WS Audiology announced its revenue and earnings growth for Q1 of the financial year 2021/22 (October 1– December 31, 2021).
Highlights Q1 2021/2022
- Revenue increased to EUR 582 million [USD $667 million] (organic growth of 10% against Q1 2020/21).
- Normalized EBITDA increased from EUR 125 million [USD $143 million] to EUR 134 million [USD $154 million] (23.1% margin).
- Good performance in all regions.
- Signia AX and Widex Moment contributed strongly to the results.
- Strategic acquisition of Brazilian hearing aid distributor Audibel, active in both public and private market in Brazil.
- 2021/22 outlook is unchanged with “an expected high single-digit organic growth” and normalized EBITDA above EUR 500 million [USD $573 million], assuming no material business disruption from the pandemic and component availability issues.
“The start of the financial year has been strong, with the highest quarterly revenue realized since the inception of WSA. The progress was driven by our broad portfolio of innovative products as well as our continuous efforts to adapt and navigate in these uncertain times of COVID-19, inflation, and supply challenges,” said WS Audiology CEO Eric Bernard.
The Group’s performance in Q1 was fueled by sales growth in both wholesale and consumer facing businesses in all regions, the company reports. Based on the strong development in Q1, WS Audiology maintains guidance and aims to generate high single digit organic growth, plus an additional 2%-points growth from acquisitions, and a normalized EBITDA of at least EUR 500 million [USD $573 million] in 2021/22, according the WSA. Market uncertainty remains, in particular related to COVID-19 development and the supply situation on electronics components, the company said in its announcement.
In the first quarter of 2021/22, WSA “strengthened the multi-brand multi-channel strategy, with the acquisition of Brazilian hearing aid distributor Audibel.”
In December 2021, WSA published the industry’s “first-ever Life Cycle Assessment study ”of Signia rechargeable hearing aids. The study shows that the rechargeable hearing aids have 65% lower environmental impact compared to traditional battery driven hearing aids, according to WSA.
On 23 December 2021, WSA announced the appointment of Marianne Wiinholt as Group CFO, member of the Executive Board and member of Group Management. Wiinholt will join WS Audiology in April 2022 from a position as Group CFO of energy company Ørsted.
“Our accomplishments in the first quarter are a testament to our ability to deliver on core strategic priorities even in uncertain times, and I am so proud of our employees for going beyond together and working towards our purpose of delivering wonderful sound for all,” said Bernard.
Financial overview:
| Q1 21/22 | Q1 20/21 | Index | Q2 20/21 | Q3 20/21 | Q4 20/21 | 2020/21 | 2019/20 | |
| Revenue €m | 582 | 509 | 114 | 486 | 526 | 532 | 2,053 | 1,738 |
| Organic growth Y/Y (%) | 10 | 8 | 125 | 8 | 89 | 9 | 22 | -11 |
| Normalized EBITDA (€m) | 134 | 125 | 107 | 110 | 115 | 114 | 464 | 331 |
| Normalized EBITDA margin (%) | 23.1 | 24.8 | 93 | 22.5 | 21.8 | 21.6 | 22.7 | 19.2 |
Source: WSA
Image: WSA
