Amplifon posts 3.4% rise in profit, to launch 150 million euro share buyback (updated)

Amplifon SpA

06/05/2025 13:10

Expects improvements in key markets

CEO says market has pent-up demand

Announces launch of buyback programme

Recasts, adds CEO quote in paragraphs 4-5, updates shares in paragraph 3

By Alberto Chiumento

May 6(Reuters) - Italy's Amplifon expects an acceleration in Europe and a return to growth in the U.S., its CEO said on Tuesday, after the hearing aid company reported a 3% rise in first-quarter adjusted core profit.

The group also announced the launch of an up to 150 million euro ($169.9 million) share buyback program for the coming weeks, as a way to retrieve treasury shares it said could later be used as "a means of payment for acquisitions of companies or exchange of equity interests."

Shares rose as much as 8% on the day, reversing initial losses.

"We expect a progressive acceleration in Europe, driven especially by the anticipated stronger rebound in France, already starting from this second quarter," CEO Enrico Vita said on an analyst call.

He expects the U.S. market to return to positive territory in the coming months after first-quarter revenue fell around 5%,  saying it is too early to forecast specific numbers.

The French market has become Amplifon's biggest revenue source, while the U.S. accounts for around 15% of total sales.

Technology-led innovation is spurring competition in the sector. Switzerland's Sonova introduced a first-in-market hearing aid using real-time artificial intelligence, and Apple has received U.S. approval for software that could transform its headphones into a personalized hearing aid.

Amplifon's CEO has already played down competition from Apple, saying the U.S. company aims to serve customers with milder hearing difficulties than the Italian firm.

Adjusted core profit rose to 140.4 million euros, it said on Tuesday, while its core profit margin widened 20 basis points to 23.9%, the highest ever reported in a first quarter.

Adjusted net income dropped 5.5% to 41.6 million euros, mainly due to higher depreciation and amortization.

The group confirmed its 2025 guidance.

($1 = 0.8828 euros)

 (Reporting by Alberto Chiumento; Editing by Kirsten Donovan, Bernadette Baum and Jan Harvey)

 ((Alberto.chiumento@thomsonreuters.com))