Annual Report 2019

Fifth year in a row of record results

2019 was year of great success: once again we closed the year with record financial results which confirm the sustainability of our business, the validity of our strategy and our strong execution capabilities.

Letter to shareholders

Dear Shareholders,

2019 was year of great success: once again we closed the year with record financial results which confirm the sustainability of our business, the validity of our strategy and our strong execution capabilities.

We reached all-time high revenues and EBITDA1 which grew respectively 27.1% and 28.8% to 1,732.1 and 301.2 million euros compared to the previous year. Recurring net profit1 reached 132.7 million euros, an increase of 23.9% compared to 2018.

Our outstanding revenues performance was driven by strong organic growth – above the market and accelerating in the second half of the year – and by the extraordinary contribution of acquisitions. The latter was fostered by both the consolidation of GAES – the largest acquisition in our history – as well as the bolt-on acquisitions carried out mainly in France and Germany. Recurring EBITDA exceeded the 300-million-euro threshold, with a margin on revenues of 17.4%, improving compared to 2018 even after the consolidation of GAES, whose initial profitability was below the group average. Finally, also the balance sheet and financial indicators show excellent results with free cash flow reaching the record 150-million-euro mark, supporting a strong improvement in net financial debt and financial leverage.

There is much more beyond the figures. 2019 was, in fact, the first year of the GAES integration and we completed its initial and most complex phase faster and with better results than initially expected. Indeed, GAES’s growth in 2019, both in terms revenues and profitability, was above initial expectations also due to the synergies achieved in the top end of the range previously disclosed.

In 2019 we have also extended the roll-out of our Amplifon Product Experience – which comprises the new Amplifon product line and the Amplifon multichannel ecosystem – from Italy to France, Germany, the Netherlands, the United States and Australia with excellent results.

At the end of 2019 the penetration rate of the Amplifon Product Line in Italy was over 90%2 and we plan to achieve similar results within 12 months from the launch in the countries where the Amplifon Product Line was rolled-out in 2019. Moreover, the penetration rate of the Amplifon App at the end of 2019 was around 15%, representing a huge potential in terms of data: thanks to it we will gain access to information on our customers’ hearing aids usage, which we may use to create an even more personalized experience in order to satisfy and anticipate even more the needs and expectations of our customers.

Furthermore, in February 2020, consistent with our strategy to further strengthen our position in our core markets, in February 2020 we finalized the acquisition of Attune Hearing in Australia, the largest independent hearing healthcare player in Australia.

Lastly, we mention the continuous trust shown by the financial community towards us, which is testified both by our listing on the Stoxx Europe 600 index since June – following the listing on the FTSE MIB since the end of December 2018 – as well as by the successful placement of non-convertible bond notes for 350 million euros with 7-year maturity.

We conclude by reminding that as far as the communication to our stakeholders is concerned and with the aim of providing transparent and thorough information, Amplifon presents also this year its fourth Sustainability Report, in the form of Non-Financial Disclosure in accordance with Italian Legislative Decree No 254/2016, which illustrates the Company’s commitment to socially responsible and sustainable growth.

We thank, therefore, all the management team of the Company and each one of our 17,000 people for their profound commitment, professionalism, and passion. Finally, we also thank our shareholders and the other stakeholders for their support and trust in our Company.

Global leader in hearing care

global market share
of which hearing care prof.

Consolidated revenues

1,732.1 million euros, up 26.1% at constant exchange rates and 27.1% at current exchange rates compared to 2018. Revenues were driven by strong organic growth (+6.8%), as well as the contribution from acquisitions (+19.3%). The foreign exchange effect was positive by 1.0%. 

Recurring EBITDA

301.2 million euros, an increase of 28.8% compared to 2018. The margin on revenues reached 17.4%, an improvement of 20 bps compared to the previous year, even after the consolidation of GAES, characterized by a lower initial profitability compared to the rest of the group.

Recurring net profit

132.7 million euros, an increase of 23.9% compared to 2018. Net profit as reported, which reflects one-offs net of taxes for 18.4 million euros related to the integration of GAES, rose 13.7% to 114.2 million euros.

Performance by region

The EMEA region contributed significantly to the group's profitability: recurring EBITDA grew by almost 37% to 245.5 million euros. The margin on revenues hit 19.6%, an increase of 80 bps. Recurring EBITDA in Americas rose 30.9% and the margin on revenues came in at 21.2%, an increase of 130 bps thanks to the strong operating leverage. In APAC EBITDA grew 1.2% compared to 2018.








Excellent profitable growth

In 2019, revenues for Europe, the Middle East and Africa amounted to 1,253.9 million euros (+31.7% at current exchange rates compared to 2018). This results was driven by the consolidation of GAES and its double-digit organic growth, as well as the M&A activity in France and Germany.

Organic growth was very strong on key markets: France, Germany, Spain and Italy, also thanks to the successful roll-out of the Amplifon product line and digital ecosystem.



Accelerating performance during the year

In 2019, we recorded 285.3 million euros of revenues in the Americas (+17.5% in local currencies). The performance was driven by the strong contribution of acquisitions (+13.0%), explained mainly by the consolidation and double-digit growth of GAES business in Latin America. 

Organic growth, which reached 4.5% and improved strongly to 8.6% in the fourth quarter, is attributable to the good performance of Miracle-Ear and Amplifon Hearing Healthcare. The foreign exchange effect was positive for 5.6%. 



Positive sales performance

In APAC, revenues were 187.8 million euros in 2019, up 8.6% in local currencies compared to 2018. The region’s performance is explained for 5.7% by solid organic growth, which significantly outpaced the market and improved noticeably in the second half of the year reaching 11.0% in the fourth quarter, despite a still soft market environment, particularly in Australia. Acquisitions, related to the Chinese joint venture, contributed for 2.9%. 

1 Recurring data without the application of IFRS 16 for the sake of effective comparison with 2018 figures.

2 Private and paid-up market.

Please note that for the sake of effective comparison with 2018, the figures for 2019 commented above refer to 2019 figures without the application of IFRS 16, unless otherwise stated. In the table above:

  • 2018 data with IFRS 15
  • 2019 data with IFRS 16
Read also our 2019 Non Financial Disclosure Read

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