In This Article:
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Revenue: Group level net decline of 3.5% for H1, improved to negative 0.4% in Q2.
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EBITDA: Grew by 5.6% in H1, with a strong acceleration to 11.5% in Q2.
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EBITDA Margin: Increased from 19.1% last year to 21.3% this year.
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Adjusted Net Profit: Increased from EUR19.8 million last year to EUR30.5 million this year, about a 50% increase.
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Net Debt: Down by almost EUR100 million compared to a year ago.
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Free Cash Flow to Equity: Improved, absorbing almost EUR8 million less cash than in 2023.
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North America Sales: Declined by 21.1% in Q1, improved to negative 3.0% in Q2.
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Europe Sales Growth: Improved from 0.4% in Q1 to 2.2% in Q2.
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Financial Expenses: Declined considerably due to lower debt and improved margin ratchets.
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Leverage Ratio: Reduced to 2.7 times.
Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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FILA-Fabbrica Italiana Lapis ed Affini SpA (STU:3S0) reported strong cash flow generation, prioritizing this since acquiring Pacon in 2019.
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The company's Indian asset, DOMS, continues to perform spectacularly, with its share value tripling since its IPO.
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EBITDA margin improved significantly, growing from 19.1% last year to 21.3% this year.
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Net debt decreased by almost EUR100 million compared to a year ago, largely due to the cash-in from the IPO of DOMS.
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The company confirmed its guidance for 2024, expecting single-digit growth for EBITDA and free cash flow generation between EUR40 million and EUR50 million.
Negative Points
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The first quarter was negatively impacted by the introduction of SAP EWM in North America, causing delivery delays.
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Central and South America faced challenges due to the devaluation of the Argentinian peso.
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Despite improvements, the second quarter still experienced slight negative impacts from delivery delays at Dixon warehouses.
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The company's revenue in North America showed a contraction of 10.3% in sales for the first half of 2024.
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The devaluation of the Turkish lira negatively impacted the company's financial results.
Q & A Highlights
Q: Can you comment on the current trading trends in the third quarter, particularly in North America? A: Massimo Candela, CEO, stated that the second semester is driven by back-to-school sales, and it's too early to predict sell-out trends. However, they are confident in their full-year guidance.
Q: What is the outlook for Central and Latin America in the second half of the year? A: Candela noted that they focus on generating sales with good margins rather than boosting sales artificially. The second quarter trends are considered normal and expected to continue.