Olga Enterprises publishes Q3 2023 Results - Trading Update

04 Oct 2023 14:33 CEST

• Group sales of CHF 1,426 million – up 12.0% in local currencies and 9.4%.
• Adjusted EBITA of CHF 279.5 million – up 16.1% in local currencies and 11.2%.
• Hearing Instruments segment – sales of CHF 1,294.1 million, up 11.0%.
• Cochlear Implants segment – sales of CHF 132.2 million, up 22.3%.
• Adjusted EPS of CHF 3.32 – up 14.0% in Swiss francs
• Operating free cash flow reached CHF 303.6 million – up 83.3%.
• Outlook for FY 2019/20 raised – sales growth of 8%-10% (from 6%-8%); growth in adjusted EBITA of 12%-15% (from 9%-13%), all in local currencies

High organic growth across all businesses

PRESSPAGE sales increased by 12.0% in local currencies in the first half of financial year 2019/20, driven by high organic growth in all three businesses. Organic growth contributed 11.0%, growth from acquisitions accounted for another 1.2%, whereas disposals reduced growth by 0.2%. Reported growth was held back by the recent strengthening of the Swiss franc, which reduced sales by CHF 32.9 million or 2.5%. This resulted in Group sales of CHF 1,426.3 million, an increase of 9.4% in Swiss francs.

Strong double-digit growth in the USA, solid momentum in EMEA and APAC

EMEA (Europe, Middle East and Africa), the Group’s largest region in terms of revenue, showed a sales increase of 9.7% in local currencies. Strong organic growth was achieved in key markets including Germany, France, UK, Spain, Italy and the Nordics. The EMEA share of Group sales decreased slightly from 54% in the first six months of financial year 2018/19 to 52% in the period under review, partly as a result of the recent weakening of the euro and the British pound versus the Swiss franc.

Based on strong organic growth across all businesses and channels, sales in the United States increased by 20.3% in local currency versus the prior year period. Growth in the Hearing Instruments segment was driven by both the ongoing success of the Phonak Marvel platform and the continued accelerated same store growth post the restructuring of the Audiological Care network last year. Furthermore, the introduction of Phonak Audéo™ Marvel with the US Department of Veterans Affairs (VA) in May 2019 and a new private label contract with a large US hearing aid retailer supported growth and market share gains. Growth in the Cochlear Implants business accelerated as a result of the increased adoption of the HiRes™ Ultra 3D implant introduced one year ago and strong upgrade sales. The region accounted for 30% of Group sales versus 27% in the first half of financial year 2018/19.

Sales in the rest of the Americas (excluding the US) increased by 0.5% in local currencies. Growth was held back by the Hearing Instruments business in Canada and by the decision to discontinue the distribution of certain non-Sonova products in Brazil. Sales in the Asia/Pacific (APAC) region increased by 11.5% in local currencies, driven by a strong development in China and Australia.