MILAN, May 3 (Class Editori) — Amplifon Group closed an excellent first quarter, recording a 15.7% growth in revenues to 495.8 million euros and a 34% increase in net income to 30.7 million euros, compared to last year. The quarterly results show the Group's solid profitability and superior organic growth compared with the reference market.
The performance was positive in all geographic areas. Profitability improved in the EMEA, despite the peak of COVID-19 infections in January and a difficult comparison base in France at the end of March. In the Americas, the growth was primarily organic, with exceptional performance in the US and double-digit growth in Canada and Latin America. On the other hand, in the APAC, the growth was driven by several acquisitions, including, most notably, that of Bay Audio, despite a contracted target market due to the spike in COVID-19 infections.
"The outlook for the hearing care market is positive and the excellent quarterly results allow us to look forward with optimism both to the rest of the year and to the medium-term growth prospects of our company," the CEO Enrico Vita stated commenting on the results.
Specifically, consolidated revenue growth of 15.7% was driven for 8.8% by organic growth and 5.2% by acquisitions. During the quarter, the company acquired 38 new stores in Europe, mainly in France and Germany, and 20 in China. The latter figure is in line with the Group's desire to consolidate its network in the country, reaching a total of 140 points of sale in the areas of Beijing, Zhejiang and southeast China, Shanghai and the Hubei Province.
EBITDA on a recurring basis stood at 112.9 million euros, up by 17.7% on last year, with a margin on revenues of 22.8%, up by 40 basis points. In addition, the Group reported EBIT of 55.2 million euros, up by 28.5% from 42.9 million euros in the first quarter of 2021. However, the most surprising figure is the 34.3% growth in net income to 32.8 million euros. Adjusted EPS rose by 28.3% to 18.4 euro cents. The surprising improvement in the Group's profitability can be attributed to increased operating efficiency and some key investments in the business, for example in the continuation of major strategic initiatives and marketing.
Despite net investments for the numerous acquisitions and share buyback plans promoted by the company, the net debt position also improved, standing at 868.6 million euros, compared to 871.2 million euros as of December 31, 2021.
Overall, performance exceeded FactSet's consensus expectations, which estimated revenues of 488.5 million euros, EBITDA of 111.7 million euros and a net income of 31.7 million euros. After the publication of the quarterly report, Citi analysts confirmed their buy rating and estimated a target price of 47.2 euros. In addition, they highlighted the increased competition following the introduction of OTC devices, a further tightening of restrictions against COVID-19 and negative economic outcomes from the latest acquisitions as possible risk factors for Amplifon.
(Source:Class Editori)
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