Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Italy
  4. Borsa Italiana
  5. Amplifon S.p.A.
  6. News
  7. Summary
    AMP   IT0004056880

AMPLIFON S.P.A.

(AMP)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Amplifon S p A : An excellent second quarter with revenue growth at constant exchange rates of ~110% compared to 2020 and of ~20% compared to 2019

07/29/2021 | 07:27am EST

Q2 & H1 2021

AN EXCELLENT SECOND QUARTER WITH REVENUE GROWTH AT CONSTANT

EXCHANGE RATES OF ~110% COMPARED TO 2020 AND OF ~20% COMPARED TO 2019

OUTSTANDING PROFITABILITY WITH THE RECURRING EBITDA MARGIN UP 180 BASIS POINTS COMPARED TO THE SECOND QUARTER OF 2019, ALSO AFTER SIGNIFICANT INVESTMENTS IN THE BUSINESS

STRONG CASH GENERATION WITH FREE CASH FLOW OF 118.8 MILLION EUROS IN THE FIRST HALF AND IMPROVEMENT IN THE NET FINANCIAL POSITION OVER DECEMBER 2020, ALSO AFTER SIGNIFICANT INVESTMENTS IN M&A, DIVIDENDS PAYMENT AND SHARE BUYBACK

UPGRADE OF THE 2021 GUIDANCE

STRATEGIC M&A TRANSACTIONS ANNOUNCED AFTER THE CLOSE OF THE FIRST HALF: ACQUISITION OF BAY AUDIO IN AUSTRALIA AND SECOND JOINT VENTURE IN CHINA

STRATEGIC DECISION TO EXIT THE WHOLESALE BUSINESS CEASING THE OPERATIONS OF ELITE IN THE U.S.

  • PERFECTLY IN LINE WITH THE GROUP'S GLOBAL CUSTOMER-CENTRIC STRATEGY AIMED AT DELIVERING A SUPERIOR PROPOSITION DIRECTLY TO END-CUSTOMER
  • ALLOWS THE COMPANY TO FOCUS ON THE FASTEST GROWING AND HIGHEST POTENTIAL CHANNELS OF THE CORE U.S. MARKET: RETAIL AND MANAGED CARE

AMPLIFON'S CAPITAL MARKETS DAY TO BE HELD VIRTUALLY ON SEPTEMBER 13TH, 2021

MAIN RESULTS FOR THE FIRST HALF OF 20211

  • 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 THE SECOND QUARTER OF 20211

  • 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

1 Unless stated otherwise, the comments in this press release refer to the recurring income statement figures. Also, in light of the significant impact of the Covid-19 outbreak on the financial results for FY 2020 and for the sake of greater comparability, the main income statement figures for the same period of 2019 are also provided.

Milan, July 29th, 2021 - Today the Board of Directors of Amplifon S.p.A. (MTA; Bloomberg ticker: AMP:IM), global leader in hearing solutions and services, approved the Interim Financial Report as at June 30th, 2021 during a meeting chaired by Susan Carol Holland.

ENRICO VITA, CEO

"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".

In light of the significant impact of the Covid-19 outbreak on the financial results for FY 2020 and in order to allow for greater comparability, the income statement data for H1 and Q2 2019 are also provided below. In addition, in light of today's Board of Directors' resolution to cease the Elite business (see following paragraph "Events subsequent to June 30th, 2021"), selected P&L data are presented also without the contribution from Elite. Unless stated otherwise, the following comments refer also to these figures.

SECOND QUARTER 2021 ECONOMIC RESULTS

(Euro millions)

Q2 2021

Q2 2020

Non

% on

Non

% on

Change %

Recurring

Total

Recurring

Total

on

recurring

recurring

recurring

recurring

recurring

Net revenues

518.6

-

518.6

100.0%

250.4

-

250.4

100.0%

107.1%

EBITDA

136.1

(1.9)

134.3

26.3%

66.4

-

66.4

26.5%

104.9%

EBIT

82.3

(1.9)

80.4

15.9%

17.0

-

17.0

6.8%

382.9%

Net income

55.3

(1.4)

53.9

10.7%

7.4

-

7.4

3.0%

643.9%

EPS adjusted

0.281

0.068

312.8%

(*, in Euro)

(Euro millions)

Q2 2021

Q2 2019

Non

% on

Non

% on

Change %

Recurring

Total

Recurring

Total

on

recurring

recurring

recurring

recurring

recurring

Net revenues

518.6

-

518.6

100.0%

440.1

-

440.1

100.0%

17.8%

EBITDA

136.1

(1.9)

134.3

26.3%

107.6

(4.4)

103.2

24.5%

26.5%

EBIT

82.3

(1.9)

80.4

15.9%

61.1

(4.4)

56.6

13.9%

34.7%

Net income

55.3

(1.4)

53.9

10.7%

40.6

(3.8)

36.8

9.2%

36.3%

EPS adjusted

0.281

0.217

29.3%

(*, in Euro)

  1. EPS adjusted (adjusted net earnings per share) for non-recurring expenses and the amortization of the intangible assets as per the Purchase Price Allocation accounting treatment.

