Fila Holdings reported consolidated group revenues of 3,793,959 million Korean won (€2.83bn) for the financial year ended Dec. 31, up 21.3 percent year-over-year in reported terms and 24.4 percent higher in constant currencies. Annual net income increased by 71 percent to KRW 337,809 million (€252.2m). The gross margin improved slightly to 49.6 percent from 49.4 percent. However, excluding its stake in Acushnet, the group’s revenues rose by only 8.0 percent to 1,326 billion won (€986.5m).
For the fourth quarter of 2021, the company booked a net loss of KRW 8,066 million (€6.02m) as the operating profit slid by 63 percent to KRW 25,186 million (€18.8m), and the gross margin dipped to 47.3 percent from 49.0 percent. The quarterly consolidated revenues increased by 7.9 percent (2.4% in constant currencies) to KRW 859,258 million (€641.5m).
Fila Holdings has owned the Italian heritage sports brand by the same name since 2007 and licenses it out in various parts of the world. In the EMEA, royalty income declined by 4.2 percent to KRW 7,980 million (€6.0m) in the fourth quarter and by 8.7 percent for all of 2021 to KRW 31,732 million (€23.7m). Elsewhere, royalty income for the full year across Asia fell by 4.1 percent to KRW 17,476 million (€17.5m) but rose by 16.7 percent in North America to KRW 8,307 million (€6.2m). Fila’s global royalty revenues dipped slightly by 0.6 percent for the year to KRW 66,115 million (€49.4m).
Including its domestic operations and its 15 percent stake in its joint venture with Anta Sports Products for the Fila brand in China, the Fila Korea subsidiary reported a sales increase of 1.9 percent for the year to 538.9 billion won (€400.9m). Its gross margin declined by 0.5 percentage points to 60.2 percent, but its net income went up by 9.3 percent to 76.9 billion won’(€57.0m). The subsidiary experienced a 29.7 percent increase to KRW 59,646 million (€44.6m-$49.2m) in the 3 percent design fees attached to its Chines joint venture with Anta.
Fila USA, the company’s North American subsidiary, generated an 11.5 percent increase in revenues in 2021 to KRW 568,621 million (€424.5-$497.0m). The gross margin declined slightly by 0.7 percentage points to 27.7 percent. Operating profit for the year was 55 percent higher at KRW 15,288 million (€11.4m-$12.6m), and the net profit soared to KRW 10,360 million (€7.7m-$9.1m) from KRW 4,321 million. In the fourth quarter, Fila USA reported a net loss of KRW 1,012 million and an 8.7 percent decline in total revenues to KRW 140,188 million (€104.6m-$115.6m), but the gross margin improved to 26.8 percent from 24.8 percent.
The parent company’s current outlook for 2022 calls for revenue and operating profit to grow or decline in a range of 2 percent on a consolidated basis. Annual royalty income is forecast to rise by 1 to 3 percent., but the company’s design fee from its joint venture with Anta is projected to fall by 3 to 8 percent, generating a drop of 4 to 10 percent in the segment’s operating income. Fila USA’s outlook is for revenues to decline by up to 2 percent or grow by up to 1 percent, with the operating profit falling by up to 2 percent or rising by up to 11 percent.
