(Reuters) -Swiss hearing aid maker Sonova Holding reported a half-year core profit below market expectations on Friday, citing unfavourable currency exchange rates.
The world’s largest maker of hearing aids posted earnings before interest, taxes and amortisation (EBITA), normalised for non-recurring items, of 316.1 million Swiss francs ($398.6 million), missing the average forecast of 332.1 million francs from analysts polled by Vara.
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 financial year that began in April, it said.
The U.S. accounts for roughly a third of Sonova’s group sales, exposing it to the weakened dollar.
Sonova confirmed 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)
