Amplifon Posts 9% Revenue Growth in First Half of 2023, Driven by Organic Growth and Strategic Acquisitions

MILAN, ITALY — Hearing care retailer, Amplifon, has reported strong revenue growth in the first half of 2023, surpassing 1.1 billion euros, an increase of 9% compared to the same period in the previous year. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) also showed positive growth at €276 million euros (~$300M USD), up by 6.1%.

The revenue growth was driven by excellent organic growth of 7%, exceeding the market average, and strategic acquisitions contributing an additional 2%. However, the second quarter experienced a softer market demand than anticipated. Despite this, Amplifon’s recurring EBITDA for the first half of 2023 increased by 6.1% compared to the same period in 2022, with a margin of 24.8%. The net profit remained stable at 89 million euros.

“In the first half of 2023, we continued along our path of strong growth, both organically and through acquisitions, despite a softer than expected market, a challenging comparison base and significant investments to support further development of our company in the future. We are strengthening Amplifon’s global leadership, growing more than the reference market in all the main geographic areas and accelerating bolt-on acquisitions compared to 2022, with an M&A cash-out of around 60 million euros for the acquisition of 140 points of sale in North America, Europe and China. We continue to be positive about our growth prospects for 2023”

–Amplifon CEO, Enrico Vita

During the first half of 2023, Amplifon pursued bolt-on acquisitions, adding 140 points of sale mainly in France, Germany, North America, and China, with a total cash-out of approximately 60 million euros.

In the second quarter of 2023, the company achieved a positive start with strong revenue growth in July. Amplifon maintains a positive outlook for the rest of the year based on previously disclosed assumptions. The company’s leadership is confident in its growth prospects for 2023, even amid a challenging market and significant investments in the business.

The financial figures for the first half of 2023 are as follows:

• Consolidated revenues: €1,113.8 million euros (+9% at constant exchange rates)
• Recurring EBITDA: €276.0 million euros (+6.1% compared to the first half of 2022)
• Recurring net profit: €89.3 million euros (unchanged from the first half of 2022)
• Free cash flow: €76.1 million euros (lower compared to the exceptional level in the same period of 2022)
• Net financial debt: €883.8 million euros (slightly higher compared to December 2022)

Amplifon’s performance was positive across all geographic areas. In the EMEA region, revenues grew by 4.4% in the first half, with a recurring EBITDA margin of 29.6%. In the Americas, revenue increased by 17.6%, driven by well-above-market organic growth, with a recurring EBITDA margin of 26.9%. The Asia-Pacific region reported excellent top-line performance, with revenue growth of 9.2%, but the profitability was affected by a one-time charge for leadership change, resulting in a recurring EBITDA margin of 25.8%.

Outlook

Looking ahead, Amplifon expects to maintain its faster-than-market growth and positive start in the third quarter, though organic growth and profitability figures may ease, particularly in the fourth quarter.

The company remains optimistic about its prospects for sustainable growth in sales and profitability in the medium-term, thanks to its strong competitive positioning in the hearing care market.