Sonova has upgraded its mid-term sales guidance on the back of sustained market recovery across key geographies and the introduction of newer and upgraded offerings. Although, the EBITA increase guidance remained unchanged. More importantly, this optimism has been reinforced despite the brewing Delta variant risks. Add on top the high-growth potential from the Sennheiser consumer division, and the firm’s sustained technological leadership in the core hearing aids business, Sonova seems attractiv
Companies: Sonova Holding AG
FY20/21 ended on a high with all segments and regions returning to growth in H2 – momentum was led by the strong market recovery and the successful launch of Paradise. The profitability beat was also encouraging as the group’s structural optimisation initiatives have borne fruit. Given that pent-up demand needs to be satisfied and new demand is also emerging as vaccination gathers momentum, management has shared a promising outlook for FY21/22. Re-initiation of the share buy-back programme is th
The H1 20/21 beat was driven by a strong market rebound, robust commercial execution and the successful launch of Paradise. The hearing aid wholesale business fared better than retail, though cochlear implant was a drag. Geographically, Asia-Pacific led the recovery with positive sales growth in Q2. Importantly, group sales were up in a high single-digit in September and, despite headwinds from the newly-imposed lockdowns, management has reiterated its full-year guidance on the back of the bette
Sonova has reiterated its mid-term growth strategy and financial targets. On the hearing aid wholesale side, the recovery has been faster than expected and the new product launch, Paradise, will be backed by robust commercial execution. On the retail side, store network optimisation and the omni-channel strategy will be at the forefront. The group will also focus on process improvements to generate cost savings. However, the recovery in the cochlear implants segment has been slow.
Benefiting from a faster than expected improvement in the hearing aids marketplace – the elderly population was more comfortable in going back to retail stores than anticipated – Sonova has upgraded its outlook for H1 20/21. Good reception of its recently-launched product, Paradise, also played a part. Assuming no further major lockdowns and sturdy demand for Paradise, Sonova expects to return to growth in H2 20/21. With the market stabilising, Danish rivals Demant and GN Store Nord should also
With the gradual re-opening of the markets, Sonova’s sales run-rate reached 59% (in Q1) vs. 35% in April 2020. The recovery was faster than expected and management has guided for a 65-75% sales run-rate and single-digit EBITA margin for H1 20/21. Interestingly, Sonova has accelerated its structural optimisation measures – streamlining of the retail network and optimisation of non-customer facing functions could lower the headcount by 4-5% – and these initiatives have the potential to generate an
H2 was better than expectations, led by a sturdy show in wholesale, though retail and cochlear implants lost pace due to the ongoing pandemic. Higher volumes and ASPs bolstered EBITA, though these were partly offset by an increase in the allowance for bad debts. To ensure adequate liquidity, the share buy-back programme has been suspended and management has proposed a stock dividend. Given that Sonova’s sales run-rate for April 2020 was better than Demant’s, it could be a key beneficiary when ec
Sales momentum accelerated significantly in H1, led by broad-based growth across businesses. While wholesale benefited from the success of Marvel, the momentum in cochlear implants was driven by the MRI-compatible implant. Retail was fuelled by effective lead generation management and in-store execution, leading to the financial guidance upgrade for FY19/20. Nonetheless, higher than expected R&D and sales and marketing expenses and a new restructuring charge took away some of the sheen.
After a slow start, organic sales growth accelerated significantly in H2, led by the successful introduction of the next-gen MFA product, Marvel. Geographically, Europe was the principal growth contributor which overshadowed a weak show in the US. Profits also witnessed a substantial increase, benefiting from higher volumes, favourable ASPs and supply chain optimisation. For FY18/19, organic revenue growth came in at the higher end of the guidance range and profits were in line with expectations
CVS, one of the largest healthcare and pharmacy chains in the US, has announced the closure of all of its hearing centres in the US. With the over-the-counter/OTC hearing aids regulation set to become law in 2020, the requirement of hearing loss testing and support care would be done away with and thus there would be no need for an audiologist in the new set-up, the company said. Also, as lower-priced products would dominate the market, dedicating space in stores to audiologists won’t make much
Revenues were in line with expectations as a deceleration in sales growth in the hearing instruments wholesale business was offset by a pick-up in momentum in the retail division. However, declining ASPs, resulting from a mature product portfolio and stiff competition, suppressed profitability. With a new product now out in the market, ASP’s should improve and thus bolster the top-line as well as profitability in the second half of the year.
