Strong Hearing Instruments Growth and Margin Expansion
Hearing Instruments segment sales rose 7.5% to CHF 3.4bn with growth accelerating to 7.9% in H2. Normalized EBITDA for the segment increased 17.3% to CHF 794m, delivering a 23.7% margin (up ~280 basis points in local currencies).
Wholesale Momentum and Product-led Share Gains
Wholesale revenue increased 9.5% to CHF 1.9bn (H2 growth 10.9%). Successful launches (Infinio Ultra, Virto R) drove the highest year-on-year market share gain since the Marvel platform; Virto R reached a recurring revenue run-rate of ~CHF 120m p.a. from zero.
Retail Expansion and Stable Organic Growth
Retail revenues grew 5.1% to CHF 1.5bn (bolt-on acquisitions contributed ~1.3 percentage points). Store network expansion (Germany, Austria, Canada) and retail lead-generation investments supported sequential Q4 momentum.
Innovation and Operational Differentiators
New AI-enabled products (Sphere, Ultra) and innovations like Virto R (first rechargeable in-ear device for Phonak) and EasyGuard (wax-management reducing service time ~38%) reinforce product leadership and addressability.
Profitability, Cash Generation and Capital Efficiency
Group operating leverage led to normalized EBITA/EBIT improvements (normalized EBITA rose ~17.3%). EPS grew 16%. Cash conversion remained strong (>90%), ROCE at 19%, and leverage improved with net debt/EBITDA at ~1.1x (down from 1.2x).
Disciplined Capital Allocation and Shareholder Returns
Board proposed a 7% dividend increase to CHF 4.70 per share (~45% payout ratio). M&A bolt-ons were small (CHF 46m) and management expects M&A to contribute ~1–2% to group growth depending on timing.
Clear and Credible Outlook
Management guided FY26/27 consolidated sales growth of 5–8% and core EBIT growth of 7–10% at constant exchange rates, with market growth assumption of 2–4% for the year (gradually moving toward 3–5% midterm).
APAC Opportunity and Early Traction
APAC (excluding Cochlear Implants) delivered >8% growth; Japan showed very strong recent momentum (management cited 30–45% growth in recent months in that market), supporting the multi-year Asia expansion plan.