MILAN, ITALY — In the first quarter of 2024, Amplifon reports company revenues surged by 9% to reach 573 million euros, with EBITDA totaling 137 million euros, marking a notable increase of 10.7%. This robust performance translated into record profitability, with the EBITDA margin reaching 23.9%, a noteworthy uptick of 100 basis points.
The quarter saw strong revenue growth of 8.8% at constant exchange rates, propelled by significant organic growth and strategic acquisitions, despite facing challenging comparisons and an earlier Easter compared to the prior year. Field productivity measures implemented in the second half of last year contributed to the increase in recurring EBITDA margin. Net financial debt stood at 883 million euros, with leverage at 1.52x as of March 31st, 2024, following substantial investments in capital expenditure and acquisitions totaling around 100 million euros.
The company’s international expansion gained momentum, with over 150 points of sale acquired in France, Germany, the Americas, and China during the first quarter of 2024, amounting to a total cash-out of 70 million euros. Additionally, the United States witnessed an expansion in direct points of sale, reaching around 400, driven by two strategic acquisitions completed within the first four months of 2024.
“We are very satisfied with the excellent start to 2024. In the first quarter we achieved a strong increase in revenues and record profitability thanks, above all, to our solid performance in a progressively normalizing European market, the continuous growth in the Americas and Asia Pacific, as well as the effectiveness of the field productivity measures taken since the second half of last year. This trend continued also in April.”
–Enrico Vita, Amplifon CEO
“We continue to grow more than our reference market across all geographies and to invest in the development of our organization, in marketing and in our ability to innovate to the benefit of our customers,” continued Vita. “At the same time, we are accelerating the pace of our bolt-on acquisitions with more than 150 stores acquired worldwide in the first quarter alone. Thanks to these results, we are very confident we will be able to continue along our significant growth path throughout the entire 2024”.
Main Results for First Quarter of 2024
- Consolidated revenues of 573.1 million euros, an increase of 8.8% at constant exchange rates and of 6.1% at current exchange rates compared to the first quarter of 2023, thanks to a strong, above-market organic growth (+5.6%) despite the challenging comparison base and the early Easter compared to the prior year
- Recurring EBITDA was 136.8 million euros, up 10.7% compared to the first quarter of 2023. The margin came in at 23.9%, a record increase of 100 basis points compared to the same period of 2023 mainly thanks to the field productivity measures taken in the second half of last year
- Recurring net profit was 35.7 million euros, higher than the 34.9 million euros recorded in the first quarter of 2023, despite increased depreciation and amortization as a result of strong investments in the business and higher financial expenses (mainly interest expense, inflation accounting and lease accounting)
- Free cash flow was 37.2 million euros, compared to 46.3 million euros recorded in the first quarter of 2023, after Capex of 29.9 million euros
- Net financial debt was 3 million euros compared to 852.1 million euros at December 31st, 2023, after Capex and M&A totaling around 100 million euros, with financial leverage at 1.52x on March 31st, 2024 , basically in line with December 31st, 2023 (1.50x)
*The comments in this press release refer to recurring income statement figures, unless stated otherwise.
Outlook
Looking ahead, Amplifon continued its robust growth trajectory in the first quarter of 2024, surpassing market benchmarks. This was fueled by enhanced competitiveness in core markets and boosted profitability resulting from productivity measures implemented in late 2023. During the period, demand in the US hearing care market remained robust, while Europe experienced a gradual return to positive growth, aligning with the company’s expectations for the full year.
The strong momentum extended into the second quarter, with April witnessing high-teens revenue growth at constant exchange rates, partly attributed to the early Easter effect in 2024. Barring any unforeseen global economic slowdowns, such as those stemming from inflationary pressures or geopolitical tensions, Amplifon maintains its outlook for robust growth in 2024. This includes expectations of high-single-digit revenue growth at constant exchange rates, driven by market share gains and acquisitions contributing at least 2% to revenue growth. Furthermore, the company anticipates a recurring EBITDA margin exceeding 24.6%, supported by ongoing field productivity measures.
Looking ahead, Amplifon remains optimistic about its long-term growth prospects, underpinned by the enduring fundamentals of the hearing care market and its strengthened competitive position.
**For more details, visit the company website
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
