Performance in the first 9 months shows strong acceleration driven by an excellent third quarter with double-digit revenue growth and a significant increase in profitability

Financial results
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Last updated on October 28, 2020 at 01:00 pm

The excellent results in the third quarter – in terms of revenues, profitability and cash flow – confirm the sharp recovery and resilience of the business, as well as the ability to mitigate the financial impact of the pandemic

In the first nine months of 2020 revenues were influenced by the Covid-19 emergence (-14.4% at constant exchange rates), but showed a strong acceleration in the third quarter posting double-digit growth (+10.4% at constant exchange rates), well above the market

Significant increase in profitability with the EBITDA margin rising 50 bps in the nine months and an impressive 330 bps in the third quarter of 2020, confirming the Group’s greater structural efficiency

Strong cash generation with Free Cash Flow coming in at 127.1 million euros, 85.2% higher than in the same period of 2019

Net financial position at 712.6 million euros, improving vs. both December 2019 and June 2020, with leverage down at September 30th, 2020 to 1.89x

Main results for the first nine months of 20201:

  • Consolidated revenues of 1,042.1 million euros, decreasing 14.4% at constant exchange rates and 14.9% at current exchange rates compared to the first nine months of 2019 due to the Covid-19 outbreak 
  • EBITDA amounted to 228.4 million euros, with the margin at 21.9%, 50 bps higher despite the impact of the pandemic and thanks to the decisive and timely actions on costs
  • Net profit came to 41.1 million euros compared to 75.7 million euros on a recurring basis in the first nine months of 2019
  • Net financial debt was 712.6 million euros, improving versus both the 786.7 million euros recorded at December 31st, 2019 and the 765.3 million euros posted at June 30th, 2020, with financial leverage down to 1.89x
  • Free cash flow reached 127.1 million euros, an increase of 58.4 million euros or 85.2% compared to the first nine months of 2019, thanks to the effective measures implemented

 

“We are very satisfied with the excellent results achieved in the third quarter despite what continues to be a challenging environment due to the effects of the ongoing pandemic. The strong growth in revenues, which far outpaced the reference market, in fact, confirms the resiliency of our business and the strength of our competitive positioning, while the significant improvement in profitability and the maximization of cash generation testify to the effectiveness of the measures undertaken since the very inception of the crisis triggered by COVID-19”, said Enrico Vita, Amplifon’s Chief Executive Officer. “While we remain cautious in light of possible future developments of the pandemic worldwide, we continue to be positive about the future, reassured by the recent performance of the business in all our core markets and the unchanged fundamentals of our industry.”

(million euros)

Net revenues

EBITDA

EBIT

Net income

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

9M 2020

Total

Net revenues

1,042.1

EBITDA

228.4

EBIT

79.7

Net income

41.1

EPS adjusted2 (in euros)

0.281

Free cash flow

127.1

30/09/2020

Net Financial Position

712.6

%

Net revenues

100%

EBITDA

21.9%

EBIT

7.6%

Net income

3.9%

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

Recurring

Net revenues

1,224.7

EBITDA

262.6

EBIT

124.7

Net income

75.7

EPS adjusted2 (in euros)

Free cash flow

31/12/2019

Net Financial Position

786.7

Non recurring

Net revenues

-

EBITDA

(18.4)

EBIT

(18.7)

Net income

(14.0)

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

Total

Net revenues

1,224.7

EBITDA

244.2

EBIT

106.0

Net income

61.7

EPS adjusted2 (in euros)

0.432

Free cash flow

68.6

Net Financial Position

% on recurring 

Net revenues

100%

EBITDA

21.4%

EBIT

10.2%

Net income

6.2%

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

Change % on recurring

Net revenues

-14.9%

EBITDA

-13.0%

EBIT

-36.1%

Net income

-45.7%

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

-9.4%

1 Unless stated otherwise, the commentary contained in this press release refers to the recurring income statement figures for what regards 9M and Q3 2019. 

2 EPS adjusted for the non-recurring items and for the amortization of the intangible assets as per the Purchase Price Allocation accounting treatment.

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