Q2 & H1 2022

REVENUE GROWTH OF AROUND 8% AND OUTSTANDING PROFITABILITY EXPANSION IN THE SECOND QUARTER OF 2022 DESPITE AN EXCEPTIONALLY HIGH COMPARISON BASE

STRONG REVENUE GROWTH, ABOVE THE REFERENCE MARKET, DESPITE A PARTICULARLY CHALLENGING COMPARISON BASE (~+20% IN THE SECOND QUARTER OF 2021 COMPARED TO THE SECOND QUARTER OF 2019)

EXCELLENT INCREASE IN PROFITABILITY WITH THE RECURRING EBITDA MARGIN UP 40 BASIS POINTS COMPARED TO THE SECOND QUARTER OF 2021, EVEN AFTER SIGNIFICANT INVESTMENTS IN THE BUSINESS

STRONG CASH GENERATION WITH FREE CASH FLOW OF 107.6 MILLION EUROS IN THE FIRST HALF AND NET FINANCIAL POSITION AT 895.3 MILLION EUROS, AFTER INVESTMENTS OF AROUND 180 MILLION EUROS IN CAPEX, M&A, SHARE BUYBACK AND DIVIDENDS

THE COMPANY IS POSITIVE ON ITS PREVIOUSLY ISSUED FY2022 OUTLOOK

MAIN RESULTS FOR THE SECOND QUARTER OF 20221

  • Consolidated revenues of 541.4 million euros, an increase at current exchange rates of 7.6% and of 5.0% at constant exchange rates compared to the second quarter of 2021
  • Recurring EBITDA amounted to 147.3 million euros, an increase of 9.2% compared to the second quarter of 2021, with the margin rising 40 basis points to 27.2%
  • Recurring net profit was 57.0 million euros, 5.2% higher than in the second quarter of 2021

MAIN RESULTS FOR THE FIRST HALF OF 20221

  • Consolidated revenues of 1,037.2 million euros, an increase at current exchange rates of 11.3% and of 9.1% at constant exchange rates compared to the first half of 2021
  • Recurring EBITDA amounted to 260.1 million euros, an increase of 12.7% compared to the first half of 2021, with the margin at 25.1%, thanks to greater operating efficiency, even after significant investments in the business
  • Recurring net profit reached 89.9 million euros, 14.4% higher than in the same period of 2021
  • Free cash flow came to 107.6 million euros, lower than in the first half of 2021 due to higher Capex
  • Net financial debt was 895.3 million euros compared to 871.2 million euros at December 31st, 2021, after Capex of 48.0 million euros, net cash-out for M&A of 31.0 million euros, share buyback of 42.9 million euros and dividends of 58.2 million euros, with financial leverage at 1.67x at June 30th, 2022

1 Unless stated otherwise, the comments in this press release refer to the recurring income statement figures. In addition, in light of the wind-down of Elite's wholesale business in the United States, completed in the fourth quarter of 2021, and in accordance with IFRS 5, the income statement figures for the second quarter and first half of 2021 were restated for the exclusion of Elite's discontinued business through the line "Profit (Loss) from Continuing Operations".

Milan, July 28th, 2022 - 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 of June 30th, 2022 during a meeting chaired by Susan Carol Holland.

ENRICO VITA, CEO

"We are truly satisfied with the results achieved in the second quarter, considering the exceptionally challenging comparison with the same period of 2021. We grew more than the market, further increasing our share in core markets, and we also recorded an outstanding profitability expansion, even after significant investments in the business.

Looking ahead, we are confident of being ideally positioned to continue to grow and create value in any possible scenario, including in a volatile and uncertain environment as the current one."

SECOND QUARTER 2022 RESULTS

(Euro millions)

Q2 2022

Q2 2021

Non

% on

Non

% on

Change %

Recurring

Total

Recurring

Total

on

recurring

recurring

recurring

recurring

recurring

Net revenues

541.4

-

541.4

100.0%

503.3

-

503.3

100.0%

7.6%

EBITDA

147.3

(2.0)

145.3

27.2%

134.8

(1.9)

132.9

26.8%

9.2%

EBIT

87.0

(2.0)

85.0

16.1%

80.9

(1.9)

79.1

16.1%

7.5%

Net income

57.0

(1.4)

55.6

10.6%

54.2

(0.3)

53.9

10.8%

5.2%

EPS adjusted

0.294

0.276

6.5%

(*, in Euro)

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

Consolidated revenues amounted to 541.4 million euros in the second quarter of 2022, an increase of 7.6% at current exchange rates and of 5.0% at constant exchange rates compared to the second quarter of 2021. This above market performance is attributable for 0.5% to organic growth and for 4.5% to acquisitions. The foreign exchange effect was positive for 2.6%. This result was achieved despite an extremely challenging comparison with the second quarter of 2021, which posted an exceptional revenue growth of around 20% compared to the same period of 2019. Moreover, this result was also achieved despite the anticipated contraction of the French market (second largest worldwide) due to the hearing healthcare reform anniversary, the persistent effects of the pandemic in Asia Pacific and one trading day less.

