MILAN, ITALY — Amplifon S.p.A. has reported impressive financial results for Q3 2024, showcasing solid growth despite challenging market conditions in Europe. With a focus on expanding its footprint worldwide, Amplifon’s strategic acquisitions and investment in its retail network have played a central role in driving revenue and boosting EBITDA.
Key Financial Highlights
For the first nine months of 2024, Amplifon achieved consolidated revenues of 1.75 billion euros (USD $1.85 billion), marking an 8% increase at constant exchange rates. This rise was fueled by organic growth and significant merger and acquisition (M&A) activity, underscoring the company’s robust performance compared to the broader market.
Recurring EBITDA rose by 6.9% to 412.2 million euros (USD 435.9 million), reflecting the benefits of Amplifon’s acquisitions and its expanded presence, particularly in the United States. Although the European market faced headwinds, Amplifon managed to maintain a recurring EBITDA margin of 23.6%, an improvement over the previous year.
Free cash flow, however, declined slightly to 50.6 million euros (USD $53.5 million), down from 68.8 million euros (USD 72.8 million) in the same period last year. The decline in free cash flow is attributed to an increase in lease payments and higher financial expenses.
Global Expansion Strategy
One of the main drivers behind Amplifon’s recent growth is its ambitious global expansion, particularly in high-potential markets like the United States, France, Germany, and China. The company’s recent acquisitions have brought its global network to over 10,000 points of sale, with China now hosting more than 500 of these locations.
In the United States, Amplifon has bolstered its footprint through Miracle-Ear’s direct retail network, acquiring roughly 100 new stores since January 2024.
“In the first nine months of 2024, we continued along our revenue growth path thanks to an above-market organic performance and the significant contribution of acquisitions, despite a remarkable 2023 comparison base and a still softer-than-expected, albeit recovering, European market. The M&A acceleration recorded in the year allows us to further strengthen our presence in core markets – specifically in the United States, France, Germany, and China – and to exceed the threshold of 10,000 stores globally. Thanks to these acquisitions and continuous investments, we further strengthened our competitive positioning in the global hearing care market, and we look ahead with confidence to the medium-term evolution of our business”
–Enrico Vita, CEO of Amplifon
Regional Performance and Market Outlook
Across geographic regions, Amplifon’s performance varied in response to different market dynamics. The Americas led in revenue growth, propelled by strong organic performance and strategic acquisitions, primarily in the U.S. and Canada. The Asia-Pacific region also posted strong revenue growth, supported by organic gains and recent acquisitions in China.
The European market, however, remains softer than expected, although improvement in organic growth has been noted in the EMEA region.
In light of the Q3 results, Amplifon projects a high-single-digit revenue growth for the full year of 2024, driven by market share gains and a continued focus on bolt-on acquisitions. The company aims to maintain a recurring EBITDA margin in line with 2023 levels, despite ongoing challenges in Europe and higher marketing expenses to address market softness.
Strategic Outlook and Sustainability Initiatives
Looking to the future, Amplifon is optimistic about sustainable growth, with expectations for continued revenue and profit expansion. In a recent move to support its sustainability objectives, Amplifon secured two new credit facilities worth 250 million euros (USD 264.1 million), linked to specific sustainability performance metrics. These facilities, with favorable terms and margin adjustment mechanisms, provide Amplifon with enhanced liquidity and a diversified funding base.
Amplifon’s strong Q3 performance reflects its commitment to growth, adaptability in challenging markets, and a strategic approach to expanding its global network. As the company reinforces its position as a leader in hearing solutions, it is well-prepared to address shifting market dynamics while capitalizing on new opportunities for growth in the hearing care industry.
- For full financial results, visit the company’s website here.
About Amplifon
Amplifon, the global leader in the hearing care retail market, empowers people to rediscover all the emotions of sound. Amplifon’s around 19.400 employees and partners worldwide strive every day to understand the unique needs of every customer, delivering exclusive, innovative and highly personalised products and services to offer everyone the very best solution and an outstanding experience. With annual revenues of over €2 billion, the Group operates through a network of over 9 300 points of sale in 25 countries and five continents. For more information about the Group, please visit: https://corporate.amplifon.com.
Source: Amplifon