Sonova (SOON) H1 24/25 earnings summary

Executive summary

• Achieved 5.9% sales growth in local currencies (4.6% in CHF) to CHF 1,833.2 million, driven by hearing instruments and cochlear implants, despite challenging market conditions and competitive pressures in Audiological Care and Consumer Hearing.

• Successful launch of Infinio and Sphere platforms, with strong customer feedback and high ASP uplift, expected to drive stronger H2 momentum.

• Profitability pressured by launch-related costs, high lead generation expenses, and FX headwinds.

• Full-year guidance confirmed for both top and bottom line, with new products expected to support margin expansion in H2.

• Received top sustainability recognitions, including EcoVadis Platinum and TIME's #1 healthcare ranking.

Financial highlights

• Group sales reached CHF 1,833.2 million, up 5.9% in local currencies; organic growth was 4.5%, M&A contributed 1.4%, FX impact was -1.3%.

• Adjusted EBITA/EBITDA CHF 325.2 million (margin 17.7%), down 3.7% in local currencies; reported EBITDA margin 16.8% after restructuring and M&A costs.

• Adjusted EPS CHF 3.74, down 9.6% LC and 13.9% in CHF; basic EPS CHF 3.50, down 10.2% LC.

• Operating free cash flow CHF 104.2 million, down 30.7% due to profit decline, FX, higher CAPEX, and inventory buildup.

• Net debt/EBITDA at 1.8x; net debt increased to CHF 1,573.2 million, mainly due to inventory build-up and seasonal factors.

Outlook and guidance

• Full-year guidance confirmed for both revenue and profit, assuming continued subdued market growth and strong H2 momentum from new products.

• Expecting margin expansion in H2 as launch costs drop and ASP turns positive; structural cost actions underway for further improvement.

• FY 2024/25 guidance: sales growth of 6–9% and adjusted EBITA growth of 7–11% in local currencies.

• FX headwinds expected to reduce FY sales growth in CHF by 1–2 percentage points and adjusted EBITA by 4–5 percentage points.

• Restructuring and integration costs for FY 2024/25 anticipated at CHF 40–50 million.