First half of 2003: results on target

21/10/03 - Operating margin of 14.8%

Continued strong growth

• Acquisition of 4 new centers

 

• Creation of 2 new centers

2003 targets confirmed

• Sales of over EUR 51 million

 

• Operating margin of over 15.4%

 

In EUR millions	H1 2002	H1 2003	Change
Sales	19.09	25.12	+31.6%
Operating income	3.05	3.72	+21.9%
Operating margin	15.97%	14.80%
Net income before goodwill	1.78	2.17	+21.9%
Net margin before goodwill	9.31%	8.63%
Net income after goodwill	1.66	2.02	+22.2%
Net margin after goodwill	8.67%	8.05 %

 

 

Growth of +31.6% in the first half of the year

 

Audika reported first-half sales of EUR 25.1 million in 2003, an increase of 31.6% on the same period in 2002. Organic growth over the period was bolstered by the heightened deployment of the Group's marketing strategy, and came out at +13.3%.

 

 

Operating margin of 14.8%

 

Audika Group pursued its dynamic growth strategy over the first half of 2003, acquiring 12 new centers (compared with 5 in the first six months of 2002). In spite of the cost of bringing these centers in line with its standards, Audika maintained a high degree of profitability.

 

Audika's operating margin stood at 14.8% of sales in the first half of 2003, in line with the Group's yearly targets. Operating income came out at EUR 3.72 million, an increase of 21.9% on the previous year.

 

Group net income before goodwill amortization stood at EUR 2.17 million, up by nearly 22% on the first half of 2002.

 

 

Ongoing expansion nationwide

 

After a major acquisition in early October 2003 ("L’Aide Auditive", 23 centers, full-year sales of EUR 7 million, consolidated as of 01/01/2004), Audika is continuing to expand its network, with the acquisition of 4 centers and the creation of 2 new centers.

 

• Its acquisitions in the Vendée, Haute Vienne, Pas-de-Calais departments and in Monaco reinforce Audika's presence in these areas. These centers are expected to generate full-year sales of over EUR 0.9 million and will be consolidated as of the fourth quarter of 2003.

 

• Audika also created 2 new centers, one in the Allier department (bringing its presence in the Auvergne region to 15 centers) and one in the Corrèze department (a new total of 7 centers in the Limousin region).

 

Since the beginning of 2003, Audika has acquired 39 centers and integrated 12 franchised centers, as well as creating 2 new centers. The Group now has 270 centers in 73 departments.

 

 

2003 targets confirmed

 

Given its strong first-half performance, Audika is confident in meeting its annual targets. The Group aims to generate full-year sales of over EUR 51 million in 2003 for an operating margin of over 15.4%.

 

 

Significant growth potential

 

Given the number of targets identified, Audika continues to enjoy significant growth potential on its market for the years to come.

 

Audika will publish its 2003 third quarter sales on November 13, 2003.

 

 

About Audika:

 

With 270 centers in 73 different regions and 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 situation, Audika aims to consolidate its leadership in a sector that remains very highly fragmented.

 

Audika is listed on the Nextprime, MidCAC and Second Marché indexes.

 

If you would like to receive financial information by e-mail, contact: www.equityinfos.com or www.audika.com



ISIN FR0000063752-ADI

Reuters DIKA.PA

Bloomberg ADI

Number of shares: 3,150,000



Audika contact: Alain Tonnard on +33 (0)1 55 37 30 30

Equity Conseil contact: Laurence Marquézy on +33 (0)1 45 22 22 30



21/10/03

Equity Conseil/DDB Group