Amplifon announces strong growth targets supported by a compelling innovation plan in the customer experience to reshape the hearing care retail.
Amplifon S.p.A. (MTA; Bloomberg ticker: AMP:IM), the global leader in hearing solutions and services, announces today its strategic pillars and financial targets for the 2018-2020 period during the “Capital Markets Day” to be hosted at the Company’s headquarters.
Enrico Vita, Amplifon’s Chief Executive Officer, said: ‘Today we present to the financial community our strategic guidelines and our ambitious growth plans for 2020 supported by a strong technological innovation program in the customer experience. I am sure that these ambitious plans will allow us to further strengthen our global leadership, to significantly outpace the reference market and, above all, to gain a key competitive advantage for the medium-long term.’
The global retail hearing care industry is highly attractive, driven by demographic factors and growing penetration. Alongside these secular drivers, two favorable trends are emerging: a generation of increasingly active and dynamic consumers and the rising role of digital. In this market, Amplifon is well-positioned with a strong competitive advantage thanks to its consolidated global leadership, unrivalled and well-known brand portfolio, unique business model and robust financial profile thanks to consistent healthy results recorded over the last years. Since its 2016 Investor Day, the Group also strengthened its Leadership team with the addition of Gabriele Galli as Chief Financial Officer, Alessandro Bonacina as Chief Marketing Officer, Marc Lundeberg as Executive Vice President Americas, Craig Stevens as Executive Vice President APAC, Francesca Morichini as Chief HR Officer and Gabriele Chiesa as Chief Information Officer.
Strategic pillars and opportunities
Over the next three years, Amplifon aims to further strengthen its global leadership, positioning the Company at the forefront of innovation through:
- A customer-centric strategy to offer a distinctive and highly innovative customer experience with the launch of Amplifon product-lines and proprietary multi-channel eco-system, leveraging on unique and unmatched assets such as data, brand and an impeccable and decidedly personalized service;
- A differentiated growth strategy, focused on core worldwide markets. In particular, the Company aims at consolidating further its leadership position in all core mature countries and, among those emerging, Amplifon identified the Chinese market as a sizeable opportunity for its medium-term growth path;
- Investments to support effective execution capability through a distinctive corporate culture, attraction of top talents, sharing of best practices and extension of the global integrated IT infrastructure.
2018-2020 financial targets
For the three-year period 2018-2020 Amplifon expects consolidated revenues to grow, faster than the market, at a high-single digit 1 compound annual growth rate (CAGR). The growth will be driven by solid organic growth and by a network expansion of around 700 new stores by 2020.
The Company will focus on increasing the EBITDA 2 margin at 2020 to around 18.5%, also after increased investment in marketing, human resources and infrastructure to support future growth. The Company also expects Net Profit to grow in the three-year period, driven both by higher operating leverage as well as lower financial charges, thanks to the recent refinancing of the Eurobond (expiring in July 2018) with significantly improved terms and conditions, and a tax rate estimated below 30% in the three-year period.
Finally, for the three-year period 2018-2020, the Company aims at generating around 600 million euros of cumulated Operating Cash Flow. The significant cash generation will fully support the investments expected for the period (totaling around 480 million euros for Capex and cash-out for acquisitions 3 ), further reducing Amplifon's financial leverage while ensuring adequate financial flexibility.
1 In local currency
3 Mainly related to acquisitions in Germany, France and Canada