Fabbrica Italiana Lapis ed Affini (FILA) Q3 2024 earnings summary

Executive summary

• Q3 2024 results show continued profitability, improved margins, and deleveraging, with a 30.6% stake in DOMS Industries valued at up to €577 million.

• Sales grew 1.3% in Q3 at constant FX, but nine-month sales declined 2% organically due to SAP EWM disruption and adverse currency effects; reported revenue for 9M 2024 was €493.4 million, down 19.7% year-over-year due to DOMS deconsolidation.

• Adjusted EBITDA rose 3.7% for 9M 2024 to €103.5 million, with margin improving to 21% from 19.4% year-over-year.

• Adjusted Group Net Profit increased 15.1% to €43.5 million for 9M 2024, including the pro-rata share of DOMS net profit.

• Free cash flow to equity for 9M 2024 was near zero, in line with expectations, with a full-year target of €40–50 million.

Financial highlights

• Q3 sales up 1.3% at constant FX; 9M 2024 core business sales at €493.4 million, down 2% organically and 4.2% reported.

• Adjusted EBITDA for 9M 2024 reached €103.5 million (21.0% margin), up 3.7% year-over-year.

• Adjusted Group Net Profit for 9M 2024 was €43.5 million, up 15.1% year-over-year.

• Free cash flow to equity for 9M 2024 was -€0.1 million, compared to €6.4 million in 2023.

• Net bank debt at €266.1 million in Q3 2024, down from €367.0 million in Q3 2023.

Outlook and guidance

• FY 2024 guidance confirmed: flat organic sales at constant FX, mid-single digit EBITDA growth, and free cash flow to equity of €40–50 million.

• Strategic plan targets 2025–2026: low-to-mid single digit organic sales growth, mid-single digit EBITDA growth, free cash flow to equity at upper end of €40–50 million per year, leverage target of 1.0x–1.5x, and dividend payout of 20–40% of adjusted net profit.

• Full-year 2024 results expected to be impacted by macroeconomic conditions and elections in key markets.

• Ongoing cost-cutting and operational optimization projects to support future profitability.