F.I.L.A. GROUP
INTERIM FINANCIAL REPORT
at March 31, 2025
F.I.L.A. Fabbrica Italiana Lapis ed Affini S.p.A. via XXV Aprile 5 Pero (MI)
(Translation from the Italian original which remains the definitive version)
CONTENTS- Interim Directors' Report 3
Corporate Bodies 3
Overview of the F.I.L.A. Group 4
Key events of the reporting period 6
Key Financial Highlights 7
F.I.L.A. Group's Financial Highlights 14
Operating results excluding net non-recurring charges 14
Business seasonality 17
Statement of Financial Position 19
Financial overview 22
Segment reporting 26
Business Segments - Statement of financial position 27
Business Segments - Income Statement 28
Business Segments - Other Information 29
Subsequent events 30
Outlook 30
Treasury shares 31
Accounting standards and basis of preparation 31
- Consolidated Financial Statements of the F.I.L.A. Group at March 31, 2025 32
Consolidated Financial Statements 32
Statement of Financial Position 32
Statement of Comprehensive Income 33
Statement of Changes in Shareholders' Equity 34
Consolidated Statement of Cash Flows 35
Attachments 37
Attachment 1 - List of companies included in the consolidation scope and other equity investments 37
Transactions relating to Atypical and/or Unusual Operations 38
Statement of the Manager in Charge - Interim Financial Report 39
DIRECTORS' REPORT
AT MARCH 31, 2025
I - Interim Directors' Report
Board of Directors
Chairperson (*) Giovanni Gorno Tempini 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 March 31, 2025 operates through 22 production facilities and 32 subsidiaries across the globe and employs approx. 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 (xiv) brands. On December 20, 2023, the listing of the subsidiary 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).
Key events of the reporting period
The operating and financial impacts of the conflict between Russia and Ukraine on the F.I.L.A. Group are not considered significant, also in view of the fact that since January 2025 the Russian subsidiary Fila Stationary O.O.O., as a result of the voluntary bankruptcy petition and the appointment of a trustee, has been in administration.
The hearing for consideration of the bankruptcy case has been set for June 17, 2025.
Consequently, the company is not subject to line-by-line consolidation due to the loss of control, as established by IFRS10.
There are no F.I.L.A. Group companies in Ukraine at March 31, 2025.
A military conflict involving Israel has been ongoing since October 7, 2023.
The operating and financial impacts of the conflict on the Israeli commercial subsidiary Fila Art and Craft Ltd are not considered significant, also in view of the fact that the revenue of the subsidiary accounts for approx. 0.4% of the Group's total.
The F.I.L.A. Group does not have suppliers or production plant in the area.
The Israeli subsidiary has a net commercial exposure to third parties at March 31, 2025 of Euro 543 thousand. Group management continues to monitor the recoverability of the net exposure to third parties of the subsidiary, although currently no recoverability risks exist.
Key Financial HighlightsThe F.I.L.A. Group Key Financial Highlights for Q1 2025 are reported below:
2025 Adjustments:
2024 Adjustments:
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 theF.I.L.A. Group.
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:
Operating Profit or EBIT: this is calculated as the "Operating Profit" directly derived from the consolidated income statement and corresponding to the "Gross Operating Profit or EBITDA", adjusted by the following captions: (i) Amortisation and Depreciation, (ii) Net impairment Gains (Losses) on Trade Receivables and Other Assets and (iii) Other Net Impairment Gains (Losses).
The following is a reconciliation between Gross Operating Profit or EBITDA and Operating Profit or EBIT:
Operating Profit or EBIT excluding net non-recurring charges: this is calculated as the Operating Profit or EBIT excluding the effects from net non-recurring charges on the Operating Profit or EBIT.
The following is a reconciliation between Operating Profit or EBIT and Operating Profit or EBIT excluding non-recurring charges:
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 non-recurring charges is presented below:
Net Financial Debt: a valid indicator of the F.I.L.A. Group's financial structure and calculated as the aggregate of the current and non-current financial debt, net of cash and cash equivalents and of current financial assets, in accordance with CONSOB Communication DEM/6064293 of July 28, 2006 and Consob's call to attention No. 5/21 of April 29, 2021, excluding non-current financial assets.
The non-current financial assets of the F.I.L.A. Group at March 31, 2025 and at December 31, 2024 respectively totalled Euro 1,015 thousand and Euro 1,032 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.
