Fabbrica Italiana Lapis ed Affini (FILA) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered revenue growth of 3.4% year-over-year to €136.3 million, with adjusted EBITDA up 7% to €22.6 million and margin improving to 16.6%, driven by efficiency actions and a favorable product mix.

• The group’s 26.01% stake in DOMS remains near all-time highs, with a new shareholder agreement approved in April 2025, strengthening strategic ties.

• Adjusted net income dropped to €0.9 million from €6.5 million in Q1 2024, mainly due to €5.6 million FX losses and higher bad debt provisions.

• Net financial position improved to -€230.8 million, a €132.2 million reduction year-over-year, supported by strong cash flow and the DOMS stake disposal.

• 2025 guidance is maintained but may be revised due to tariff uncertainties and macroeconomic volatility, especially regarding US consumption.

Financial highlights

• Revenue reached €136.3 million (+3.4% year-over-year, +4.0% at comparable FX); adjusted EBITDA rose to €22.6 million (+7%), with margin at 16.6%.

• Adjusted operating income was €12.9 million, stable versus Q1 2024.

• Adjusted net income was €0.9 million (down from €6.5 million), impacted by €5.6 million FX losses and higher provisions.

• Free cash flow to equity was -€55.5 million (vs -€40.6 million), reflecting seasonal working capital absorption.

• Net financial position improved to -€230.8 million, with net bank debt at -€176.7 million (down from -€303.0 million in Q1 2024).

Outlook and guidance

• 2025 guidance is maintained but may be adjusted due to ongoing tariff uncertainties and global macroeconomic risks, particularly affecting US consumer demand.

• Consensus EBITDA is below guidance, and management adopts a wait-and-see approach given current volatility and backlog visibility.

• Management expects a solid back-to-school season despite weak US consumer demand.