Sonova (SOON) investor relations material

Executive summary

• Group sales reached CHF 1,815.4 million, up 4.9% in local currencies, driven by strong growth in Hearing Instruments and Audiological Care, with combined sales up 7% and significant market share gains, while Consumer Hearing and Cochlear Implants faced headwinds, especially from tariffs and China market challenges.

• Product innovation included launches such as Phonak Infinio, Infinio Seer, VirtoR, Infinio Ultra, and Infinio Ultra Sphere, advancing AI and rechargeable ITE solutions and driving positive market response.

• Organizational restructuring to a four-region model aims to enhance customer proximity and responsiveness, with regional heads reporting directly to the CEO.

• Margin improvement in local currencies was largely offset by strong FX headwinds, with normalized Group EBITA up 16% in local currencies to CHF 316.1 million and margin at 17.4%.

• Outlook for FY 2025/26 confirmed, expecting continued growth from recent product launches and innovation leadership.

Financial highlights

• Group sales reached CHF 1,815.4 million (+4.9% in local currencies, -1.0% in CHF), with organic growth of 4.5% and acquisitions contributing 0.4%.

• Normalized EBITA was CHF 316.1 million (+16.0% in local currencies), with margin up 180 basis points to 17.4%.

• Normalized EPS grew 20.1% in local currencies to CHF 3.56; reported EPS stable due to FX effects.

• Cash flow from operating activities increased 12.1% to CHF 241.2 million; free cash flow was CHF 37.5 million.

• Net debt to EBITDA at 1.5x, improved from 1.8x a year ago; equity ratio at 44.4%.

Outlook and guidance

• FY 2025/26 guidance reiterated: consolidated sales growth of 5-9% and normalized EBITDA/EBITA growth of 14-18% at constant exchange rates.

• Market growth expected at 1-3% for the remainder of the year, with continued volatility and macroeconomic uncertainties.

• Currency headwinds expected to reduce reported sales growth by 6 percentage points and EBITDA/EBITA by 13-14 percentage points.

• Sequential improvement anticipated in Consumer Hearing and Cochlear Implants in H2.

• Assumes no significant new tariffs or major disruptions beyond those already known.