F.I.L.A. Group's Financial Highlights
The F.I.L.A. Group Key Financial Highlights for Q1 2025 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 Q1 2025 present an increase in the Gross Operating Profit excluding non-recurring charges of 7.0% on the same period of 2024:
ADJUSTED Net of Non-Recurring expenses - Euro thousands
March 31,
2025
% revenue March 31, 2024
% revenue
Change 2025 - 2024
Revenue | 136,324 | 100.0% | 131,898 | 100.0% | 4,426 | 3.4% |
Income | 2,378 | 1,903 | 475 | 25.0% | ||
Revenue and other income | 138,703 | 133,801 | 4,901 | 3.7% | ||
Total operating costs | (116,105) | -85.2% | (112,686) | -85.4% | (3,419) | -3.0% |
Gross Operating profit or EBITDA | 22,598 | 16.6% | 21,116 | 16.0% | 1,482 | 7.0% |
Depreciation and net other impairment losses | (9,728) | -7.1% | (8,136) | -6.2% | (1,593) | -19.6% |
Operating profit or EBIT | 12,869 | 9.4% | 12,980 | 9.8% | (111) | -0.9% |
Net financial expense | (9,907) | -7.3% | (3,850) | -2.9% | (6,057) | -157.3% |
Pre-tax profit | 2,962 | 2.2% | 9,129 | 6.9% | (6,168) | -67.6% |
Total taxes | (1,640) | -1.2% | (2,381) | -1.8% | 741 | 31.1% |
Profit for the year | 1,322 | 1.0% | 6,748 | 5.1% | (5,427) | -80.4% |
Profit for the year attributable to non-controlling in | 429 | 0.3% | 277 | 0.2% | 152 | 55,1% |
F.I.L.A. Group Profit attributable to the 892 | 0.7% | 6,471 | 4.9% | (5,579) | -86.2% | |
owners of the Parent
The main changes compared to Q1 2024 are illustrated below.
"Revenue" of Euro 136,324 thousand increased by Euro 4,426 thousand on Q1 2024 (+3.4%). Net of exchange losses of Euro 789 thousand (mainly concerning the weakening of the Mexican Peso, of the Argentinian Peso and of the Brazilian Real, partially offset by the strengthening of the US Dollar), organic growth was Euro 5,215 thousand (+4.0%).
At geographical area level, this organic growth concerned North America for Euro 4,806 thousand (+8.4% on the preceding period), Europe for Euro 750 thousand (+1.5% on the preceding period) and the Rest of the World for Euro 77 thousand (+9.4% on the preceding period), offset by an organic contraction in Central and South America for Euro 393 thousand (-2.0% on the preceding period) and in Asia for Euro 25 thousand (-0.8% on the preceding period).
"Income" of Euro 2,378 thousand increased by Euro 475 thousand on the preceding period, mainly due to the French subsidiary following an insurance reimbursement.
"Operating Expense" in the period of Euro 116,105 thousand increased Euro 3,419 thousand on the same period of 2024. This increase relates to the higher variable purchasing and commercial costs, as a reflection of sales dynamics.
The Gross Operating Profit of Euro 22,598 thousand increased by Euro 1,482 thousand on the same period of 2024 (+7.0%). At like-for-like exchange rates, the increase was 8.5% on the same period of the previous year.
"Amortisation, depreciation and impairment losses" increased Euro 1,593 thousand, mainly due to higher bad debt provisions of the US subsidiary Dixon Ticonderoga Company.
"Net financial expense" increased Euro 6,057 thousand due to unrealised exchange losses on financial transactions, which mainly impacted the parent F.I.L.A. S.p.A., offset by the lower net financial expense, mainly relating to the US subsidiary Dixon Ticonderoga Company, the Mexican subsidiary Grupo F.I.L.A.-Dixon, S.A. de C.V. and the parent F.I.L.A. S.p.A..
In accordance with IAS/IFRS (IAS28.33), the most recent available financial disclosure should be used for the equity method valuation of the investment. At the date of this Interim Financial Report, the financial statements of the Indian associate DOMS Industries Limited at March 31, 2025 have not yet been approved. The consolidated financial statements of the F.I.L.A. Group at March 31, 2025 therefore do not take into account these figures as not yet available.
"Taxes" amounted to Euro 1,640 thousand, slightly decreasing on the same period of the previous year due to the reduced pre-tax profit.
