Twelve months after the transfer of the Siemens hearing aid business to Sivantos Group, based in Erlangen, Germany, the company announced a successful first year in both revenue and earnings and also introduced the Signia line of hearing aids.
Sivantos reports that with a strategy focused on profitable growth, the Group is creating a new stimulus with comprehensive initiatives in an effort to achieve the industry leading market position.
In revenue, the Sivantos Group reports that it closed fiscal year 2015 as the most successful in the company’s history with an organic growth of over 10%, outperforming the market. The business operations of the former Siemens AG hearing aid division have been incorporated into the Sivantos Group since early 2015. In the completed first fiscal year (October 1, 2014 to September 30, 2015) Sivantos achieved revenues of 835 million euros (October 1, 2013 to September 30, 2014: 693 million euros). The operating profit (EBITDA with normalization) increased by 31% from 157 million euros to 206 million euros. Sivantos says that it is growing faster than the competition and gaining market shares worldwide.
Sivantos is also announcing the launch of a new hearing aid brand called Signia, which will be co-branded with Siemens as the company prepares for complete brand autonomy over the next several years. Hearing Review had previously covered a Signia Select hearing aid from Siemens in 2008. Slated for launch in early spring 2016, the newly branded hearing aids will have both brand names–Signia on one side of the hearing aid, and Siemens on the other.
”With the introduction of Signia we build our new brand on a solid foundation, co-branding with Siemens over the next few years, while we develop a brand that appeals to a younger target group, which will fuel our growth,” said Roger Radke, PhD, CEO of the Sivantos Group.
With Signia, Sivantos plans to accelerate efforts to grow the market by addressing a younger and broader audience with tailored communication in contemporary channels. This includes building a more emotional and agile brand while at the same time maintaining the Siemens values of innovation and quality. The two brands will be used together in products and packaging, as well as in marketing and advertising.
The Sivantos Group’s stated goal is to gain the leading position in the hearing aid industry. To achieve this objective and keep on a growth trajectory, the company will continue to invest in its business. Sivantos announced increased spending on research and development in the current year by another 20% to fuel the company’s innovation. According to Sivantos, it will continue to develop its online presence to exploit the potential of underserved hearing impaired people. With the acquisition of audibene, said to be “the world’s biggest online platform for hearing case management,” Sivantos believes it has a strategic advantage. Lead generation and customer conversion in the baby boomer segment are creating value for all distribution channels.
Source: Sivantos Group