Amplifon SpA (AMFPF) Q1 2025 Earnings Call Highlights: Resilient Growth Amid Market Challenges

In This Article:

  • Revenue Growth: Increased by 2.6% at constant exchange rates.

  • Organic Growth: Flat due to fewer trading days and a strong prior year comparison.

  • M&A Contribution: 2.6% with approximately 200 new points of sales added.

  • Adjusted EBITDA: 140.4 million with a margin of 23.9%, up 20 basis points from the previous year.

  • Net Profit Adjusted: Approximately 42 million with a margin of 7.1%.

  • Free Cash Flow: Around 18 million.

  • Net Financial Position: Ended at 996 million.

  • Net Debt/EBITDA Ratio: 1.67 times, stable versus December last year.

  • Store Network Expansion: Over 400 locations in the US after recent acquisitions.

Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Amplifon SpA (AMFPF) reported a 2.6% increase in revenues at constant exchange rates, despite fewer trading days and a strong comparison base from the previous year.

  • The company achieved its highest ever first-quarter margin, with a 20 basis points increase compared to 2024.

  • Amplifon SpA (AMFPF) expanded its network significantly, adding approximately 200 new points of sale, including a major acquisition in the US.

  • The company outperformed the market in most key countries, demonstrating resilience and strength in its retail business model.

  • The European market is expected to accelerate in the coming quarters, driven by strong growth projections in France and favorable year-over-year comparisons.

Negative Points

  • The US market experienced a mid-single-digit decline, impacted by high comparison bases and adverse weather conditions.

  • Organic growth was flat due to fewer trading days and a strong prior-year quarter, impacting overall performance.

  • The APEC markets were slightly negative, with challenges in China and New Zealand affecting performance.

  • Net financial expenses increased due to higher net financial positions and lease liabilities following strong M&A activity.

  • The company faces uncertainties in the US market, with expectations of improvement but no clear forecast for growth.

Q & A Highlights

Q: Can you quantify the momentum in France and provide insights into the US market trends for the remainder of 2025? A: Enrico Vita, CEO, stated that the trial activation trend in France supports a mid-teens growth assumption. In the US, improvement is expected in the coming quarters due to better weather conditions and a more favorable comparison base. March showed improvement over January and February, and the market is expected to return to positive territory.