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Operator: Afternoon. This is the Chorus Call conference operator. Welcome and thank you for joining the Amplifon Second Quarter 2026 Results Conference Call. As a reminder, all participants are in listen-only mode. And after the presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to Ms. Francesca Rambaudi, Investor Relations and Sustainability Senior Director of Amplifon. Please go ahead, madam.
Francesca Rambaudi: Thank you. Good afternoon, and welcome to Amplifon's conference call on second quarter 2026 results. Before we start, a few logistics comments. Earlier today, we issued a press release related to our results, and this presentation is posted on our website in the Investors section. The call can be accessed also via webcast and dial-in details are on our website. as well as on the press release. I have to bring your attention the disclaimer on slide 2. Some of the statements made during this call may be considered as forward-looking statements. With that, I am now pleased to turn the call over to CEO, Enrico Vita.
Enrico Vita: Thank you, Francesca. Good afternoon, everyone, and thank you for joining us. Today, I am very pleased to share our second quarter results which reflect an excellent performance across the board. We delivered our strongest organic growth in the past 2 years, together with a significant improvement in profitability across all 3 of our regions. Most important takeaway from these results for me is that they validated the actions that we have taken and the investments that we have made over the past year. From advertising and communication to our in-store protocols, these initiatives are now translating into stronger performance giving us confidence that the momentum we are building is sustainable. But let me begin with a brief overview of the global market environment where we are also seeing encouraging developments in some of our key countries. In fact, across Europe, market conditions continue to improve with our core markets, particularly in Southern Europe, showing clear signs of strengthening demand. On the other hand, as expected, the French market is now annualizing against last year's exceptionally strong volume growth following the regulatory reform resulting in a lower comparative growth rate in the U.S., the market grew by approximately 1%, supported by a solid private pay segment up around 4%, which more than offset the continued softness in the insurance channel, down around 4% as well. In APAC, based on our estimates, market dynamics improved in Australia. With China also showing gradually strengthening trends. Overall, we estimated that the global hearing care market grew by around 2.5% to 3% in unit terms, during the second quarter, broadly in line with our expectations. In this backdrop, we outperformed across most of our key markets. With particularly strong performances in the U.S., Italy, Spain, Australia and China. Turning to revenues, we delivered 4.7% organic growth, representing an excellent performance especially because very well balanced across the 3 regions. The impact of our Fit4Growth program on revenues during the quarter was approximately -3.5% mainly reflecting our portfolio optimization initiatives. M&A contributed 0.5% primarily driven by the carryover effect of bolt-on acquisitions completed last year. Turning to profitability. We delivered a significant improvement in adjusted EBITDA margin which increased by 90 basis points versus last year, driven by operating leverage and the continued execution of our Fit4Growth program. Importantly, all 3 regions contributed to this performance, each delivering a very meaningful improvement in adjusted EBITDA margin. The improvement was even more pronounced at adjusted EBIT level. Where margin expanded by 130 basis points versus last year, reflecting the strong operating leverage of the business and the impact of Fit4Growth. Finally, let me highlight our strong free cash flow generation which improved by nearly €30 million or +70% versus H1 2025. As you can imagine, we are very pleased with these results. They reinforce our confidence that the momentum that we are building is both strong and sustainable. And position us well to deliver on our objectives for the remainder of the year. With that, I will now hand over to Gabriele who will take you through our results in more detail.
