Financial year 2004:

23/03/05 - Operating margin 16.4%

 

Audika Group posted full-year sales of EUR 65.1 million in 2004, up by 23.2% on 2003. This strong performance was underpinned by both organic growth of +7.3%, which matched the expansion of the market and the contribution of new acquisitions. However it was offset by the market slowdown in October.

In EUR millions	2003	2004	Change
Sales	52.82	65.09	+23.2%
Operating income	8.49	10.65	+25.4%
Operating margin	16.07%	16.35%
Recurrent income before tax	8.03	9.94	+23.7%
Net income before goodwill	5.05	6.20	+22.8%
Net margin before goodwill	9.56%	9.52%
Group net income	4.72	5.60	+18.7%

 

Audika Group, despite these unusual market conditions, once again improved its operating margin in 2004, recording 16.4% as against 16.1% in 2003. This increase reflects the one-point improvement in gross margin due to higher volumes and tight cost control. Audika Group demonstrated the effectiveness of its development strategy which combines business growth and improved profitability.

 

Group net income before goodwill amortization totaled EUR 6.2 million, representing growth of 22.8% for a net margin of 9.5%.

 

 

Outlook for 2005: Strong growth potential and improved profitability

 

Given the buoyant market underpinned by favorable demographics and the continuous improvement in the quality and effectiveness of hearing aids (new generation in 2005), Audika will capitalize on its competitive edge in 2005 with the strength of its brand - No. 1 on the French market, network of nearly 300 centers and 25 years of proven marketing expertise.

 

Audika enjoys strong growth drivers and is looking to confirm the sharp growth in the number of potential customers, thanks to its marketing initiatives, in recent months. Audika will also be bolstered by the fast-pace development of recently acquired centers.

 

In 2005, Audika will pursue its ongoing expansion nationwide through the acquisition of very well-known regional centers. The Group is likely to announce new acquisitions by the end of the first half of the year.

 

Over the year, the Group is targeting business growth of at least 20% excluding acquisitions, based on a steady acceleration in activity from quarter to quarter. This will notably reflect the stronger comparison basis in the second half of the year.

 

In terms of profitability, the Group intends to gradually reap the benefits of its business model and confirm its potential to improve margins seen in the first half of 2004 in 2004.

 

Audika Group will publish its sales for the first quarter of 2005 on May 3, 2005.

 

 

About Audika:

 

With nearly 300 centers in 74 different regions and a 13% market share, Audika is the number one network offering hearing correction consulting and solutions in France. Positioned on the market for hearing correction solutions for senior citizens, which is not affected by changes in the economic environment, Audika aims to consolidate its leadership in a sector that remains very highly fragmented. Audika is listed on the Eurolist SMALL 90, compartment B.

 

ISIN FR0000063752-ADI

Reuters DIKA.PA

Bloomberg ADI

Number of shares: 3,150,000

 

If you would like to receive financial information on Audika by e-mail, go to: www.kaparcafinance.com or www.audika.com.



Audika contacts: Alain Tonnard / Etienne Sirand-Pugnet on +33 (0)1 55 37 30 30

Kaparca Finance contact: Guillaume Le Floch on +33 (0)1 72 74 82 25



KAPARCA FINANCE 22/03/05