Sonova's half-year core profit lags market view as exchange rates weigh (updated)
14/11/2025 06:12
Inserts graphic on Sonova and peers' share performance; updates shares in paragraph 1, adds analyst comments and market context in paragraphs 10-12 Sonova's half-year profit misses consensus, hit by weak dollar New products to support momentum in H2, CEO Bernard says Sonova's main products are exempt from tariffs under Nairobi Protocol By Amir Orusov and Anastasiia Kozlova Nov 14 (Reuters) - Swiss hearing aid maker Sonova Holding SOON.S reported a half-year core profit below market expectations on Friday, hit by adverse currency exchange conditions, sending its shares 3% lower. The U.S. accounts for roughly a third of Sonova's group sales, which has exposed it to the weakened dollar. The world's largest maker of hearing aids posted earnings before interest, taxes and amortisation, normalised for non-recurring items, of 316.1 million Swiss francs ($398.6 million). Analysts polled by Vara had forecast EBITA of 332.1 million francs on average. Converting local currency results, notably those in U.S. dollars, into Swiss francs cost Sonova 44.9 million francs in the first half of the fiscal year that began in April, it said. "We clearly gained shares in the U.S., driven by re-entry into a major account and strong numbers in Veterans Affairs, supported by successful launches like Infinio and Sphere," CEO Eric Bernard told Reuters. He expects Sonova to be able to maintain a strong momentum in the second half of the year, driven by these products. Bernard reiterated his earlier statement that Sonova's main products were exempt from U.S. tariffs under the so-called Nairobi Protocol, which allows tariff-free imports of devices for people with long-term disabilities. Sonova maintained its full-year outlook for 14-18% growth in normalised core earnings based on constant exchange rates. However, it now expects negative currency exchange effects to impact the result by 13-14%, rather than the previously guided 5-6% hit. It expects reported sales growth to be reduced by around 6%, versus 4% seen in May, based on exchange rates at the end of October. However, it will be challenging to reach the upper end of the guidance, Research Partners analyst Urs Kunz said, adding the impact from the strong Swiss franc was a "major problem". Including Friday's drop, Sonova's shares have lost nearly 30% of their market value this year amid concerns over weaker market growth, U.S. import tariffs and currency movements, along with rising scepticism about its ambitious full-year targets. "Sentiment is not in the hearing aid sector and not in medical technology in 2025," analyst Sibylle Bischofberger from Vontobel said. ($1 = 0.7931 Swiss francs) Data shows U.S. dollar weakening against Swiss franc in year-to-date terms https://reut.rs/3WTZ9E8 Stock performance of Swiss Sonova (SOON.S) and its peers shown in percentage from December 30, 2024 to November 13, 2025 https://reut.rs/3WXLn3c (Reporting by Amir Orusov and Anastasiia Kozlova in Gdansk, editing by Milla Nissi-Prussak) ((Amir.Orusov@thomsonreuters.com ; Anastasiia.Kozlova@thomsonreuters.com))