FILA-Fabbrica Italiana Lapis ed Affini SpA (FILAF) Q1 2025 Earnings Call Highlights: Revenue ...

GuruFocus News

Wed, May 14, 2025, 10:00 AM 3 min read

Release Date: May 13, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• FILA-Fabbrica Italiana Lapis ed Affini SpA (FILAF) reported a 3.4% summation successful gross for Q1 2025 compared to Q1 2024.

• Adjusted EBITDA improved by 7% compared to Q1 2024, reflecting a favorable merchandise premix and ongoing cost-saving actions.

• The institution achieved a important nett fiscal presumption improvement, with a nett simplification of 132.2 cardinal euros compared to Q1 2024.

• A caller shareholder statement was approved betwixt FILA and Indian bulk shareholders, which is expected to modulate strategical relationships and governance.

• The institution successfully implemented a terms summation successful the US market, with plans for further adjustments based connected tariff changes.

• The US marketplace remains soft, with uncertainties astir tariffs affecting user behaviour and purchasing decisions.

• Net income decreased to 0.9 cardinal euros, impacted by antagonistic overseas speech effects.

• Central and South America experienced a flimsy diminution successful performance, with Brazil not performing arsenic good arsenic expected.

• The institution faces challenges successful predicting Q2 show owed to user caution and marketplace uncertainties.

• There is simply a hold successful bid introduction successful Italy and the UK, which could interaction aboriginal show if not addressed.

• Warning! GuruFocus has detected 7 Warning Sign with FILAF.

Q: Can you supply an update connected the US marketplace betterment pursuing past year's ERP strategy disruptions? Are determination opportunities to summation marketplace stock owed to the existent tariff environment? A: (Unidentified_4) We haven't afloat recovered the mislaid revenues from past year, but we've restructured to absorption connected amended profitability and a much sustainable concern model. The US marketplace is presently brushed owed to uncertainties astir tariffs, which person caused customers to beryllium cautious. While determination is imaginable to payment from the tariff environment, the interaction volition apt beryllium clearer aboriginal successful the twelvemonth oregon adjacent year.

Q: Could you clarify the firm governance threshold for your concern with Doms? Is determination a anticipation of reducing your stake? A: (Unidentified_2) We presently support a 26.01% ownership stake, with a threshold of 20%. There are nary plans to trim our involvement arsenic the narration with Doms is strategically important for aboriginal operations.

Q: What are your expectations for Central and South America, fixed the existent concern successful Mexico? A: (Unidentified_4) Central and South America are somewhat beneath past year, but Mexico is performing arsenic expected. Brazil is underperforming, but this whitethorn beryllium owed to income timing differences. We expect Mexico to proceed its affirmative inclination contempt tariff impacts.