue's core TFSS segment is poised for significant growth. The pent-up demand for travel and discretionary spending will directly benefit the company's VAT refund services, boosting revenue and profitability.
- Market Leadership in TFSS: Global Blue commands a leading market share in the TFSS industry. This established position provides a competitive advantage, allowing the company to capture a disproportionate share of the market recovery. This leadership is further strengthened by its relationships with merchants and governments globally.
- Growth Opportunities in AVPS and CRTS: Beyond TFSS, Global Blue's Added-Value Payment Solutions (AVPS) and Complementary Retail Tech Solutions (CRTS) segments offer significant growth potential. AVPS, particularly Dynamic Currency Conversion (DCC) services, provide increased convenience for travelers, driving adoption and revenue. The acquisition of ZigZag and Yocuda strengthens the CRTS segment, diversifying revenue streams and offering a compelling suite of eCommerce solutions for retailers to send digital receipts to their customers. The expansion into CRTS will diversify Global Blue from reliance on the recovering tourism industry.
- Operational Efficiency & Scalability: Global Blue's technology-enabled platform allows for scalable operations and efficient processing of transactions. As travel volumes increase, the company can leverage its existing infrastructure to handle increased demand without significant incremental costs, resulting in improved operating leverage.