Very encouraging first half of 2020 despite the impact of Covid-19

Excellent results in terms of profitability, cash flow and net financial position confirm the ability to mitigate the financial impact of the pandemic thanks to the timely implementation of an effective action plan

Financial
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Last updated on July 29, 2020 at 01:00 pm

Revenues affected by Covid-19 (-26.2%), particularly in April, but materially accelerating in subsequent months, with July trading above previous year, confirming the resilience of the business

Excellent profitability with EBITDA margin at 21.4% and strong cash generation with Free Cash Flow at 72.1 million euros, increasing 24.6% compared to the same period of the prior year

Net Financial Position at 765.3 million euros, improving vs. both December 2019 and March 2020 despite the impact of the pandemic, with leverage at 2.18x at June 30th, 2020

Completed refinancing aiming to further strengthen the already solid financial structure of the group

Main results for the first half of 20201:

  • Consolidated revenues of 613.9 million euros, a decrease of 26.0% at constant exchange rates and 26.2% at current exchange rates compared to the first half of 2019 due to the Covid-19 outbreak
  • EBITDA amounted to 131.3 million euros, with the margin at 21.4%, down only 100 bps, thanks to the decisive and timely actions on costs
  • Net profit came to 12.6 million euros compared to 59.4 million euros on a recurring basis in the first half of 2019
  • Net financial debt was 765.3 million euros at June 30th, 2020, improving both versus the 786.7 million euros recorded at December 31st, 2019 and the 790.7 million euros posted at March 31st, 2020 despite the Covid-19 outbreak, with financial leverage at 2.18x at June 30th 2020
  • Free cash flow reached 72.1 million euros, an increase of 14.2 million euros or 24.6% compared to the same period of 2019, thanks to the effective measures implemented  

“I am very proud of how the company was able to react so quickly and with such determination to the unprecedented crisis triggered by Covid-19. Thanks, in fact, to the contribution made by all our people, we were able to significantly limit its impact as demonstrated by both the quarterly results, very positive given the extraordinary impact of the Covid-19 outbreak, and our strong balance sheet and financial solidity. While we remain cautious about the future developments of the pandemic worldwide, we look ahead to the second part of the year with great confidence, reassured by a business trend that is constantly and rapidly improving in all our core markets.” said Enrico Vita, Amplifon’s Chief Executive Officer. “I am convinced that, thanks to all the work done to continue supporting our customers even during this very difficult period, as well as all the initiatives implemented to make our company even more efficient, we will emerge from these challenging times even stronger than before.”

(million euros)

Net revenues

EBITDA

EBIT

Net income

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

H1 2020

Total

Net revenues

613.9

EBITDA

131.3

EBIT

31.5

Net income

12.6

EPS adjusted2 (in euros)

0.121

Free cash flow

72.1

30/06/2020

Net Financial Position

765.3

%

Net revenues

100%

EBITDA

21.4%

EBIT

5.1%

Net income

2.0%

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

Recurring

Net revenues

832.0

EBITDA

186.6

EBIT

95.4

Net income

59.4

EPS adjusted2 (in euros)

Free cash flow

31/12/2019

Net Financial Position

786.7

Non recurring

Net revenues

-

EBITDA

(5.8)

EBIT

(5.9)

Net income

(4.9)

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

Total

Net revenues

832.0

EBITDA

180.8

EBIT

89.5

Net income

54.5

EPS adjusted2 (in euros)

0.330

Free cash flow

57.9

Net Financial Position

% on recurring 

Net revenues

100%

EBITDA

22.4%

EBIT

11.5%

Net income

7.1%

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

Change % on recurring

Net revenues

-26.2%

EBITDA

-29.6%

EBIT

-66.9%

Net income

-78.8%

EPS adjusted2 (in euros)

Free cash flow

Net Financial Position

-2.7%

1 Unless stated otherwise, the commentary contained in this press release refers to the recurring income statement figures for what regards H1 and Q2 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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