S&P shifts Amplifon view to stable

S&P said it revised Amplifon SpA’s outlook to stable from negative and affirmed its BB+ ratings.

“Amplifon reported resilient performance in 2020, supported by solid cost management resulting in the adjusted EBITDA margin expanding 260 basis points to 24.9% versus 22.3% in 2019. This has been achieved despite the company having experienced a 10.2% decline in sales due to restrictions imposed by governments across the world to mitigate the impact of the first wave of the pandemic. However, Amplifon's top line recovered relatively fast from the third quarter of 2020, mainly in Europe, the Middle East, and Asia (EMEA),” S&P said in a press release.

The agency said it forecasts 8%-9% top-line growth and an S&P Global Ratings-adjusted EBITDA margin close to 25% in 2021

“The stable outlook reflects our view that Amplifon's leverage metrics will be 2.5x-3x in 2021 and potentially reduce below 2.5x from 2022, subject to a disciplined financial policy regarding shareholder returns and acquisitions,” S&P said.

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