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

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:

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.