Impacted by challenging market conditions in the US wholesale (competition) and retail business (repositioning of stores), Sonova reported FY17/18 organic sales growth (+3.8%) below the mid-term target range of +4-6%. However, as the next-gen SWORD product (launch expected in Q4 18/19) is likely to be a game-changer, we anticipate an acceleration thereafter.
Though the H1 17/18 results were slightly below the street’s estimates, we believe that the launch of the 2.4GHz MFA platform should provide the much needed push to organic growth in the short term and help the company achieve its FY17/18 revenue and profitability targets. However, the mid-term growth prospects hinges upon the success of the next-gen product (likely in FY18/19) which is likely to address the shortcomings of the current product offering (ear-to-ear streaming and rechargeability).
Sonova’s H1 16/17 numbers (slightly below consensus estimates) confirmed continuing sluggishness due to AudioNova’s acquisition and an ageing product cycle. Sales grew at a slower pace of 5.5% in LC (6.7% in CHF) vs. 6.7% in H1 15/16 to CHF1.1bn, albeit slightly better than the 4.8% in H2 15/16. Even this growth primarily (3.5%) came from acquisitions, while the organic number languished at 2% (H1 15/16: 2.6%). On a segmental basis, Hearing Instruments (HI) and Cochlear Implants (CI) grew by 5.4
Sonova completed the acquisition of Europe’s second largest hearing aids retailer AudioNova (Amplifon remains the largest retailer in the hearing aids industry), earlier than expected, in September 2016. Sonova acquired AudioNova from the investment company HAL Trust, pipping the likes of WDM (William Demant) and Sivantos. The acquisition brings >1,300 retail stores spread across eight European countries, further fortifying Sonova’s hold on its distribution channel (as a reminder, with >2,000 re
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EKF has delivered another strong set of results, with the step change in the scale of the business firmly consolidated. H1 revenues increased 46.5% driven by an ongoing recovery in the core business and strong demand from a number of public and private sector customers for sample collection devices. The outlook remains positive and progress is being made against the new strategy set out earlier in the year. We upgrade our FY21 revenue forecasts by 7% and EBITDA by 13% noting this still implies a
Companies: EKF Diagnostics Holdings plc
After the exceptional trading conditions in China last year comes the hangover. A further softening in pork prices highlighted at the July trading statement has led to conditions in China continuing to ease in Q2. Revenues YTD in that market are now significantly below management expectations and down YoY. Whilst some recovery is expected in H2, there looks to be much to do to make up the shortfall. More encouragingly, trading in the group’s other markets remains in line with expectations. We re
Companies: ECO Animal Health Group plc
Momentum is building in Circassia, with the recovery from the pandemic gaining traction and actions taken by management to focus the business having a material impact on the bottom line. Having already upgraded in July, we are upgrading forecasts again today to reflect the further progress on reducing fixed costs. We now expect the group to trade close to EBITDA breakeven this year and for significantly improved profitability and cash generation from next year onwards.
Companies: Circassia Group PLC
Companies: SourceBio International Plc
Exactly one year ago, the FTSE 100 closed at 5,862, having fallen 100 points on the day, the lowest point since mid-May 2020, due in part, to the strength of sterling vs US$ at $1.34. One year on, the FTSE 100 has risen to 7,119, a rise of 21%, it remains 7% below the peak in January 2020. From an international viewpoint, US and European markets continue to trade at record highs. The US Federal Reserve is close to withdrawing some of its economic support this year as inflation picks up and the e
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genedrive has raised £6m with up to £4.5m possible via an Open Offer to launch its point-of-care (POC) antibiotic-induced hearing loss (AIHL) test in September, complete development and launch of its POC molecular COVID-19 test, and support commercialisation and further product development activities. Both new tests will utilise the Genedrive® POC instrument platform, which is a proven molecular diagnostics (MDx) platform validated by the US Department of Defense (DoD). The AIHL test could suppo
Companies: Genedrive Plc
Interims show a sharp recovery in revenues (+63% YoY) and a continued improvement into H2, albeit with the caveat that visibility remains limited in the short term. The building blocks are in place for a strong growth story, but this remains dependent on elective surgery volumes normalising over a consistent period. At the moment, the recovery is somewhat stop-start in nature, hence we cautiously reinstate FY21 estimates, but leave outer years withdrawn for now.