Gabriele Galli: Thanks, Enrico, and good evening to everybody. Turning to Slide 4, we have a look at our financial performance in Q2 2026. Revenues were up 1.7% at constant FX versus Q2 2025, with a very strong organic growth of 4.7%. I am glad to say that this growth was well balanced across all regions and outpaced the global hearing care market. The bolt-on M&A made primarily in 2025 contributed to top-line growth by 0.5% Fit4Growth had an impact of -3.5% following the closure of over 200 nonperforming clinics since the launch of the program 15 of which during Q2 this year The divestiture of the U.K. business in early March, and the termination of a managed care agreement in the U.S. from January. FX was a tailwind of 0.5%, mainly driven by the Australian dollar which was partially offset by the euro appreciation versus the U.S. and the New Zealand dollars. Adjusted EBITDA was €156 million, with the margin improving by 90 basis points compared to Q2 2025. This improvement was driven by the excellent improvement seen across all the regions, also thanks to the strong results of the Fit4Growth program. And after ongoing investments to further strengthen the company's distinctive assets. Moving to Slide 5, we have a look at our financial performance in H1 2026. Revenues were up 1.3% at constant FX versus last year. With a strong organic growth of 3.5%. Significantly accelerating throughout the period. And here again, well balanced across the regions. The bolt-on M&A made primarily in 2025 contributed to top-line growth by 0.8%. Fit4Growth had an impact of -3%, for the reasons just mentioned. FX was a headwind of 0.9% even if reversed in Q2. Adjusted EBITDA was €298 million with a 70-basis-point margin improvement compared to last year thanks to improvement in all regions due to Fit4Growth even after ongoing investment in our distinctive assets. Turning to Slide 6, we have a look at the EMEA performance. In the quarter, revenue growth was 2% at constant FX, thanks to a very strong acceleration in organic growth, which came up 4.5%, also thanks to the excellent performance in Southern Europe. And despite the expected normalization of the French market. Following the annualization of the 100% Santé reform. The bolt-on M&A made primarily in 2025 contributed 0.2% top-line growth. Fit4Growth had an impact of -2.7% following the closure of around 90 clinics since the launch of the program and the divestiture of the U.K. business in early March, so impacted the entire quarter. FX was a slight tailwind of +0.2%. Adjusted EBITDA was €120 million with margin at 30.7%, 180 basis points above Q2 2025 thanks to operating leverage and the strong results of Fit4Growth even after the ongoing investment in our distinctive assets. In H1, revenue growth was 1% at constant FX, organic performance at +2.4% fit for growth at -1.9% and M&A at +0.5%. Adjusted EBITDA was €237 million with margin at 30.5%, 140 bps above last year. Moving to Slide 7, let's have a look at the performance in Americas. Revenue performance in the quarter was -1.3%. at constant FX while FX headwind was -2.1%. Organic growth was a super positive, well above market, 6%, thanks to the strong performance recorded in all the markets and businesses in the region. The bolt-on M&A made primarily in 2025, contributed 1.2% top-line growth. Fit4Growth had an impact of -8.5% following: the termination of a managed care agreement in the U.S. from January 1, and the closure of around 4 clinics since the launch of the program. Adjusted EBITDA was €31.6 million with margin up 180 basis points to 26.2% versus 24.4% last year. Thanks to operating leverage and the strong results of Fit4Growth. In H1, revenue was flat at constant FX with organic performance at +6.3% Fit4Growth at -8%, and the M&A at +1.6%. Adjusted EBITDA was €57 million, with margin of 24.8%, 130 basis points above last year. Moving to Slide 8. We have a look at APAC performance. In the quarter, revenue performance was +4.6% at constant FX driven by a stronger organic growth of 4.3% thanks to the excellent performance of Australia and China. The bolt-on M&A made primarily in 2025 contributed 0.7% top-line growth Fit4Growth had an impact of -0.4% following the closure of around 80 clinics since the launch of the program, while the closing of the divestiture of the Indian business is set for Q3. Adjusted EBITDA reached €23.5 million, with a margin of 25%, 130 basis points higher than the 23.7% recorded in Q2 2025. Thanks to operating leverage and Fit4Growth. Even after the fast growth in China and the ongoing investments in our core assets. In H1, revenue growth was 4.5% at constant FX, with organic performance of +4.6 Fit4Growth of -0.8% and M&A at +0.7%. Adjusted EBITDA was circa €48 million, margin of 26.3%, 80 basis points above last year. Moving to Slide number 9. We appreciate the Q2 income statement. In Q2, total revenues came in at €606 million, with an increase of 2.2% or 1.7% at constant FX. Versus prior year. Adjusted EBITDA was €156 million with a margin of 25.8%, 90 basis points above 2025 also thanks to the strong results of Fit4Growth. D&A, excluding PPA, were at €64 million, decreasing by around €1 million versus €65 million in Q2 2025. This led to adjusted EBIT of €92 million, with a strong improvement of €11 million or 13% versus last year. Net financial expenses amounted to €15 million below the €16.3 million in Q2 2025. Tax rate decreased slightly year on year from 26.2% to 26.1% this year. Leading to a strong increase of over 17% in adjusted net