F.I.L.A. GROUP CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2024 F.I.L.A. S.p.A. SEPARATE FINANCIAL STATEMENTS AT DECEMBER 31, 2024
F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A. Via XXV Aprile 5 Pero (MI)
CONTENTS
- General information 3
Corporate Bodies 3
Overview of the F.I.L.A. Group 4
Organisational structure 6
- Directors' Report 8
Macroeconomic overview 8
Financial Highlights 11
F.I.L.A. Group's Financial Highlights 18
Operating results excluding net non-recurring charges 18
Business seasonality 21
Statement of Financial Position 23
Financial overview 27
Investments 32
Other Information 33
Management and control 33
Treasury shares 33
Related party transactions 34
Key Events in the year 35
Subsequent events 37
Outlook 37
Going Concern 38
Risk Management 39
Corporate Governance 55
Reconciliation between Parent and Consolidated Equity 56
Consolidated Sustainability Statement 58
General disclosures 58
Environmental information 97
Social information 124
Governance information 162
Appendices 170
Statement of the Executive Officer for Financial Reporting and the Corporate Bodies 188
- Consolidated Financial Statements as at and for the year ended December 31, 2024 190
Consolidated Financial Statements 190
Statement of Financial Position 190
Statement of Comprehensive Income 191
Statement of changes in Equity 192
Statement of Cash Flows 193
Statement of financial position with indication of related party transactions pursuant to
CONSOB Resolution No. 15519 of July 27, 2006 195
Income statement with indication of transactions with related parties pursuant to CONSOB motion No. 15519 of July 27, 2006 196
Notes to the Consolidated Financial Statements of the F.I.L.A. Group 197
Segment reporting 230
Business Segments - Statement of financial position 231
Geographical segments - Statement of comprehensive income 232
Business Segments - Other Information 233
Subsequent events 296
Commitments and guarantees 296
Related party transactions 298
Disclosure pursuant to Article 149-duodecies of the Consob Issuer's Regulation 308
Attachments 309
Attachment 1 - List of companies included in the consolidation scope and other equity investments 309
Transactions relating to Atypical and/or Unusual Operations 310
Statement of the Manager in Charge of fin. reporting and the Corporate Bodies 311
Independent Auditors' Report pursuant to Article 14 of Legislative Decree No. 39 of January 27, 2010 312
- Separate financial statements of F.I.L.A. S.p.A. at December 31, 2024 319
Separate financial statements of F.I.L.A. S.p.A 319
Statement of Financial Position 319
Statement of Comprehensive Income 320
Statement of changes in Equity 321
Statement of Cash Flows 322
Statement of Financial Position pursuant to CONSOB Resolution No. 15519 of July 27, 2006324 Statement of Comprehensive Income pursuant to CONSOB Resolution No. 15519 of July 27, 2006 324
Notes to the Separate Financial Statements of F.I.L.A. S.p.A 326
Disclosure pursuant to Article 149-duodecies of the Consob Issuer's Regulation 399
Subsequent events 400
Transactions relating to Atypical and/or Unusual Operations 401
Final Considerations 402
Statement of the Manager in Charge and Corporate Bodies 403
Board of Statutory Auditors' Report on the separate financial statements at December 31, 2024 prepared as per Article 153 of Legislative Decree No. 58/1998 404
Independent Auditors' Report pursuant to Article 14 of Legislative Decree No. 39 of January
27, 2010 423
I - General information
Board of Directors
Chairperson (*) Giovanni Gorno Tempini
Honorary Chairperson Alberto Candela Chief Executive Officer (**) Massimo Candela Executive Director (**) Luca Pelosin
Non-executive Director Annalisa Matilde Barbera
Non-executive Director (*) Gianna Luzzati
Non-executive Director (*) Carlo Paris
Non-executive Director (*) Donatella Sciuto
(*) Independent director in accordance with Article 148 of the Consolidated Finance Act and Article 3 of the Code of Conduct. (**) Executive Director
Control, Risks and Related Parties Committee
Gianna Luzzati Carlo Paris Donatella Sciuto
Annalisa Matilde Barbera
Remuneration Committee
Donatella Sciuto Gianna Luzzati
Annalisa Matilde Barbera
Board of Statutory Auditors
Chairperson Gianfranco Consorti
Standing Auditor Sonia Ferrero
Standing Auditor Pietro Michele Villa
Alternate Auditor Stefano Amoroso
Alternate Auditor Tina Marcella Amata
Independent Auditors Deloitte & Touche S.p.A.
