Amplifon SpA (AMFPF) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic Expansion

GuruFocus News
4 min read

In This Article:

  • Revenue Growth: 8% at constant exchange rates in Q3 2024.

  • Recurring EBITDA: EUR 115 million with a margin of 20.3% in Q3 2024.

  • Net Financial Debt: Approximately EUR 1.07 billion.

  • Store Expansion: 100 new stores in the US, reaching a total of 400 direct retail stores.

  • M&A Investment: EUR 184 million in the first nine months of 2024.

  • Organic Growth: 4% in Q3 2024.

  • EMEA Revenue Growth: Approximately 4% at constant FX in Q3 2024.

  • Americas Revenue Growth: 15.3% at current FX in Q3 2024.

  • Asia Pacific Revenue Growth: Around 7% at constant FX in Q3 2024.

  • Net Profit: EUR 17.5 million recurring net profit in Q3 2024.

  • Free Cash Flow: EUR 50.6 million in the first nine months of 2024.

  • Points of Sale: Achieved 10,000 points of sales globally.

Release Date: October 30, 2024

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

Positive Points

  • Amplifon SpA (AMFPF) achieved an 8% revenue growth at constant exchange rates, outperforming the market despite challenging conditions.

  • The company expanded its direct retail network in the US, adding 100 stores since January 2024, enhancing its strategic position.

  • Amplifon SpA (AMFPF) reported strong performance in Asia Pacific, with revenues up 7% at constant FX, driven by solid organic growth.

  • The company invested EUR184 million in M&A activities, significantly increasing its global points of sale to 10,000.

  • Amplifon SpA (AMFPF) launched a new television commercial in Italy and Spain to strengthen brand positioning and drive sales.

Negative Points

  • The European market remained flattish, impacting Amplifon SpA (AMFPF)'s growth, particularly in key markets like Germany and France.

  • Recurring EBITDA margin decreased by 40 basis points to 20.3%, due to lower operating leverage and higher marketing investments.

  • The US market growth slowed to around 4% in Q3, down from double-digit growth in the first quarter.

  • The company faced a negative FX impact of 1.2%, primarily due to the depreciation of the US dollar and Argentine peso.

  • Free cash flow decreased by 30% in the first nine months, largely due to higher working capital absorption.

Q & A Highlights

Q: On the reiterated top line guidance and increased M&A contribution, does this imply a lower organic growth for the year? Is mid-single-digit organic growth in Q4 realistic, and do you expect acceleration into 2025 outside of France? A: Enrico Vita, CEO: The M&A contribution is above 3%, around 3.5% to 3.7% year-to-date. We expect to overperform the market growth, which is around 3% this year. We aim to continue outperforming by 1% to 2%, despite the European market's slower growth. We anticipate the European market to improve next year, with easier comparisons and fundamental growth drivers.

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