AMPLIFON S.P.A. EXCEEDED THE KEY THRESHOLD OF ONE BILLION EUROS IN SALES, STRONG GROWTH IN PROFITABILITY THANKS TO ALL REGIONS AND ALL-TIMES HIGH FREE CASH FLOW GENERATION. THE COMPANY'S NETWORK EXPANSION PROGRAM CONTINUED THROUGHOUT THE YEAR WITH A TOTAL OF 235 NEW STORES AND SHOP- IN-SHOPS
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Consolidated REVENUES was Euro 1,034.0 million, up 16.1% at current exchange rates and 11.3% at constant exchange rates compared to 2014
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EBITDA, net of non-recurring expenses, amounted to Euro 167.4 million, or 16.2% of revenues, with an increase of 21.6% compared to the prior year. EBITDA as reported was Euro 165.2 million with an EBITDA margin of 16.0%, up 20.0% compared to 2014
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NET PROFIT, net of non-recurring expenses, amounted to Euro 52.8 million, an increase of 47.4% compared to 2014. NET PROFIT as reported was Euro 46.8 million, with a slight increase compared to the prior year
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NET FINANCIAL DEBT was Euro 204.9 million, a significant improvement compared to Euro 248.4 million reported at December 31st, 2014, despite a cash-out for acquisitions of Euro 41.1 million
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FREE CASH FLOW generation of Euro 89.7 million, a significant improvement compared to the prior period
- Proposed dividend of Euro 0.043 per share, in line with the previous year
(Euro millions) | |||||||||
FY 2015 before non recurring operations | % on revenues before non recurring operations | Non recurring operations | FY 2015 after non recurring operations | FY 2014 before non recurring operations | % on revenues before non recurring operations | Non recurring operations | FY 2014 after non recurring operations | % change on amounts before non recurring operations | |
Net revenues | 1,034.0 | 100.0% | - | 1,034.0 | 890.9 | 100.0% | - | 890.9 | 16.1% |
EBITDA | 167.4 | 16.2% | (2.2) | 165.2 | 137.7 | 15.5% | - | 137.7 | 21.6% |
EBIT | 116.1 | 11.2% | (5.0) | 111.0 | 90.6 | 10.2% | - | 90.6 | 28.1% |
Group net income | 52.8 | 5.1% | (6.0) | 46.8 | 35.8 | 4.0% | 10.7 | 46.5 | 47.4% |
Free cash flow | 89.7 | 78.4 | 14.5% | ||||||
31/12/2015 | 31/12/2014 | Change % | |||||||
Net financial position | 204.9 | 248.4 | -17.5% | ||||||
(Euro millions) | % change on amounts before non recurring operations | ||||||||
Q4 2015 before non recurring operations | % on revenues before non recurring operations | Non recurring operations | Q4 2015 after non recurring operations | Q4 2014 before non recurring operations | % on revenues before non recurring operations | Non recurring operations | Q4 2014 after non recurring operations | ||
Net revenues | 300.2 | 100.0% | - | 300.2 | 267.6 | 100.0% | - | 267.6 | 12.2% |
EBITDA | 59.1 | 19.7% | 2.6 | 61.7 | 54.4 | 20.3% | - | 54.4 | 8.5% |
EBIT | 45.8 | 15.2% | (0.3) | 45.5 | 41.7 | 15.6% | - | 41.7 | 9.9% |
Group net income | 23.5 | 7.8% | (2.0) | 21.5 | 20.4 | 7.6% | - | 20.4 | 15.2% |
"We closed 2015 with the best results in the Company's history: we exceeded the key milestone of Euro 1 billion in sales, posted an EBITDA of over Euro 165 million and reached all-times high of free cash flow generation of approximately Euro 90 million. All the Regions contributed to this performance, reporting significant improvement in terms of revenues growth and profitability", said Enrico Vita, Amplifon's Chief Executive Officer. "These achievements are the result of our strategic decisions: our ability to accelerate growth, both organically and through acquisitions, and our business model increasingly focused on the consumer. Looking ahead, thanks to the positive opportunities offered by the industry, which today is still noticeably underpenetrated, we believe that we will be able to continue along the path of sustainable and profitable growth in the years to come".