Consolidated revenues amounted to 518.6 million euros in the second quarter of 2021, an increase of 19.9% at constant exchange rates and 17.8% at current exchange rates compared to the second quarter of 2019. This well above market performance was driven by organic growth (15.1%), while acquisitions contributed for 4.8%. The foreign exchange effect was negative for 2.1% explained by the strengthening of the Euro against the US dollar and the Latin American currencies. Compared to the second quarter of 2020, which was heavily impacted by the pandemic, revenues rose 109.3% at constant exchange rates and 107.1% at current exchange rates thanks to a strong organic growth of 103.0%.

2

The performance was extremely positive across all regions: a solid performance was recorded in EMEA, driven by strong growth mainly in France, Spain, Portugal and Belgium; in the AMERICAS, North America reported an excellent, well above market, organic growth, which was combined with the significant contribution of the PJC Hearing acquisition, as well as the strong performances posted in Canada and Latin America (the latter was impacted by adverse exchange effect); APAC recorded an outstanding performance thanks to a double-digit organic growth compared to 2019 in Australia, New Zealand and China.

Recurring EBITDA was 136.1 million euros, 104.9% higher than in the second quarter of 2020 and 26.5% higher than the same period of 2019. The recurring EBITDA margin came to 26.3%, showing an increase of 180 basis points over the second quarter of 2019. This significant improvement in profitability is attributable mainly to the greater operating efficiency derived from the actions implemented in 2020 to face the Covid-19 outbreak and was achieved even after significant investments in the business, including investments in marketing (which were approximately 20% higher than in the second quarter of 2019) and the continuation of important strategic initiatives. EBITDA as reported came to 134.3 million euros after non-recurring expenses of 1.9 million euros relative to the GAES integration and the project for the redefinition of Amplifon S.p.A.'s corporate structure.

If the contribution from Elite in the quarter and in the comparison periods is excluded, the Company would have posted revenue growth of 20.9% at constant exchange rates, driven by an excellent 15.9% organic growth, and a recurring EBITDA margin of 26.8%, 200 basis points higher than in the second quarter of 2019.

Recurring EBIT reached 82.3 million euros, about five times higher than the 17.0 million euros recorded in the second quarter of 2020 and 34.7% higher than the 61.1 million euros posted in the second quarter of 2019. The margin on revenues came to 15.9%. EBIT as reported was 80.4 million euros.

Recurring net profit amounted to 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 recurring net profit of 40.6 million euros reported in the second quarter of 2019, thanks to increased operating leverage.

FIRST HALF 2021 ECONOMIC RESULTS

(Euro millions)

H1 2021

H1 2020

Non

% on

Non

% on

Change %

Recurring

Total

Recurring

Total

on

recurring

recurring

recurring

recurring

recurring

Net revenues

959.5

-

959.5

100.0%

613.9

-

613.9

100.0%

56.3%

EBITDA

232.7

(4.3)

228.4

24.3%

131.3

-

131.3

21.4%

77.2%

EBIT

125.8

(4.3)

121.6

13.1%

31.5

-

31.5

5.1%

299.2%

Net income

80.3

(3.2)

77.1

8.4%

12.6

-

12.6

2.0%

538.7%

EPS adjusted

0.428

0.121

254.1%

(*, in Euro)

Free cash flow

118.8

72.1

64.8%

06/30/2021

12/31/2020

Change %

Net Financial

620.5

633.7

-2.1%

Indebtedness

(Euro millions)

H1 2021

H1 2019

Non

% on

Non

% on

Change %

Recurring

Total

Recurring

Total

on

recurring

recurring

recurring

recurring

recurring

Net revenues

959.5

-

9595

100.0%

832.0

-

832.0

100.0%

15.3%

EBITDA

232.7

(4.3)

228.4

24.3%

186.6

(5.8)

180.8

22.4%

24.7%

EBIT

125.8

(4.3)

121.6

13.1%

95.4

(5.9)

89.5

11.5%

32.0%

Net income

80.3

(3.2)

77.1

8.4%

59.4

(4.9)

54.5

7.1%

35.3%

EPS adjusted

0.428

0.330

29.7%

(*, in Euro)

  1. EPS adjusted (adjusted net earnings per share) for non-recurring expenses and the amortization of the intangible assets as per the Purchase Price Allocation accounting treatment.

