6.Changes in Group structure
6.1Acquisitions/disposals of subsidiaries
During the financial years 2025/26 and 2024/25, several small businesses were acquired in EMEA, Americas and Asia/Pacific. All of these companies acquired are in the business of distributing and servicing hearing instruments. Due to the size of these transactions, they had no material impact on the financial statements.
Assets and liabilities resulting from the acquisitions are as follows:
CHF million | 2025/26 | 2024/25 | ||
Total | Total | |||
Cash and cash equivalents | 0.9 | 2.7 | ||
Trade receivables | 0.2 | 1.3 | ||
Inventories | 0.5 | 0.8 | ||
Other current operating assets | 0.1 | 0.7 | ||
Total current assets | 1.7 | 5.5 | ||
Right-of-use assets | 6.0 | 1.3 | ||
Intangible assets | 11.5 | 23.4 | ||
Other non-current assets | 0.8 | 1.2 | ||
Deferred tax assets | 1.4 | 1.1 | ||
Total non-current assets | 19.6 | 27.0 | ||
Current financial liabilities | (0.0) | |||
Current lease liabilities | (1.7) | (0.4) | ||
Trade payables | (0.4) | (0.6) | ||
Short-term contract liabilities | (0.1) | |||
Other short-term operating liabilities | (1.0) | (2.7) | ||
Short-term provisions | (0.1) | (0.4) | ||
Total current liabilities | (3.2) | (4.2) | ||
Non-current financial liabilities | (0.1) | |||
Non-current lease liabilities | (4.3) | (0.9) | ||
Long-term provisions | (0.1) | (0.1) | ||
Other long-term operating liabilities | (0.1) | |||
Deferred tax liabilities | (2.8) | (5.2) | ||
Total non-current liabilities | (7.2) | (6.5) | ||
Net assets | 11.0 | 21.8 | ||
Goodwill | 28.2 | 52.0 | ||
Purchase consideration | 39.2 | 73.8 | ||
Liabilities for contingent considerations and deferred payments1) | (3.7) | (7.1) | ||
Cash and cash equivalents acquired | (0.9) | (2.7) | ||
Cash outflow for contingent considerations and deferred payments | 10.9 | 8.52) | ||
Cash consideration for acquisitions, net of cash acquired | 45.5 | 72.6 |
1)Contingent considerations (earn-out payments) are dependent on the future performance of the acquired companies as well as contractual conditions. The liability for contingent considerations is based on the latest estimate of the future performance.
2)Comparative information restated for discontinued operation. Refer to Note 6.3
The initial accounting for the acquisitions completed in the current financial year is provisional and the fair values assigned to the identifiable assets acquired and liabilities assumed are still subject to change. The finalization of the accounting from acquisitions in the prior year did not result in material fair value adjustments.
Liabilities for contingent considerations amount to CHF 3.0 million (previous year CHF 5.2 million) and deferred payments amount to CHF 0.7 million (previous year CHF 1.8 million). Contingent considerations are dependent on the future performance of the acquired companies as well as contractual obligations and milestone achievements. Goodwill is attributed mainly to economies of scale and expected synergies such as favorable sales growth potential, increase in share of Sonova products within acquired distribution companies and cost reductions in administrative and corporate functions as well as to the labor force. Recognized goodwill is not expected to be deductible for income tax purposes.
Acquisition-related intangible assets in the amount of CHF 11.5 million (previous year CHF 23.2 million) for the acquisitions in the current financial year relate to customer relationships. The assigned lifetime range is between 10 and 15 years. On these intangibles deferred taxes have been considered.
Acquisition-related transaction costs in the amount of CHF 0.8 million (previous year CHF 2.1 million) were expensed and are included in the line “General and administration”.
1 April to 31 March, CHF million | 2025/26 | 2024/25 | ||
Total | Total | |||
Contribution of acquired companies from date of acquisition | ||||
Sales | 12.0 | 25.8 | ||
Net income | 3.1 | 3.7 | ||
Contribution, if the acquisitions had occurred on 1 April | ||||
Sales | 21.7 | 32.9 | ||
Net income | 5.3 | 6.3 |
Accounting policies
Business combinations are accounted for using the acquisition method of accounting. The cost of a business combination is equal to the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued by the Sonova Group, in exchange for control over the acquired company. Any difference between the cost of the business combination and the net fair value of the identifiable assets, liabilities, and contingent liabilities recognized is treated as goodwill. Goodwill is not amortized, but is assessed for impairment annually, or more frequently if events or changes in circumstances indicate that its value might be impaired (Refer to Note 3.5). Acquisition-related costs are expensed. For each business combination, the Group recognizes the non-controlling interests in the acquiree at fair value or at the non-controlling interests proportionate share in the recognized amounts of the acquireeʼs identifiable net assets.
If a business combination is achieved in stages (control obtained over an associate), the previously held equity interest in an associate is remeasured to its acquisition date fair value and any resulting gain or loss is recognized in “financial income/expenses” in profit or loss.
Accounting judgements and estimates
In the course of recognizing assets and liabilities from business combinations, management judgments might be required for the following areas:
- Acquisition-related intangibles resulting from technology, customer relationships, client lists, or brand names.
