(Alliance News) - FILA Spa on Tuesday reported that it ended 2023 with consolidated revenues of EUR779.2 million from EUR764.6 million as of Dec. 31, 2022.

Normalized net income for the period was EUR40.6 million from EUR42.8 million as of Dec. 31, 2022.

The company said it has proposed to distribute a dividend of a maximum total amount of EUR6.1 million, confirming that of EUR0.12 per share in 2022.

Normalized Ebitda in 2023 is EUR121.1 million from EUR110.3 million in the previous year.

Normalized Ebitda as of December 31 is EUR90.3 million from EUR78.7 million in 2022.

Normalized net debt was negative EUR226.7 million from negative EUR349.8 million as of Dec. 31, 2022.

Looking ahead, the company expects pro-forma revenue growth at low single digits due to positive performance in North America and Mexico and recovery in Europe, supported by new sales and marketing initiatives.

Free cash flow to equity is expected to be between EUR40.0 and EUR50.0 million.

"We are very satisfied with the economic and financial performance in 2023, and cash generation exceeded our expectations, in particular, due to excellent working capital management. The profitability achieved, an improvement over the previous year, is the result not only of the positive performance in North America, Central and South America, and India, but also of the actions put in place on process and structure costs, and the value of Ebitda, at constant Budget exchange rates, would have been around EUR125 million," commented Massimo Candela CEO of FILA.

"The current macroeconomic and social framework confirms that fiscal year 2024 will be affected by a still complex scenario. In this context, we confirm the resilience of our sector and expect low single-digit revenue growth supported by the good market performance in North America and Mexico, which represent, today, more than two-thirds of the Group's turnover, and by the positive re-stocking phenomenon in Europe, after the accentuated destocking in 2023, also thanks to new commercial and marketing initiatives."

"With the deconsolidation of India, we expect a further significant increase in the Group's margins in the coming years, thanks to the growth in turnover and a reorganization of production facilities that we plan to adapt to weaker demand in the European market allowing us to benefit from the efficient Indian platform to be increasingly competitive in the future. Finally, the leverage ratio that has reached about 1.7 times, as well as the expected cash generation in line with the last five years, allows us to look again at opportunities for growth by external lines."

FILA trades in the red by 9.9 percent at EUR7.75 per share.

By Claudia Cavaliere, Alliance News reporter

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