Third-quarter growth of 4.7% activity picks up in October

08/11/05 - 15 new centers added to the network

 

Third quarter growth of +4.7%

 

Third quarter sales for Audika Group totalled EUR 12.5 million, an increase of +4.7% on the previous year. Like-for-like, sales grew by +1.7%.

 

After two months of traditionally low sales in July and August due to the fact that many centers close for the summer, Audika enjoyed a clear rise in activity within its centers in September on the back of the Group’s marketing strategy and new financing plan (payment in 10 interest-free installments).

However, given the company’s invoicing cycles, this upturn in business was poorly reflected in September’s sales figures.

 

In EUR millions, under IFRS	2004	2005	Change
H1	33.6	35.1	+4.5%
Q3	11.9	12.5	+4.7%
At nine months	45.5	47.6	+4.6%

 

 

Activity picks up in October

 

October confirmed the recovery in sales with a return to double-digit growth. Moreover, given the current strong footfall within the Group’s centers, this trend looks set to continue in November and December.

 

While this return to growth is in line with forecasts, it is nonetheless slower than expected, prompting Audika to adjust its target for 2005. Accordingly, the Group is now targeting an annual growth in sales of between 7% and 10%.

 

 

15 new centers in the third quarter of 2005

 

In line with its strategy to consolidate its leadership in France, Audika Group pressed ahead with its rapid geographical expansion in the third quarter. The company acquired 10 new centers, strengthening its presence in Brittany (4 centers in Brest), the Paris region (1 center in Houilles) and in Provence-Alpes-Côte d’Azur (1 center in Nice and 2 in Saint Raphaël).

 

The Group also acquired its first two centers in the Pyrénées Atlantique region in Bayonne and Biarritz. These 10 new centers, plus a franchise in Montreuil, are expected to generate total additional sales of around EUR 2 million in 2006.

 

Alongside these acquisitions, the Group continued to extend its regional coverage, opening 4 new centers in Aquitaine, Midi-Pyrénées, Provence-Alpes-Côte d’Azur and Rhône Alpes.

 

 

More than 300 centers in France

 

Since January 1, 2005, Audika Group has added 26 centers to its network (17 acquisitions and 9 new centers), in line with growth seen in previous years. Today, the company boasts a network of more than 300 centers across 75 departments, affording it the most comprehensive market coverage.

 

 

Medium-term outlook remains sound

 

In a market that should remain buoyant in both the short and medium term despite the odd glitch, Audika intends to pursue its strategy of fast-paced and active development to consolidate and increase its market share. It is to launch a new marketing campaign, once again fronted by Robert Hossein, in January 2006, thus paving the way for 2006.

 

Audika Group will publish its 2005 sales on January 24, 2006

 

 

About Audika

 

With over 300 centers in 75 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, segment B.

 

If you would like to receive financial information on Audika by e-mail, register at www.audika.com

 

Audika contact: 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 - 08/11/05