Investing.com — Swiss hearing-aid maker Sonova (SIX:SOON) raised its full-year sales and profit growth forecasts on Thursday after first-half core operating profit beat analyst expectations by about 10%, although its new outlook implies slower second-half earnings growth than the market had expected.
Sonova now expects sales to grow 6%-8% in the 2026/27 financial year, compared with its previous forecast of 5%-8%, and core operating profit (EBIT) to increase 10%-13%, versus 7%-10% previously. Both forecasts are in local currencies.
Core EBIT for the six months to Sept. 30 rose to CHF 384 million from CHF 316.4 million a year earlier, beating Vara Research consensus of CHF 348.3 million as of Nov. 3. Growth was 22.9% in local currencies, compared with the 11.8% expected.
Sonova attributed the increase to higher sales, rising average selling prices and cost discipline, partly offset by weaker cochlear implant results.
The core EBIT margin increased to 20.9% from 18.4% a year earlier, above consensus of 19.2%.
Core gross profit rose 11% in local currencies to CHF 1.37 billion, beating consensus of CHF 1.32 billion, helped by higher volumes and prices and the absence of temporary manufacturing and logistics costs incurred a year earlier.
Analysts had expected full-year core EBIT growth of 9.4% and second-half growth of 7.5%, compared with Sonova’s new full-year forecast range of 10%-13%.
Sales rose 7.5% in local currencies and 6.7% in Swiss francs to CHF 1.83 billion, slightly above consensus of CHF 1.82 billion.
Cochlear implant sales fell 10.2% in local currencies to CHF 117.4 million, hurt by lower systems sales in China following the introduction of volume-based procurement and in the United States.
Core EBIT at the division fell 49.1% in local currencies to CHF 7.1 million from CHF 13.9 million a year earlier.
Upgrade and accessory sales declined 27.2% in local currencies ahead of the launch of the Integro sound processor, which was introduced in Europe in October. Its U.S. launch is awaiting FDA approval.