3

Consolidated revenues amounted to 959.5 million euros in the first half of 2021, an increase of 58.0% at constant exchange rates and of 56.3% at current exchange rates compared to the first half of 2020 and of 17.1% at constant exchange rates and of 15.3% at current exchange rates, thanks to a strong organic growth of 11.9%, compared to the first half of 2019. The performance was driven by an excellent organic growth and acquisitions, while the exchange effect was negative due again to the strengthening of the Euro against the US dollar and the Latin American currencies.

Recurring EBITDA was 232.7 million euros, 77.2% higher than in the first half of 2020 and 24.7% higher than in the same period of 2019. The recurring EBITDA margin came to 24.3%, showing an increase of 180 basis points compared to the first half of 2019. EBITDA as reported came to 228.4 million euros after non-recurring expenses of 4.3 million euros relative to the GAES integration and the project for the redefinition of Amplifon S.p.A.'s corporate structure.

If the contribution from Elite in the first half of 2021 and in the comparison periods is excluded, the Company would have posted revenue growth of 18.6% at constant exchange rates, driven by an excellent 13.1% organic growth, and a recurring EBITDA margin of 24.8%, 200 basis points higher than in the first half of 2019.

Recurring EBIT reached 125.8 million euros, about four times higher than the 31.5 million euros recorded in the first half of 2020 and 32.0% higher than the 95.4 million euros posted in the first half of 2019. The margin on revenues came to 13.1%. EBIT as reported was 121.6 million euros.

Recurring net profit amounted to 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 recurring net profit of 59.4 million euros reported in the first half of 2019. This excellent result is explained by the increased operating leverage. Net profit as reported, which reflects the non-recurring charges of 3.2 million euros referred to above, reached 77.1 million euros which is more than six times higher than in the first half of 2020 and 41.6% higher than in the first half of 2019. The tax rate came to 28.2%, lower than the 28.9% recorded in the 2020 comparison period. The adjusted earnings per share (EPS adjusted) came in at 42.8 euro cents, roughly 3.5 times higher with respect to the 12.1 euro cents reported in the first half of 2020 and 29.7% higher than the 33.0 euro cents reported in the same period of 2019.

EMEA: Excellent top-line performance, fostered by strong organic growth, and outstanding profitability

(Euro millions)

Q2 2021

Q2 2020

Q2 2019

% 21/20

% 21/19

Revenues

362.9

179.2

323.4

+102.5%

+12.2%

Organic growth

+99.4%

+9.5%

Acquisitions

+3.3%

+2.6%

FX

-0.2%

+0.1%

EBITDA recurring

112.5

52.3

83.4

+115.1%

+31.7%

Margin %

31.0%

29.2%

26.4%

+180 bps

+460 bps

An excellent performance was recorded in EMEA, with revenues outpacing the reference market, coming in 102.7% higher than in the second quarter of 2020 and 12.1% higher than in the same period of 2019. The organic growth was particularly strong in France, Spain, Portugal and Belgium.

The region posted excellent profitability with the EBITDA margin rising an impressive 460 basis points compared to the same period of 2019 to 31.0%, thanks to greater efficiency, improved profitability in Spain and increased operating leverage.

4

AMERICA: Impressive revenue growth in the quarter, boosted by an organic growth of around 40% and by PJC Hearing recent acquisition

(Euro millions)

Q2 2021

Q2 2020

Q2 2019

% 21/20

% 21/19

Revenues

95.1

40.2

68.8

+136.3%

+38.3%

Organic growth

+134.3%

+39.1%

Acquisitions

+23.0%

+13.6%

FX

-21.0%

-14.4%

EBITDA recurring

23.5

10.8

16.4

+117.3%

+43.3%

Margin %

24.7%

26.9%

23.9%

-220 bps

+90 bps

The extraordinary revenue performance in the United States, well above the reference market, reflects an organic growth of around 40% compared to the second quarter of 2019, driven mainly by Miracle-Ear and by the contribution of the recent PJC Hearing acquisition, which also reported strong organic growth in the period (reported in M&A). A strong performance was reported by Amplifon Hearing Health Care and Canada, while Elite posted a negative performance. Excellent growth was also recorded in Latin America despite the particularly adverse exchange effect.

