ZURICH — With all Sonova Holding AG (previously Phonak Holding AG) brands contributing to a consistently dynamic growth, sales at the Swiss hearing aids manufacturer reached a reported new record of 1.2 billion (CHF). Sales growth of 12.3% shows that the Sonova Group continued to expand its market share significantly in the financial year 2007/08. Profitability improved at all levels and the free cash flow increased by 52% to 219 million (CHF).

Sales increases by 12.3% to 1.2 billion (CHF) — with 1.1% organic growth, 1.7% from acquisitions and -0.5% currency effect — significantly exceeded hearing instrument market growth, with some 59% of hearing system sales statistically generated with products launched less than two years ago

Sonova's EBITA margin, excluding one-off costs for the prohibited GN ReSound acquisition, rose to 28.2% (prior year 26.4%). Income after taxes (excluding one-off costs) grew by 25.7% to 305.2 million (CHF). Reported income after taxes reaches 274.1 million (CHF), with proposed dividend increases by 33% to 1.00 (CHF) per share.

New product releases: the Phonak hearing systems Exélia, Naída and Unitron's Yuu, and Next have set new standards for hearing system technology. Its distribution network has been extended further, and new wholesale companies have been established in India, Mexico, and South Africa. In addition, Phonak's "Hear the World" initiative has attracted new attention, especially from ambassadors: Mick Jagger, Annie Lennox, and Rod Stewart.

As to Sonova's outlook for the financial year 2008/09: the company expects to further expand its market share and anticipates organic sales growth of around 10%, as well as a continuing improvement of the EBITA margin.