Sonova falls short of full-year targets, shares plunge

(Reuters) – Swiss hearing aid maker Sonova missed full-year targets and lowered its sales outlook on Wednesday, suggesting it could take some time to reap benefits from this month’s acquisition of AudioNova, sending its shares sharply lower. Sonova has been hurt by slower than expected growth for its U.S. cochlear implant business and by customer Costco’s move to sell own-brand hearing aids at cheaper prices than Sonova’s devices on neighbouring shelves. Though Sonova expects the 830 million euro ($953 million) takeover of Netherlands-based retailer AudioNova to pay off over time, Chief Executive Lukas Braunschweiler acknowledged that it could lose some European customers unhappy with its expanded role as both supplier and competitor. “We expect, and you can see that from our guidance in the coming year, a certain negative reaction from isolated customers in Europe,” Braunschweiler said. “The coming year will be one of transformation.” Shares in Sonova were down 7% at 1403 GMT, with the day shaping up to be the stock’s worst in 16 months. The company reported sales in the year to March 31 rose 5.8% to 2.07 billion Swiss francs ($2.11 billion), compared with a target of 6-8% target. Constant currency earnings before interest, tax and amortisation (EBITA) were up 1.4% at 430.6 million francs, against a target of between 3% and 7%. ‘WEAK’ GUIDANCE Braunschweiler’s new guidance for 2016/17 — sales growt...
Source: Mass Device - Category: Medical Equipment Authors: Tags: Business/Financial News Sonova Holding AG Source Type: news