HI 2024 Results Presentation
6 August 2024
Agenda
- Highlights
- Business Review
- Financial Review
- DOMS Industries
Appendices:
- Details on Revenues and EBITDA
- Exchange rates
H1 2024 Highlights
H1 2024 RESULTS
FILA H1 2024 results confirm the positive growth trend in profitability and free cash flow generation, as well as continuing growth in valuation of FILA's 30.6% stake in DOMS Industries
Core Business Sales of -5.2% in H1 2024 vs H12023 (-3.5% on a comparable FX basis), with Q2 recovering to -0.9% vs -11.2% in Q1 due to the one-offSAP EWM disruption at Dixon USA. Europe and Central-SouthAmerica confirm growth trends
IFRS 16 Adjusted EBITDA grew +5.6% in H1 2024 (+7.8% ex IFRS 16), accelerating to +11.5% in Q2, with
higher margins thanks to favourable product mix coupled with ongoing efficiency actions
Improvement of €7.9m in Free Cash Flow to Equity, -€40.3 m in H1 2024 vs -€48.2 m in H1 2023, very positive considering that in calendar 2023 FILA generated a total of €60.3m of Free Cash Flow to Equity
Net Bank Debt of €309.6m in H1 2024, €98.7m below H1 2023, thanks to DOMS IPO and strong cash flow generation, and despite the payment of €36.2m dividends in 2024
OUTLOOK FOR 2024 & CAPITAL MARKETS DAY
2024 Guidance envisages stable Revenues, mid-single digit growth in Adjusted EBITDA, and Free Cash
Flow to Equity in the €40-50m range
Capital Markets Day scheduled for 12 November 2024, together with Q3 results, to provide the financial
markets with insight on FILA's business, strategy and financial guidance for the medium term
3
Snapshot of H1 2024 results (excluding DOMS Industries)
Core Business Sales (€m)
Reported: -5.2%
Comparable FX: -3.5%
€415.6m | 351.7 | 333.3 | |
incl. DOMS | |||
H1 23 | H1 24 |
Adjusted Group Net Profit (€m)
Adjusted IFRS 16 EBITDA (€m)
19.1% | Margin +2.2% | 21.3% | |||||||||
incl. IFRS 16: +5.6% | |||||||||||
excl. IFRS 16: +7.8% | |||||||||||
67.0 | 6.2 | 70.8 | |||||||||
€79.9m incl. | 7.0 | IFRS 16 | |||||||||
DOMS as per | 60.0 | 64.6 | |||||||||
effect | |||||||||||
IFRS 16 | |||||||||||
H1 23 | H1 24 |
Net Bank Debt (€m)
-€98.7m from DOMS IPO & Cash Flows
+61.6% | Including | |||||
DOMS Net | ||||||
Excluding | 32.0 | Profit only for | ||||
DOMS | 19.8 | Q1 for €1.4m |
408.3
+€80.1m
o/w €36.2m
2024 dividends
229.5309.6
H1 23 | H1 24 |
H1 23 | YE 23 | H1 24 |
Note: data on Sales and EBITDA with impact of DOMS and IFRS 16 included in the Appendices | 4 |
Consistent Long Term Growth (excluding DOMS Industries)
Core Business Sales (€m) | Adjusted IFRS 16 EBITDA (€m) | Free Cash Flow to Equity (€m) | ||
+1.5% CAGR | |||||||||||||||
656 | +2.2% CAGR | €250m | 2019-23 dividends | ||||||||||||
645 | Cumulative Free | paid of €57.4m | |||||||||||||
608 | w/IFRS 16 | ||||||||||||||
600 | Cash Flow to | ||||||||||||||
569 | Equity | ||||||||||||||
-5.2% | 119 | IFRS 16 effect | 2024 dividends | ||||||||||||
paid of €36.2m | |||||||||||||||
109 | 110 | ||||||||||||||
101 | 104 | 14 | +5.6% | ||||||||||||
14 | 14 | 72 | |||||||||||||
