In This Article:
-
Revenue Growth: 7.6% in local currency for the full year.
-
EBITA Growth: 7.4% in local currency, with a 16% increase in the second half.
-
EBITA Margin Improvement: 130 basis points year-over-year for the second half.
-
Adjusted EBITDA Margin Increase: 600 basis points from first half to second half.
-
Net Debt-to-EBITDA Ratio: 1.2, well within the target range.
-
Cash Flow Improvement: Operational free cash flow increased by 7.2% to CHF 578 million.
-
Hearing Instruments Growth: 8.5% for the year, with 9.8% in the second half.
-
Audiological Care Growth: 8.1% in the second half.
-
Cochlear Implants System Sales Growth: 16.3% for the full year.
-
Gross Margin: Improved by 30 basis points in local currency.
-
OpEx Growth: Reduced from above 10% to 6.2% in the second half.
-
Dividend Increase: Proposed increase to CHF 4.40 from CHF 4.30 last year.
-
Guidance for Next Fiscal Year: Revenue growth of 5% to 9% and EBITA growth of 11% to 15% adjusted.
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Sonova Holding AG (SONVF) reported solid growth with market share gains across all four business segments.
-
The hearing instruments segment showed strong growth, particularly driven by the Infinio Sphere product, which received positive customer feedback.
-
The company achieved a significant improvement in EBITDA margin, with a 600 basis point increase from the first half to the second half of the fiscal year.
-
Sonova Holding AG (SONVF) successfully implemented structural changes, resulting in a CHF40 million reduction in operating expenses.
-
The cochlear implants business experienced a 16.3% growth in system sales, indicating strong market acceptance and customer confidence in product quality.
Negative Points
-
The global market, particularly in the US, experienced a slowdown, with growth dropping to around 2%, impacting overall revenue growth.
-
There were concerns about the sustainability of market share gains due to new product launches by competitors.
-
The company faced challenges with tariff impacts on the cochlear implants and consumer hearing business, particularly in the US and China.
-
Sonova Holding AG (SONVF) had to implement restructuring costs, which were higher than initially communicated, impacting short-term financials.
-
The audiological care segment experienced revenue weakness in the first half of the fiscal year, necessitating focused efforts on lead generation and cost management.
Q & A Highlights
Q: Can you unpack the guidance for fiscal year '25-'26, particularly regarding pricing impacts and market assumptions? A: We anticipate a slight positive pricing impact in the first half of the year, normalizing in the second half. We've factored in a potential return to Costco and a meaningful price increase in the VA contract, which only adjusts prices every five years. The guidance assumes a 1% to 3% market growth, with significant contributions from new product launches and market share gains.