Overview of the F.I.L.A. GroupThe F.I.L.A. Group (hereafter also the "Group") operates in the creativity tools market, producing and marketing colouring, design, modelling, writing and painting objects, such as pencils, crayons, modelling clay, chalk, oil colours, acrylics, watercolours, paints and paper for the fine arts, school and leisure.
The F.I.L.A. Group at December 31, 2024 operates through 22 production facilities and 33 subsidiaries across the globe and employs approximately 3,300 people, becoming a pinnacle for creative solutions in many countries with brands such as GIOTTO, DAS, LYRA, Canson, Maimeri, Daler-Rowney Lukas, Ticonderoga, Pacon, Strathmore, Princeton and Arches.
Founded in Florence in 1920 by two noble Tuscan families, della Gherardesca and Marchesi Antinori,
F.I.L.A. S.p.A. (hereafter also the "Parent") has achieved strong international growth in the past 20 years, supported by a series of strategic acquisitions. Over the years, the Parent has acquired: (i) the Italian firm Adica Pongo in 1994, a leading producer of modelling clay for children; (ii) the Spanish firm Spanish Fila Hispania S.L. (formerly Papeleria Mediterranea S.L.) in 1997, the Group's former exclusive distributor in Spain; (iii) the French firm Omyacolor S.A. in 2000, a leading manufacturer of modelling putties and clays; (iv) the U.S. Dixon Ticonderoga Group in 2005, a leading producer and distributor of pencils in North America, with subsidiaries operating on the Canadian, Mexican, Chinese and European markets; (v) the German LYRA Group in 2008, which allowed the Group to enter the German, Scandinavian and Eastern Asian markets; (vi) the business unit operated by Lapiceria Mexicana in 2010, one of the main local competitors in the budget coloured and graphite pencils market; and (vii) the business unit operated by Maimeri S.p.A. in 2014, a manufacturer and distributor of paints and accessories for fine arts. In addition to these operations, on the conclusion of an initiative which began with the acquisition of a significant influence in 2011, control of the Indian company DOMS Industries Pvt Ltd. was acquired in 2015 (viii). In 2016, the F.I.L.A. Group focused upon development through strategic Art&Craft sector acquisitions, seeking to become the leading market player. On February 3, 2016, F.I.L.A. S.p.A. acquired control of the Daler-Rowney Lukas Group, an illustrious brand producing and distributing materials and accessories on the arts and crafts market since 1783, with a direct presence in the United Kingdom, the Dominican Republic, Germany and the USA (ix). In September 2016, the F.I.L.A. Group acquired the entire share capital of St. Cuthberts Holding Limited and the operating company St. Cuthberts Mill Limited, a highly-renowned English paper mill, founded in 1907, located in the south-west of England and involved in the production of high quality artist's papers (x). In October 2016, F.I.L.A. S.p.A. acquired the Canson Group, founded in 1557 by the Montgolfier family, with headquarters in Annonay in France, production facilities in France and conversion and distribution centres in Italy, France, China, Australia and Brazil. Canson products are
available in over 120 countries and the brand is the most respected globally involved in the production and distribution of high added value paper for the fine arts, design, leisure and schools, but also for artists' editions and technical and digital drawing materials (xi).
In June 2018, F.I.L.A. S.p.A., through its US subsidiary Dixon Ticonderoga Co. (U.S.A.), consolidated its role as a leading player on the US market with the acquisition of the US Group Pacon, which through brands such as Pacon, Riverside, Strathmore and Princeton, is a leader in the US schools and arts and crafts sector. Dixon Ticonderoga Co. (U.S.A.) was subsequently merged into Pacon Corporation (U.S.A.), which later changed its name to Dixon Ticonderoga Co. (U.S.A.) (xii).
On March 2, 2020, F.I.L.A.- Arches S.A.S., a French company wholly-owned by F.I.L.A. S.p.A., completed the purchase from the Ahlstrom-Munksjö Group of the fine art business unit specialised in fine art operating through the ARCHES®brand (xiii).