- Contingent consideration arrangements (refer to Note 4.8)
6.2Investments in associates/joint ventures
The Groupʼs share in the results as well as in assets and liabilities of associates/joint ventures, all unlisted enterprises, is as follows:
CHF million | 2025/26 | 2024/25 | ||
Current assets | 5.6 | 5.1 | ||
Non-current assets | 2.3 | 4.5 | ||
Total assets | 8.0 | 9.6 | ||
Current liabilities | (2.3) | (1.5) | ||
Non-current liabilities | (1.3) | (1.4) | ||
Total liabilities | (3.6) | (2.9) | ||
Net assets | 4.4 | 6.6 | ||
Income for the year | 13.0 | 12.1 | ||
Expenses for the year | (8.1) | (6.7) | ||
Profit for the year | 4.8 | 5.4 | ||
Net book value at year-end | 9.1 | 18.6 | ||
- Share of profit / (loss) recognized by the Group | 4.8 | 5.4 | ||
- Gain on disposal of investment in associate | 37.0 | |||
Share of profit/(loss) in associates/joint ventures, net and gain on disposal of associate | 41.8 | 5.4 |
In the financial year 2025/26, a disposal was made of an investment in associate with a net book value of CHF 9.3 million resulting a gain on disposal of CHF 37.0 million.
In the financial year 2024/25, no associates were acquired/divested.
Sales to associates in the 2025/26 financial year amounted to CHF 16.1 million (previous year CHF 12.8 million). At 31 March 2026, trade receivables towards associates amounted to CHF 4.5 million (previous year CHF 3.2 million).
At the end of the 2025/26 and 2024/25 financial years, no unrecognized losses existed.
Investments with a net book value of CHF 9.1 million (previous year CHF 18.6 million) have a business year different than the Sonova Group. The latest available information for the respective companies are as per December 2025.
Accounting policies
Investments in associates and joint ventures are accounted for using the equity method of accounting. Investments in associates are entities in which Sonova has a significant influence but no control (usually 20% – 50% of voting rights). Joint ventures are joint arrangements whereby two or more parties have rights to the net assets of the arrangement.
Under the equity method, the investment in an associate/joint venture is recognized initially at cost (including goodwill on acquisition) and the carrying amount is increased or decreased to recognize Sonovaʼs share of profit or loss of the associate/joint venture after the acquisition date. When the Groupʼs share of losses in an associate/joint venture equals or exceeds its interest in the associate/joint venture, no further losses are recognized, unless there is a legal or constructive obligation. In order to apply the equity method the most recent available financial statements of an associate/joint venture are used, however, due to practicability reasons the reporting dates might vary up to three months from the Groupʼs reporting date.
6.3Discontinued operations
On 23 March 2026, the Group announced its intention to divest the Consumer Hearing business to focus fully on its core hearing care activities. The transaction is expected to be completed during the financial year 2026/27. Accordingly, the Consumer Hearing business is presented as discontinued operations as of 31 March 2026.
In accordance with IFRS 5, the comparative figures for the consolidated income statement and the consolidated cash flow statement have been restated to present the results and cash flows of the discontinued operations separately from continuing operations.
As of 31 March 2026, the carrying amount of the disposal group was reduced to its fair value less costs to sell, resulting in a pre-tax impairment charge of CHF 38.3 million which was first allocated to goodwill (CHF 16.2 million) and then pro rata to property, plant and equipment, intangible assets and right-of-use assets.
The assets and liabilities of the Consumer Hearing business were reclassified to held for sale and the disposal group (new cash generating unit) was tested for impairment as a whole. The fair value was based on discounted cash flows estimated by management, based on its current form and ownership, using assumptions that reflect a market participant perspective and are informed by historical performance and approved business plans.
Income statement of discontinued operations
CHF million | 2025/26 | 2024/25 | ||
Sales | 233.2 | 252.5 | ||
Expenses | (277.0) | (284.8) | ||
Loss before taxes | (43.8) | (32.3) | ||
Income taxes | (28.3) | 14.4 | ||
Loss after taxes | (72.1) | (17.9) | ||
Loss recognized on the measurement to fair value less costs to sell | (38.3) | |||
Income tax effect from measurement to fair value less costs to sell | 3.9 | |||
Loss after taxes from discontinued operations | (106.5) |
Net assets classified as held for sale
The major classes of assets and liabilities of the Consumer Hearing business classified as held for sale as of 31 March 2026 are as follows:
CHF million | 31 March 2026 | |
Cash and cash equivalents | 16.7 | |
Trade receivables | 52.4 | |
Inventories | 48.3 | |
Other current assets | 9.5 | |
Property, plant and equipment | 14.5 | |
Intangible assets | 99.8 | |
Other non-current assets | 20.0 | |
Assets held for sale | 261.2 | |
Trade payables | 19.9 | |
Other current liabilities | 53.2 | |
Other non-current liabilities | 77.3 | |
Liabilities directly associated with assets held for sale | 150.5 | |
Net assets classified as held for sale | 110.7 |
Accounting policies
Non‑current assets and disposal groups are classified as held for sale when their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Classification as held for sale is made only when the sale is highly probable, the asset or disposal group is available for immediate sale in its present condition, and management is committed to a plan to sell the asset or disposal group within one year.
Non‑current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses are recognized for any initial or subsequent write‑down to fair value less costs to sell. Impairment losses are reversed for subsequent increases in fair value less costs to sell, to the extent of the cumulative impairment previously recognized, except for goodwill.
After classification as held for sale, non‑current assets are no longer depreciated or amortized.
Accounting judgements and estimates
Significant management judgement is required in determining whether a disposal plan meets the criteria in IFRS 5 for classification as held for sale, including whether the sale is highly probable within twelve months and whether the assets or disposal group are available for immediate sale in their present condition. Management also applies judgement in assessing whether the disposal represents a separate major line of business or geographical area of operations and therefore constitutes a discontinued operation.
In measuring non‑current assets and disposal groups classified as held for sale, estimates are required to determine their fair value less costs to sell. These estimates typically involve assumptions about market conditions, discount rates, expected disposal proceeds, and timing of the sale. Actual outcomes, including proceeds and cash flows, may differ materially from these estimates due to changes in market conditions or other factors.