With 11% of global market share, the latest quarters trading figures from Amplifon confirm it’s position as the world leader in the retail sector for hearing care.
Operating from 11,400 stores in 26 countries, the statistics from the Italian giant are truly impressive. Yet the proactive board are clearly not resting on their laurels, with 2 new significant strategic moves announced over the summer of 2021.
The first press release disclosed the acquisition of Australian rival Bay Audio is in the pipeline – for a reported $402 million in a cash free debt free deal arrangement. When the deal completes later this year – it will immediately add a further 100 stores – primarily in high-end shopping malls on Australia’s plumb East Coast.
A few weeks later a joint venture arrangement with Shengqiao (Hangzhou) Health Technology Co, trading as Sound Bridge was announced. Sound Bridge currently operates from 45 shops in China, giving access to a country with eye watering population statistics and incredible potential for hear care expansion.
Like everyone else in the space, Amplifon’s revenues dropped off during the depths of the pandemic – but sales have come roaring back to life as vaccines have been rolled out, lockdowns lifted and consumer confidence returned. In the first 2 quarters, Amplifon achieved sales of €959 million – a 56% year on year increase – with pre-tax profits / EBITDA coming in at an eye watering €232 million.
So what does all of this mean for the UK audiology market? Amplifon’s growth strategy certainly looks set to continue to be a mixture of organic and fast-track via acquisition of suitable high street opportunities.
This and other key factors are causing the UK audiology practice sales market to heat up. Watch this space!