On February 8, 2022, the UK subsidiary Daler Rowney Ltd. acquired 100% of the UK company Creative Art Products Limited, located in Manchester (UK), which specialises in the schools segment and produces and distributes a wide range of art materials for children, both under the Scola brand and private label brands (xiv).
On December 20, 2023, the listing of the subsidiary (now associated company) DOMS Industries Limited on the National Stock Exchange of India was completed. As part of the listing, however,
F.I.L.A. S.p.A. remained the largest single shareholder of the company post-listing as it held 30.6% of the share capital. On December 19, 2024, following the completion of the share placement of the Indian associate company DOMS Industries Limited, F.I.L.A. S.p.A. reduced its shareholding to 26.01% of the share capital, while still remaining the largest single shareholder of the Indian company (xv).
Organisational structureThe F.I.L.A. S.p.A. organisational structure is reported below.
F.I.L.A. GROUP AND F.I.L.A. S.p.A. DIRECTORS' REPORT AT DECEMBER 31, 2024
II - Directors' Report
After a rather challenging 2022 and 2023, a year that was heavily impacted by geopolitical tensions, inflation in raw materials, and a tightening of monetary policy with further increases in interest rates, the macroeconomic landscape of 2024 was again complex and volatile.
Global trade in 2025 is expected to expand at slightly over 3%, in line with global output forecasts. The outlook for global trade however maybe impacted by - in addition to heightening geopolitical tensions
- the announced tightening of US trade policy. Oil prices have barely risen; natural gas prices remain volatile and subject to upward pressure from factors related to both demand and supply.
At the end of 2024, Eurozone economic growth weakened, impacted by struggling consumer and weak investments and exports. Manufacturing output remains disappointing, weakened also by the services segment. Inflation remains contained at approximately 2%, with the core component substantially stable: services inflation remains relatively high, partly reflecting lagging adjustments to past inflation. The Eurosystem experts in December revised downwards the zone's growth forecasts to over 1% for the 2025-2027 three-year period. Inflation is expected to stabilise at around the ECB's 2% target. The Board of the ECB in December cut the reference rate by a further 25 basis points to 4.25-4.50%. Markets expects a fresh cut of around 75 basis points in 2025. Despite the gradual easing of monetary policy, lending conditions in the Eurozone remained subdued within a framework of uncertainty and weak demand.
F.I.L.A. Group's markets were impacted by a challenging macroeconomic environment in view of the elections held in India, Mexico and the United States. The final part of the year in particular was impacted by macroeconomic uncertainties in the F.I.L.A. Group's main geographies. In particular, the logistics software to boost operating efficiency in the United States has been fully rolled out, whose "learning curve" resulted in slower order fulfilment until H1 2024, with an impact on revenue, while the final part of the year was influenced by macroeconomic uncertainties related to the possible increase in tariffs for goods from major exporting countries such as China. The market in Europe saw a return to growth thanks in part to restocking by customers following the drop in 2023, while the final part of the year was impacted by a struggling consumer. Following strong developments over the first nine months of the year, the Central-South America market weakened in view of the macroeconomic uncertainties.
Against this backdrop, F.I.L.A Group management focused, in continuity with the previous year, on containing overheads, simplifying processes and reorganising production plant so as to maintain the
strong Group margin. New marketing and sales initiatives shall be rolled out to better support revenue growth, particularly in terms of extending the school segment range also to the lower-end categories, leveraging the strength of the DOMS product range, which shall continue to play a strategic role in the
F.I.L.A. Group's industrial projects.
Furthermore, efficiency gains in investments and in working capital are to be the levers used to continue pursuing our goal of reducing net debt.
The inflation and GDP figures for the main countries in which the F.I.L.A. Group companies operate are reported below:
Financial Highlights
The F.I.L.A. Group's 2024 Financial Highlights are reported below:
2024 Adjustments:
2023 Adjustments:
effect of Euro 12.7 million mainly relating to the listing of the Indian company DOMS Industries Limited.
In order to permit a more accurate assessment of the F.I.L.A. Group's financial performance and financial position, some alternative performance measures are presented alongside the conventional financial measures to the IFRS. Such alternative performance measures are not to be considered replacements for the IFRS-compliant measures. These measures are also tools used by the Directors to identify operating trends and for decision-making upon investments, the allocation of resources and other operative decisions. Alternative performance measures are not covered by IFRS and are therefore not comparable with similar performance and disclosure measures used in the financial statements of other entities.