352 | 12 | ||||||||||||||
12 | 60 | +€8m | |||||||||||||
333 | 58 | ||||||||||||||
67 | 71 | 30 | 30 | ||||||||||||
7 | 6 | ||||||||||||||
89 | 92 | 105 | 95 | 96 | -48 | -40 | |||||||||
60 | 65 | ||||||||||||||
FY 19 FY 20 FY 21 FY 22 FY 23 | H1 23 H1 24 | FY 19 FY 20 FY 21 FY 22 FY 23 | H1 23 H1 24 | FY 19 FY 20 FY 21 FY 22 FY 23 | H1 23 H1 24 | ||||||||||
Note: incl. DOMS from FY 2019 to H1 2023 |
Note: data on Sales and EBITDA with impact of DOMS and IFRS 16 included in the Appendices | 5 |
Agenda
- Highlights
- Business Review
- Financial Review
- DOMS Industries
Appendices:
- Details on Revenues and EBITDA
- Exchange rates
H1 2024 Core Business Sales (excluding DOMS Industries)
H1 2023 | H1 2024 | Delta (€) | Comparable | Q2 2023 | Q2 2024 | Delta (€) | Comparable | ||||||
FX (€) | FX (€) | ||||||||||||
Total Fila | 351.7 | 333.3 | -18.4m | -12.3m | 203,2 | 201.4 | -1.8m | -0.8m | |||||
Group | -5.2% | -3.5% | -0.9% | -0.4% | |||||||||
Key Highlights
Sales declined -3.5% on a comparable FX basis in H1 2024 vs the prior year, with Q2 almost stable and recovering to -0.4% versus -7.8% in Q1. Negative currency impact mainly reflecting the devaluation of
North America
Europe
C&SA
Asia
RoW
182.4
(52%)
116.9
(33%)
43.8
(12%)
6.9
(2%)
1.7
(0%)
163.6 -18.8m-18.7m
(49%) | -10.3% | -10.3% | ||
+0.7m | +1.7m | |||
117.7 | ||||
(35%) | +0.6% | +1.4% | ||
+0.0m | +4.9m | |||
43.8 | ||||
(13%) | +0.1% | +11.1% |
6.5-0.4m -0.2m
(2%)-5.5% -2.5%
1.7 | +0.0m | +0.1m |
(0.5%) | +1.5% | +4.2% |
109.2
(54%)
64.8
(32%)
24.5
(12%)
3.9
(2%)
0.7
(0%)
106.4
(53%)
66.0
(33%)
24.5
(12%)
3.6
(2%)
0.9
(0%)
-2.8m-3.3m
-2.5%-3.0%
+1.2m +1.5m
+1.8% +2.2%
0.0m +1.2m
-0.1% +5.0%
-0.3m-0.3m
-8.7%-7.0%
+0.2m +0.2m
+24.7% +24.6%
the Argentine Peso and Turkish lira
North America recovering from temporary disruption of logistics in March with introduction of SAP EWM module. Q2 reflecting the latest delays in deliveries, recovered during July, coupled with the reorganization of our offer towards
businesses with better margins
Europe capitalising on re-stocking trend already visible in Q1, with Q2 on a comparable FX basis accelerating to +2.2% vs +0.4% in Q1
C&SA grew +5.0% on a comparable FX basis (Q2 24 vs Q2 23), with
continuing strong growth in Mexico
Note: data on Sales and EBITDA with impact of DOMS and IFRS 16 included in the Appendices | 7 |
H1 2024 Adjusted EBITDA (excluding DOMS Industries)
H1 2023 | H1 2024 | delta | 2023 | 2024 | Q2 2023 | Q2 2024 | delta | 2023 | 2024 |
Margin | Margin | Margin | Margin | ||||||
Total Fila | 67.0 | 70.8 | +5.6% | 19.1% | 21.3% | 44.3 | 49.4 | +11.5% | 21.7% | 24.5% |
Group | ||||||||||
Key Highlights
Adjusted IFRS 16 EBITDA jumped +11.5% in Q2 versus -6.2% in Q1 leading to an overall +5.6% in H1 24
North America
Europe
C&SA
Asia
RoW
34.9 | 37.8 | +8.3% | 19.1% | 23.1% |
19.9 | 21.5 | +7.8% | 17.1% | 18.3% |
8.9 | 9.1 | +2.0% | 20.3% | 20.7% |
3.3 | 2.3 | -30.8% | 48.2% | 35.3% |
0.0 | 0.1 | n.m. | -2.5% | 6.0% |
- 41.0 ex. €46.1 ex.