profit. From €48.8 million last year to over €57 million this year. Moving to Slide 10, we see the H1 profit and loss evolution. Total revenues increased by 1.3% constant exchange rate to €1.19 billion. Adjusted EBITDA was €298 million with margin at 25.1%, 70 basis points above H1 2025. D&A, excluding PPA, decreased by around €3 million leading to adjusted EBIT of around €170 million, with margin at 14.3%. With an improvement of around 90 basis points versus last year. Net financial expenses decreased by €1.6 million to €29.8 million leading profit before tax to around €140 million. The tax rate ended at 27.4% leading to a strong 12.3% increase in adjusted net profit versus last year from €90 million to €102 million. Moving to Slide 11, we appreciate the cash flow evolution. Adjusted operating cash flow after tax after lease liabilities was in the period equal to €100 million versus €105 million last year, Net CapEx decreased by around €19 million to €46 million, also thanks to the Fit4Growth program. Leading to adjusted free cash flow of €68 million versus €40 million in H1 last year. With an outstanding increase of around 70%. In H1 2026, we had net proceeds from divestiture including the U.K. dilutive business for around €7 million versus cash out for acquisition for €55 million last year. This together with no share buybacks in the period, led the pro forma net cash flow for the period excluding the net proceeds from the ABB completed in May, to negative €7 million. With an improvement of over €130 million versus a negative €139 million in H1 2025. Pro forma NFP came to €1.049 billion versus €1.045 billion at the end of 25. Including the €449 million proceeds from the ABB, the net cash flow for the period was positive for €442 million and the NFP was at €600 million Moving to Slide 12, we have a look at the debt profile trend and the key financial ratios. As mentioned, the net financial debt ended slightly above €1 billion with liquidity accounting for €263 million. Short-term debt accounting for around €738 million, and medium- to long-term debt accounting for around €569 million. Following the IFRS 16 application, lease liabilities were around €484 million leading the sum of net financial debt and lease liabilities to €1.53 billion. Equity ended at around €1.5 billion Looking at financial ratios, pro forma net debt over EBITDA improved despite the business seasonality to 1.87x versus 1.92 in December 2025, in line with our target to deleverage the company in light of the prospective acquisition of GN Hearing. Including the proceeds from the ABB the net debt over EBITDA ratio was 1.07x. To this regard, please let me give you an update on the financing. We have successfully placed a €453 million primary ABB last May. It was the second largest ever primary ABB in Italy in terms of portion of share capital offered also including the pre-commitment from our core shareholder for €130 million. The book was multiple times oversubscribed, thanks to the strong interest from new high-quality international and Italian investors as well as substantial support from current shareholders. We have now also signed a €1.35 billion senior loan with 24-month tenor up to June 2028 allowing for high flexibility of execution of the takeout via bond or bank financing. With that, I am glad to hand over to Enrico for the outlook and final remarks.
Enrico Vita: Thank you, Gabriele. So we have come to the end of today's presentation. As I mentioned, throughout 2025, we executed the series of meaningful initiatives and made a significant and targeted investment aiming at accelerating future revenue growth and structurally improving the profitability. In the first half of 2026, we saw the benefits of this tremendous work carried out by the team materialize. Both in terms of organic growth and profitability. Importantly, momentum built progressively throughout the first half, with a clear acceleration in the second quarter. Looking ahead to the remainder of 2026, we continue to expect the global market demand to grow by around 3%. In this backdrop, we are confident in our ability to continue outperforming in most of our key countries and markets, driving further market share gains. In fact, the positive momentum we experienced throughout the first half continued into the beginning of the third quarter. As a result, we remain very confident in achieving our goal of an organic revenue growth above 3%, re-establishing a solid and sustainable growth trajectory. At the same time, we remain on track to achieve our profitability target with an expected improvement in adjusted EBITDA margin in the region of 100 basis points. Last but not least, as we continue to progress through the customary regulatory review process, I am pleased to provide a brief update on the proposed acquisition of GN Hearing. Our integration planning continues to progress very well. Our team is fully mobilized to ensure day-one readiness. In full compliance with all the regulatory requirements while focusing on positioning the combined business to unlock the substantial value creation opportunities we see ahead. The more we advance in our planning and preparation, the more excited that we become of the compelling strategic rationale of the transaction and its ability to create a significant long-term value for our customers employees and shareholders. We therefore look forward with great confidence and enthusiasm to completing the transaction and beginning the next phase of our growth journey. With this, Francesca, over to you.
