Amplifon Slashes 2025 Outlook, Shares Plunge 24% Amid Challenging Environment

In a recent development, Italian hearing aid maker Amplifon has reported a significant cut to its 2025 outlook, citing a "challenging" operating environment. The company's half-year earnings for 2023 showed that it now expects to post revenue growth this year of around 3%, a significant decrease from its previous guidance of an increase in the mid-to-high single-digit percentage.

Additionally, Amplifon's adjusted core profit margin is now tipped to be roughly 23%, down from a previous forecast of 24%. This comes as the company's second-quarter revenues edged up by just 0.6% against the same period a year earlier, reaching 593 million euros. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also sank by 8.7% to 147.3 million euros during the quarter.

Amplifon attributed the weaker-than-expected performance to a "challenging macroeconomic and geopolitical context," which included fewer trading days and a "significant" headwind from the recent strengthening of the euro against the U.S. dollar. The company noted that demand was especially soft in Italy and Spain, although this was partially offset by "positive momentum" in Germany and France. Amplifon's U.S. business has shown some improvement but remains "volatile and below historic levels," while consumer confidence in China is "muted."

Despite the current challenges, Amplifon expressed optimism that the operating backdrop is anticipated to "gradually normalize" in the second half of the year.