Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Sonova Sees Profit Growth Slowing on Reimbursement Shifts

May 21 (Bloomberg) -- Sonova Holding AG forecast that profit growth will slow this year because of government reimbursement changes in the Netherlands and Scandinavia and weakening sales in Europe.

Earnings before interest, taxes and acquisition-related amortization and impairments will rise 9 percent to 13 percent in local currencies compared with a 15 percent jump in the 12 months ended March, the Staefa, Switzerland-based company said in a statement today. Sales on that basis will rise 6 percent to 8 percent, versus a 7.4 percent gain in fiscal 2013.

“The real disappointment is the outlook, especially on the back of recent product launches,” Oliver Metzger, an analyst with Commerzbank AG, said in a phone interview today. “It indicates a slowdown in momentum.”

Full-year Ebita fell to 182.8 million Swiss francs ($188.7 million) from 315.2 million francs in fiscal 2012 after Sonova increased product-liability provisions by 197.8 million francs to cover claims related to a 2006 recall of cochlear implants made by its Advanced Bionics unit. Excluding the one-time charges and currency effects, Ebita increased to 386.4 million francs.

Sonova fell 1.1 percent to 103.50 francs at the close in Zurich, paring the gain in the past 12 months to 11 percent.

Sales increased 11 percent to 1.8 billion francs, in line with the 1.82 billion-franc average of 17 analyst estimates compiled by Bloomberg. The company plans a dividend of 1.60 francs a share.

To contact the reporter on this story: Allison Connolly in London at aconnolly4@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.