Francesca Rambaudi: Thank you, Enrico. I kindly ask the operator to open today's Q&A session. I kindly ask everyone to limit their participation to a max of 2 questions to ensure that all participants have the opportunity to engage. In the interest of time, please keep to a single question that all analysts have a clear chance to ask their questions. Thank you.
Operator: Now I will turn the call over to Lacey on the open floor. Thank you. This is the Chorus Call conference operator. We will now begin the question-and-answer session. First question is from Hassan Al-Wakeel, Barclays.
Hassan Al-Wakeel: Good evening. Thank you for taking my questions. Good evening. I have a couple on organic growth. And the improvement that you are seeing in the second quarter. Firstly, if you can talk to the strength in the Americas business, particularly given your commentary of 1% growth in the reference market and unpack what is driving share gains to your mind and the softness in the overall market? And then secondly, on EMEA, particularly Southern European strength that you call out and what you are seeing in some of the other markets. And how you view the trajectory into against tougher comps and what you put the improvement down to is this pent up demand coming back? Thank you.
Enrico Vita: Thank you for the questions. So, of course, we are very pleased with our organic growth. Which was very strong in both regions. Starting with your question about Americas and the U.S. What we have seen with regards to the market growth in the U.S. Is a market going at 2 different speeds. What I mean is that the market overall was up about 1%, but we also saw a very solid growth in the private market, which grew by more than 4%. As you know, the private is very important for us. And whilst on the other side, we saw an insurance market down by a similar amount, by about 4%. So what is, in my opinion, encouraging about the market growth in the U.S.? Is the fact that we saw a solid growth in the private channel. Also, what I would like to mention is that the Q2 of last year was the strongest of 2025. And therefore, the comparison base was the most challenging for the U.S. Market. With regards to our performance, I am very pleased with our growth organic growth in the U.S. We outperformed clearly the market in all three business units. Starting from a franchise direct retail, but also in the managed care business units. We also posted a very good growth in LatAm. But in general, I would say that I am very pleased by the work done by the team there because we delivered the strong growth across all the different businesses. With regards to Southern with regards to Europe, your question about Southern Europe, I would say this, that today, we I mean, this year, we see a more normalized mix of market. As you may recall last year, the growth of the European market, especially in unit terms, was driven mainly by France. While we mentioned a few times the softness in Southern Europe, This year, we see a more balanced growth. So South Europe, Italy, Spain, Portugal performing in a solid in a solid way. We see France instead coming back to a normal level. Let me say that clearly, since we are annualizing the strong growth of last year, now we see France coming back to a normalized level of market. So let me say that we see this year a more normalized market development across all the different all the different markets in markets in Europe. I am very pleased also about our performance in Europe because we have outperformed the market almost everywhere. and, of course, this is something very, very important to us. Perfect. Thank you.
Operator: Next question is from Veronika Dubajova of Citi.
Veronika Dubajova: Good evening, Enrico, Gabriele, And Francesca. Thank you for taking my questions. I am going to keep it to 2, please. 1, I just want to see if you felt there was any impact from the weather either in towards the tail end of Q2 or if you are seeing any disruption related to the third quarter that we should be sort of thinking about as we look at the comps, look at the momentum, if there is anything there that is worrying you on that front. And then looking at the full-year guidance on the EBITDA margin, you have delivered 80 basis points of margin improvement in the first half of the year, presumably as we move into the back half of the year. Obviously, we have more acceleration from Fit4Growth from some of the divestitures. Just curious what your confidence is in the 100 basis points and whether there might be some room for upside surprise relative to that as we progress through the rest of the year? Thank you, guys.