Amplifon reported consolidated revenues of Euro 1,034.0 million in 2015, an increase of 16.1% compared to 2014. This result was driven by solid organic growth (+8.2%), acquisitions (+3.1%) and, for the remaining 4.7%, by the positive foreign exchange effect. Net of non-recurring items, EBITDA was up by 21.6%, an improvement of 70 basis points. Net profit, net of one-offs, rose 47.4%. The balance sheet and cash flow indicators also showed further improvement: solid operating cash flow generation of Euro 89.7 million, and net debt, down significantly to Euro 204.9 million, laying the foundation for ambitious growth plans.
In the fourth quarter of 2015, Amplifon posted results in line with the strong growth reported in the first nine months of the year, despite a challenging comparison with the same period in 2014. Revenues in the quarter grew by 12.2%, driven by solid organic growth (+6.7%), acquisitions (+2.8%), as well as the positive exchange effect (+2.8%). All the geographies where the Company is present contributed to this result with an exceptional performance recorded in the Americas. Recurring EBITDA rose 8.5%, while the margin decreased slightly, by 50 basis points, as a result of the investments made in marketing to accelerate future growth.
In 2015 the Company continued its international expansion program, both organically and through acquisitions, adding 149 stores and 86 shop-in-shops to its network. The new openings, 38 stores and 77 shop-in-shops, were primarily located in the Iberian Peninsula, Poland and Australia. The Company also acquired 111 stores and 9 shop-in-shops, mainly in Germany and France. During the year Amplifon finalized the acquisition of the entire stake in Dilworth Hearing Limited in New Zealand (previously 40% held). The total cash-out for acquisitions amounted to Euro 41.1 million.
In October 2015, Enrico Vita was appointed as Chief Executive Officer, completing a seamless transition in the Company's leadership as confirmed by the strong results achieved in the year.
FINANCIAL RESULTS FOR 2015Thanks to the significant acceleration in revenues, EBITDA reached the record amount of Euro 165.2 million, an increase of 20.0%, with the EBITDA margin coming in at 16.0% compared to 15.5% in 2014. Net of non- recurring items, EBITDA amounted to Euro 167.4 million, or 16.2% of revenues, an improvement of 70 basis points. Non-recurring items, negative for Euro 2.2 million include: the one-off related to the transition in Company's leadership for Euro 6.8 million and restructuring costs in the Netherlands for Euro 0.9 million; these costs were partially offset by the non-recurring income of Euro 3.0 million in the United States (for advanced termination of a business relationship and legal indemnification from a former business partner) and of Euro 2.5 million in India (due to the cancellation of the earn-out related to the acquisition of the Beltone stores).
All Regions contributed to the significant EBITDA expansion. EMEA's EBITDA margin, net of non-recurring items, grew from 14.7% in 2014 to 15.2% in 2015, up 15.1% in absolute terms. Recurring EBITDA rose 36.2% to Euro 38.0 million in the AMERICAS, with a contraction of 70 basis points in the margin as a result of increased marketing investments to accelerate future growth. In ASIA-PACIFIC EBITDA, net of non- recurring expenses, rose 17.0% compared to the prior year to Euro 45.1 million.
Revenues in Europe, the Middle East and Africa (EMEA) reached Euro 688.1 million, an increase of 11.4% compared to the prior year. This result was driven for 6.3% by strong organic growth, for 3.4% by acquisitions and for the remaining 1.7% by foreign exchange gains. Europe reported revenues of Euro 666.3 million, an increase of 8.8% at constant exchange rates (7.2% of which due to organic growth). Italy reported an excellent performance, with growth (mainly organic) reaching 8.2% thanks to the positive results of new marketing initiatives which included the launch of a new campaign in the second quarter. Revenues rose 11.4% in France as a result of both organic growth (+5.4%) and the acquisition of 41 new stores (+6.0%). Growth was slightly less robust in the second half of year mainly due to a less dynamic domestic market, also as a result of the terrorist attacks that occurred in Paris in the fourth quarter. A positive performance was reported in the Netherlands where, thanks to an acceleration in the fourth quarter and despite a reference market subject to significant price pressure, sales rose 3.0% entirely driven by organic growth. Germany, despite the difficult comparison with the prior year when the market recorded particularly strong growth, reported an increase of 15.8%, 14.8% of which driven by 60 newly acquired stores. The Iberian Peninsula made a positive contribution to growth in EMEA, posting an increase of 16.2% driven by organic growth and the opening of new stores, as did Switzerland where growth reached 11.8% in local currency, thanks to solid organic growth fostered by the success of the new marketing campaigns which also had a positive impact on the product mix. Middle East and Africa (MEA) reported revenues of Euro 21.6 million, an increase of 63.3%, thanks also to the consolidation of Israel for the entire year (+79.9% in local currency). Altogether profitability improved in EMEA, with EBITDA up 14.1% compared to the prior year to Euro 103.9
million, and EBITDA margin at 15.1%. Net of non-recurring items the EBITDA margin improved by 50 basis points to 15.2%.