These Alternative Performance Measures exclusively concern historical accounting data of the Group and are calculated in accordance with the Guidelines on Alternative Performance Measurement issued by ESMA on October 5, 2015 (2015/1415), as per CONSOB communication No. 92543 of December 3, 2015, the "ESMA Guidelines on Alternative Performance Measures (APMs)" issued on April 17, 2020 by the ESMA, and on October 28, 2022 in section 3 of the "European common enforcement priorities for 2022 annual financial reports".
The alternative performance measures used are illustrated below:
Gross operating profit or EBITDA: this is calculated the Profit for the Period, adjusted by the following captions: (i) Total Income taxes, (ii) Amortisation, Depreciation and Impairment losses and(iii) the Financial Management Result. The F.I.L.A. Group uses this measure as an internal management target and in external presentations (for analysts and investors), as it is useful in measuring the overall operating performance of the F.I.L.A. Group and of F.I.L.A. S.p.A.
The table below presents a reconciliation of the Profit for the period with the Gross Operating Profit or EBITDA:
Gross Operating Profit or EBITDA excluding net non-recurring charges and IFRS 16: this is calculated as the Gross Operating Profit or EBITDA excluding the following effects: (i) Net non-recurring charges on the Gross Operating Profit or EBITDA, (ii) the IFRS 16 effects (Cost offset) and
(iii) Non-recurring IFRS 16 charges.
Gross Operating Profit or EBITDA excluding net non-recurring charges: this is calculated as the Gross Operating Profit or EBITDA excluding net non-recurring charges on the Gross Operating Profit or EBITDA.Reference should be made to the reconciliation of the two above-stated Alternative Performance Measures:
December 31, | December 31, | |
Euro thousands | 2024 | 2023 |
Gross operating profit or EBITDA | 109,045 | 122,353 |
Charges for organisational structure and company process efficiency projects | 5,935 | 4,639 |
Costs and consultancy for extraordinary projects | 2,814 | 8,500 |
Medium/long-term incentive plan "Performance shares 2022-2026 " | 1,050 | 574 |
Non-recurring income (insurance reimbursements ) | (623) | - |
Adjustements for non-recurring expenses | 9,175 | 13,713 |
Adjusted gross operating profit or EBITDA | 118,221 | 136,066 |
IFRS 16 effect (Cost Offset) | (16,197) | (15,853) |
Non-recurring expense IFRS16 | 1,042 | 891 |
The following is a reconciliation between Gross Operating Profit or EBITDA and Operating Profit or EBIT:
December 31, | December 31, | |
Euro thousands | 2024 | 2023 |
Gross operating profit or EBITDA | 109,045 | 122,353 |
Amortisation and depreciation | (34,876) | (41,919) |
Net impairment losses on trade receivables and other assets | 1,008 | (617) |
Net other impairment losses | (11,309) | (1,358) |
Operating profit or EBIT | 63,867 | 78,458 |
The following is a reconciliation between Operating Profit or EBIT and Operating Profit or EBIT excluding net non-recurring charges:
December 31, December 31, | |
Euro thousands | 2024 2023 |
Operating profit or EBIT | 63,867 78,458 |
Non-recurring expense on gross operating profit or EBITDA | 9,175 13,713 |
Impairment losses on Intangible assets | 8,352 - |
Impairment losses on Tangible assets | 1,126 874 |
Impairment losses on Biological assets | 1,251 - |
Net impairment losses on Russia trade receivables | (418) 585 |
Non-recurring expense on Operating profit or EBIT | 19,487 15,172 |
Adjusted Operating profit or EBIT | 83,354 93,630 |
Profit attributable to owners of the parent: profit | for the reporting period, adjusted for non- |
controlling interest items. |
The Group defines the "Profit attributable to the owners of the parent excluding net non-recurring charges" as the Profit attributable to the shareholders of the parent excluding Net non-recurring charges on the Profit for the period attributable to the owners of the parent.