Enrico Vita: Thank you. Thank you, Veronika. So, yes, the weather, we saw some impact from the weather in particular, in the last 10 days of June. In particular, I would say, in countries like France and Germany, So let me say that our performance could be even better if we did not experience this kind of phenomena. Which unfortunately, I think we must get to use to. So yes, definitely we saw some impact but the result that could have been even better, but I think that the end of the day, we managed it well. And of course, we are very satisfied about the overall growth. With regards to the second question and the EBITDA margin outlook, it is I think it is important to underline and highlight the 2 things. The first 1 is that we will have more favorable comparison in H2. And that will definitely help. Also, for once, let me also underline our performance at EBIT. Level. Which was very, very strong, 130 basis points better than last year, which is also a reflection of operating leverage, of course, but it is also the result of our Fit4Growth program because as you as you know, also as a result of the closure of the nonperforming stores, we are also making savings in rents. Which are definitely helping the EBITDA margin. So also we are very pleased about what is coming from Fit4Growth below EBITDA margin because also we are saving on rents, and this will and as already delivered an impact on EBIT margin. that is very clear.
Veronika Dubajova: Enrico, do you think you can quantify the weather impact, or it is very hard to do at this stage? Just to if you are willing to put a number on it.
Enrico Vita: It is very difficult. The impact that we saw was more in France and Germany than in Southern Europe, because South Europe last year was exactly the same. So, let's say, we were I mean, we are starting the heat wave of last year, while it was particularly, I would say, different and harsh in France and Germany. So there was the impact was big. Bigger. Got it. Thanks, so much.
Operator: Thank you. Next question is from Andjela Bozinovic BNP Paribas.
Andjela Bozinovic: Hi. Good afternoon, and thank you for taking my questions. I also have 2. The first 1 is on the guidance. I was wondering, after the 2 quarters in, can you quantify a bit more your guidance on the organic growth part? What does the above 3% market growth mean? Just having in mind what you have delivered in the past 2 quarters. And the second 1 is on your comment on the current trading. Can you give us a bit more detail what are you seeing in different regions? And if the Q3 is an acceleration versus Q2. Thank you very much.
Enrico Vita: Thank you. Thank you for the questions. So with regards to our guidance regarding organic growth, today, we stick to what we said after the Q1 results, which means that we are envisaging an organic growth above 3%. Clearly, as of today, we are ahead of that because in the first half, we delivered 3.5% So there is the opportunity, of course, to do well in terms of organic growth. Now we are in the third quarter. We have started well There are some months still ahead of us, September is a big month. But let me say that definitely, we are very confident in our ability to deliver this organic growth above 3%. Let me let us finish third quarter before giving you a more let's say, precise indication about that. But we feel very, very confident on organic growth. With regards to current trading, we saw the momentum that we saw in Q2 to continue in all in this beginning of Q3. So and this is, of course, very encouraging. I cannot give you targets for Q3, of course. But I think that the kind of trend that we are seeing is confirming that all the actions, initiatives, sometimes even painful initiatives that we had to take last year. Are delivering what they were supposed to deliver, and this makes us very confident also in our confidence for the entire 2026. Thank you. Thank you.
Operator: Next question is from Julien Ouaddour, Bank of America.
Julien Ouaddour: Hi, good evening. I hope you can hear me okay. Thanks. Perfect. Thanks a lot for taking my questions. I have a couple as well. The first 1 is on inflation. I mean, I was just wondering what is the scenario for inflation in H2 and for 2027? I know that in the past, you have been, let's say, strictly not impacted by that on a pure cost provision for the COGS. But, I mean, what about rents? What about salaries? And, what have you baked basically in your base case? So that is the first question. And the second 1 is what feedback are you receiving from independent wholesale customers of GN Hearing about being supplied by a manufacturer like, potentially, like, like, in the future owned by the largest global retail companies. So I am just wondering if you already have a sense about what the customers think. If I can try as well, how do you just quantify the mix of GN Hearing, which is tied to these independent clinics? And any risk for that. Thank you.