In 2015 revenues in the AMERICAS reached Euro 198.5 million, up 40.8% as reported and 18.5% in local currency. This result is due for 16.4% by sustained organic growth and for 2.1% by acquisitions. All businesses in North America recorded outstanding performances: Miracle-Ear closed the year with a strong acceleration, thanks to the positive outcomes of both the marketing initiatives launched throughout the year and the strategies implemented over the last few years; Elite Hearing Network benefited from the new commercial policies undertaken to enhance members' acquisition and loyalty; and Amplifon Hearing Health Care benefited, in particular, from a contract signed with a premiere insurance company in the fourth quarter of 2014. Canada reported revenues growth of 58.2% in local currency, thanks also to the addition of 4 stores. EBITDA amounted to Euro 41.0 million, or 20.7% of revenues, up 47.2% compared to the prior year. Net of Euro 3.1 million in non-recurring income, EBITDA rose 36.2% compared to 2014, with a contraction of 70 basis points in margin as a result of increased marketing investments to accelerate future growth.
Revenues in ASIA-PACIFIC amounted to Euro 146.9 million in 2015, an increase of 11.0% at current exchange rates, and of 10.7% in local currency, compared to the prior year. This performance was driven for 8.1% by solid organic growth and for 2.6% by acquisitions. Australia, thanks to an acceleration in the fourth quarter, closed 2015 with an overall growth of 6.0% in local currency, driven by the high productivity of its distribution channel and further expansion of the network (4 new stores and 10 shop-in-shops). New Zealand posted an excellent performance with revenues up 19.8% in local currency, thanks to solid organic growth (+10.9%), a simplified regulatory environment and the consolidation of the Dilworth Hearing Limited acquisition. Thanks to strong operational excellence, EBITDA on recurring basis further improved to Euro
45.1 million, a 17.0% increase compared to the prior year.
All balance sheet indicators improved markedly, confirming the Company's solid financial structure and ability to sustain its ambitious growth program. Net equity amounted to Euro 500.2 million as of December 31st, 2015, an increase compared to the Euro 443.2 million posted at year-end 2014. Net financial debt amounted to Euro 204.9 million, showing strong improvement against both September 30th, 2015 (Euro
252.5 million) and December 31st, 2014 (Euro 248.4 million), despite the Euro 41.1 million cash-out for acquisitions made during the year. Net debt/EBITDA ratio fell, therefore, from the 1.77x recorded at December 31st, 2014 to 1.21x at year-end 2015. In the second quarter of 2015 the Company repaid in
advance the last tranche of the 2006-2016 Private Placement, amounting to USD 70 million (Euro 55.2 million), with a positive impact of around Euro 0.5 million pre-tax compared to the total amount of effective interests that would be incurred if the debt had been maintained until its natural maturity of August 2nd, 2016. Lastly, in 2015, the Company generated a record free cash flow of Euro 89.7 million, compared to Euro
78.4 million in 2014, mainly driven by higher profitability and after absorbing capex (prior to disposals) of Euro 48.1 million, primarily related to the renewal of network stores and IT infrastructure.
In 2015 the parent company Amplifon S.p.A. posted revenues of Euro 247.8 million (+9.4% with respect to the prior year), and net profit of Euro 30.0 million compared to Euro 21.3 million in 2014.
The Company's Board of Directors will propose that during the Annual Shareholders' Meeting, convened on April 18th, 2016, shareholders approve allocation of the year's earnings, as follows:
o distribution of part of the year's earnings as a dividend to shareholders of Euro 0.043 (4.3 Euro cents) per share, for a total of Euro 9,420,789 based on the share capital subscribed to date, with
Amplifon S.p.A. issued this content on 02 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 02 March 2016 11:53:32 UTC
Original Document: http://www.amplifon.com/Comunicati stampa/2016_ENG/PR_Results 2015_ENG_FINAL.pdf
