Widex delivers strong growth

The group generated record sales of DKK 3,855 million, an increase of 17.7% compared to last year (including foreign exchange rate effects). EBITA increased to DKK 682 million or 17.7% of net revenue – an increase of 63.1% or 4.9 percentage points. With these results, the Widex Group brings profitability on par with the industry and delivers above-market growth.

According to the press release the results, which are the best demonstrated by Widex in several years, are the outcome of the Group’s strategy plan entitled IMPACT (Improve Profitability, Agility, Customer focus and be Truly global). One of the major goals of this plan was to bring profitability on par with competition by the end of 2017 – a goal that has now been reached one year earlier than expected.

Jørgen Jensen, CEO of Widex, says, “Last year we delivered good results but this year we have surpassed our own expectations. Our EBITA is on par with the industry, and we currently have one of the strongest growth rates in the market.”

Key to the positive results is an increase in sales driven by the launch of Widex’ latest hearing aid family, WIDEX UNIQUE, in October 2015, combined with a number of global and local sales efficiency initiatives. Widex has been successful in consolidating its position in the small and independent segment while exploring new sales channels and landing large accounts such as SpecSavers. The group has managed to maintain its average sales price, despite general price pressure in the market. At the same time it has continued its efforts to reduce costs by transferring production to Estonia and optimizing the supply chain, and through more efficient sourcing.

“We have managed to strengthen our profitability while continuing to invest in R&D and developing our business,” says Jørgen Jensen. “We have a lot of exciting initiatives in the pipeline and we are very well prepared to drive growth and strengthen profitability even further in the coming year.”

Highlights

• Record net turnover of DKK 3,855 million – up 17.7% compared to last year and 16.3% adjusted for foreign exchange rate effects

• Normalized EBITA of DKK 682 million or 17.7% of net revenue – growth of 63.1% or up 4.9% compared to 2014/15

• Net Working Capital at DKK 623 million or 16.2% of net revenue – a drop of DKK 25 million compared to last year

• Significant free operational cash flow of 686 million DKK allowing for further investments in R&D, production and business development

Source: Widex