Enrico Vita: Sorry. The mix of the GN Hearing related to what? The independent clinics, like, everything which is which is not I mean, tied into a large group. Okay. No. Well, on this on this second question, Julien, I cannot give you an answer. What I mean is that we are still in the process between signing and closing of course. And I cannot I cannot really give this kind of information for now. But, of course, I will be very happy to deep dive as soon as we get to the closing. That as we said many times, we expect by the year-end, and this is as of today confirmed. With regards instead to the question regarding inflation, we do not expect material impacts from inflation. For sure, not on direct procurement, not even from indirect, not from rent. So not even something particular in terms of labor costs. So I would say that so far, we are not concerned about inflationary pressures Perfect. Thank you, Hans. Thank you.
Operator: Next question is from Oliver Metzger, ODDO BHF.
Oliver Metzger: Yeah. Good evening. Thanks a lot for taking my questions. First question is on Fit4Growth and also the magnitude for the next quarters. So you mentioned Q3 India closure will come. So where do we stand with regards to the Fit4Growth To which extent it will headwind? intensify. Second question is about your performance in China, which you described as pretty strong. So that is in contrast to all the comments we heard over the last quarters where China was very tough environment. So did you see now with Q2 a return to the better, or is it just, like, driven by a low base? Etc.? Yeah.
Enrico Vita: So I will start with the second 1. So with regards to China, no, I think that we are performing extremely well there. We have grown in a very, very solid way. I think that organic growth in China was high-single-digit for the quarter. So very strong in China. We are very happy. I think that the team there is working very well. I assume, you know, in China, it is very difficult to estimate the market. So we assume that also the market is showing improved trends. But again, this is really according to our estimates. With regards to the first question, so Fit4Growth, yes, of course, first of all, we are very happy about our execution of all the initiatives that you know very well. They are going even ahead of our plan. We have also announced the divestiture from India. So the impact of Fit4Growth will be a bit more, I would say, but this is, of course, a positive news. It will be more or less in the region of 3% to 3.5%. More towards the 3.5%, I would say. But of course, this is something that it is positive. it is demonstrating also our to deliver the initiatives that we indicated in our Fit4Growth program. Okay. Great. Thank you.
Operator: Next question is from Julien Dormois, Jefferies.
Julien Dormois: Hi, good evening, everyone. I hope that you can hear me okay. Julien from Jefferies. I would ask 2 if that is okay for you. Amazing. First 1, and first of all, congrats on the print. I would appreciate to push you a bit further on the margin guide, especially. I would love to hear your feedback on the rationale for not, let's say, probably having trimmed up the margin guide given you have already delivered an impressive 90 bps margin improvement in H1, while arguably the H2 margin comp is easier, and that you will have also the Fit4Growth contribution likely to be ramping up further? And the second question, we could tackle that 1 after. But that will relate basically to the performance you have made and where you have gained the most share and so on. The most -- sorry.
Enrico Vita: Say again? The second 1, sorry, it is about the organic sales growth performance that you have made. You have commented on having gained share almost across the board with the only exception of some European markets. I would like to have some feedback on that, please. Okay. Well, with regards, yes, to with regards to the second question, so our market share gains, we are confident also because we have we have posted a very strong organic growth. We have we are very confident we have gained market share in the markets that I mentioned earlier, so including the U.S. In Europe, Italy, Spain, definitely, we have grown share. In Asia Pacific, definitely, did a fantastic performance also in Australia, and we are confident that we have grown share With regards to the other 2 main markets in Europe, it is difficult to say about France because France now is a market that is not very easy to predict. And we do not have the final numbers for Q2. In France, I would say that most probably, we have performed in line with the market, not losing, not gaining share. Also, the with regards to the other market, so Germany, maybe there we have performed slightly below our estimates regarding the market, but nothing that is of concern for us sometimes, it happens.
Operator: Next question is from David Adlington, JPMorgan.
David Adlington: Thanks for taking the questions.
David Adlington: It would be great if you could just help us to break down the margin improvement contributed from Fit4Growth and how much was some operating leverage? I am not sure if you are able to do that or not. And the second 1, is the U.S. private market. I just wondered if you thought that was benefiting from the slowdown in the insured, whether uninsured patients who had insurance were now coming back into the private market. Yes.
