Sonova Group announced its sales in the U.S. slid 8.8 percent in the first half of the 2018-19 fiscal year, marring an otherwise healthy financial report from the worldwide leader in hearing aids. But CEO Arnd Kaldowski said he expects the new Phonak Marvel hearing aids will help drive U.S. and global revenue higher in the second half.
The company’s overall top- and bottom-line results reflected strength in other regions in the first half of the fiscal year over the same period in the previous year. Consolidated worldwide sales increased by 4.0% in CHF Swiss francs to 1,303 million. And earnings increased 7.6 percent to CHF 251.3 million.
In the U.S., the first-half sales decline to $348 million USD came before the introduction of the Phonak Marvel hearing aids. The new products are the first to stream audio from both iPhone and Android phones directly into both ears.
“The new Phonak Marvel product platform unveiled in October received very strong initial interest from customers,” Kaldowski said in the news release. “I am convinced that the launch of this innovative new product family will drive growth in the hearing instruments business in the second half.”
And in a subsequent conference call with financial analysts, Kaldowski said the product has begun shipping to customers this week, two weeks ahead of schedule.
In addition to a slowdown by U.S. customers awaiting the next-generation Marvel hearing aids, Sonova said that a consolidation of its U.S. retail-store network was responsible for lagging sales. But the company said “the U.S. restructuring has been successfully completed, and the business has shown improving momentum in the second quarter.”