H1 2004/05: Sales up 10% over prior year in local currencies

The Phonak Group is pleased to announce the financial results for the first half of 2004/05. In the first half of the year sales reached CHF 325 million. This represents a 10% growth, in local currencies (8% in reporting currency), over the same period last year, and was driven by consistent sales of Perseo, supported by strong growth in economy-level digital products as well as Phonak’s personal communication products. The gross margin reached 59.5% which is almost 500 basis points over the gross margin of 54.8% reported in the same period last year. EBITA increased by 43.2% to CHF 56.0 million and EBITA-margin improved to 17.2%, compared to 13.0% in the first 6 months 2003/04. Margin improvement came from efficiencies due to volume increases, savings in the purchase price of materials and the reduced manufacturing costs in China.