Enrico Vita: Well, with regards to the second question, so the market growth in the U.S., clearly, we see a trend which is consolidating, which is about the insurance channel declining, whilst we see a positive, and I would say, stronger growth in the private Since the beginning of this trend, we mentioned that we would expect some patients going from insurance to private. So I think that there is some kind of some kind of shift from 1 channel to the other quantify it is very difficult. Also, it is pretty difficult to quantify what was the contribution of the 90 basis points from a Fit4Growth and from leverage. So I cannot really give you numbers on that.
Operator: Next question is from Davide Marchesin, Equita.
Davide Marchesin: Hi, good evening, everybody. I have a follow-up-- Hi. I have a follow-up question on the U.S. insurance market. I wanted to understand if the market is still contracting sequentially or if after maybe a sharper drop in 2025 in the market, the insurance market stabilized. And then should expect a kind of improvement in the second part of the year? And the second question regarding the third quarter, evolution, you mentioned quite a reassuring start to the quarter. So I assume July was good. How much is typically the mix between the 3 months of the quarter? I assume September is the most important, but just if you could help us to quantify a little bit month by month. Thank you.
Enrico Vita: Yes. Well, I do not have my mind, unfortunately, the exact, let's say, percentage of the contribution of individual months to the quarter, but you are absolutely right. September is the biggest month in the quarter, then July, and then, of course, August is smaller. But anyway, July is a meaningful month. But September is even bigger than July. With regards to the first question and therefore, the performance of the insurance the insurance market in 2025, the insurance channel declined by 3%. In Q1, it was particularly soft. With a -6%. And in Q2, as I mentioned during my introduction, the decline was about 4%. So it is difficult to see a trend there. But I would say that this not necessarily a negative news because as I mentioned before, some of the patients are moving to private. I would expect the insurance market maybe improve a bit for in the second half because of the comparison base, but not so much. So I still expect the private market to lead the growth of the U.S. Also in the second half? Thank you.
Operator: Next question is from Niels Granholm-Leth, DNB Carnegie.
Niels Granholm-Leth: Evening and thank you for taking my questions. A couple of questions related to your Fit4Growth program. Firstly, can you elaborate on the expected number of store closures during the second half of this year? And will second half of this year-end the store closure program included in the Fit4Growth program. And also, what are the prospects of you ending the Fit4Growth program before time, so before the end of 2027.
Enrico Vita: Yep. So with regards to Fit4Growth, as I mentioned, we are, I would say, ahead of our plan. As of H1, so including, of course, the actions we have taken last year, we have closed at a group level about 200 stores. And, let me say, for the completion of the Fit4Growth program, we envisage a number of stores in the region of 250. So let me say that we are almost there. So that is that is these are the numbers at a group level. I do not have in my mind that for Europe. But as you know, this is an initiative which is which is pretty wide widespread across all the 3 regions. So what would be the prospects of you ending the Fit4Growth program before the end of 27? Yes, yes, of course. I think that by the year-end, we will have completed, let me say, the extraordinary part of Fit4Growth. Then we will continue, of course, to optimize our network, but this will be on a more normalized activity and level. So the number of restructuring cost to Fit4Growth in 2027 should be very minimal. Oh, yes. Absolutely. Very minimal. Thank you. Thank you.
Operator: Next question is from Susannah Ludwig, Bernstein.
Susannah Ludwig: Hi, good evening and thanks for taking my questions. I have 2, please. 2 please. The first, I guess you have helped hopefully quantified your expectations for the impact for Fit4Growth. I think previously, you had talked about an M&A contribution of 0.5-1% and just wanted to know if that was still your expectation. And then second, on the U.S., I guess, could you remind us what your exposure is to managed care versus private pay now that you have exited the large managed care contract at the beginning of the year?
Enrico Vita: Yeah. You asked for the our exposure to the insurance channel, right, in the U.S.? Yeah. Exactly. K. So with regards to the first to the first question and therefore, the contribution from M&A to our sales growth, it will be exactly what you say. So in the region of 0.5 to 1%, Why is now our exposure to manage insurance channel now, of course, much lower than before. it is in the region of 10%. Great. Thank you of course, sir. Of the U.S. And not of the entire region. Yes. Exactly. Okay. Thanks.
