2009 annual results: Recurring operating margin of 17.6%

22/03/10

 

Audika Group recorded 2009 full-year revenues of EUR 106.5 million, an increase of 4.6%. The Group’s level of activity improved throughout the year. After posting a stable showing during the first half, revenues increased by 9.4% over the second half of the year. This positive trend is also evident on a like-for-like basis, with organic growth of 2.3% over the second half of the year, compared to a decline of 6.4% in the first half (2.1% decline over the year as a whole).

 

The consolidated accounts have been audited. The statutory auditor’s report will be issued once the management report has been verified and the procedures required for the purposes of filing the registration document have been finalized.

 

Audika generated revenues of EUR 98.3 million in France, an increase of 1.7%, and EUR 8.2 million in Italy, representing sharp growth of 61.4%, thanks to the Group doubling its number of Italian centers in 2009 to 46 at year-end.

 

 

Recurring operating margin of 17.6%

 

Audika’s recurring operating margin improved to 17.6% of revenues (compared to 17.3% in 2008), attesting to the Group’s ability to maintain excellent fundamentals against a less than favorable backdrop.

 

This performance is the result of further growth in gross margin and sound management of all of Audika’s overheads. It is all the more significant given that it includes a recurring operating loss of EUR 0.25 million in Italy due to spending associated with the Group’s rapid network development and initial national marketing campaigns. Audika’s recurring operating margin in France came out to 19.3%, making a return to an all-time high.

 

Net of financial expenses (EUR 1.8 million) and taxes (EUR 5.9 million), 2009 Group net income amounted to EUR 10.7 million, representing a net margin of 10.1%.

 

 

Sound management of gearing at 47%

 

The excellent results generated in 2009 enabled Audika to completely self-finance its active network development (24 new centers in France and 23 in Italy in 2009). As such, gearing at the end of 2009 came out to 47%, which is perfectly in line with the Group’s development ambitions.

 

 

Dividend of EUR 0.42 for the 2009 fiscal year

 

Bolstered by its solid balance sheet, Audika Group will propose a dividend of EUR 0.42 per share at the next Shareholders’ Meeting, representing a distribution rate of 37% of net income.

 

 

Outlook for 2010

 

Audika Group intends to continue its growth in 2010, drawing on the positive trend over the second half of 2009. Audika will notably benefit from additional revenues of close to EUR 2.0 million in 2010, thanks to the full-year contribution of recently acquired centers.

 

In France, Audika will maintain its advertising and marketing drives in order to be the first to benefit from market growth. The Group will benefit from a favorable comparison base in the first half of the year and will continue its active development, with the aim of increasing its network by 30 to 40 new centers in 2010, seven of which have already been added since the beginning of the year.

 

In Italy, after rapid growth meaning that Audika is now one year ahead of its initial development schedule, the priority for 2010 is to focus on optimizing internal structure, fully disseminating Audika's expertise and improving profitability. With the exception of key opportunities, Audika is not planning any new acquisitions in Italy in 2010 and will underpin its growth by setting up new centers (drawing on its current team of hearing aid practitioners) and continuing its marketing and advertising initiatives.

 

Overall, Audika is confirming its confidence in the soundness of its business model for 2010, combining growth and high profitability, in a market that still offers an excellent growth outlook for the coming years.

 

Audika Group will publish its revenues for the first quarter of 2010 on April 12, 2010 after market close.

 

 

About Audika:

 

With more than 400 centers in 86 different regions and a 14% market share, Audika is the number one network offering hearing correction consulting and solutions in France. The Group recently undertook international development, successfully creating a network of almost 50 centers in Italy.  Positioned on the market for hearing correction solutions for senior citizens, Audika aims to consolidate its leadership in a sector that remains very highly fragmented. Audika is listed on Euronext Paris, Segment B and the SBF 250, CAC Mid & Small 190 and CAC Small 90 indexes.

 

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

 

ISIN FR0000063752-ADI Reuters DIKA.PA Bloomberg ADI:FP -Number of shares: 9,450,000

 

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

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