In the second quarter revenues in EMEA were slightly higher than in the same period of 2021 and profitability showed an outstanding improvement; AMERICAS recorded excellent organic growth, well above market, driven by Miracle-Ear in the United States, along with outstanding profitability, despite the extremely challenging comparison base; APAC reported a positive performance, supported by the Bay Audio acquisition, despite an underlying market affected by a still high level of Covid-infections rates and related restrictive measures.

Recurring EBITDA amounted to 147.3 million euros, an increase of 9.2% compared to the second quarter of 2021. The recurring margin came in at 27.2%, rising 40 basis points compared to the second quarter of 2021. This significant improvement in profitability was achieved thanks to greater efficiency and improved productivity, even after significant investments in the business. EBITDA as reported came to 145.3 million euros after non-recurring expenses of 2.0 million euros.

Recurring EBIT came in at 87.0 million euros, 7.5% higher than the 80.9 million euros recorded in the second quarter of 2021, with a margin of 16.1%. This increase is attributable to the significant improvement in EBITDA, which was partially offset by higher depreciation and amortization related to network expansion, innovation, and IT infrastructure, as well as the impact of amortization recognized for acquisitions (including Bay Audio) in accordance with the Purchase Price Allocation accounting treatment. EBIT as reported came to 85.0 million euros.

Recurring net profit reached 57.0 million euros, 5.2% higher than the 54.2 million euros recorded in the second quarter of 2021 despite the negative impact of inflation accounting on the Argentinian subsidiary and the fact that

2

the comparison period benefitted from a gain following the disposal of the Irish subsidiary. Net profit as reported, which reflects the 1.4 million euros of non-recurring expenses referred to above, amounted to 55.6 million euros. The tax rate was slightly lower than in the same period of 2021, coming in at 26.8%. The adjusted earnings per share (EPS adjusted) reached 29.4 euro cents, an increase of 6.5% from the 27.6 euro cents reported in the second quarter of 2021.

FIRST HALF 2022 RESULTS

(Euro millions)

H1 2022

H1 2021

Non

% on

Non

% on

Change %

Recurring

Total

Recurring

Total

on

recurring

recurring

recurring

recurring

recurring

Net revenues

1,037.2

-

1,037.2

100.0%

931.8

-

931.8

100.0%

11.3%

EBITDA

260.1

(5.0)

255.1

25.1%

230.7

(4.3)

226.4

24.8%

12.7%

EBIT

142.2

(5.0)

137.2

13.7%

123.9

(4.3)

119.6

13.3%

14.8%

Net income

89.9

(3.6)

86.3

8.7%

78.6

(1.5)

77.1

8.4%

14.4%

EPS adjusted

0.478

0.420

13.9%

(*, in Euro)

Free cash flow

107.6

118.8

-9.4%

06/30/2022

12/31/2021

Change %

Net Financial

895.3

871.2

2.8%

Indebtedness

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

Consolidated revenues amounted to 1,037.2 million euros in the first half of 2022, an increase of 11.3% at current exchange rates and of 9.1% at constant exchange rates compared to the first half of 2021. The performance was driven by above market organic growth of 4.3% and for 4.8% by acquisitions, mainly related to Bay Audio. The foreign exchange effect was positive for 2.2%, due primarily to the strengthening of the US dollar against the Euro.

Recurring EBITDA amounted to 260.1 million euros, an increase of 12.7% compared to the first half of 2021. The recurring margin came in at 25.1%, rising 30 basis points compared to the first half of 2021. EBITDA as reported came to 255.1 million euros, after non-recurring expenses of 5.0 million euros.

Recurring EBIT reached 142.2 million euros, an increase of 14.8% compared to the 123.9 million euros recorded in the first half of 2021, with margin at 13.7%. EBIT as reported was 137.2 million euros.

The recurring net profit reached 89.9 million euros, 14.4% higher than the 78.6 million euros recorded in the first half of 2021, thanks to greater operating leverage. Net profit as reported was 86.3 million euros, with a tax rate of 27.9% which was lower than the 28.3% reported in the same period of the prior year. The adjusted net earnings per share (EPS adjusted) came in at 47.8 euro cents, an increase of 13.9% from the 42.0 euro cents reported in the first half of 2021.

3

PERFORMANCE BY GEOGRAPHIC AREA

EMEA: Excellent profitability, despite a very high comparison base and the anticipated regulatory reform anniversary in France

(Euro millions)

Q2 2022

Q2 2021

% 22/21

Revenues

364.5

362.9

+0.4%

Organic growth

-0.4%

Acquisitions

+0.5%

FX

+0.3%

EBITDA recurring

116.4

112.5

+3.5%

Margin %

31.9%

31.0%

+90 bps

Revenues in EMEA were slightly higher, at both constant and current exchange rates, compared to the second quarter of 2021 despite an extremely challenging comparison base as revenues were up 12% in 2021 compared to the same pre-pandemic period of 2019. Revenues were also affected by the expected decline in the French market due to the significant structural growth posted in 2021 for the regulatory reform and one trading day less.