The reconciliation between the Profit attributable to the owners of the parent and the Profit attributable to the owners of the parent excluding net non-recurring charges is presented below:
December 31, | December 31, | |
Euro thousands | 2024 | 2023 |
Profit for the period attributable to the owners of the parent | 81,767 | 170,648 |
Non-recurring expense on Operating profit or EBIT | 19,487 | 15,172 |
Financial effect on net non-recurring expense | (65,777) | (167,594) |
Fiscal effect on net non-recurring expense | 5,553 | 12,718 |
Effect on owners of the parent of net non-recurring expense | (97) | (4) |
Non-recurring expense on Profit | (40,834) | (139,708) |
Adjusted Profit for the period attributable to the owners of the parent | 40,934 | 30,940 |
The non-current financial assets of the F.I.L.A. Group at December 31, 2024 and at December 31, 2023 respectively totalled Euro 1,032 thousand and Euro 746 thousand.
For greater details, reference should be made to the "Financial overview" section.
Net Financial Debt excluding the IFRS 16 and MTM effects: corresponds to the Net Financial Debt excluding the effects of IFRS 16 and Mark to Market Hedging. Basic and diluted earnings per share excluding net non-recurring chargesThe Basic Earnings/(Loss) per share excluding net non-recurring charges is calculated by dividing the Profit attributable to the owners of the parent, excluding net non-recurring charges, by the average weighted number of outstanding ordinary shares during the period, excluding any treasury shares in portfolio.
The Diluted Earnings/(Loss) per share excluding net non-recurring charges is calculated by dividing the Profit attributable to the owners of the parent, excluding net non-recurring charges by the average weighted number of outstanding ordinary shares during the period and those potentially arising from the conversion of all potential ordinary shares with dilutive effect.
December 31, | December 31, | |
Euro thousands | 2024 | 2023 |
Profit for the period attributable to the owners of the parent | 81,767 | 170,648 |
Adjusted Profit for the period attributable to the owners of the parent | 40,934 | 30,940 |
Weighted average number of ordinary shares (basic) | 50,727,531 | 50,798,877 |
Basic Earnings/(Loss) basic per Share | 1.61 | 3.36 |
December 31, | December 31, | |
2024 | 2023 | |
Weighted average number of ordinary shares (base) | 50,727,531 | 50,798,877 |
Azioni potenziali | 1,210,250 | 1,040,750 |
Weighted average number of ordinary shares (diluted) | 51,937,781 | 51,839,627 |
Basic Earnings/(Loss) diluted per Share | 1.57 | 3.29 |
The F.I.L.A. Group's 2024 financial highlights are reported below.
Operating results excluding net non-recurring charges
The operating results excluding net non-recurring charges of the F.I.L.A. Group for 2024 present a decrease in the Gross Operating Profit excluding net non-recurring charges of 13.1% on 2023.
The main changes compared to 2023 are illustrated below.
"Revenue" of Euro 612,583 thousand decreased on 2023 by Euro 166,599 thousand (-21.4%). Net of exchange losses of Euro 14,243 thousand (mainly concerning the Argentinian Peso, Mexican peso and the Turkish Lira) and of the revenue reported by the former Indian subsidiary DOMS Industries Limited for 2023 of Euro 134,320 thousand, the organic reduction was Euro 18,036 thousand (-2.8%).
At geographical area level, an organic contraction was reported in North America of Euro 22,211 thousand (-6.9% on the preceding period, impacted by the introduction by the one-off effect of the SAP EWM module in March 2024) and in Asia for Euro 1,358 thousand (-9.4% on the preceding period), offset by organic growth in Central-South America for Euro 3,288 thousand (+3.6% on the preceding period), in Europe for Euro 1,914 thousand (+0.9% on the preceding period), and in the Rest of the World for Euro 332 thousand (+9.4%).
"Other income" of Euro 9,350 thousand increased by Euro 619 thousand, mainly due to higher exchange
gains on commercial transactions.
"Operating Expense" in 2024 of Euro 503,713 thousand contracted Euro 148,135 thousand compared to 2023. This decrease mainly concerns the operating costs incurred in 2023 by the former Indian subsidiary DOMS Industries Limited for Euro 109,251 thousand (net of Euro 12,552 thousand concerning Inter-company item eliminations), and the lower variable purchase and commercial costs in line with revenues movements.
