Amplifon drops as much as 26.9% after earnings guidance

Amplifon drops as much as 26.9% after earnings guidance

Italian hearing aid company Amplifon (AMPF.MI) saw its shares drop by as much as 26.9% on Tuesday following the release of its second-quarter 2025 earnings report. The company reported a 8.7% decline in core profit to 147.3 million euros ($169.84 million) on revenue that rose by 0.6% [1].

Amplifon's CEO, Enrico Vita, attributed the challenging market conditions to the company's performance in core markets such as Southern Europe, North America, and China. Despite this, Vita noted that operations in France and Germany performed in line with expectations [1].

The company also lowered its guidance for 2025, projecting consolidated revenue growth of about 3% compared to the previously expected mid-to-high single-digit percentage. Additionally, the forecast for its adjusted core profit margin was reduced to about 23% from a previous projection of 24% [1].

Amplifon's revenue growth was impacted by a 1.9% decrease at current exchange rates due to euro appreciation, while organic growth was negative at -1.7% in Q2. The company's adjusted EBITDA margin decreased by 180 basis points year-over-year, primarily due to lower operating leverage and an unfavorable geographic mix [3].

The company anticipates a gradual improvement in market conditions in the second half of the year, particularly in Europe and the US. However, the Southern European markets were negatively affected by the anniversary of the strict COVID lockdowns in 2020, impacting the customer base. The Chinese market also continued to show subdued trends, and the Australian market experienced a negative trend [3].

Amplifon's shares were trading at a significant discount compared to its peers, with the stock dropping to 2.24 euros from 3.07 euros at the start of the year. The stock's performance was negatively affected by the company's guidance miss and the broader market conditions [2].

References:

[1] https://www.reuters.com/en/italys-amplifon-reports-87-decline-second-quarter-core-profit-lowers-2025-2025-07-29/
[2] https://www.benzinga.com/markets/market-summary/25/07/46698073/crude-oil-gains-over-1-unitedhealth-earnings-miss-views
[3] https://finance.yahoo.com/news/amplifon-spa-amfpf-q2-2025-071545230.html