Profit of €16 million, a reduction of more than €15 million in bank borrowing and a return to positive equity. On paper, 2025 looks like a year of spectacular recovery for D.I. Feidas S.A., the Greek footwear manufacturer based in Acharnes.
Behind the figures, however, lies a different reality. Profitability stemmed mainly from debt write-offs under the restructuring agreement, rather than a recovery in business activity. Sales fell by 37.2% to €3.65 million, cash balances shrank to €277,000 and the auditor raised six qualifications, while also highlighting material uncertainty over the company’s ability to continue as a going concern.
According to the financial statements, Feidas’ revenue fell from €5.81 million in 2024 to €3.65 million in 2025. Sales of finished and semi-finished products, the core of its business, declined to €3.24 million from €5.36 million. Gross profit fell to €455,000 from €798,000. The bottom line was transformed by other income and gains of €18.85 million, mainly linked to the write-off of liabilities under the restructuring agreement.
As a result, the company reported net profit of €16.03 million, compared with a loss of €2.34 million in 2024. The accounting turnaround does not yet signal a return to operating profitability. Equity stood at a positive €5.80 million, compared with a negative €10.23 million, while short-term bank borrowing fell from €24.44 million to €9 million and total liabilities were almost halved to €22.16 million.
The restructuring agreement, signed in January 2022 and amended in 2024, was ratified by decision No. 33/2025 of the Athens Multi-Member Court of First Instance. Its terms include a 16-year extension of loan maturities, a two-year grace period on principal repayments and an interest rate of 1.5% on rescheduled loans.
Despite the reduction in bank borrowing, liquidity pressures remain. At the end of 2025, tax and duty liabilities stood at €8.47 million and liabilities to social security funds at €3.26 million. The company says payment arrangements have been made with the AADE and EFKA for the total of €11.73 million.
Cash balances fell from €1.51 million to just €277,201. Meanwhile, short-term liabilities reached €21.95 million, compared with current assets of €15.82 million. Negative working capital of €6.13 million remains one of the main obstacles.
Six audit qualifications and a recovery plan
The audit report highlights significant uncertainty over the valuation of assets and liabilities. The largest qualification concerns old trade and other receivables of €8.49 million, which, in the auditor’s view, the company should have fully impaired.
These are followed by inventories worth €1.46 million, which the auditor says require impairment, as well as an unrecognised provision of about €92,000 for employee compensation. A separate issue is a €2.97 million loss from the earlier termination of a finance lease on an industrial facility, which had been recorded as an intangible asset.
According to the auditor, this accounting treatment overstates 2025 equity by about €594,000. The other two qualifications concern the inability to confirm loan balances with loan-servicing companies and tax years 2020–2025 that have not been audited.
Beyond the qualifications, the auditor highlights material uncertainty over the company’s ability to continue as a going concern. This is not a finding that closure is imminent, but a warning about the financial risks the business continues to face.
The contraction in activity is also reflected in employment. The average number of employees fell from 51 to 34. Management is seeking to transform Feidas from a manufacturer into a manufacturing and trading company by increasing exports, adding new product categories and developing its wholesale e-commerce business.
The plan includes markets in the Balkans, Cyprus, Eastern Europe and Arab countries, as well as expansion into women’s and sports footwear, bags, wallets and belts. Management is targeting sales growth of more than 50% over the next 24 to 36 months.