The "Gross Operating Profit" amounts to Euro 118,221 thousand, decreasing Euro 17,845 thousand compared to 2023 (-13.1%), mainly due to the deconsolidation of the former Indian subsidiary DOMS Industries Limited for Euro 25,817 thousand. The organic margin improved from 17.1% in 2023 (excluding the former Indian subsidiary DOMS Industries Limited) to 19.3% in 2024.
"Amortisation, depreciation and impairment losses" decreased Euro 7,569 thousand, mainly due to the amortisation and depreciation incurred in 2023 by the former Indian subsidiary DOMS Industries Limited for Euro 5,877 thousand.
The "Net financial income/(expense)" improved Euro 13,895 thousand, essentially due to lower net financial expense, mainly relating to the US subsidiary Dixon Ticonderoga Company, the Mexican subsidiary Grupo FILA-Dixon, S.A. de C.V. and the parent FILA S.p.A., in addition to the positive adjustment of the Carrying amount of FILA S.p.A.'s investment in the Indian associate DOMS Industries Limited of Euro 5,064 thousand, in accordance with the share of equity in the associate of 26.01%, in addition to the dividend received from the company of Euro 500 thousand.
In addition, at December 31, 2024 the Purchase Price Allocation had concluded of the Indian associate DOMS Industries Limited, resulting in a decrease in the investment of Euro 2,002 thousand as a result of the amortisation of the allocated gains.
Group "Taxes" amounted to Euro 20,409 thousand, increasing on the comparative period as a result of the reversal impact of deferred taxes.
Net of the profit attributable to "non-controlling interests", the F.I.L.A. Group result net of non-recurring charges in 2024 was a profit of Euro 40,934 thousand (Euro 30,940 thousand in the previous
year). The movement on the comparative period includes Euro 7,553 thousand concerning the former Indian subsidiary DOMS Industries Limited.
Business seasonality
The Group's operations are affected by the business's seasonal nature, as reflected in the consolidated results.
The F.I.L.A. Group primarily operates in the school and office strategic business segment and the fine arts Strategic business segment. Historically, the school and office Strategic business segment has reported greater sales in the second and third quarters of the year than in the first and fourth quarters of the year. This is mainly due to the fact that in the Group's main markets (i.e., North America, Mexico, India and Europe), schools reopen in the period from June to September. By contrast, the fine arts strategic business segment reports greater sales to some extent in the first, but especially in the fourth quarter, than in the second and third quarters, partially offsetting the seasonal nature of the school and office strategic business segment.
The quarterly breakdown of profit or loss shows the concentration of sales in the second and third quarters in conjunction with the "school campaign". Specifically, significant sales are made through the traditional "school suppliers" channel in June and through the "retailers" channel in August.
Seasonality is more significant when it is viewed in relation to working capital. In fact, in the school and office strategic business segment the Company has historically invested large quantities of financial resources to meet the enormous demand for products from July to September, while only receiving payments in November.
The key figures for 2024 and 2023 are reported below:
2024 | 2023 | |||||||
Euro thousands | December | September | June | March | December | September | June | March |
Revenue | 612,583 | 493,422 | 333,283 | 131,898 | 779,183 | 614,153 | 415,606 | 178,688 | |
Full year portion | 100.0% | 80.5% | 54.4% | 21.5% | 100.0% | 78.8% | 53.3% | 22.9% | |
Gross operating profit or EBITDA | 109,045 | 98,525 | 68,356 | 20,432 | 122,353 | 113,998 | 76,862 | 26,290 | |
% revenue from sales and services | 17.8% | 20.0% | 20.5% | 15.5% | 15.7% | 18.6% | 18.5% | 14.7% | |
