MILAN, ITALY – Global hearing care retailer, Amplifon S.p.A., announced strong financial results for 2023 today, with record revenues and profits driven by significant organic growth and acquisitions around the world.
The company reported consolidated revenues of €2.26 billion for the year (~$2.47B USD), an increase of 10.2% at constant exchange rates compared to 2022. Solid organic growth of 8% contributed significantly to the revenue rise, alongside a 2.2% boost from acquisitions made primarily in France, Germany, China, and North America.
“2023 was a year of further growth for our group, where we achieved record levels in both revenues and profits despite a softer-than-expected European market. I’m proud of how our team responded to challenging market conditions.”
–Enrico Vita, Amplifon CEO
Recurring EBITDA (earnings before interest, taxes, depreciation and amortization) rose 3.1% year-over-year to €541.6 million, though profitability dipped slightly with a recurring EBITDA margin of 24% due to heavy investments in specialized field personnel to drive future growth.
Recurring net profit was €165.8 million.
2023 Growth Led by Americas and Asia-Pacific Markets
Regionally, Amplifon’s growth was led by excellent performances in the Americas and Asia-Pacific, offsetting headwinds in its core European market.
In the Americas, revenues surged over 19% at constant currencies thanks to booming organic growth and acquisitions, especially in the key U.S. market with the expansion of Amplifon’s Miracle-Ear retail stores. EBITDA jumped 14.5% to €115 million, with margins expanding 50 basis points to 26.8%.
Asia-Pacific also delivered outstanding top-line growth over 20% in constant currency, fueled by acquisitions in China that more than doubled Amplifon’s distribution network there to over 400 locations. EBITDA rose 7.1% to €89.8 million as margins slipped slightly to 26.1% due to expansion costs.
Europe remained a challenging market in 2023 with softer-than-expected demand, though Amplifon outperformed the industry with revenue gains from organic growth and bolt-on acquisitions in France and Germany.
Profitability remained the group’s highest at a 28.2% EBITDA margin, albeit lower than 2022 due to increased investments.
Outlook for 2024
Looking ahead to 2024, Amplifon forecasts high single-digit revenue growth at constant currencies supported by market share gains and additional acquisitions contributing at least 2%.
The company also expects profitability to improve, projecting a recurring EBITDA margin over 24.6% as productivity initiatives take hold.
“In light of the measures to improve productivity initiated in late 2023 and an expected normalization of the European market, we anticipate significant growth in both sales and profits this year. We remain extremely positive on our long-term sustainable growth prospects.”
–Enrico Vita, Amplifon CEO
The company proposed a dividend of €0.29 per share, consistent with 2022 levels and representing a 41.9% payout ratio. Share buybacks were also approved to support stock-based compensation plans and potential acquisition activity.
Amplifon highlighted major sustainability achievements in 2023 as well, including increasing renewable energy usage to 74% across facilities, delivering over 400,000 training hours to employees, and saving customers around €300 million through free hearing tests at retail locations.
With over 9,700 points of sale worldwide after adding 340 new locations last year, Amplifon continues expanding its global footprint as the hearing care retail market leader. The company’s outlook points to further growth on the horizon supported by positive demographic trends and its strengthened competitive positioning.
*The full 2023 results presentation can be downloaded here
About Amplifon
Amplifon, global leader in the hearing care retail market, empowers people to rediscover all the emotions of sound. Amplifon’s more than 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 more than 2 billion euros, operates through a network of more than 9,300 points of sale in 25 countries and 5 continents.
Source: Amplifon
