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Investing.com - Shares of Italy’s Amplifon (BIT:AMPF) shed nearly a fourth of their value on Wednesday after the hearing aid maker slashed its its 2025 outlook, citing difficulties fueled by a "challenging" operating environment.
In its half-year earnings, the company said it now expects to post revenue growth this year of around 3%, compared to prior guidance for an increase in the mid-to-high single digit percentage.
Adjusted core profit margin is also now tipped to be roughly 23%, versus a previous forecast of 24%.
In its second quarter, revenues edged up by 0.6% against a year earlier to 593 million euros, while adjusted earnings before interest, taxes, depreciation and amortization sank by 8.7% to 147.3 million euros. Income margin slipped by 180 basis points to 24.9%.
"Revenue and profitability reflect[ed] [a] challenging macroeconomic and geopolitical context," the group said in a statement, adding that the results were dented by fewer trading days during the three-month period and a "significant" headwind from the recent firming of the euro against the U.S. dollar.
Amplifon flagged that demand was especially weak in Italy and Spain, although this was partially offset by "positive momentum" in Germany and France. Its U.S. business has shown improvement but is "still volatile and below historic levels," while consumer confidence in China is "muted," the company said.
"Global market demand in the first half was soft due to the increasingly challenging macroeconomic and geopolitical context, with the impact peaking in the second quarter," Amplifon said. However, it noted that the operating backdrpo is anticipated to "gradually normalize" in the second half.