Overview of Sonova Holding AG, history, structure, financial performance

Sonova Holding AG is a leading Swiss company specialising in the development and production of hearing solutions. Headquartered in Stef, Canton of Zurich, Switzerland.

History and development of Sonova Holding AG

The company was founded in 1947 under the name AG für Elektroakustik. In 1965, Ernst Ries acquired a controlling interest, and in 1977 the company was renamed Phonak AG. In 1985, the holding structure Phonak Holding AG was established, and in 2007 the holding changed its name to Sonova Holding AG.

Structure and brands of Sonova Holding AG

Sonova operates through four main avenues:

• Hearing Instruments (Hearing aids): Phonak and Unitron brands.
• Audiological Care (Audiological care): a network of centres under the AudioNova brand.
• Consumer Hearing (Consumer Electronics): Sennheiser branded products (under licence).
• Cochlear Implants (Cochlear implants): Advanced Bionics brand.

These areas allow the company to offer a wide range of solutions for people with hearing impairments.

Financial performance of Sonova Holding AG

Sonova Holding AG achieved the following financial results in the 2023-24 financial year ended 31 March 2024:

• Revenue: CHF 3,626.9 million, an increase of 3.2% in local currencies compared to the previous year. However, in Swiss francs, this is a decrease of 3.0% due to unfavourable currency fluctuations.
• Adjusted EBITA: CHF 771.4 million, up 4.4% in local currencies but down 8.2% in Swiss francs.
• Adjusted earnings per share (EPS): CHF 10.06, down 9.6 per cent year-on-year.
• Operating free cash flow: CHF 539.2 million, an increase of 0.7% year-on-year.

In the first half of the 2024/25 financial year ended 30 September 2024, the company reported the following figures:

• Revenue: CHF 1,833.2 million, up 5.9% in local currencies and 4.6% in Swiss francs compared to the same period of the previous year.
• Adjusted EBITA: CHF 325.2 million, down 3.7% in local currencies and 7.1% in Swiss francs.
• Adjusted earnings per share (EPS): CHF 3.74, down 13.9% year-on-year.
• Operating free cash flow: CHF 104.2 million, down 30.7% year-on-year.

The lower performance in the first half of the 2024/25 financial year is due to costs associated with the launch of a new hearing aid with artificial intelligence technology. The Company expects profitability to improve in the second half of the year due to higher sales and lower costs associated with new product launches.

Geographical presence of Sonova Holding AG

Sonova operates in more than 100 countries, providing its products and services through its own subsidiaries, distributors and partners.

Research and development Sonova Holding AG

The company invests heavily in research and development with centres in Switzerland, Canada and the USA. Production facilities are located in Switzerland, China and Vietnam.

Acquisitions and partnerships of Sonova Holding AG

In 2009, Sonova acquired Advanced Bionics, a company specialising in cochlear implants. The acquisition of Hansaton Akustik GmbH was finalised in 2015 and AudioNova International B.V. in 2016, expanding the company's presence in the European market.

Stock exchange performance of Sonova Holding AG

Sonova is listed on the Swiss Stock Exchange and is part of the Swiss Market Index. The company has approximately 24% of the global hearing aid market by sales volume.