amplifon closes elite hearing network

Amplifon to Cease Operations of Elite Hearing Network in US; Company Beats Estimates with Strong Q2 Results

Amplifon released its Q2 2021 results with revenues of €518.6M (~$616M USD), beating estimates. The company indicated the the recurring EBITDA margin up 180 basis points compared to the second quarter of 2019.

“We are very satisfied with the excellent results of the second quarter, characterized by an outstanding growth in revenues, more than doubled compared to last year and up 20% compared to two years ago, by a significant improvement in profitability, as well as a strong cash generation. We are also progressing swiftly and successfully with the execution of our strategic journey, as evidenced by the major acquisition of Bay Audio in Australia, the completion of our second joint venture in China, and the decision to simplify our business to focus even more on the direct relationship with our end-consumers. Finally, we also look to the second half of this year with optimism, as demonstrated by the upgrade of our FY2021 guidance”.

–Enrico Vita, Amplifon CEO

In addition to the recent acquisition of Bay Audio in Australia, the company also announced a “strategic decision” to cease operations of the Elite Hearing Network in the US. 

The strategic move to “wind down” operations of Elite is so the company can exit the low-growth, low-margin wholesale business to focus on the end-consumer.

The company presented its rationale in its H1 2021 investor presentation:

The company expects the wind-down of operations to be effective and completed by end of 2021. 

 

MAIN RESULTS FOR H1 2021

 

  • Consolidated revenues of 959.5 million euros, an increase of 58.0% at constant exchange rates and 56.3% at current exchange rates compared to the first half of 2020, and 17.1% at constant exchange rates and 15.3% at current exchange rates compared to the first half of 2019
  • Recurring EBITDA was 232.7 million euros, 77.2% higher than in the first half of 2020 and 24.7% higher than in the first half 2019, with the margin rising 180 basis points compared to the same period of 2019 to 24.3%, thanks to greater operating efficiency, even after significant investments in the business  
  • Recurring net profit was 80.3 million euros, more than six times higher than the 12.6 million euros posted in the first half of 2020 and 35.3% higher than the 59.4 million euros recorded in the same period of 2019
  • Excellent free cash flow of 118.8 million euros, an increase of 64.8% with respect to the first half of 2020 and more than double compared to the first half of 2019
  • Net financial debt was 620.5 million euros, lower than the 633.7 million euros posted at December 31st, 2020, after net cash-out for M&A of 42.9 million euros, dividends payment of 49.4 million euros and buyback program of 13.3 million euros, with financial leverage down to 1.23x at June 30th, 2021

 

MAIN RESULTS FOR Q2 2021

 

  • Consolidated revenues of 518.6 million euros, an increase of 109.3% at constant exchange rates and 107.1% at current exchange rates compared to the second quarter of 2020, and 19.9% at constant exchange rates and 17.8% at current exchange rates compared to the second quarter of 2019
  • Recurring EBITDA was 136.1 million euros, 104.9% higher than in the second quarter of 2020 and 26.5% higher than in the second quarter of 2019, with the margin rising 180 basis points compared to the same period of 2019 to 26.3%, thanks to greater operating efficiency, even after significant investments in the business 
  • Recurring net profit was 55.3 million euros, more than seven times higher than the 7.4 million euros posted in the second quarter of 2020 and 36.3% higher than the 40.6 million euros recorded in the same period of 2019

 

Source: Amplifon

 

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