(Alliance News) - Amplifon Spa reported Thursday that it closed 2023 with a profit of EUR165.8 million, down 9.5 percent from EUR183.3 million in the previous year, as a result of higher depreciation and amortization and an increase in financial expenses.

The latter, amounting to EUR14.5 million, is mainly attributable to higher interest rates-despite the fact that most of the medium- to long-term debt is fixed-rate, higher charges from the application of IFRS 16 regarding network rental expenses, and the negative effect of Inflation Accounting on the Argentine subsidiary.

The board also proposed dividend of EUR0.29 per share, in line with the dividend paid in 2022, with a pay-out of 41.9 percent of consolidated net income per share.

Revenues, meanwhile, amounted to EUR2.26 billion, a "record level," up 6.7 percent from EUR2.12 billion in 2022. "The performance was driven by excellent organic growth of 8.0 percent, higher than the reference market, and by acquisitions of 2.2 percent, mainly in France, Germany, China, and North America," the company specified in a note.

Ebitda is EUR541.6 million, down 3.1 percent from EUR525.3 million. The margin on recurring revenue was 24 percent, down 80 basis points from the record level in 2022, due to heavy investment mainly in specialized store personnel to support the future growth path and lower operating leverage in EMEA due to a weaker than expected market.

Ebit is EUR274.0 million from EUR285.3 million in 2022, representing 12 percent of revenues. This performance is attributable to higher depreciation and amortization related to heavy investments in network expansion, innovation and digital transformation. Ebit as reported was EUR259.2 million.

Net debt was EUR852.1 million from EUR830.0 million.

In the fourth quarter, Amplifon reported revenues of EUR615.0 million, from EUR579.4 million in the same period of 2022, Ebitda of EUR155.8 million in line with the last quarter of 2022, Ebit of EUr81.1 million down from EUR94.0 million in the 2022 part period, and profit of EUR53.0 million from EUR63.7 million in the previous year.

As for 2024, the company expects "strong growth results with consolidated revenues growing high-single digits at constant exchange rates, supported by market share gains and bolt-on acquisitions, with the latter contributing at least 2 percent to growth; an Ebitda margin on a recurring basis above 24.6 percent also thanks to the productivity improvement actions initiated in the second part of 2023 and from which the group will benefit already from the first quarter," the statement says.

In the medium term, "the company remains extremely positive about its prospects for profitable and sustainable development thanks to hearing care market fundamentals and even stronger competitive positioning."

The board of directors also approved to submit to the next shareholders' meeting a proposal to authorize a new share buyback and disposition plan for a period of 18 months aimed at the purchase of new shares to enable the company to hold a total number of treasury shares not exceeding 10 percent of its share capital. The company currently holds 642,148 treasury shares, equivalent to about 0.3 percent of its share capital.

Amplifon's stock rises 4.1 percent to EUR32.26 per share.

By Chiara Bruschi, Alliance News reporter

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