Sonova: strong fundamentals

On the occasion of its capital market day, the company recalled that its business model was based on solid fundamentals. First of all, the market benefits from structural growth drivers due to the ageing of global population, a still low penetration rate of its key products, as well as a good resilience to economic cycles. Second, Sonova has a leading position in key market segments. The company is vertically integrated, offers the most advanced products and benefits from a global and differentiated distribution network. Finally, the group has a strong financial base. Margins are attractive and have further upside, in particular thanks to a proactive and agile cost management. The balance sheet is solid and the company generates significant free cash-flow. These positive elements have led Sonova to formulate an optimistic guidance for the second half of 2020, and even suggest the possibility of a share buy-back.