- Published on 09 June 2014
Swiss hearing aid giant Sonova is expecting double-digit growth in earnings this year, following strong sales of some of its newer products.
Strong growth is expected in the hearing aid market in the coming years, through a high degree of innovation and an increasing elderly population. Sonova is making the most of this environment, with innovation supporting strong growth. Some of its more recent introductions include hearing aids in colors designed to blend in with the skin and hair tone, to reduce the stigma of wearing these devices, and models that are dust and water-resistant. Demand was particularly high for the company’s Quest brand. Other important brands include Phonak, Unitron, Connect Hearing, and Advanced Bionics in cochlear implant systems.
According to the Swiss company, 2014/2015 sales are expected to increase by 7 to 9% and earnings before interest, tax and amortization to increase by 11 to 15% in local currencies. Data released by Sonova show that sales were up 11.7% when the adverse impact of currency fluctuations was taken into account, in particular a weaker US, Canadian and Australian dollar, Japanese yen and Brazilian real. Earnings were reported to have increased to CHF 430 million, rising sharply from CHF 183 million a year earlier.
Commenting on the company’s performance, Lukas Braunschweiler, CEO of Sonova said, “We are very pleased to announce another strong result that reflects the dedication of our teams and the benefit of Sonova’s constant pursuit of customer-driven innovation. Through a high number of successful product introductions, our hearing instruments business achieved a significant organic sales increase, outpacing the estimated market growth.” He also said that the company will make an announcement about a new type of hearing aid platform within the next six months. For the moment, no further details were given.Source: Reuters, Sonova