WS Audiology announced the results of its latest financial report, indicating that it generated “strong revenue and earnings growth in Q3 of the fiscal year 2020/21 (April 1– June 30, 2021) compared to 2019/20,” which was significantly impacted by COVID-19. WSA reports that it “continued to bring innovative products to market with the launch of the new Signia AX platform in May, while all its brands performed well.”
Highlights Q3 and 9M 2020/21
- Revenue increased to EUR 526 million (USD $618 million) (organic growth of 89% against 2019/20 and 10% against 2018/19).
- Normalized EBITDA increased from EUR 32 million (USD $38 million) to EUR 115 million (USD $135 million) (22% margin against 11% in 2019/20) driven by synergies, cost control, and scalability from volume growth.
- Strong performance in Europe and China and with Key Accounts and US independents.
- The positive momentum was supported by the Signia AX platform launch and good performance from Widex Moment, Signia Active Pro, and Motion X.
- 85% organic growth in Wholesale and strong 94% organic growth in consumer-facing channels (Retail, Online, and Managed Care).
- Strategic acquisitions of diagnostics equipment company Koalys and retailer My Hearing Centers with 110 points of sales in the US.
- Merger integration on track.
- For the first nine months of the fiscal year, revenue grew to EUR 1,521 million (organic growth of 27% against 2019/20) and normalized EBITDA increased to EUR 351 million (USD $412 million) (23% margin against 18% in 2019/20).
- Outlook is maintained for 2020/21 with an expected organic growth of minimum 20%.
“We continued to deliver strong operational and financial performance in the third quarter of the year based on good market recovery and boosted by our innovation capabilities and the positive traction from our latest product launches,” said WS Audiology CEO Eric Bernard. “Our integration work continued at a very satisfactory pace and contributed to the positive development, and we strengthened our multi-channel business with the addition of two strategic acquisitions. The acquisition of Koalys further strengthens our leadership in teleaudiology and diagnostic solutions, while the acquisition of My Hearing Centers significantly expands our retail footprint in the US.”
The Group’s improved performance in Q3 was supported by all businesses delivering strong sales growth and by cost containment to grow revenue to EUR 526 million (US $618 million) and normalized EBITDA to EUR 115 million (USD $135 million) in line with the expectations for the period, WS Audiology reports. Based on the “strong development in Q3 and the first nine months of the financial year as well as a positive outlook for Q4, with new product launches, WS Audiology maintains guidance and aims to generate organic growth of at least 20% and increase normalized EBITDA to at least EUR 460 million (USD $540 million) in 2020/21 (EUR 333 million [USD $391 million] in 2019/20).” Market uncertainty remains higher then normal due to the ongoing pandemic.
“We remain on track to deliver a strong performance this year on the back of a third quarter packed with exciting news for WS Audiology and our stakeholders. We launched our groundbreaking two-processor Signia AX platform to keep pushing the boundaries of modern hearing care, invested in the expansion of our business ecosystem and launched our sustainability report along with a commitment to set science-based climate targets and reach carbon neutrality in our own operations by 2025,” said Bernard.
Source: WS Audiology