The strategic guidelines and financial objectives for the three-year period 2021-2023 announced by Amplifon during the Capital Markets Day foresee consolidated revenues for 2021 of approximately € 1,9302 million, an EBITDA margin on a recurring basis of approximately 24.8%, after significant investments in business. For 2022 and 2023, Amplifon expects an increase in consolidated revenues, on a like-for-like basis, equal to a high single digit compound annual rate (CAGR), far higher than the expected market growth.
The world leader in hearing solutions and services notes that this growth will be well balanced across geographies and driven by a good mix of organic growth and acquisitions, mainly expected in France, Germany, the United States and China. In addition, the company estimates Bay Audio’s contribution to the Group’s consolidated revenues in 2023 in the order of € 100 million.
At the same time, Amplifon aims to expand the EBITDA margin on a recurring basis to at least 25.5% in 2023, even after major investments in the business and after the significant improvement that is expected to be achieved in 2021. This increase in profitability will be determined by a greater productivity and efficiency deriving from the actions implemented to tackle the pandemic, from the synergies still to be achieved following the integration of GAES, as well as from the greater economies of scale.
Amplifon also expects a continuous increase in net earnings per share in the three-year period, driven by greater operating leverage, even after financial charges estimated at around 30 million euros per year and an expected tax rate in line with recent years. Finally, for the three-year period 2021-2023, Amplifon aims to generate a cumulative operating cash flow of over € 1 billion. The significant cash generation will make it possible to fully finance the investments planned for the period (equal to over 300 million euros for Capex and around 300 million euros for acquisitions), further reducing the Group’s financial leverage to around 1.2x in 2023, ensuring at the same time adequate financial flexibility.
The group’s objectives for the three-year period do not contemplate any further significant impact from the Covid-19 pandemic in the reference period.