(Alliance News) - The board of directors of FILA Spa on Wednesday approved the draft individual financial statements for the year ending Dec. 31, 2022 and the consolidated financial statements for the year ending Dec. 31, 2022, reporting normalized group net income of EUR37.7 million down from EUR42.5 million.

The board also resolved to propose the allocation of a dividend of EUR0.12 per share.

Revenues amounted to EUR764.6 million, up from EUR635.5 million as of Dec. 31, 2021. Excluding the positive foreign exchange effect of EUR45.3 million mainly attributable to the U.S. dollar, Indian rupee, and Mexican pesos, partially offset by the devaluation of the Turkish lira and Argentine peso, organic growth amounted to EUR65.8 million, the company explained in a note.

Significant growth in Asia, by 70 percent; Central and South America up 60 percent, thanks to strong progress, particularly in the School & Office segment, in India and Mexico; Europe essentially flat on 2021; and North America down 2.9 percent.

Normalized Ebitda for 2022 is EUR110.3 million up from EUR109.1 million in 2021.

Ebit is EUR78.7 million, broadly in line with that of the previous year, and includes depreciation and amortization of EUR31.5 million showing an increase of EUR1.3 million mainly due to an increase in write-downs and provisions for estimated credit losses as a result of the increase in turnover, the negative economic-financial environment as well as an increase in depreciation related to a moderate recovery in investments, which were previously slowed down by the uncertainty scenario due to the Covid-19 pandemic.

The group's net financial debt as of December 31, 2022 was negative EUR435.2 million, a slight improvement from December 31, 2021 when it was negative EUR437.3 million.

As for the future, fiscal year 2023 will continue to be characterized by a cautious attitude on the part of both businesses and consumers and by stable inflation and a subsequent gradual recovery in consumption.

FILA, consequently, has already adopted a comprehensive product price increase policy for FY 2023, demonstrating - as in the past and also thanks to the vertical integration of the supply chain - its ability to manage inflationary phenomena.

The group's economic growth is expected particularly in "Art" products, especially in North America. This growth will be further supported by the positive trend in "School" products, thanks to the significant performance expected in India and Mexico.

This is supported by major investments in India to support the strong growth expected.

By 2023, a recovery in margins, a satisfactory level of cash generation and a consequent reduction in debt is expected, consistent with the need to maintain an adequate level of inventories to cope with any consequences that might be generated by escalation in the Russian-Ukrainian conflict.

FILA's stock on Wednesday closed down 1.4 percent at EUR7.08 per share.

By Chiara Bruschi, Alliance News reporter

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