Sonova meets sales forecasts but misses profit targets on higher costs
Investing.com -- Swiss hearing aid maker Sonova on Friday reported first-half sales in line with expectations but missed profit targets as higher manufacturing costs and weak performance in certain markets weighed on margins.
The company posted sales of 1,815 million Swiss francs (CHF) with organic growth of 4.5% for the first half of its 2025/26 fiscal year, matching analyst forecasts of 4.3% growth.
However, normalized EBITA came in at CHF316 million, below the consensus estimate of CHF332 million, resulting in a 17.4% margin versus the expected 18.3%. Basic earnings per share missed by 18%, reaching CHF3.16 compared to analyst expectations of CHF3.84.
Despite the profit miss, Sonova maintained its full-year guidance, projecting sales growth of 5-9% in constant currency and normalized EBITA growth of 14-18%. The company warned that foreign exchange headwinds have worsened, now expected to impact sales growth by 6% and normalized EBITA growth by 13-14%.
The Hearing Instruments segment, which includes wholesale, retail, and consumer divisions, reported sales of CHF1,683 million with 5.7% constant currency growth. Within this segment, wholesale hearing aid sales grew 7.9%, driven by the continued success of Infinio and Sphere Infinio product lines, with additional contribution from the new Virto R custom in-ear device in the final weeks of the reporting period.
Audiological Care (retail) sales increased by 5.8% in constant currency to CHF707 million, supported by above-market growth from partial reinvestment of last year’s cost savings into lead generation.
The Consumer Hearing division saw an 11.6% decline in constant currency sales to CHF97 million, reflecting weak market conditions in the audio market, partially attributed to tariff-related effects.
The Cochlear Implants segment reported sales of CHF132 million, down 4.8% in constant currency, with system sales decreasing by 6.2% and upgrades and accessories declining by 1.5%. Despite lower sales, normalized EBITA for this segment beat expectations at CHF10.9 million, representing an 8.2% margin.
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