Companies: Surgical Innovations Group plc
MAST Energy Developments (MED) is to IPO on the Standard List on 14th April 2021 under the ticker MAST. The company has raised £5m giving a market capitalisation on listing of c. £23m. MED is currently a 100% subsidiary company of AIM quoted, Kibo Energy*. MED was established to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market. PensionBee has confirmed its intention to float on the High Growth Se
Companies: SYM CGNR EKF KBT GGP VLS TMO ECK B90 MDZ
Trading has strengthened significantly since restrictions eased in April, especially in the UK. UK brand sales are now up 64% YTD (+18% vs 2019). Further distribution gains are being made, including in the USA and online sales have tripled, albeit off a small base. Net cash has increased to £6.6m (Dec’20, £4.9m). Risk appears to lie to the upside vs prudent forecasts. The re-rating looks well supported to us, and we look forward to the H1 update in July
Companies: Warpaint London PLC
EKF recently unveiled a strategy for driving growth in the business over the next few years. It will be led by a refreshed executive management team and board, building on renewed strength in the core business and opportunities in developing wider contract development and manufacturing activities. Accretive bolt-on acquisitions will also be considered, all funded by the current strong net cash position of the group. Overall, the ambition is to deliver sustainable double-digit EBITDA growth into
Fusion showed solid FY21 revenue growth of 7% to £4.2m (vs £3.9m), particularly as client projects were delayed by the COVID-19 pandemic. Operating loss rose marginally from £1.1m to £1.2m (reported net profit in FY21 was distorted by a £1.7m non-cash, accounting charge). This reflects strong R&D investment in the new OptiMAL service; this is due to gain commercial revenues in FY23. Fusion should then experience narrowing losses on the trajectory to profitability. After a £3m gross capital raise
Companies: Fusion Antibodies Plc
Maiden interim results are slightly ahead of our expectations with a better performance on cash preservation. This should be taken positively in light of the strong strategic progress in the period. The validation study of Clarava and Tuteva is on track to complete by year-end 2021 and, pending the outcome of the data in Q1 2022, be commercially launched in 2022. We have made no headline forecast changes, but the Company is well-placed to execute against our FY’21E estimates and is fully funded
Companies: Verici Dx Plc
Medical device companies are gradually seeing a rebound in their business after the focus of healthcare is slowly shifting from Covid-19 back to normalcy. Stryker Corporation is one of the top-most high-tech names within this domain that has performed exceptionally well on the financial front on account of the recovery in surgical volumes in the U.S. and abroad. It is worth highlighting that Stryker’s product portfolio has grown exceptionally well over the years, both organically as well as thro
Companies: Stryker Corporation (SYK:NYSE)Stryker Corporation (SYK:NYS)
Doctor Care Anywhere (DOC) has delivered on another IPO commitment, entering the Australian telehealth market with its acquisition of GP2U Telehealth for A$11m. The COVID-19 pandemic has created permanent structural changes in Australian healthcare, which has accelerated the adoption of telehealth, particularly for its large rural population where access to quality healthcare has historically been limited. This acquisition gives DOC a foothold in the market, where management’s experience could a
Companies: Doctor Care Anywhere Group PLC Shs Chess Depository Interests Repr 1 sh
Following a placing in June 2021, raising gross proceeds of £7.7m,
management is now leveraging the strength of the balance sheet to accelerate its
growth strategy. The Martlet investment diversifies NSCI's business further with
quality investments in high-growth sectors, aligned to NSCI's capital-light
investment model, while providing further transactional opportunities for its
subsidiary EMV Capital. The portfolio companies, and additional strategic funding
partners, decrease port
Companies: NetScientific plc