Amplifon S.p.A. (AMFPF) Q3 2025 Earnings Call Transcript

Amplifon S.p.A. reported Q3 2025 revenues up 2.4% at constant exchange rates, with organic growth returning to positive territory at nearly 1%, a 250 basis point improvement from Q2, despite a 3.1% FX headwind. Adjusted EBITDA margin was 19.1%, down 110 basis points year-over-year due to lower operating leverage and increased marketing investments. The company noted mixed global market conditions, with Europe showing signs of gradual recovery in Southern Europe, the U.S. private pay segment outperforming a flat overall market, and APAC remaining subdued. Amplifon's "Fit4Growth" program, targeting 150-200 basis points in adjusted EBITDA margin improvement by 2027, is progressing ahead of schedule, particularly in store network optimization, leading to 100 store closures year-to-date. For the full year 2025, Amplifon now expects constant FX revenue growth between 2% and 2.5% and an adjusted EBIT margin around 23%, reflecting the accelerated store closures.

Analysis

Amplifon reported Q3 2025 revenues up 2.4% at constant FX, with organic growth returning to positive at nearly 1%, a 250 basis point improvement from Q2. This occurred despite a significant 3.1% FX headwind and a global market growing only 2% in volume, remaining below historical averages. The company notably outperformed the market in key regions, including U.S. Miracle-Ear Direct Retail and improving Southern European markets.

Adjusted EBITDA margin declined 110 basis points year-over-year to 19.1%, attributed to lower operating leverage and increased marketing investments, though this trend improved from Q2. The "Fit4Growth" program, targeting 150-200 basis points of adjusted EBITDA margin improvement by 2027, is ahead of schedule, with 100 store closures year-to-date, with benefits expected from 2026.

Regional market dynamics were mixed; Europe shows signs of gradual recovery, while the U.S. private pay segment drove positive trends amidst a flat overall market impacted by reduced insurance benefits. Management anticipates gradual normalization of global market demand and expects a positive anniversary effect from the 2021 rebound to boost returning customer base in 2026, particularly in Southern Europe. For full year 2025, Amplifon projects constant FX revenue growth between 2% and 2.5% and an adjusted EBIT margin around 23%.

Key Decisions for Investors

• Monitor the continued execution and margin impact of the "Fit4Growth" program, particularly the realization of benefits from accelerated store network optimization starting in 2026.
• Assess the sustainability of Amplifon's market outperformance and positive organic growth trend, especially in the U.S. private pay segment and recovering European markets, against ongoing global consumer caution and FX headwinds.
• Evaluate the long-term implications of the structural shift in the U.S. market from insurance to private pay channels and Amplifon's strategic positioning to capitalize on this trend.