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Birkenstock (NR, B, BB) beats on 1Q and reaffirms FY24 guidance.

CONSUMER CYCLICALS

* Headline beat (revenue €303m vs. c€285m) was still met by net loss of -€7.1m; a more than doubling in operating profits yoy somewhat offset by a +€11m bump in finance costs & unfavourable tax shield benefits.

* It left cash flow from operating activities at -€45m. Did not stop company paying down €525m in loans bringing leverage down from 3.3* in Q4 to 2.6* in Q1 (against EBITDA), close to mgmt target of below 2.5*. Repayments have dragged cash & eqv's down from €334m to €169m.

* Its guidance from last month for FY24 was reaffirmed today; €1.74-1.76b revenues (organic +17-18%yoy) & at a margin of 30%, adj. EBITDA of €520-€530m - guidance was above consensus heading into the mid-Jan announcement (€515m in adj. EBITDA vs. €527m now), share priced reacted negatively on the FY23 miss at the time. It's little changed in early pre-market. today.

* The single €430m are streaming unch at €99.5

Earnings call at 1pm Lon/8am ET; https://www.webcaster4.com/Webcast/Page/3007/49781

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