Full year portion | 100.0% | 90.4% | 62.7% | 18.7% | 100.0% | 93.2% | 62.8% | 21.5% | |
Gross operating profit or EBITDA Adjusted for net non-recurring expense | 118,221 | 103,548 | 70,829 | 21,116 | 136,066 | 119,435 | 79,882 | 28,262 | |
% revenue from sales and services | 19.3% | 21.0% | 21.3% | 16.0% | 17.5% | 19.4% | 19.2% | 15.8% | |
Full year portion | 100.0% | 87.6% | 59.9% | 17.9% | 100.0% | 87.8% | 58.7% | 20.8% | |
Gross operating profit or EBITDA Adjusted for net non-recurring expense | 103,065 | 94,258 | 64,638 | 18,536 | 121,104 | 108,020 | 72,248 | 24,339 | |
and IFRS16 | |||||||||
% revenue from sales and services | 16.8% | 19.1% | 19.4% | 14.1% | 15.5% | 17.6% | 17.4% | 13.6% | |
Full year portion | 100.0% | 91.5% | 62.7% | 18.0% | 100.0% | 89.2% | 59.7% | 20.1% | |
Net Financial Debt - F.I.L.A.Group | (181,079) | (321,607) | (369,046) | (363,016) | (303,412) | (445,787) | (488,978) | (490,413) | |
Net Financial Debt - F.I.L.A.Group excluded IFRS16 and MTM | (119,521) | (261,578) | (305,697) | (299,493) | (226,643) | (365,115) | (406,881) | (405,121) | |
Statement of Financial Position
The F.I.L.A. Group's financial highlights at December 31, 2024 are as follows:
The F.I.L.A. Group's "Net Invested Capital" of Euro 813,883 thousand at December 31, 2024 was composed of "Non-current Assets" of Euro 624,947 thousand (Euro 663,746 thousand at December 31, 2023), "Net Working Capital" of Euro 241,656 thousand (decreasing Euro 21,360 thousand on December 31, 2023) and "Other Non-current Assets/Liabilities" of Euro 20,466 thousand (decreasing Euro 2,838 thousand on December 31, 2023), net of "Provisions" of Euro 73,187 thousand (Euro 72,702
thousand at December 31, 2023).
"Intangible Assets" decreased on December 31, 2023 by Euro 2,285 thousand, mainly due to amortisation of Euro 13,167 thousand, impairments of Euro 8,433 thousand, mainly concerning the US subsidiary Dixon Ticonderoga Company for Euro 4,271 thousand, the English subsidiary Daler Rowney Ltd for Euro 2,405 thousand and the impairment loss on goodwill concerning the Italian subsidiary Industria Maimeri S.p.A. for Euro 1,695 thousand. This decrease is offset by exchange gains in the
year of Euro 15,106 thousand and by net investments of Euro 4,231 thousand, principally by the US subsidiary Dixon Ticonderoga Company for Euro 2,279 thousand (of which Euro 2,166 thousand following the acquisition of the Strathmore brand) and by the parent F.I.L.A. S.p.A. (Euro 1,924 thousand) to introduce the SAP system at a number of Group companies.
"Property, Plant and Machinery" decreased on December 31, 2023 by Euro 14,657 thousand, mainly as a result of the reduction of "Property, Plant and Machinery Right-of-Use" of Euro 13,734 thousand and of "Property, Plant and Machinery" of Euro 924 thousand.
The decrease in the "Property, plant and machinery Right-of-use" is mainly due to depreciation of Euro 10,321 thousand and the renegotiation of the lease contracts recognised of Euro 3,128 thousand, mainly by the subsidiary Dixon Ticonderoga Company (U.S.A.) for Euro 5,247 thousand and by the subsidiary Grupo FILA-Dixon, S.A. de C.V. (Mexico) for Euro 3,393 thousand. The movement is offset by exchange gains of Euro 388 thousand.
The decrease in "Property, Plant and Machinery" was mainly due to depreciation in the period of Euro 11,389 thousand. This overall movement is offset by investments of Euro 11,004 thousand, mainly by the parent F.I.L.A. S.p.A. for Euro 2,628 thousand, by Grupo FILA-Dixon, S.A. de C.V. (Mexico) for Euro 1,955 thousand and by Dixon Ticonderoga Company (U.S.A.) for Euro 1,912 thousand and exchange gains of Euro 284 thousand.
"Biological Assets" decreased Euro 1,241 thousand on December 31, 2023, with Euro 1,251 thousand concerning impairments and Euro 10 thousand exchange gains.
This caption only includes the fair value of the plantation of the Chinese subsidiary Xinjiang F.I.L.A. -Dixon Plantation Company Ltd. which at December 31, 2024 had been fully written down.
