LYNGE, DENMARK — WS Audiology today announced results for the fiscal year 2022/23 (October 1, 2022 – September 30, 2023) in line with expectations. The global hearing aid manufacturer achieved 7% organic revenue growth along with a 14% rise in earnings over the 12-month period.
Buoyed by strong sales across most major geographic markets, WS Audiology generated €2.465 billion euros in total revenues last fiscal year based on constant currency rates. Adjusting for foreign exchange fluctuations, reported revenues grew 5% year-over-year.
Highlights fiscal year 2022/23
- WSA delivered organic revenue growth of 7% (5% reported) to EUR 2,465 million driven by progress in all regions.
- Reported EBITDA increased by 14% to EUR 480 million with a reported EBITDA margin of 19.5% – an increase of +1.5%-points vs. last year.
- The results were in line with the upward revised guidance.
- WSA successfully launched the Signia Integrated Xperience platform with very positive reception in all markets. Signia IX addresses the primary unmet need for people with hearing loss: conversations in noise.
- WSA’s employee engagement score increased to 7.9, consistently improving since the merger in 2019 and on track to achieve a score in the top 25 percentile of the healthcare industry sector by 2028.
Highlights Q4 2022/23
- WSA delivered organic revenue growth of 9% to EUR 613 million (2% reported) driven by strong growth in APAC, US online, US managed care and Americas retail, UK, Germany and smaller EMEA markets.
- Strong year-end finish in France supported by the launch of Signia IX.
- Reported EBITDA was EUR 126 million.
All regions showed progress, but the Americas and Asia-Pacific proved particular bright spots. The company’s integration of hearing care network TruHearing Inc. in the U.S. has enhanced reach and provider partnerships. Robust device sales via online channels and managed care contracts are widening access domestically.
Margins also expanded over the 12-month stretch, evidenced by a 19.5% reported earnings margin before interest, taxes, depreciation and amortization (EBITDA). The 1.5 percentage point jump from the prior fiscal year demonstrates effective expense control and operating leverage from rising volumes.
Strong Organic Growth Continues
The successful launch of Signia’s Integrated Xperience platform this past spring served as a key growth catalyst.
WS Audiology CEO Eric Bernard expressed satisfaction with both top-line expansion and profit maximization across brands, assets and markets in the latest fiscal year.
“We delivered strong organic growth and significantly improved profitability in line with our upward revised guidance. We launched a unique breakthrough technology, Signia IX, which was very well received in all markets, and we now have a state-of-the-art manufacturing and distribution center in Mexico, a key asset for our multi-brand, multi-channel ecosystem to win in the US. The strong results are important as we move forward and build our business with a continued focus on growth, efficiency and profitability, combined with the ambition to expand our reach and deliver wonderful sound for all.”
–WS Audiology CEO Eric Bernard
Fiscal year 2023/24 outlook
For the fiscal year 2023/24 WSA expects 6-10% organic revenue growth driven by core markets (US, France, Germany) supported by the launch of Signia IX and continued growth in fast growing markets, US Managed Care and online.
The reported EBITDA margin is expected to increase by 1-2%-pts. vs. FY 2022/23 supported by revenue growth and cost improvement initiatives.
WSA’s Annual Report 2022/23 and integrated sustainability report can be found here.