Sonova lags half-year profit estimates due to product launch costs
Corrects to EBITA, not EBITDA, in paragraph 9
By Amir Orusov and Anastasiia Kozlova
Nov 19 (Reuters) -Swiss hearing aid maker Sonova Holding SOON.S reported half-year core earnings below market expectations on Tuesday, weighed down by costs related to the launch of its new AI-boosted hearing device.
The world's largest maker of hearing aids said its adjusted earnings before interest, tax and amortisation (EBITA) fell 3.7% in local currencies to 325.2 million Swiss francs ($368.1 million) in the six months through September. Analysts polled by Vara were expecting 341.3 million on average.
It reaffirmed its full-year targets and said its profitability should grow significantly in the second half of the year, driven by stronger sales momentum, higher average selling prices and launch costs winding down.
Sonova gained an edge over its peers in August when it launched a first-in-market hearing aid utilising real-time AI, as tech-driven competition intensifies in the sector.
Since its launch, the new product made up more than 50% of units sold under the Infinio brand, the company said.
Vontobel analysts have said they expect Sonova's peers to launch improved AI devices by the end of 2025, but until then Sonova should be able to increase its sales and regain market share.
The launch of the new hearing aid family and its reported return as a Costco supplier have helped Sonova's shares to outperform peers like Denmark's GN Store Nord GN.CO and Italy's Amplifon AMPF.MI this year.
However, its results have been dented by strong gains of the Swiss franc against other currencies, including euro and U.S. dollar. Sonova makes around 80% of its sales in the Europe, Middle East and Africa (EMEA) region and the United States.
Based on Swiss franc reporting, its adjusted EBITAfell 7.1% in the first half of the year.
($1 = 0.8834 Swiss francs)
Reporting by Amir Orusov and Anastasiia Kozlova in Gdansk; editing by Milla Nissi
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