Ad hoc announcement pursuant to Art. 53 LR

Stäfa (Switzerland), August 16, 2022 – Sonova Holding AG, a leading provider of hearing care solutions, today provides an interim business update outside the regular reporting schedule. The development of certain key hearing care markets in the first months of the financial year 2022/23 has been slower than initially anticipated, resulting in lower-than-expected revenues for the Group, as well as an adverse development of the country and channel mix. This coupled with higher component and freight costs has negatively impacted the profitability development. As a result and reflecting the uncertainties in the remainder of the financial year, Sonova therefore revises its outlook for FY 2022/23.

Revenues in the first months of FY 2022/23 were adversely impacted by subdued volume growth in higher priced hearing care markets and distribution channels, in particular in the private market in the United States, resulting in pressure on the gross margin in the Hearing Instruments business. Furthermore, continued headwinds from transportation and component costs as well as higher wage inflation weighed on profitability. In the first half of FY 2022/23, Sonova therefore expects growth in consolidated sales of approximately 16%-18% and adj. EBITA to remain largely unchanged versus the prior year period, both measured at constant exchange rates. The year-over-year comparison for the same period is impacted by the first-time inclusion of the Consumer Hearing business, which, as expected, is typically more strongly skewed towards the second half of the financial year.

Reflecting the current challenges and uncertainties in the remainder of the financial year, Sonova revises its outlook for FY 2022/23. The Group now expects consolidated sales to increase by 15%-19% and adjusted EBITA to grow in the range of 6%-10%, both measured at constant exchange rates. This compares to our previous outlook of growth in sales and adjusted EBITA of 17-21% and 12-18% respectively, both measured at constant exchange rates. Reflecting the recent exchange rate movements, the Group anticipates a negative impact on the reported FY 2022/23 revenues and profitability in Swiss francs.

Arnd Kaldowski, CEO of Sonova, says: “The revised outlook for FY 2022/23 implies a sound sales performance in the second half, amid an expected slowing market momentum. This demonstrates our confidence in the success of the imminent launch of our new hearing aid product platform. The new platform represents another significant step in innovation focused on improved audiological performance, further supporting our leading market position. It also reflects the typical higher seasonality of the Consumer Hearing business. Coupled with strict cost control and the positive impact from recent price increases, we expect to achieve solid profitable growth for the same period.” 
 
Investor and analyst conference call
Today at 08.30 AM CEST, Sonova will host a conference call for investors and analysts on this announcement. 

The listen-only live audio webcast can be accessed at:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=PMvoPtMj

Participants who would like to listen in and ask questions live during the call are kindly requested to dial the following numbers 10-15 minutes prior to the start of the call:

+41 (0) 58 310 50 00 (Europe / Switzerland)
+44 (0) 207 107 06 13 (UK)
+1 (1) 631 570 56 13 (USA)

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Disclaimer
This Media Release contains forward-looking statements, which offer no guarantee with regard to future performance. These statements are made on the basis of management’s views and assumptions regarding future events and business performance at the time the statements are made. They are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside Sonova’s control. Should one or more of these risks or un-certainties materialize or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Each forward-looking statement speaks only as of the date of the particular statement, and Sonova undertakes no obligation to publicly update or revise any forward-looking statements, except as required by law.

About Sonova
Sonova is a global leader in innovative hearing care solutions: from personal audio devices and wireless communication systems to audiological care services, hearing aids and cochlear implants. The Group was founded in 1947 and is headquartered in Stäfa, Switzerland.

Sonova operates through four businesses – Hearing Instruments, Audiological Care, Consumer Hearing and Cochlear Implants – and the core brands Phonak, Unitron, AudioNova, Sennheiser (under license) and Advanced Bionics as well as recognized regional brands. The Group’s globally diversified sales and distribution channels serve an ever growing consumer base in more than 100 countries.

In the 2021/22 financial year, the Group generated sales of CHF 3.4 billion, with a net profit of CHF 664 million. Over 16,000 employees are working on achieving Sonova’s vision of a world where everyone enjoys the delight of hearing.

For more information please visit www.sonova.com.

Sonova shares (ticker symbol: SOON, Security no: 1254978, ISIN: CH0012549785) have been listed on the SIX Swiss Exchange since 1994. The securities of Sonova have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or under the applicable securities laws of any state of the United States of America, and may not be offered or sold in the United States of America except pursuant to an exemption from the registration requirements under the U.S. Securities Act and in compliance with applicable state securities laws, or outside the United States of America to non-U.S. Persons in reliance on Regulation S under the U.S. Securities Act.