Net of the profit attributable to "non-controlling interests", the F.I.L.A. Group result net of non-recurring charges in Q1 2025 was a profit of Euro 892 thousand, compared to Euro 6,471 thousand in the previous year.
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 Group has historically invested large quantities of financial resources to meet the enormous demand for products from July to September, while only receiving payments from November.
The key highlights for Q1 2025 and 2024 are reported below.
2025 | 2024 | ||||
Euro thousands | March | December | September | June | March |
Revenue | 136,324 | 612,583 | 493,422 | 333,283 | 131,898 |
Full year portion | 100.0% | 100.0% | 80.5% | 54.4% | 21.5% |
Gross operating profit or EBITDA | 21,736 | 109,045 | 98,525 | 68,356 | 20,432 |
% revenue from sales and services | 15.9% | 17.8% | 20.0% | 20.5% | 15.5% |
Full year portion | 100.0% | 90.4% | 62.7% | 18.7% | |
Gross operating profit or EBITDA Adjusted for net non- recurring expense | 22,598 | 118,221 | 103,548 | 70,829 | 21,116 |
% revenue from sales and services | 16.6% | 19.3% | 21.0% | 21.3% | 16.0% |
Full year portion | 100.0% | 87.6% | 59.9% | 17.9% | |
Gross operating profit or EBITDA Adjusted for net non- recurring expense and IFRS16 | 19,502 | 103,065 | 94,258 | 64,638 | 18,536 |
% revenue from sales and services | 14.3% | 16.8% | 19.1% | 19.4% | 14.1% |
Full year portion | 100.0% | 91.5% | 62.7% | 18.0% | |
Net Financial Debt - F.I.L.A.Group | (230,829) | (181,079) | (321,607) | (369,046) | (363,016) |
Net Financial Debt - F.I.L.A.Group excluded IFRS16 and MTM | (172,002) | (119,521) | (261,578) | (305,697) | (299,493) |
Statement of Financial Position
The statement of financial position of the F.I.L.A. Group at March 31, 2025 is reported below:
Euro thousands | March 31, 2025 | December 31, 2024 | Change 2025 - 2024 |
Intangible assets | 364,679 | 375,746 | (11,067) |
Property, plant & equipment | 104,950 | 108,667 | (3,718) |
Financial assets | 140,517 | 140,534 | (17) |
Net Non-Current Assets | 610,145 | 624,947 | (14,802) |
Other Non-Current Assets/ Liabilities | 20,195 | 20,466 | (271) |
Inventories | 270,893 | 257,353 | 13,541 |
Trade receivables and other assets | 128,791 | 94,978 | 33,814 |
Trade payables and other liabilities | (104,039) | (110,801) | 6,762 |
Other current assets and liabilities | (314) | 126 | (441) |
Net working capital | 295,331 | 241,656 | 53,676 |
Provisions | (71,053) | (73,187) | 2,133 |
Net invested capital | 854,618 | 813,883 | 40,736 |
Equity | (623,789) | (632,803) | 9,014 |
Net financial debt excluded IFRS16 Effect and MTM | (172,002) | (119,521) | (52,481) |
IFRS16 Effect | (57,366) | (60,297) | 2,932 |
Market to Market Hedging | (1,462) | (1,260) | (202) |
Net financial debt - F.I.L.A. Group | (230,829) | (181,079) | (49,750) |
Net financial debt | (854,618) | (813,883) | (40,736) |
The F.I.L.A. Group's "Net Invested Capital" of Euro 854,618 thousand at March 31, 2025 was composed of "Non-current assets" of Euro 610,145 thousand (decreasing by Euro 14,802 thousand on December 31, 2024), "Net Working Capital" of Euro 295,331 thousand (increasing by Euro 53,676 thousand on December 31, 2024) and "Other Non-Current Assets/Liabilities" of Euro 20,195 thousand (decreasing by Euro 271 thousand on December 31, 2024), net of "Provisions" of Euro 71,053 thousand (Euro 73,187 thousand at December 31,
2024).
"Intangible Assets" decreased on December 31, 2024 by Euro 11,067 thousand, mainly due to the exchange losses in the period of Euro 8,708 thousand and amortisation of Euro 3,130 thousand. The decrease was offset by net investments of Euro 771 thousand, principally by the parent F.I.L.A. S.p.A. (Euro 749 thousand) for implementation of the ERP system at a number of Group companies.
