Amplifon plunges on the stock exchange to the lowest since 2019, accounts disappoint and estimates cut
Results below expectations in the first half-year, mainly due to the performance in the EMEA region, with weak performance in Italy and Spain. The group adjusts guidance 2025 downwards. Analysts optimistic about the long term
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(Il Sole 24 Ore Radiocor) - A rain of selling on Amplifon in the aftermath of a disappointing quarterly report and the company's cut in guidance for the current year. The title of the group active in the hearing care sector, which remained firm in the first minutes of trading, then entered trading with a 24.31% drop to EUR15.16, after touching EUR14.625, taking it to its lowest level since January 2019.
Amplifon reported results below expectations, mainly due to the performance in the EMEA region, with weak performance in Italy and Spain, despite strong growth in France and improvement in Germany. The market picture in China, Australia, Canada and the USA was also poor. The group also cut its guidance for the 2025 financial year, and now expects consolidated revenues to grow by around 3% at constant exchange rates (previously mid to high single-digit); an ebitda margin on an adjusted basis of around 23% (previously at least 24%). The estimates have been revised 'in consideration of the second quarter performance and market trend forecasts, assuming no further slowdown in global economic activities due to, among other things, the known issues related to the macroeconomic and geopolitical situation,' the group explained.
In detail, Amplifon reportedconsolidated revenue of €1,180.5 million in the first half of the year, up 1.6% at constant exchange rates compared to the first half of 2024, adjusted ebitda of €287.6 million compared to €297.1 million in the first half of 2024, representing 24.4% of revenue, (up from 25.2% a year ago). Adjusted net profit was EUR 90.5 million compared to EUR 107.8 million in H1 2024.
The announcement of the 'Fit4Growth' performance improvement programme, launched by Amplifon in the second quarter and aimed at increasing profitability and strengthening the company's competitive position, was not enough for the market. According to the group, thanks to the plan, an improvement in the adjusted ebitda margin of 150-200 basis points is expected by 2027, with non-recurring cash costs for the implementation of the plan estimated at a total of around EUR 35 million, to be incurred between 2025 and 2026.
Equita cuts target price, downgrade by Mediobanca
Analysts at Equita thus revised their estimates on the company for 2025 and 2026, with adjusted earnings per share cut by -14% and -10% to 0.76 and 0.94, respectively. The sim also reduced its price target by 10% to EUR 25, slightly cutting the target multiple from 28 times to 27 times, given the 'still weak momentum'.
