Sonova targets revenue of $7.6 billion by 2030/31 in strategy update (updated)
23/03/2026 06:18
Recasts, adds analyst comment in paragraph 2, peers in paragraph 6 By Amir Orusov March 23 (Reuters) - Sonova SOON.S on Monday set new medium targets which analysts described as "ambitious", sending its shares down more than 8%, as it navigates a slower hearing aid market and intensifying competition under a new management team. Analysts from Jefferies and Vontobel called the new targets ambitious, while J.P. Morgan expected some skepticism among investors, citing the current market backdrop and the company's emphasis on Asia. In the medium term, the world's largest maker of hearing aids expects average annual sales growth of between 5% and 10% in local currencies, with ambitions of reaching 6 billion Swiss francs ($7.6 billion) in revenue by the 2030/31 financial year . The Swiss company expects core operating profit growth of between 7% and 12% during the period. "We are confident in our ability to deliver above-market profitable growth and sustainable value creation," CEO Eric Bernard said in a statement. The company confirmed that it expects full year sales and core profit to be at the lower end of its targeted range. Sonova shares had already fallen 12% since last November. Investors had anticipated weaker results after sector peers Demant DEMANT.CO and Amplifon AMPF.MI flagged below-average hearing aid market growth in 2026. Analysts at Jefferies said last week in a research note that Sonova is facing slowing momentum as platforms launched in August 2024 mature and tailwinds fade. Since the platform roll-out, Sonova shares have been under pressure amid concerns over weaker demand, intense competition, U.S. import tariff uncertainty and adverse currency effects. Under the new strategy, the company plans to raise its market share and profitability in Asia, make acquisitions in strategic markets, and pursue wider AI adoption and digitalization. Sonova announced plans to sell its Sennheiser consumer hearing business. That business, which was bought in 2022, generated about 6.5% of its revenue in the financial year 2024/2025. ($1 = 0.7893 Swiss francs) (Reporting by Amir Orusov, Editing by Miranda Murray and Matt Scuffham) ((Amir.orusov@thomsonreuters.com))