The Shareholders’ Meeting of Amplifon S.p.A. (MTA; Bloomberg ticker: AMP:IM), global leader in hearing solutions and services, held today and chaired by Susan Carol Holland, approved the Financial Statements as at December 31st, 2018 and a dividend of Euro 0.14 per share, and resolved on the other items included in the agenda.
Consolidated results for 20181
Consolidated revenues reached 1,372.7 million euros in 2018, an increase of 10.6% at constant exchange rates and 8.4% at current exchange rates compared to 2017. This result was driven by solid organic growth (+7.0%) and acquisitions (+3.6%), while the foreign exchange effect was negative for 2.2%. Revenues in Europe, the Middle East and Africa (EMEA) reached 960.4 million euros, an increase of 12.7% at constant exchange rates and 12.2% at current exchange rates compared to the prior year.
Solid top-line growth in AMERICAS, where revenues reached 234.4 million euros, up 7.0% in local currency and 2.4% at current exchange rates, compared to the previous year. Revenues in ASIA-PACIFIC amounted to 174.4 million euros, an increase of 4.6% in local currency despite a softer market environment in the second half of the year.
Thanks to the significant acceleration in revenues, EBITDA net of non-recurring items, reached the record amount of 241.3 million euros, an increase of 11.0%, with the EBITDA margin coming in at 17.6%, an increase of 40 basis points compared to the 17.2% reported in 2017. EBITDA as reported reached 232.9 million euros, an increase of 9.6%, with the margin coming in at 17.0%. The contribution of EMEA to the Company’s profitability continues to be very important, with recurring EBITDA rising markedly to 185.9 million euros (+23.6%).
EBITDA in AMERICAS improved noticeably compared to the previous year, rising from the 45.2 million euros in 2017 to 47.0 million euros (+4.1%) in 2018, with the margin up 40 basis points at 20.1%.
In APAC EBITDA was 43.6 million euros, down compared to the 51.5 million euros recorded in 2017 as a result of the particularly adverse FX translative effect, the strong marketing investments and the greater difficulty absorbing fixed costs in Australia in the second half due to the softer market environment.
Net of non-recurring expenses (EBIT)
EBIT, net of non-recurring expenses, was 169.2 million euros, an increase of 9.2% compared to the prior year. Such increase is attributable to the improvement in EBITDA, partially offset by the increase in depreciation and amortization linked to the network expansion, as well as the increased investments made in innovation and IT infrastructure. EBIT as reported rose 7.4% to 160.7 million euros.
Net Profit (NP)
Recurring Net profit (NP) reached the record amount of 113.4 million euros, an increase of 19.3% compared to 2017, driven by higher profit before tax and lower tax rate which decreased to 26.9% from 30.0% in the prior year.
Net profit as reported amounted to 106.7 million euros, an increase of 6.1% compared to 2017. In addition to the non-recurring expenses relating to the GAES acquisition of around 6.7 million euros (net of the tax effect), net profit as reported is impacted by the tax rate which came in at 26.9% compared to 22.9% in 2017.
The lower tax rate recorded in 2017 is attributable to a non-recurring tax gain of 9.6 million euros.
The balance sheet and financial indicators continue to demonstrate the Company’s solidity: free cash flow reached 110.3 million euros, higher than the 98.0 million euros recorded in 2017, after absorbing higher investments (net of disposals) of 76.1 million euros, while net debt was 840.9 million euros, higher than the 296.3 million euros recorded at December 31st, 2017 mainly due to the acquisition on GAES, which entailed a cash-out of around 530 million euros.
Parent Company Amplifon S.p.A.'s Results
In 2018, the parent company Amplifon S.p.A. posted revenues of 314.0 million euros (310.7 million euros according to the new accounting standards) and net profit as reported of 80.4 million euros (79.3 million euros according to the new accounting standards) compared to 64.7 million euros in 2017.
The Shareholders’ Meeting also resolved to allocate the profit for the year as follows:
- distribution of part of the year’s earnings as a dividend to shareholders of 0.14 euros (14 euro cents) per share, for a total of 30,902,042.50 euros based on the share capital subscribed to date, with shares going ex-dividend (detachment of coupon 12) on May 20th, 2019, to be paid as from May 22 nd, 2019;
- allocation of the rest of the year’s earnings, amounting to 48,358,914.93 euros, as retained earnings.
The total dividends payable and the allocation of retained earnings not distributed will vary depending on the number of shares with dividend rights outstanding as of the payment date, net of the Company’s treasury shares.