"Property, plant and machinery" decreased on December 31, 2024 by Euro 3,718 thousand, mainly as a result of the reduction of "Property, Plant and Machinery Right-of-Use" of Euro 2,547 thousand and of "Property, Plant and Machinery" of Euro 1,171 thousand.
The decrease in "Property, Plant and Machinery Right-of-Use" was mainly due to depreciation in the period of Euro 2,398 thousand and exchange losses of Euro 981 thousand. This decrease is offset by net investments in the period of Euro 821 thousand, mainly by the Australian subsidiary Fila Group Australia for Euro 261 thousand.
The decrease in "Property, Plant and Machinery" was mainly due to depreciation in the period of Euro 2,778 thousand and the recognition of exchange losses of Euro 679 thousand. This overall movement is mainly offset by investments in the period of Euro 2,310 thousand, mainly by Grupo F.I.L.A.-Dixon, S.A. de C.V. (Mexico) for Euro 670 thousand, by Canson SAS (France) for Euro 551 thousand and by the parent F.I.L.A. S.p.A. for Euro 503 thousand.
"Financial assets" decreased Euro 17 thousand compared to December 31, 2024, mainly in relation to the movement in the financial receivables of the US subsidiary Dixon Ticonderoga Company and of the Mexican subsidiary Grupo F.I.L.A.-Dixon, S.A. de C.V..
The increase in "Net Working Capital" of Euro 53,676 thousand relates to the following:
S.p.A. for Euro 5,392 thousand;
The decrease in "Provisions" on December 31, 2024 of Euro 2,133 thousand principally concerns:
The "Equity" attributable to owners of the Parent, amounting to Euro 623,789 thousand, decreased on December 31, 2024 by Euro 9,014 thousand. Net of the profit for the period of Euro 526 thousand (of which a profit of Euro 1,056 thousand attributable to non-controlling interests), the residual movement mainly concerned the decrease in the translation reserve of Euro 9,790 thousand and the decrease of the "fair value hedge" of the IRS derivatives for Euro 236 thousand. These changes were offset by the increase in the "Actuarial Gains/Losses" reserve of Euro 171 thousand, by the accrual to the Share Based Premium reserve for Euro 212 thousand in relation to the 2022-2026 medium/long-term incentive plan, and by the impact of hyper-inflation on the hyper-inflated economies for Euro 103 thousand.
The F.I.L.A. Group "Net Financial Debt" at March 31, 2025 was Euro 230,829 thousand, increasing Euro 49,750 thousand on December 31, 2024.
For greater details, reference should be made to the Net financial debt and cash flows section.
Financial overview
The Group's Net Financial Debt at March 31, 2025 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 F.I.L.A. Group Net Financial Debt at March 31, 2025 was Euro 230,829 thousand:
Euro thousands | March 31, 2025 | December 31, 2024 | Change 2025 - 2024 |
A Cash | 140 | 107 | 33 |
B Cash equivalents | 128,114 | 176,237 | (48,123) |
C Other current financial assets | 1,230 | 1,137 | 94 |
D Liquidity (A + B + C) | 129,485 | 177,480 | (47,996) |
E Current bank loans and borrowings | (12,022) | (4,100) | (7,922) |
F Current portion of non-current bank loans and borrowings | (36,822) | (36,433) | (389) |
G Current financial debt (E + F) | (48,844) | (40,533) | (8,311) |
H Net current financial (position) debt (G - D) | 80,640 | 136,948 | (56,307) |
I Non-current bank loans and borrowings | (311,470) | (318,027) | 6,557 |
J Bonds issued | - | - | - |
K Trade payables and other non current liabilities | - | - | - |
L Non-current financial debt (I + J + K) | (311,470) | (318,027) | 6,557 |
M Net financial debt (H + L) | (230,829) | (181,079) | (49,750) |
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 172,002 thousand (debt of Euro 119,521 thousand at December 31, 2024), the effect of IFRS16 for Euro 57,366 thousand and the Mark to Market Hedging for Euro 1,462 thousand.
