PRESS RELEASE
Amplifon S.p.A.: the Board of Directors has approved the half-year report at June
30th, 2008.
Consolidated figures
Revenues: Euro 312.3 million, - 6.0% compared to the same period of the
previous year.
The depreciation of the US dollar had a significant negative impact (- 3.6%)
EBITDA: Euro 33.1 million, - 26.8% compared to the same period of the
previous year.
Net income: Euro 5.7 million, - 61.2% compared to the same period of the
previous year.
Net debt: Euro 238.3 million (vs. Euro 240.8 million at 31/12/2007).
Free cash flow: Euro 16.9 million, + 49.5% compared to the same period of the previous year.
EBITDA doubled in the second quarter (from Euro 11.0 to Euro 22.1 million) with a strong drop in debt (Euro - 33.1 million) when compared to the first quarter of the year.
The international market scenario in the first six months of 2008 was overall negative, particularly in the USA, with a general decline in consumption which affected spending for medical and health related treatments, as well as the continued depreciation of the US dollar.
The difficulties in the UK market also impacted the Group, where the business integration is proceeding and, as previously communicated, is part of a rofound reorganization process, implemented during the period under examination. The current economic environment could make the achievement of the sales break-even level by the end of the year more difficult.
Despite this difficult context, thanks to the steps taken by management in the past few months, the first signs of recovery in organic growth throughout Continental Europe were reported in the second quarter of 2008.
More in detail, in the first half of 2008 revenues in Continental Europe Region grew by 4.7% when compared to the first half of 2007, with a strong performance in both Germany (+ 32.1%), Spain and Portugal (+ 13.3%), as well as growth in all the other countries.
Furthermore, the Groups profit recovered substantially in the second quarter of 2008 (Euro 8.4 mn) when compared to the Euro - 2,7 mn recorded at the end of first quarter 2008. The companys net financial position at June 30th, 2008 improved significantly dropping by Euro 33.1 mn from Euro - 271.4 mn reported at March 31st, 2008 to Euro - 238.3 mn, again due to an even more thorough management of working capital and the development strategy based more on internal growth rather than external.
During the second half the Group will continue with the implementation of specific, differentiated reorganization and market positioning processes in each area in order to, markets permitting, accelerate organic growth in Continental Europe, complete the integration of the UK activities and
optimize the commercial strategy in the United States where the economic crisis and the weak dollar most clearly did not help the first half results.
One of the steps taken includes the creation of a new organizational structure, effective as of May
2008, which calls for Amplifon to be divided into Macro Regions (Continental Europe, United Kingdom and North America) based on similar business models and consumer lifestyles to maximize synergies in the different geographic areas where Amplifon is present, achieving significant economies of scale and facilitating organic growth.
Consolidated revenues from sales and services at June 30th, 2008 fell 6.0% from Euro 332.1 mn reported in the first half of 2007 to Euro 312.3 mn.
The figure reflects the negative impact of foreign exchange rates (particularly the US dollar) which accounts for a total of Euro 12.1 mn (- 3.6%) of the decline.
EBITDA at June 30th, 2008 fell 26.8% when compared to the same period of the previous year to Euro 33.1 mn.
