MILAN, ITALY – Hearing care retailer, Amplifon, has reported a continuation of strong revenue growth in the third quarter and an expanding international presence.
Key Highlights
- Revenues up 9.7% at constant exchange rates driven by strong 7.6% organic growth, which increased to 9% in Q3 despite a softer European market.
- Recurring EBITDA 4.4% higher than the first nine months of 2022, with a 23.5% margin after substantial business investments. Net profit around 113 million euros.
- Net financial debt: 917.6 million euros on Sept 30, 2023 (830 million euros on Dec 31, 2022) after 250 million euros in investments. Financial leverage at 1.63x.
- Over 220 points of sale added in 2023 through bolt-on acquisitions, pushing the global network to 9,500 stores. China now boasts more than 300 stores.
- Strong start to Q4 with double-digit revenue growth at constant exchange rates in October.
“The results for the first nine months confirm the great dynamism of our group, demonstrated by the strong increase in revenues and, above all, a record organic growth achieved despite a demand in Europe which remains subdued. We are continuing to invest significantly in our international network through continuous acquisitions and we have now exceeded 9,500 stores, strengthening our presence in core markets like North America, France, Germany and China. In the latter we now have more than 300 points of sale, becoming one of the country’s main players in just five years of operation. These investments, combined with the ones made throughout the year in the organization to better serve our customers, marketing and innovation are essential to the acceleration of our medium/long-term growth path.”
–Amplifon CEO, Enrico Vita
Revenue Growth
Amplifon reported consolidated revenues of 1,645.1 million euros, marking a 9.7% increase at constant exchange rates and a 6.8% rise at current exchange rates compared to the first nine months of 2022. This impressive performance was driven by a well-above-market organic growth of 7.6%, further accelerating to 9% in the third quarter, despite a softer-than-expected European market.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
Recurring EBITDA reached 385.8 million euros, a 4.4% increase compared to the first nine months of 2022, with a margin on revenues at 23.5%. Amplifon attributes this growth to the strong investments made to support future growth.
Net Profit
Recurring net profit amounted to 112.8 million euros, representing a 5.7% decrease compared to the same period in 2022, due to higher amortization and depreciation costs attributable to increased business investments and higher financial expenses.
Global Expansion
Amplifon’s international expansion continued with the acquisition of over 220 points of sale mainly in France, Germany, North America, and China. This expansion strategy contributed to Amplifon’s global network, exceeding 9,500 stores.
Notably, the company surpassed 300 points of sale in China, establishing itself as a key player in the Chinese hearing solutions market within five years of entry.
Balanced Financials
Amplifon’s balance sheet remained strong. Free cash flow amounted to 68.8 million euros, and the net financial debt reached 917.6 million euros at the end of September 2023, up from 830.0 million euros at the end of 2022. The financial leverage was at 1.63x.
Outlook
Looking ahead to the fourth quarter of 2023, Amplifon anticipates continued healthy growth in the U.S. market, while the European market is expected to remain subdued. The company aims to grow organically faster than the market, with bolt-on acquisitions contributing at least 2% to consolidated revenue growth.
For the full year 2023, Amplifon projects consolidated revenues of around 2,290 million euros, corresponding to an approximately 11% growth at constant exchange rates compared to 2022. The company remains optimistic about its medium-term growth prospects due to the strong fundamentals of the hearing care market.
Amplifon’s success in 2023 reflects its commitment to providing top-quality hearing solutions and its global expansion strategy, positioning the company for sustained growth in the coming years.
Assignment of Stock Grants
Amplifon also announced the assignment of 97,800 shares as part of its Performance Stock Grant Plan 2023-2028. This plan is designed to reward key employees and promote long-term value creation.
Amplifon’s growth in revenue and global expansion reaffirms the company’s position as a leader in the hearing solutions industry, and it continues to invest in serving its customers and supporting future growth.
For more information, visit the company’s website.
About Amplifon
Amplifon, global leader in the hearing care retail market, empowers people to rediscover all the emotions of sound. Amplifon’s around 19,400 people worldwide strive every day to understand the unique needs of every customer, delivering exclusive, innovative and highly personalized products and services, to ensure everyone the very best solution and an outstanding experience. The Group, with annual revenues of over 2 billion euros, operates through a network of over 9,300 points of sale in 25 Countries and 5 continents.
Source: Amplifon
