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Sales: CHF 1.8 billion, up 4.9% in local currencies.

Normalized EBITDA: CHF 316 million, up 16% in local currencies.

Sales Growth in Hearing Instruments and Audiological Care: 7% in local currencies.

Hearing Instruments Segment Sales: CHF 1.7 billion, up 5.7% in local currencies.

Audiological Care Sales: CHF 707 million, up 5.8% in local currencies.

Consumer Hearing Sales: Declined by 12% in local currencies to CHF 97 million.

Cochlear Implants Sales: CHF 132 million, down 5% in local currencies.

Gross Margin: Fell by 80 basis points in local currencies.

Normalized EPS Growth: 20% in local currencies.

Free Cash Flow: CHF 38 million.

Net Debt to EBITDA: 1.5 times.

Return on Capital Employed: 17.5%.

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Release Date: November 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Sonova Holding AG (SONVF) reported a strong performance in its two larger businesses, Hearing Instruments and Audiological Care, with a combined sales growth of 7% in local currencies, significantly outpacing the estimated market growth.

The company achieved substantial operating leverage and margin expansion in local currencies, with normalized EBITDA up 16% and a strong margin expansion of 180 basis points.

Sonova Holding AG (SONVF) launched several innovative products, including the Phonak Infino and Infinino platforms, which have been well-received in the market, contributing to the company's growth.

The company has made strategic organizational changes to enhance customer proximity and regional responsiveness, aiming to strengthen customer centricity.

Sonova Holding AG (SONVF) maintains a positive outlook for the full year 2025-2026, targeting 5 to 9% growth in sales and 14 to 18% growth in normalized EBITDA at constant exchange rates.

The Consumer Hearing and Cochlear Implants businesses faced challenges, with the former struggling due to weak markets and lack of significant product launches, and the latter impacted by volume-based procurement issues in China.

The strength of the Swiss Franc (CHF) continues to be a major headwind, negatively affecting reported sales and margins.

The company experienced a decline in sales in the Consumer Hearing segment by about 12% in local currencies, attributed to weak consumer demand and lack of new product launches.

Cochlear Implants sales were down 5% in local currencies, with significant headwinds in China due to volume-based procurement and lower upgrade sales.

Gross profit margin fell by 80 basis points in local currencies, impacted by temporary costs related to regionalizing manufacturing and logistic footprints, and lower operating leverage in the Consumer Hearing business.

Q: Can you elaborate on your guidance and confidence in the second half, especially with market uncertainties? Do you expect to hit the lower end of your range? A: We are confident in our guidance of 5 to 9% sales growth for 2025-2026, driven by recent product launches like Infinino Ultra Sphere and Vito AR. These innovations are expected to maintain our momentum in the second half. (Eric Bernard, CEO; Elodie Carr, CFO)

Q: Regarding your market share in Costco, have you reached your target, and how do you view the potential new entrants? A: We have reached a stable and reasonable share with Costco and are working on solid plans with them. While there are new entrants, we are pleased with our current position and progress. (Eric Bernard, CEO)

Q: Can you discuss the challenges faced in the VA channel and your outlook on market share gains? A: We faced challenges due to product imperfections, which have now been resolved. We are confident in continued market share gains, supported by our improved product offerings like Ultra, which enhances our competitive edge. (Eric Bernard, CEO)

Q: What are your expectations for the cochlear implant business, especially with the upcoming product launches? A: We anticipate a new product launch in 2026, which will enhance both system and upgrade sales. Despite current challenges, particularly in China, we expect improvements and growth in the cochlear implant segment. (Eric Bernard, CEO)

Q: How do you plan to capitalize on opportunities in the Asia Pacific region? A: We are focusing on increasing awareness, access, and affordability, along with tailoring products to regional needs. Establishing a regional head in Asia will help us better address market demands and expand our presence. (Eric Bernard, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.