Audika Groupe : 2014 Annual Results

2014 Annual Results

(*) The 2014 annual financial statements are presented in accordance with IFRS 5 (the contribution of activity in Italy before the sale is included in discontinued activity). For the purposes of comparison, the 2013 annual financial statements were restated on the same basis.

The consolidated financial statements have been audited. The statutory auditors' 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.

The 2014 consolidated financial statements were approved by the Board of Directors on March 13, 2015.

After two difficult years, 2014 marked a return to organic growth for the Group. Revenues totaled EUR 98.7 million, up 3.4%, including organic growth of 2.9%. Belgium contributed EUR 0.7 million to these revenues
 

This positive trend reversal is based largely on the impact of the reorganization of the management structure in 2013 and at the beginning of 2014, which has produced greater efficiency, responsiveness and hearing aid practitioner follow-up. The Group also benefited from the strong results of its marketing campaign, led by its own-brand Connect by Audika solutions, followed by new ambassador Anny Duperey.

Strong increase in recurring operating margin
 

The Group's recurring operating margin increased dramatically, reaching 12.3% of revenues. This performance is based on a triple positive effect of growth, productivity and expense control.

Financial expenses totaled EUR -1.0 million, with interest rate hedges having a EUR -0.3 million impact. The tax expense amounted to EUR -4.4 million. Over the first three months of the year, before the sale, activity in Italy generated a loss of EUR -0.3 million. Audika posted consolidated net income of EUR 6.4 million.

Group debt reduction confirmed
At December 31, 2014, Group shareholders' equity totaled EUR 68.7 million. Cash flow from activity was bolstered by net income from the Italy sale, which made it possible to significantly reduce net debt. It came out to a historically low level of EUR 3.0 million at the end of the financial year, representing gearing of 1.8% (compared to 24.3% a year earlier).

Outlook
 

The Audika Group intends to continue its strategy over the coming months against an economic backdrop that remains uncertain. Drawing on its much greater brand recognition than its competitors, Audika will continue its marketing and advertising campaigns with a budget nearly equal to the 2014 budget.

The Group will also resume the selective expansion of its network of centers, whether through acquisitions or new centers. With this in mind, the Group is announcing that 10 new centers are planned in France and one in Belgium in the first half of 2015, bringing the Group's network to more than 470 centers in France and seven in Belgium.

Audika Group will publish its revenues for the first quarter of 2015 on April 13, 2015 after market close.

About Audika:

With more than 470 centers in 91 different regions, Audika is the number one network offering hearing correction consulting and solutions in France. The Group has also been present in Belgium since 2013 (seven centers). Positioned on the market for hearing correction solutions for senior citizens, Audika aims to consolidate its leadership in a sector that remains highly fragmented. Audika is listed on Euronext Paris, Segment C.

If you would like to receive free financial information on Audika by e-mail, go to: www.actusnews.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 53 67 36 70