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

Executive summary

• Q1 2025 revenue rose 3.4% year-over-year to €136.3 million, with organic growth of 4.0% at constant currency, driven by partial recovery in North America and continued growth in Europe, despite a volatile environment and negative currency effects.

• Adjusted EBITDA increased 7.0% to €22.6 million, with margin improving to 16.6% from 16.0% in Q1 2024, reflecting efficiency initiatives, a favorable product mix, and cost actions.

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

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

• 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.

Financial highlights

• Revenue reached €136.3 million (+3.4% year-over-year; +4.0% at comparable FX); adjusted EBITDA rose to €22.6 million (+7.0%), with margin improving to 16.6% from 16.0%.

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

• Adjusted net profit fell to €0.9 million (down from €6.5 million in Q1 2024), mainly due to €5.6 million FX losses and higher provisions.

• Free cash flow to equity was negative €55.5 million, reflecting seasonal working capital absorption.

• Net financial position improved to -€230.8 million, a €132.2 million reduction year-over-year; net bank debt fell to -€176.7 million from -€303.0 million.

Outlook and guidance

• 2025 guidance is maintained but may be revised due to ongoing tariff uncertainties, macroeconomic volatility, and potential impacts on US consumer demand.

• Management expects a solid back-to-school season despite weak US consumer demand and continues to focus on cost reduction and efficiency.