The reconciliation between the Net Financial Debt - F.I.L.A. Group and the Statement of Financial Position is reported below:
Compared to December 31, 2024 (Euro 181,079 thousand), the Net Financial Debt increased Euro 49,750 thousand at March 31, 2025, as outlined below in the Statement of Cash Flows:
Euro thousands | March 31, 2024 | March 31, 2024 |
Gross operating profit | 21,736 | 20,432 |
Non-monetary adjustments | 32 | 48 |
IFRS16 operating flow | (3,226) | (2,895) |
Income taxes | (1,698) | (1,354) |
Cash Flows from Operating Activities Before Changes in NWC | 16,844 | 16,231 |
Change in NWC | (59,680) | (50,201) |
Change in Inventories | (18,650) | (22,824) |
Change in Trade Receivables and Other Assets | (36,673) | (24,122) |
Change in Trade Payables and Other Liabilities | (3,833) | (3,040) |
Change in Other Current Assets/Liabilities | (524) | (215) |
Net Cash Flows used in Operating Activities | (42,836) | (33,970) |
Investments in Property, Plant and Equipment and Intangible Assets | (3,068) | (2,284) |
Financial income | 372 | 278 |
Net Cash Flows used in Investing Activities | (2,696) | (2,006) |
Change in Equity (Dividend paid and own shares) | - | (29,451) |
Financial Expense | (3,700) | (5,409) |
Financial Expense IFRS16 | (823) | (907) |
Net Cash Flows used in Financing Activities | (4,523) | (35,767) |
Exchange differences and other variations | (5,488) | 1,741 |
Total Net Cash Flows | (55,543) | (70,003) |
Free cash flow to equity | (55,543) | (40,552) |
Effect of exchange gains (losses) | 3,486 | (3,501) |
Change in amortized cost | (292) | 654 |
Mark to mark hedging adjustment | (202) | 2,394 |
NFD change due to IFRS16 FTA | 2,932 | 10,851 |
NFD from Change in Consolidation Scope (Deconsolidation of Russian company Fila Stationary O.O.O.)
(133) -
Change in Net Financial Debt - F.I.L.A. Group (49,750) (59,604)Net Cash outflow in Q1 2025 from "Operating Activities" of Euro 42,836 thousand (outflow of operating cash in Q1 2024 of Euro 33,970 thousand) concerns:
"Investing activities" used net cash flows of Euro 2,696 thousand (Euro 2,006 thousand in Q1 2024), mainly due to the use of cash for Euro 3,068 thousand (Euro 2,284 thousand in Q1 2024) for net property, plant and
equipment and intangible asset investment, particularly regarding the parent F.I.L.A. S.p.A., the Mexican subsidiary Grupo F.I.L.A.-Dixon, S.A. de C.V. and the French subsidiary Canson SAS.
Net Operating Cash Flow from "Financing Activities" reports outflows of Euro 4,523 thousand (outflows of Euro 35,767 thousand in Q1 2024), due to interest paid on loans and credit facilities granted to Group companies, amounting to Euro 3,700 thousand, mainly concerning the parent F.I.L.A. S.p.A., Dixon Ticonderoga Company (U.S.A.) and Grupo F.I.L.A. - Dixon, S.A. de C.V. (Mexico), in addition to interest expense in application of IFRS 16 of Euro 823 thousand.
"Free Cash Flow to Equity" was a negative Euro 55,543 thousand (negative Euro 40,552 thousand at March 31, 2024), and is calculated as the difference between the Total Net Operating Cash Flow for a negative Euro 55,543 thousand (negative Euro 70,003 thousand at March 31, 2024), and the changes to Equity which reduced to zero at March 31, 2025 (Euro 29,451 thousand at March 31, 2024).
Excluding exchange gains and losses regarding the translation of the Net Financial Debt in currencies other than the Euro (positive for Euro 3,486 thousand), the movement in the Net Financial Debt due to the application of IFRS 16 for a positive Euro 2,932 thousand, the Mark to Market Hedging adjustment for a negative Euro 202 thousand, the "Amortised cost" movement for a negative Euro 292 thousand, as well as the overall negative impact generated by the change in the consolidation scope of Euro 133 thousand (relating to the deconsolidation of the Russian subsidiary Fila Stationary O.O.O.), the Net Financial Debt of the F.I.L.A. Group therefore increased Euro 49,750 thousand (increase of Euro 59,604 thousand at March 31, 2024).
