Amplifon (AMP) Q2 2024 earnings summary

Executive summary

• H1 2024 revenues grew 5.7% year-over-year to €1,177.3 million, with 8% growth at constant FX, driven by 4.6% organic growth and 3.4% from acquisitions, despite European market softness.

• Recurring EBITDA rose 7.7% to €297.2 million, margin up 40 bps to 25.2%, supported by field productivity and offsetting US retail margin dilution.

• Net profit increased to €90.3 million recurring, with a margin of 7.7%, and recurring net profit for Q2 was €54.6 million.

• Net financial debt rose to €1,009.3 million, leverage at 1.70x, mainly due to higher M&A, capex, and dividend payments.

• Added 290 points of sale globally in H1, mainly in France, Germany, North America, China, and Uruguay.

Financial highlights

• Q2 2024 revenues reached €604.1 million, up 7.1% at constant FX and 5.3% at current FX; organic growth 3.5%, M&A 3.6%.

• H1 recurring EBITDA margin improved by 40 bps to 25.2%; Q2 recurring EBITDA was €160.4 million (26.6% margin).

• H1 recurring EBIT was €152.4 million (+3.3% y/y); adjusted EPS for H1 was €0.495 (+2.2% y/y).

• Free cash flow for H1 was €46.8 million, down from €76.1 million in H1 2023, impacted by higher taxes, rents, and working capital absorption.

• FX headwinds, especially from the Argentine peso, AUD, and NZD, impacted results.

Outlook and guidance

• Expects high single-digit revenue growth at constant FX for 2024, with bolt-on acquisitions contributing at least 2%.

• Recurring EBITDA margin expected around 24.3%, reflecting productivity measures and offsetting US retail margin dilution.

• European market anticipated to normalize and return to growth in H2; US market to maintain healthy growth at 6%-7%.

• Medium-term outlook remains positive for sustainable sales and profitability growth.

• Margin guidance trimmed by 30 bps to reflect Q2 performance, US network transformation, and potential higher marketing spend if European softness persists.