What for you were the highlights of 2010?

 

Jean-Claude: In 2010 our market in France was hit by a combination of negative exogenous factors, in particular the media portrayal of the economic situation was not very reassuring for our target market of senior citizens. On top of this, the harsh weather conditions throughout the country in December penalized us in our biggest billing month. In Italy, after 2 years of ramping up our network, we carried out a strategic overhaul involving comprehensive training programs for all our Italian staff.

 

Alain: Against this backdrop, the group demonstrated financial solidity despite a slowdown in activity. We maintained very high profitability ratios and further reduced our debt levels. This is all the more satisfactory given that we pursued investment over the period in both marketing and in developing our French network.

 

 

Can you give us an update on the growth of your retail networks?

 

J-C: In France we continued with the expansion program implemented in previous years, beefing up our network with 30 new centers. There was a good balance between acquisitions and the creation of new centers, allowing us to optimize our coverage and exploit catchment areas that show good potential. We now have a total of roughly 430 centers.

 

A: Our goal over the medium term in France is to have 700 centers in order to cover the entire country and to be in a position to benefit immediately from growth on the market. In Italy, we decided to take a pause in 2010 to consolidate our processes before pushing ahead with further development. In 2011, we acquired a network of 10 centers in the region of Venetia. We now have around 60 centers in Italy.

 

 

What is the outlook for the hearing correction market?

 

A: The outlook is particularly bright with several factors underpinning durable growth, notably the arrival over the coming years of the post-war baby boom generation into the 65/70 age group, our core market. We will also benefit from a younger client base attributable to an increase in noise pollution. All of which should increase the number of customers at our centers.

 

J-C: It is worth stressing also that much still needs to be done to increase market awareness, as the equipment rate of those with hearing impairments is still below 20% in France and Italy. This is why we continue to dedicate nearly 8% of our revenue to national and local marketing and advertising campaigns.

 

 

This potential growth seems to be attracting a growing number of players?

 

J-C: I would stress firstly that our market has been attracting new players for a number of years. However, the vast majority of recent new entrants still have a lot of catching up to do. The hearing correction market is a complex one that must be understood not just at a commercial, legislative and technical level, but also in terms of human resources: expertise is required to recruit, train and foster the loyalty of hearing-aid specialists.

 

A: We have nearly 35 years’ experience on this market, and have developed unique tools that optimize the use of hearing aids. We offer a challenging and motivating working environment for professionals in this domain. Our brand name also plays a key role: today, one out of every two senior citizens spontaneously mention the Audika brand name when asked to name a hearing correction player. This is 5 times the level of our rivals.

 

 

You are therefore confident in the group’s development in 2011 and beyond?

 

J-C: Our goal over the short term is to bring back solid organic growth notably through a major marketing drive. We will build on this with the acquisition of centers in both France and Italy. Our growth potential is far from exhausted and we firmly believe that the group can look forward to many years of strong growth.

 

A: We are constantly working to enhance the quality of our solutions and services and to boost our brand image. Our current profitability means we can continue investing substantially in advertising and marketing and can benefit immediately from natural market growth. Audika group has everything it needs to create value over the coming years.