2010 annual results
Recurring operating margin of 16.6%
In EUR thousands | 2009 | 2010 |
Revenues | 106,524 | 105,685 |
Recurring operating income | 18,757 | 17,553 |
Recurring operating margin | 17.6% | 16.6% |
Operating income | 18,502 | 17,120 |
Group net income | 10,734 | 9,400 |
Net margin | 10.1% | 8.9% |
The consolidated accounts have been audited. The statutory auditor’s report will be issued once the management report has been verified and the steps for filing the registration document have been finalized.
Although a discouraging economic climate prevailed in France in 2010 as a strategic reorganization was ongoing in Italy, Audika was able to maintain high profitability due to the exceptional resiliency of the Group's economic fundamentals.
Recurring operating margin of 16.6%
Audika Group ended 2010 with full-year revenues of EUR 105.7 million, a slight decrease of 0.8% compared to 2009 (-4.4%, like for like). At EUR 97.5 million in France and EUR 8.2 million in Italy, revenues were stable relative to 2009.
Recurring operating income stood at EUR 17.6 million after recognizing a EUR 1.1 million operating loss in Italy. The Group's recurring net margin percentage came out to 16.6%. In France, this figure was 19.1%, reflecting the strength of the business model. A further rise in gross margin enabled Audika to partially offset the effects of slower sales on a fixed cost structure.
After FINANCIAL expenses (–EUR 1.2 million) and income tax (–EUR 6.5 million), compounded by the Business Value Added Assessment (Cotisation sur la Valeur Ajoutée des Entreprises or CVAE), formerly integrated into operating expenses and amounting to EUR 1.0 million, 2010 Group net income was EUR 9.4 million, which translates into a net margin of 8.9%.
Lower gearing at 42%
On the strength of the results posted for 2010, the Group was able to internally finance its investments, in particular the continuing robust development of its network in France (30 new hearing centers, 15 of which were acquired in 2010). As such, gearing at the end of 2010 came out to 42%, which is perfectly in line with the Group’s development ambitions.
Dividend of EUR 0.42 for the 2010 fiscal year
Thanks to 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 42%.
Outlook for 2011
Audika Group has identified returning to growth as its top priority for 2011 and has established a sales target in the range of EUR 115 million to EUR 120 million. This growth should enable recurring operating income to be improved in 2011.
Growth is expected to be primarily driven by sales in France, where Audika’s 2011 revenue target is between EUR 106 million and EUR 110 million. The new marketing campaign got off to a promising start and there has been a substantial increase in all store traffic indicators. Simultaneously, Audika plans to continue the development of its network to help consolidate its positions across France so that it will be the first to benefit from market recovery.
In Italy, the Group is projecting revenues ranging from EUR 9 million to EUR 10 million on the strength of the integration of the 10 hearing centers recently acquired in the Veneto region. As the Group is in the final stages of reorganization, sales should increase gradually from quarter to quarter.
The hearing correction market is set to receive a big boost over the next few years as the "oldies boom" generation reaches the target age for a first hearing device (65-70 years of age). In this extremely favorable environment, Audika, a specialist in hearing for almost 35 years, possesses several key strengths: network size, considerable brand awareness (three out of every four seniors in France are familiar with the Audika brand), hearing device quality and its demonstrated capacity to recruit, train and retain hearing aid practitioners.
Audika Group will publish its revenue for the first quarter of 2011 on April 18, 2011 after market close.
About Audika:
With 430 hearing centers in 90 different regions and a 14% market share, Audika is the number one network offering hearing correction consulting and solutions in France. The Group has been present in Italy since 2007 and now has a network of almost 60 centers. Positioned on the market for hearing correction solutions for senior citizens, Audika’s focus is to consolidate its leadership in a sector that remains highly fragmented. Audika is listed on Euronext Paris, Segment B, and on 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
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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