Operator: Next question is from Giorgio Tavolini, Intermonte.
Giorgio Tavolini: Hi, good evening. Thanks for taking my questions. Have a couple questions, Good evening. The first 1 is on customer trends. So I was wondering behind the impressive level of organic growth in EMEA, if you could provide any color on the mix between returning customers and new customers? And if you are seeing, in that sense, with the existing customers, a normalization of the replacement cycle in the hearing aids? So you in the past, you talked about an extension of the cycle. And the second question is on the planned reorganization of the non-EU activities that you mentioned in the press release. I was wondering if this is a technical step to facilitate the GN Hearing acquisition. So to ensure compliance, I do not know, with local regulation? Or if it is something that basically provide you with great flexibility for future expansion, partnerships in any outside Europe. Thank you.
Enrico Vita: Thank you. And, of course, I am very happy to answer the first question and I am even happier to ask Gabriele the second question because it is a very technical thing. So but now with regards to the first 2 questions, and therefore, the mix of customers, I think that now we are seeing a more normalized level of customers between, let's say, returning customers and new ones. I would say that both segments were very strong in the second quarter. And therefore, I would say that now we see a more normalized markets. With regards instead to the second part of the question, I would ask Gabriele to give you some additional information.
Gabriele Galli: Absolutely. No, Giorgio. As you say, I mean, it is exactly that we wanted to start the reorganization of the group from a few points of view, In order to better prepare for the prospective acquisition of GN. So, the group today has a very simple organization at 1 level where we want to operate some sort of, let's say, segmentation of the different participation of the group. But again, it is meant to better organize it from several points of view, not to prepare for strategic partnership as you were pointing out in the second part of your question.
Giorgio Tavolini: Thank you very much, Enrico and Gabriele.
Gabriele Galli: Thank you.
Operator: Next question is from Veronika Dubajova, Citi.
Veronika Dubajova: Hey guys, thank you for squeezing me in for a follow-up. I just wanted to clarify your comment about the Q3 momentum because I think in your prepared remarks, Enrico, you said it was consistent with the H1 momentum. But I think in 1 of the questions, you said it was consistent with Q2 momentum. So just wanted to understand whether it is tracking more towards the 3.5 or the 4.5 to 5. That you are seeing in July. Thanks.
Enrico Vita: No. Well, I cannot give you a number. Of course, my indication was a qualitative indication, and what I said is that the kind of trend that we see is showing a positive momentum. I cannot tell you if it was more in, let's say, with in relation to H1 or Q2. But let me say, it is what we see is positive. And this is, of course, very encouraging. Of course, as I said, Q3 is also stronger quarter. September is a stronger month. So I want to see this also consolidating throughout the quarter. But it was more a qualitative comment about the fact that we are happy about how the quarter started. Got it. Thanks so much. I thought I tried. Thank you.
Francesca Rambaudi: We have a last question, operator.
Operator: Last question is from Julien Dormois, Jefferies.
Julien Dormois: Yes. Thank you for the follow-up question. I would just love to get a sense of whether you could comment or not actually on the Fit4Growth contribution and I am talking about, about it from a margin perspective. In H1? And if you could also comment on the in terms of trading days for Q3, that would be amazing. Thank you.
Enrico Vita: Yeah. So trading days will be similar. I mean, zero. It was the case in Q2, and it will be the case in Q3, and it will be the case as far as I remember also in Q4. So trading days are not going to have either a positive or negative impact going forward. With regards to the impact, I mean, the contribution of the Fit4Growth to our margin improvement. As I say I cannot really give a quantification of that. But of course, we have had definitely a good contribution coming from that already in Q2 and also, we expect the same in Q3 and Q4. Thank you. Okay. Thank you very much. Thank you, everyone. Thank you. Thank you.
Francesca Rambaudi: I kindly ask Alicia to disconnect. And thank you, everybody, for the interest and the attendance. Thank you.
Enrico Vita: Thank you. Bye.
Operator: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.