Profitability was outstanding with the recurring EBITDA margin coming in at 31.9%, 90 basis points higher than the same period of 2021, thanks to greater operating efficiency.

AMERICAS: Another extraordinary performance, driven by an excellent well-above market organic growth, along with an outstanding improvement in profitability

(Euro millions)

Q2 2022

Q2 2021

% 22/21

Revenues

96.8

79.8

+21.2%

Organic growth

+7.5%

Acquisitions

+2.6%

FX

+11.1%

EBITDA recurring

27.9

22.2

+25.5%

Margin %

28.8%

27.8%

+100 bps

Another outstanding revenue performance driven by an excellent organic growth of 7.5%, despite a truly exceptional comparison base as in the second quarter of 2021 revenues increased by over 55% compared to the pre-pandemic period of 2019. A very strong and well-above market performance was recorded in the United States, thanks to significant share gains, driven by Miracle-Ear and, in particular, by its Direct Retail business. The bolt-on acquisitions in the United States and Canada contributed for 2.6%, while the foreign exchange effect was positive for 11.1% due to the noticeable strengthening of the US dollar against the Euro.

The quarterly EBITDA margin was also outstanding, coming in at 28.8%, 100 basis points higher than in the second quarter of 2021, thanks again to greater efficiency despite continuous investment in the business and a challenging comparison base.

4

ASIA-PACIFIC: Strong top-line performance, fostered by Bay Audio contribution, despite a reference market still affected by the pandemic and related restrictive measures

(Euro millions)

Q2 2022

Q2 2021

% 22/21

Revenues

80.0

60.6

+32.1%

Organic growth

-3.4%

Acquisitions

+30.9%

FX

+4.6%

EBITDA recurring

20.5

17.8

+15.5%

Margin %

25.7%

29.3%

-370 bps

ASIA-PACIFIC reported an increase in revenues of 27.5% at constant exchange rates, driven by the significant contribution of M&A, primarily related to Bay Audio. Organic performance was affected by a still high level of Covid-contagions and related restrictive measures in Australia, New Zealand and China. The quarter had also one trading day less compared to the second quarter of 2021.

EBITDA recurring amounted to 20.5 million euros, with an increase of 15.5% compared to the same period of 2021. The EBITDA margin came to 25.7%, lower than in the second quarter of 2021, due to the significant investments in marketing in Australia and to the lower operating leverage due to the organic performance and labour cost inflation.

BALANCE SHEET FIGURES AS OF JUNE 30TH, 2022

The balance sheet and financial indicators continue to confirm the Group's solidity and ability to sustain future growth opportunities. In the first half of 2022 the Company generated a free cash flow of 107.6 million euros and net financial debt came to 895.3 million euros.

Total net equity amounted to 978.6 million euros at June 30th, 2022, higher than the 927.3 million euros recorded at December 31st, 2021.

Operating cash flow, before payment of lease liabilities, reached 207.8 million euros. The payment of lease liabilities, equal to 52.2 million euros, brought the operating cash flow to 155.6 million euros, slightly higher than the 155.4 million euros recorded in the first half of 2021. Free cash flow came to 107.6 million euros, slightly lower than the exceptional 118.8 million euros reported in the first half of 2021, after higher investments (net of disposals) of 48.0 million euros versus 36.6 million euros in the first half of 2021. The net cash-out for acquisitions (31.0 million euros versus 42.9 million euros in the first half of 2021), as well as dividends payment (58.2 million euros) and outlays for the share buyback program (42.9 million euros), bring the cash flow for the reporting period to negative 24.4 million euros versus positive 13.2 million euros in the first half of 2021.

Net financial debt came to 895.3 million euros, compared to 871.2 million euros at December 31st, 2021, with financial leverage slightly decreasing compared to December 31st, 2021 to 1.67x.

OUTLOOK

In a general environment characterized by increasing volatility and uncertainty, the Group achieved results in the first half of 2022 overall in line with expectations.

Looking into the second half of 2022:

  • A still high comparison base is expected in the third quarter, then easing in the fourth quarter;
  • The French hearing care market is expected to develop in line with the Group's FY 2022 expectations previously disclosed (namely a 5-10% market contraction due to the significant structural growth reported in 2021 as a result of the regulatory reform);
  • The Covid negative impact across APAC markets is still today affecting consumers and personnel.

In addition, the Company expects to be in the ideal position to continue to grow faster than the reference market also in the second half of the year and to further strengthen its global leadership in any possible scenario.

5

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Amplifon S.p.A. published this content on 28 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 July 2022 11:25:05 UTC.