The EBITDA margin came to 24.7% in the quarter, showing an increase of 90 basis points compared to the second quarter of 2019, thanks, once again, to improved efficiency and despite continuous reinvestment in the business and a challenging comparison base.

If the contribution from Elite in the quarter and in the comparison periods is excluded, the Company would have posted revenue growth of 72.4% at constant exchange rates, driven by an excellent 54.2% organic growth, and a recurring EBITDA margin of 27.8%, 170 basis points higher than in the second quarter of 2019.

ASIA-PACIFIC: Excellent performance across major markets

(Euro millions)

Q2 2021

Q2 2020

Q2 2019

% 21/20

% 21/19

Revenues

60.6

31.0

46.6

+95.6%

+30.0%

Organic growth

+82.8%

+21.6%

Acquisitions

+1.5%

+6.5%

FX

+11.3%

+1.9%

EBITDA recurring

17.8

12.5

13.3

+41.7%

+33.6%

Margin %

29.3%

40.5%

28.5%

-1,120 bps

+80 bps

ASIA-PACIFIC reported an excellent performance in revenues, up 84.3% at constant exchange rates compared to the second quarter of 2020 and 28.1% compared to the same period of 2019, which was coupled with the contribution of the Attune acquisition. Australia, New Zealand and China recorded double-digit organic growth against the second quarter of 2019. India is the only country in the region that continues to be strongly impacted by the pandemic.

EBITDA amounted to 17.8 million euros, an increase of 41.7% compared to the second quarter of 2020 and of 33.6% compared to the same period of 2019. The EBITDA margin came to 29.3%, up 80 basis points compared to the second quarter of 2019 after significant investments in the business, relating mainly to the marketing costs incurred in Australia to launch the Amplifon brand and the roll-out of the Amplifon Product Experience.

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Amplifon S.p.A. published this content on 29 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2021 11:26:27 UTC.


ę Publicnow 2021
All news about AMPLIFON S.P.A.
11/05Interim Financial Report as at 30 September 2021
PU
10/27An excellent quarter paving the way for a record year
PU
10/27Amplifon S.p.A. Reports Earnings Results for the Third Quarter and Nine Months Ended Se..
CI
10/08AMPLIFON S P A : Q3 2021 results presentation
PU
10/01AMPLIFON S P A : completes the acquisition of Bay Audio in Australia
PU
10/01Amplifon S.p.A. completed the acquisition of Bay Audio Pty Ltd for AUD 550 million.
CI
09/17AMPLIFON S P A : at the top of Institutional Investor ranking for 2021
PU
09/13PRESENTAZIONE CAPITAL MARKETS DAY : Innovating around the customer to fuel profitable grow..
PU
09/13CAPITAL MARKETS DAY PRESENTATION : Innovating around the customer to fuel profitable growt..
PU
09/13CAPITAL MARKETS DAY : Strategic pillars, growth opportunities and financial targets for th..
PU
More news
Financials
Sales 2021 1 966 M 2 219 M 2 219 M
Net income 2021 170 M 192 M 192 M
Net Debt 2021 1 253 M 1 414 M 1 414 M
P/E ratio 2021 56,3x
Yield 2021 0,52%
Capitalization 9 613 M 10 834 M 10 850 M
EV / Sales 2021 5,53x
EV / Sales 2022 4,89x
Nbr of Employees 11 265
Free-Float 53,8%
Chart AMPLIFON S.P.A.
Duration : Period :
Amplifon S.p.A. Technical Analysis Chart | AMP | IT0004056880 | MarketScreener
Technical analysis trends AMPLIFON S.P.A.
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 13
Last Close Price 42,76 €
Average target price 42,22 €
Spread / Average Target -1,27%
EPS Revisions
Managers and Directors
Enrico Vita Chief Executive Officer & Executive Director
Gabriele Galli Chief Financial Officer
Susan Carol Holland Chairman
Andrea Ciccolini Chief Information Officer
Maurizio Costa Independent Non-Executive Director
Sector and Competitors
1st jan.Capi. (M$)
AMPLIFON S.P.A.23.97%10 736
ABBOTT LABORATORIES14.97%222 592
MEDTRONIC PLC-5.20%149 347
BECTON, DICKINSON AND COMPANY-2.05%69 611
HOYA CORPORATION25.86%59 428
DEXCOM, INC.60.11%57 374