Ann: FY24 Results Announcement, page-6

Another element worth mentioning about their FY 24 results : they were able to largely improve their EBITDA margin*, despite a sales decrease and an increase of 13 % for their staff costs (excluding staff cost included in their construction costs).
The only logical explanation for me is that the company continued to have a significant increase of its number of employees (+ 11.5 % in FY 24) because it expects an increase for its revenues going forward.

Employee costs/revenue was 4.8 % in FY 24 vs 3.9 % in FY 19 and 3.6 % in FY 20.
So, even if there is no further improvement for the gross margin, we could see an increase for EBITDA margin led by productivity (probably scenario : limited increase in the number of employees, with increase of revenues in FY 25 and FY 26).

If the company can return to its pre-covid level of employee cost/revenue of 3.75 %, it can increase its EBITDA margin by around 100 bp**, reaching an EBITDA margin of 4.1 %.
Reminder : Shape reached a peak EBITDA margin of 4.5 % in FY 19 (3.9 % in FY 20).

* only due to the large improvement of the gross margin.
** probably not in 1 year, but more on a period of 2 to 3 years.