Fabbrica Italiana Lapis ed Affini (FILA) Q4 2024 earnings summary

Executive summary

• FY 2024 saw strong profitability, with adjusted EBITDA up 7.2% to €118.2M and margin rising to 19.3% from 17.1% year-over-year, despite a 2.8% organic sales decline to €612.6M, mainly due to SAP EWM rollout in North America and currency headwinds.

• Adjusted net profit increased 32.3% to €40.9M, while reported net profit was €81.8M, benefiting from the DOMS stake disposal and lower financial expenses.

• Free cash flow to equity reached €67.7M, exceeding guidance, with €80.7M cash-in from the DOMS stake sale.

• Net financial position improved by €122.3M to €181.1M, with net bank debt reduced to €124.5M from €229.5M.

• Proposed dividend of €40.8M–€40.9M, above guidance, reflecting strong cash generation and asset sales.

Financial highlights

• Core business sales fell 5.0% year-over-year to €612.6M; on a comparable FX basis, the decline was 2.8%.

• Adjusted EBITDA increased 7.2% to €118.2M, with margin up to 19.3% from 17.1%.

• Adjusted group net profit rose 32.3% to €40.9M; reported net profit was €81.8M, down from €170.6M in FY 2023 due to one-off items.

• Free cash flow to equity was €67.7M, up from €60.3M in FY 2023.

• Net financial position improved to €181.1M, a €122.3M reduction year-over-year, despite €36.5M in dividends paid.

Outlook and guidance

• 2025 guidance confirmed: low- to mid-single-digit revenue growth, mid-single-digit adjusted EBITDA growth, and free cash flow to equity between €40M and €50M.

• Dividend payout ratio to remain between 20% and 40%.

• Stable working capital expected in 2025, with continued focus on efficiency and cost reduction.

• CapEx expected to rise to up to €20M in 2025, mainly for efficiency and sustainability.

• Macroeconomic risks include geopolitical tensions, potential US tariff increases, and sector downturn in Europe.