Changes in net cash and cash equivalents are detailed below: | |||
March 31, | December 31, | March 31, | |
Euro thousands | 2025 | 2024 | 2024 |
Opening Cash and Cash Equivalents | 172,854 | 124,807 | 124,807 |
Cash and cash equivalents | 176,344 | 125,851 | 125,851 |
Current account overdrafts | (3,490) | (1,044) | (1,044) |
Closing Cash and Cash Equivalents | 124,501 | 172,854 | 64,981 |
Cash and cash equivalents | 128,254 | 176,344 | 65,787 |
Current account overdrafts | (3,753) | (3,490) | (806) |
In terms of segment reporting, the F.I.L.A. Group has adopted IFRS 8.
IFRS 8 requires an entity to base segment reporting on internal reporting, which is regularly reviewed by the entity's chief operating decision maker to allocate resources to the various segments and assess performance.
Geographical segments are the primary basis of analysis and of decision-making by the F.I.L.A. Group's management, therefore fully in line with the internal reporting prepared for these purposes.
In particular, the Group's business is divided into five business segments, each of which is composed of various geographical segments, i.e. (i) Europe, (ii) North America (USA and Canada), (iii) Central and South America,
(iv) Asia and (v) the Rest of the World, which includes South Africa and Australia. Each of the five business segments designs, markets, purchases, manufactures and sells products under known consumer brands in demand amongst end users and used in schools, homes and workplaces. Product designs are adapted to end users' preferences in each geographical segment.
The group's products are similar in terms of quality and production, target market, margins, sales network and customers, even with reference to the different brands which the group markets. Accordingly, there is no diversification by segments in consideration of the substantial uniformity of the risks and benefits relating to the products produced by the F.I.L.A. Group.
The accounting policies applied to segment reporting are in line with those used for the preparation of the consolidated financial statements.
Business Segment Reporting of the F.I.L.A. Group aggregates companies by geographical segment on the basis of the "entity location".
For disclosure on the association between the geographical segments and F.I.L.A. group companies, reference should be made to the attachments to this report in the "List of companies included in the consolidation scope and other equity investments" section.
The segment reporting required in accordance with IFRS 8 is presented below.
Business Segments - Statement of financial position
The key statement of financial position figures for the F.I.L.A. Group by geographical area, at March 31, 2025 and December 31, 2024, are reported below:
Europe
North Central - South
Asia
Rest
Consolidation F.I.L.A. Group
March 31, 2025
Euro thousands | America | America | of the World | ||||||||
Intangible Assets | 123,604 | 212,529 | 859 | 40 | - | 27,647 | 364,679 | ||||
Property, plant & equipment | 59,505 | 30,108 | 13,204 | 1,673 | 493 | (33) | 104,950 | ||||
Total non-current assets | 183,109 | 242,637 | 14,063 | 1,713 | 493 | 27,614 | 469,629 | ||||
of which Infragroup | (76) | ||||||||||
Inventories | 115,253 | 121,019 | 38,267 | 8,427 | 1,469 | (13,542) | 270,893 | ||||
Trade receivables and Other assets | 74,307 | 48,646 | 42,654 | 9,142 | 1,217 | (47,175) | 128,791 | ||||
Trade payables and Other liabilities | (73,989) | (39,747) | (26,983) | (8,094) | (1,889) | 46,663 | (104,039) | ||||
Other Current Assets and Liabilities | (2,289) | 2,189 | (164) | (28) | (22) | - | (314) | ||||
Net Working Capital | 113,282 | 132,107 | 53,774 | 9,447 | 775 | (14,054) | 295,331 | ||||
of which Infragroup | (17,641) | (9,414) | 12,765 | (1,413) | 1,649 | ||||||
Net Financial (Position) Debt | (65,692) | (154,611) | (20,138) | 10,181 | (5,360) | 4,791 | (230,829) | ||||
of which Infragroup | (49,665) | 35,819 | 12,941 | - | 5,696 | ||||||
