Pasubio - comment

Pasubio has released its FY25 Annual Report ahead of its 1:00 pm conference call today. FY25 revenue of €323.5m (-1.7% YoY) came in below our model, driving lower EBITDA and cash flow than we expected. The weakness is due to softer European automotive volumes, partly offset by fashion momentum, €36.1m revenue from recent acquisitions of Antiba & SKIN.

Adjusted EBITDA reached €47.5m, while pro-forma EBITDA amounted to €64.7m, including a full-year contribution from recent acquisitions. Leverage stands at c.6.0x. With bonds yielding c.11% and maturities in September 2028, we see insufficient compensation for risk at current levels, and bonds should trade lower. We will update post-call.