By Amir Orusov and Anastasiia Kozlova
(Reuters) -Swiss hearing aid maker Sonova Holding reported a half-year core profit below market expectations on Friday, hit by adverse currency exchange conditions, sending its shares more than 5% lower.
The U.S. accounts for roughly a third of Sonova’s group sales, which has exposed it to the weakened dollar.
The world’s largest maker of hearing aids posted earnings before interest, taxes and amortisation, normalised for non-recurring items, of 316.1 million Swiss francs ($398.6 million). Analysts polled by Vara had forecast EBITA of 332.1 million francs on average.
Converting local currency results, notably those in U.S. dollars, into Swiss francs cost Sonova 44.9 million francs in the first half of the fiscal year that began in April, it said.
“We clearly gained shares in the U.S., driven by re-entry into a major account and strong numbers in Veterans Affairs, supported by successful launches like Infinio and Sphere,” CEO Eric Bernard told Reuters.
He expects Sonova to be able to maintain a strong momentum in the second half of the year, driven by these products.
Bernard reiterated his earlier statement that Sonova’s main products were exempt from U.S. tariffs under the so-called Nairobi Protocol, which allows tariff-free imports of devices for people with long-term disabilities.
Sonova maintained its full-year outlook for 14-18% growth in normalised core earnings based on constant exchange rates. However, it now expects adverse currency exchange conditions to impact the result by 13-14%, rather than the previously guided 5-6% hit.
It expects reported sales growth to be reduced by around 6%, versus 4% seen in May, based on exchange rates at the end of October.
Sonova reported quarterly results for the first time under its new management team, which is hoping to steer the company through difficult conditions characterised by a slower hearing aid market, intensifying competition and tariff-related uncertainties.
($1 = 0.7931 Swiss francs)
(Reporting by Amir Orusov and Anastasiia Kozlova in Gdansk, editing by Milla Nissi-Prussak)
