Corrected: Sonova lags half-year profit estimates due to product launch costs
19/11/2024 06:05
(Corrects to EBITA, not EBITDA, in paragraph 9)
By Amir Orusov and Anastasiia Kozlova
Nov 19 (Reuters) - Swiss hearing aid maker Sonova
Holding SOON.S reported half-year core earnings below market
expectations on Tuesday, weighed down by costs related to the
launch of its new AI-boosted hearing device.
The world's largest maker of hearing aids said its adjusted
earnings before interest, tax and amortisation (EBITA) fell 3.7%
in local currencies to 325.2 million Swiss francs ($368.1
million) in the six months through September. Analysts polled by
Vara were expecting 341.3 million on average.
It reaffirmed its full-year targets and said its
profitability should grow significantly in the second half of
the year, driven by stronger sales momentum, higher average
selling prices and launch costs winding down.
Sonova gained an edge over its peers in August when it
launched a first-in-market hearing aid utilising real-time AI,
as tech-driven competition intensifies in the sector.
Since its launch, the new product made up more than 50% of
units sold under the Infinio brand, the company said.
Vontobel analysts have said they expect Sonova's peers to
launch improved AI devices by the end of 2025, but until then
Sonova should be able to increase its sales and regain market
share.
The launch of the new hearing aid family and its reported
return as a Costco supplier have helped Sonova's shares to
outperform peers like Denmark's GN Store Nord GN.CO and
Italy's Amplifon AMPF.MI this year.
However, its results have been dented by strong gains of the
Swiss franc against other currencies, including euro and U.S.
dollar. Sonova makes around 80% of its sales in the Europe,
Middle East and Africa (EMEA) region and the United States.
Based on Swiss franc reporting, its adjusted EBITA fell 7.1%
in the first half of the year.
($1 = 0.8834 Swiss francs)
(Reporting by Amir Orusov and Anastasiia Kozlova in Gdansk;
editing by Milla Nissi)
((Amir.Orusov@thomsonreuters.com;
Anastasiia.Kozlova@thomsonreuters.com))