"Financial Assets" decreased on December 31, 2023 by Euro 20,615 thousand, and mainly concerns the sale of 4.57% of the investment of the Indian associate DOMS Industries Limited for Euro 23,964 thousand, offset by the positive adjustment of the carrying amount of the FILA S.p.A. investment in the Indian associate DOMS Industries Limited of Euro 5,064 thousand, in line with the share of equity held in the associate of 26.01%. In addition, at December 31, 2024 the Purchase Price Allocation had concluded of the Indian associate DOMS Industries Limited, resulting in a decrease in the investment of Euro 2,002 thousand as a result of the amortisation of the allocated gains.
The decrease in "Net Working Capital" of Euro 21,360 thousand relates to the following:
for Euro 3,539 thousand and the parent F.I.L.A. S.p.A. for Euro 2,889 thousand. Exchange gains of Euro 3,691 thousand are also reported.
The increase in "Provisions" on December 31, 2023 of Euro 485 thousand principally concerns the:
The "Equity" of the F.I.L.A. Group, amounting to Euro 632,803 thousand, increased on December 31, 2023 by Euro 58,851 thousand. Net of the profit for the year of Euro 80,846 thousand (of which losses of Euro 921 thousand attributable to non-controlling interests), the residual movement mainly concerned the increase of the translation reserve for Euro 11,498 thousand, the net gain on the "Actuarial Gains/Losses" reserve of Euro 1,340 thousand, the accrual to the Share Based Premium reserve for Euro 1,019 thousand in relation to the 2022-2026 medium/long-term incentive plan, and to the impact of hyper-inflation on the hyper-inflated economies for Euro 923 thousand.
These movements were offset by the dividends settled for Euro 36,530 thousand, of which to the shareholders of F.I.L.A. S.p.A. for Euro 35,509 thousand, and for Euro 1,021 thousand to the minority shareholders of the subsidiaries, in addition to the decrease of the "fair value hedge" of the (IRS) derivatives for Euro 239 thousand.
"F.I.L.A. Group Net Financial Debt" at December 31, 2024 was Euro 181,079 thousand, improving Euro 122,332 thousand on December 31, 2023. For greater details, reference should be made to the "Financial overview" section.
Financial overview
The Group's Net Financial Debt at December 31, 2024 and Cash Flows for the period then ended are summarised in the following table to complete the discussion about its financial position and financial performance.
For the definition of the Net Financial Debt, reference should be made to Consob's call to attention No. 5/21 of April 29, 2021, which cites the new ESMA guidelines in this regard.
The Net Financial Debt - F.I.L.A. Group at December 31, 2024 was Euro 181,079 thousand.
Euro thousands
December 31,
2024
December 31,
2023
Change 2024 - 2023
A Cash | 107 | 206 | (99) |
B Cash equivalents | 176,237 | 125,645 | 50,592 |
C Other current financial assets | 1,137 | 1,162 | (25) |
D Liquidity (A + B + C) | 177,480 | 127,012 | 50,468 |
E Current bank loans and borrowings | (4,100) | (40,848) | 36,748 |
F Current portion of non-current bank loans and borrowings | (36,433) | (32,057) | (4,376) |
G Current financial debt (E + F) | (40,533) | (72,905) | 32,372 |
H Net current financial (position) debt (G - D) | 136,948 | 54,108 | 82,840 |
I Non-current bank loans and borrowings | (318,027) | (357,519) | 39,492 |
J Bonds issued | - | - | - |
K Trade payables and other non current liabilities | - | - | - |
L Non-current financial debt (I + J + K) | (318,027) | (357,519) | 39,492 |
M Net financial debt (H + L) | (181,079) | (303,412) | 122,332 |
The Net Financial Debt - F.I.L.A. Group comprises the Net Financial Debt excluding the IFRS 16 and MTM effects for a debt of Euro 119,521 thousand (debt of Euro 226,643 thousand at December 31, 2023), the effect of IFRS16 for Euro 60,297 thousand and the Mark to Market Hedging for Euro 1,260 thousand.
There conciliation between the Net Financial Debt - F.I.L.A. Group and the Statement of Financial Position is reported below:
Compared to December 31, 2023 (Euro 303,412 thousand), Net Financial Debt at December 31, 2024 improved Euro 122,332 thousand, as outlined below in the Statement of Operating Cash Flows:
The Net Operating Cash flows generated in 2024 by "Operating activities" of Euro 95,648 thousand (compared to Euro 120,041 thousand in 2023) and due to: