Fabbrica Italiana Lapis ed Affini (FILA) H1 2024 earnings summary

Executive summary

• H1 2024 saw improved profitability and free cash flow, with adjusted group net profit rising to €32.0 million from €19.8 million, and a significant increase in the value of the 30.6% DOMS stake, now valued at €462–500 million.

• Revenue was €333.3 million, down 5.2% year-over-year (or -3.5% FX comparable), mainly due to DOMS deconsolidation and adverse currency effects, but Q2 showed recovery after SAP EWM rollout in North America.

• Adjusted IFRS 16 EBITDA grew 5.6% to €70.8 million, with margin up to 21.3% from 19.1% in H1 2023, reflecting operational efficiencies and favorable product mix.

• Net bank debt reduced by €98.7 million year-over-year to €309.6 million, aided by DOMS IPO proceeds and improved cash flow, despite €36.2 million in dividend payments.

• Capital Markets Day is scheduled for November 12, 2024, to provide further strategic updates.

Financial highlights

• Adjusted group net profit (ex-DOMS) rose 61.6% to €32.0 million in H1 2024 from €19.8 million in H1 2023.

• Adjusted IFRS 16 EBITDA margin improved to 21.3% in H1 2024 from 19.1% in H1 2023.

• Free cash flow to equity improved by €7.9 million year-over-year, reaching -€40.3 million in H1 2024.

• Net bank debt at €309.6 million in H1 2024, down from €408.3 million in H1 2023.

• Revenue in H1 2024 was €333.3 million, down €18.5 million from H1 2023, mainly due to North America (-10.3%) and currency effects, partially offset by growth in Europe (+1.4%) and Central-South America (+11.1%).

Outlook and guidance

• 2024 guidance reaffirmed: stable revenues, mid-single digit adjusted EBITDA growth, and free cash flow to equity between €40–50 million.

• H2 expected to see mid-high single-digit revenue growth to achieve flat full-year top line.

• Margin improvement anticipated due to cost optimization and reduced financial expense.

• CapEx for 2024 expected at around €18 million.

• Macroeconomic uncertainty remains due to elections in key markets and global geopolitical risks.