16/08/2022 | 08:00 CEST | Financial results
Stäfa (Switzerland), August 16, 2022 – Sonova Holding AG, a leading provider of hearing care solutions, today provides an interim business update outside the regular reporting schedule. The development of certain key hearing care markets in the first months of the financial year 2022/23 has been slower than initially anticipated, resulting in lower-than-expected revenues for the Group, as well as an adverse development of the country and channel mix. This coupled with higher component and freight costs has negatively impacted the profitability development. As a result and reflecting the uncertainties in the remainder of the financial year, Sonova therefore revises its outlook for FY 2022/23.
Revenues in the first months of FY 2022/23 were adversely impacted by subdued volume growth in higher priced hearing care markets and distribution channels, in particular in the private market in the United States, resulting in pressure on the gross margin in the Hearing Instruments business. Furthermore, continued headwinds from transportation and component costs as well as higher wage inflation weighed on profitability. In the first half of FY 2022/23, Sonova therefore expects growth in consolidated sales of approximately 16%-18% and adj. EBITA to remain largely unchanged versus the prior year period, both measured at constant exchange rates. The year-over-year comparison for the same period is impacted by the first-time inclusion of the Consumer Hearing business, which, as expected, is typically more strongly skewed towards the second half of the financial year.
Reflecting the current challenges and uncertainties in the remainder of the financial year, Sonova revises its outlook for FY 2022/23. The Group now expects consolidated sales to increase by 15%-19% and adjusted EBITA to grow in the range of 6%-10%, both measured at constant exchange rates. This compares to our previous outlook of growth in sales and adjusted EBITA of 17-21% and 12-18% respectively, both measured at constant exchange rates. Reflecting the recent exchange rate movements, the Group anticipates a negative impact on the reported FY 2022/23 revenues and profitability in Swiss francs.
Arnd Kaldowski, CEO of Sonova, says: “The revised outlook for FY 2022/23 implies a sound sales performance in the second half, amid an expected slowing market momentum. This demonstrates our confidence in the success of the imminent launch of our new hearing aid product platform. The new platform represents another significant step in innovation focused on improved audiological performance, further supporting our leading market position. It also reflects the typical higher seasonality of the Consumer Hearing business. Coupled with strict cost control and the positive impact from recent price increases, we expect to achieve solid profitable growth for the same period.”
Investor and analyst conference call
Today at 08.30 AM CEST, Sonova will host a conference call for investors and analysts on this announcement.
The listen-only live audio webcast can be accessed at:
Participants who would like to listen in and ask questions live during the call are kindly requested to dial the following numbers 10-15 minutes prior to the start of the call:
+41 (0) 58 310 50 00 (Europe / Switzerland)
+44 (0) 207 107 06 13 (UK)
+1 (1) 631 570 56 13 (USA)
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