Amplifon lowers profit forecast on weak European market, shares drop
(Reuters) -Italian hearing aid maker Amplifon lowered its full year guidance for recurring core profit on Monday, citing weaker than expected demand in Europe and global economic and political uncertainty, sending its shares tumbling.
It now sees its recurring earnings before interest, depreciation and amortisation (EBITDA) at about 550 million euros ($582.34 million) for 2023, down from a previous forecast of between 570-585 million euros.
The revised estimate included a negative currency impact of around 10 million euros.
The firm also marginally revised its guidance on consolidated revenues to around 2.29 billion euros, from 2.30-2.35 billions previously, despite reporting a double-digit growth at constant exchange rates in October.
Amplifon shares, which had gained as much as 4% on Monday morning before results were unveiled, turned negative and were down 4.6% at 1246 GMT.
"It should be noted that Amplifon operates around 25 points of sale in Israel which generate sales equal to approximately 1% of its consolidated revenues", the group said with reference to the conflict in the region.
Amplifon's recurring EBITDA stood at 109.8 million euros in the third quarter, marginally up from 109.4 million euros a year ago. Its total revenues rose to 531.3 million euros from 502.5 million euros in the same period of 2022.
($1 = 0.9445 euros)
(Reporting by Alessandro Parodi, Editing by Louise Heavens)
