Rino Mastrotto - comment

Rino Mastrotto’s 1H26 results are modestly negative for the bonds, although the lack of near-term liquidity or refinancing concerns should limit the move.

Revenue increased 8.0% YoY to €172m, but pro forma adjusted EBITDA was broadly flat at €29.6m. Top-line growth was largely acquisition-driven following the addition of Conceria Superior and Tannerie Limoges. At the same time, the core business remains mixed, with Luxury Creations revenue up 17.7% but Automotive & Mobility down 4.0%. As such, the results provide limited evidence of the EBITDA recovery required to drive meaningful deleveraging.

Net debt stood at €284.7m at June, equivalent to 4.5x net leverage. This remains elevated and, with EBITDA flat, there has been little improvement in the underlying credit metrics. The call is at 1:30 UK time.