December 31, 2024 Europe North Central - South Asia Rest Consolidation Euro thousands America America of the World | F.I.L.A. Group | ||||||
Intangible Assets | 124,866 | 222,718 | 849 | 49 | - | 27,264 | 375,746 |
Property, plant & equipment | 59,844 | 33,008 | 13,437 | 2,120 | 291 | (33) | 108,667 |
Total non-current assets | 184,710 | 255,726 | 14,286 | 2,169 | 291 | 27,231 | 484,413 |
of which Infragroup | (76) | ||||||
Inventories | 108,868 | 113,465 | 35,563 | 11,476 | 1,560 | (13,579) | 257,353 |
Trade Receivables and other assets | 55,648 | 26,699 | 35,922 | 9,650 | 1,340 | (34,281) | 94,978 |
Trade payables and other liabilities | (65,742) | (43,103) | (25,264) | (9,405) | (1,999) | 34,712 | (110,801) |
Other Current Assets and Liabilities | (1,886) | 2,222 | (212) | 24 | (22) | - | 126 |
Net Working Capital | 96,888 | 99,283 | 46,009 | 11,745 | 879 | (13,148) | 241,656 |
of which Infragroup | (17,544) | (2,536) | 6,666 | (1,459) | 1,726 | ||
Net Financial (Position) Debt | (52,480) | (126,846) | (14,159) | 7,992 | (5,286) | 9,700 | (181,079) |
of which Infragroup | (37,606) | 28,194 | 13,243 | - | 5,869 | ||
Business Segments - Income Statement
March 31, 2025 North Central - South Rest of the Europe America America Asia World Consolidation | F.I.L.A. Group | ||||||
Euro thousands | |||||||
Revenue | 73,981 | 66,539 | 22,459 | 10,274 | 898 | (37,827) | 136,324 |
(19,002) | (3,028) | (5,954) | (9,306) | (537) | |||
Gross operating profit (loss) | 7,626 | 10,038 | 3,299 | 782 | 78 | (87) | 21,736 |
Operating profit (loss) | 3,573 | 5,513 | 2,610 | 374 | 14 | (77) | 12,008 |
Net financial income (expense) | (6,458) | (3,999) | 267 | 3 | (145) | 406 | (9,926) |
of which Infragroup | (171) | 324 | 177 | - | 77 | ||
Profit (loss) for the year | (3,608) | 1,240 | 2,342 | 284 | (130) | 398 | 526 |
Profit (loss) attributable to Non-controlling interests | 926 | 91 | 15 | 24 | - | - | 1,056 |
Profit (loss) attributable to the owners of the Parent | (4,533) | 1,149 | 2,327 | 260 | (130) | 398 | (530) |
The income statement for the F.I.L.A. Group by geographical area for Q1 2025 and Q1 2024 is reported below:
of which Infragroup
North Central - South
Rest of the
F.I.L.A.
March 31, 2024
Europe Euro thousands | America | America | Asia | World | Consolidation | Group | ||||
Revenue 72,145 | 59,550 | 25,335 | 8,713 | 818 | (34,663) | 131,898 | ||||
of which Infragroup (20,501) | (2,405) | (6,028) | (5,730) | (1) | - | - | ||||
Gross operating profit (loss) | 7,449 | 9,040 | 3,478 | 1,159 | 2 | (696) | 20,432 | |||
Operating profit (loss) | 3,317 | 6,095 | 2,826 | 765 | (56) | (284) | 12,663 | |||
Net financial income (expense) | (1,013) | (2,046) | (519) | (7) | (247) | (18) | (3,850) | |||
of which Infragroup | (610) | 301 | 194 | - | 97 | - | - | |||
Profit (loss) for the year | 1,735 | 2,929 | 1,925 | 636 | (303) | (467) | 6,455 | |||
Profit (loss) attributable to Non-controlling interests | 144 | 78 | - | 55 | - | - | 277 | |||
Profit (loss) attributable to the owners of the Parent | 1,591 | 2,851 | 1,925 | 581 | (302) | (467) | 6,178 | |||
Business Segments - Other Information
The "Other Information", concerning tangible and intangible fixed asset investments of Group companies by geographical area for March 31, 2025 and March 31, 2024 is reported below:
March 31, 2025 Euro thousands | Europe | North America | Central - South America | Asia | Rest of the World | F.I.L.A. Group |
Intangible assets | 773 | - | - | (2) | - | 771 |
Property, plant and equipment | 1,476 | 130 | 694 | - | 10 | 2,310 |
Net investments | 2,249 | 130 | 694 | (2) | 10 | 3,081 |
March 31, 2024 Europe Euro thousands | North America | Central - South America | Asia Rest of the World | F.I.L.A. Group | ||
Intangible assets 1,047 | - | 3 | - - | 1,050 | ||
Property, plant and equipment | 519 | 379 | 364 | 4 | 7 | 1,272 |
Net investments | 1,566 | 379 | 367 | 4 | 7 | 2,322 |