IFRS16 IFRS16
24.1 | 28.3 | +17.3% | 22.1% | 26.6% |
12.7 | 14.1 | +11.0% | 19.6% | 21.4% |
5.2 | 5.7 | +10.0% | 21.2% | 23.3% |
2.3 | 1.2 | -49.5% | 59.4% | 32.8% |
0.0 | 0.1 | n.m. | -4.3% | 9.8% |
EBITDA margin improvement to
21.3% in H1 2024 vs 19.1% in the prior year, thanks to the efficiency gains mix effect, as well as a more selective commercial approach
North America EBITDA margin improved to 23.1% in H1 versus 19.1% in the prior year, despite the impact
of SAP EWM, and with a record
margin of 26.6% in Q2 2024
Europe EBITDA margin of 18.3% in H1 2024 vs 17.1% in the prior year, and despite losses in Russia (€0.5m in H1)
CS&A EBITDA increases +2.0% in H1
2024 versus 2023, with +10.5% in H2
despite Argentine peso and losses in Dominican Republic (€0.7m in H1)
Note: data on Sales and EBITDA with impact of DOMS and IFRS 16 included in the Appendices | 8 |
Agenda
- Highlights
- Business Review
- Financial Review
- DOMS Industries
Appendices:
- Details on Revenues and EBITDA
- Exchange rates
Adjusted IFRS 16 Income Statement
(€ million) | H1 2023 | H1 2023 | H1 2024 | Change |
w/DOMS | o/w DOMS | ex-DOMS | ||
Core Business Sales | 415.6 | 63.9 | 333.3 | -82.3 |
Other revenues | 5.0 | 0.3 | 4.1 | -0.8 |
Total Revenues | 420.6 | 64.2 | 337.4 | -83.1 |
Cost for Raw Materials and Supplies and net | -196.0 | -43.4 | -143.8 | |
increase (decrease) in Inventory | 52.2 | |||
Costs for Services and Use of Third-Party Assets | -60.9 | -5.8 | -52.3 | 8.6 |
Personnel Costs | -79.2 | -9.1 | -67.9 | 11.3 |
Other Operating Costs | -4.6 | 0.0 | -2.6 | 2.0 |
Net IC Revenue/Cost DOMS on EBITDA | - | 7.0 | - | - |
Adjusted EBITDA | 79.9 | 12.8 | 70.8 | -9.1 |
Deprecation & Amortisation | -20.7 | -2.8 | -17.4 | 3.3 |
Write-Downs | -1.1 | - | -0.4 | 0.7 |
EBIT | 58.1 | 10.0 | 53.1 | -5.1 |
Financial income/expenses | -20.8 | - 0.6 | -11.3 | 9.5 |
Income/expenses from associates at equity | 0.5 | 0.5 | 1.4 | 0.9 |
method | ||||
PBT | 37.8 | 9.9 | 43.2 | 5.3 |
Taxes | -10.1 | -2.4 | -10.6 | -0.5 |
Adjusted Net Profit (Loss) | 27.7 | 7.5 | 32.6 | 4.9 |
Adjusted Group Net Profit (Loss) | 23.7 | 3.8 | 32.0 | 8.3 |
Adjustments for Non-Recurring Items to EBITDA | - 3.0 | 0.0 | -2.5 | -0.5 |
Adjustments for Non-Recurring Items to Group Net | - 2.5 | 0.0 | -4.3 | -1.8 |
Profit | ||||
Key Highlights
Adjusted Group Net Profit surges +35% to €32.0m in H1 24 from €23.7m in H1 23 (note that the H1 result includes DOMS' contribution for Jan-Mar2024)
PPA Amortisation of €5.8m in H1 23
and €5.0m in H1 24
Significant decline in Financial Expenses due to lower indebtedness, improved margin ratchets, and
repayment of Mexican Peso denominated facilities
Income from associates relates to FILA's 30.6% stake in DOMS
Adjustments for Non-Recurring Items related to reorganization costs in North America, the performance shares incentive plan and fair value evaluation of intangible assets
10