2.2 Segment information
Information by business segments
The Group is active in the two segments, hearing instruments and cochlear implants, which are reported separately to the Groupʼs chief operating decision maker (Chief Executive Officer). The financial information that is provided to the Groupʼs chief operating decision maker, which is used to allocate resources and to assess the performance, is primarily based on sales analysis as well as consolidated income statements and other key financial metrics for the two segments. The Group uses EBITA as a key metric to measure profit or loss for both segments (refer to Note 2.1). Transactions between segments are based on market terms.
Hearing instruments:
This operating segment includes the activities of the design, development, manufacture, distribution and service of hearing instruments and related products, as well as wireless headsets, speech-enhanced hearables and audiophile headphones. Research and development is centralized in Switzerland while some supporting activities are also performed in Canada and Germany. Production is concentrated with production centers located in Switzerland, China, Mexico, Germany, Ireland and Vietnam – with technologically advanced production processes being performed in Switzerland and standard product assembly being located in Asia and Mexico. Most of the marketing activities are steered by the brand marketing departments in Switzerland, Canada, the United States and Germany. The execution of marketing campaigns lies with the sales organizations in each market. Product distribution is done through sales organizations in the individual markets for hearing instruments and through 21 sales subsidiaries and with long-established trading partners. The distribution channels of the Group vary in the individual markets depending on the sales strategy and the characteristics of the countries. The distribution channels can be split broadly into a retail business where Sonova operates its own store network and sells directly to end consumers and a hearing instruments business, reflecting the wholesale sales to independent audiologists, 3rd party retail chains, multinational and government customers.
Cochlear implants:
This operating segment includes the activities of the design, development, manufacture, distribution and service of hearing implants and related products. The segment consists of Advanced Bionics and the related sales organizations. Research and development as well as marketing activities of Advanced Bionics are centralized predominantly in the United States and Switzerland while production resides in the United States and Mexico. The distribution of products is effected through sales organizations in the individual markets.
in CHF million | 2024/25 | 2023/24 | 2024/25 | 2023/24 | 2024/25 | 2023/24 | 2024/25 | 2023/24 | ||||||||
Hearing Instruments | Cochlear Implants | Corporate / Eliminations | Total | |||||||||||||
Segment sales | 3,569.7 | 3,357.1 | 307.5 | 282.4 | 3,877.2 | 3,639.5 | ||||||||||
Intersegment sales | (8.3) | (9.2) | (3.6) | (3.5) | (11.8) | (12.7) | ||||||||||
Sales | 3,561.4 | 3,347.9 | 303.9 | 278.9 | 3,865.4 | 3,626.9 | ||||||||||
Operating profit before acquisition-related amortization (EBITA) | 721.4 | 701.7 | 28.4 | 25.4 | 0.0 | (0.0) | 749.8 | 727.0 | ||||||||
Depreciation, amortization and impairment | (223.3) | (216.7) | (25.2) | (29.6) | (248.5) | (246.2) | ||||||||||
Segment assets | 5,084.8 | 5,069.3 | 573.9 | 580.8 | (741.0) | (738.9) | 4,917.7 | 4,911.2 | ||||||||
Unallocated assets1) | 1,006.4 | 880.6 | ||||||||||||||
Total assets | 5,924.2 | 5,791.8 |
1)Unallocated assets include cash and cash equivalents, other current financial assets (excluding loans), investments in associates/joint ventures and deferred tax assets.
Reconciliation of reportable segment profit CHF million | 2024/25 | 2023/24 | ||
EBITA | 749.8 | 727.0 | ||
Acquisition-related amortization | (57.9) | (57.1) | ||
Financial costs, net | (45.3) | (27.0) | ||
Share of profit/(loss) in associates/joint ventures, net | 5.4 | 4.4 | ||
Income before taxes | 652.0 | 647.3 |
Entity-wide disclosures
Sales and selected non-current assets by regions CHF million | 2024/25 | 2023/24 | 2024/25 | 2023/24 | ||||
Country / region | Sales1) | Selected non-current assets2) | ||||||
Switzerland | 29.8 | 30.6 | 211.2 | 221.7 | ||||
EMEA (excl. Switzerland) | 1,943.4 | 1,828.4 | 1,656.0 | 1,712.2 | ||||
USA | 1,156.8 | 1,074.0 | 1,022.7 | 1,048.0 | ||||
Americas (excl. USA) | 278.9 | 264.4 | 252.7 | 261.5 | ||||
Asia/Pacific | 456.4 | 429.4 | 485.2 | 470.7 | ||||
Total Group | 3,865.4 | 3,626.9 | 3,627.9 | 3,714.2 |
1)Sales based on location of customers.
2)Total of property, plant & equipment, right-of-use assets, intangible assets and goodwill, investments in associates/joint ventures and other non-current operating assets.
As common in this industry, the Sonova Group has a large number of customers. There is no single customer who accounts for more than 10% of total sales.