Widex A/S, one of the world’s leading hearing aid manufacturers, today announced its results for the financial year 2017/18.
The privately-owned company delivered Net Turnover of DKK 4,466 million, an increase of 8.1% compared to the previous year. Normalised EBITA rose 14.1% to DKK 901 million, corresponding to 20.2% of net turnover.
- Record net turnover of DKK 4,466 million – up 8.1% compared to the previous year adjusted for foreign currency impacts (2.8% including foreign currency impacts)
- Normalised EBITA of DKK 901 million or 20.2% of net turnover – up 14.1% compared to the previous year
- Results after tax of DKK 380 million up from DKK 372 million
- Successful completion of IMPACT strategy – new Widex Wave strategy started
"Widex has continued to grow strongly posting a record-high turnover for the fourth year in a row. We performed strongly, increasing profits thanks to a continued reduction in production costs and stable average sales prices. The launch of the BEYOND Z™ rechargeable hearing aid
and redesigned CUSTOM™
helped maintain our strong presence in the market,” said Widex CEO Jørgen Jensen.
A weak US dollar impacted revenue growth and earnings, but still 2017/18 results were very satisfactory.
Adjusted for non-recurring costs, normalised EBITA rose by 14.1% to DKK 901 million from DKK 790 million in the previous period. The normalised EBITA was positively impacted by capitalization of R&D cost of DKK 84 million. Non-recurring costs of DKK 66 million were associated with moving local production to a regional centre and other efficiency programmes, and the relocation of country head offices in Canada.
Results after tax of DKK 380 million were negatively affected by foreign exchange effects but positively affected from lower tax for the year.
"The financial year 2017/18 saw the successful completion of our IMPACT strategy plan and the launch the next five-year strategy, Widex Wave. IMPACT more than met our expectations and we ended the five-year period significantly ahead of the financial goals,” said Jørgen Jensen.
"We launched Widex Wave to the organisation in April with two very high ambitions: we want to double our size in five years, and we want to ensure that we become a leading, innovative company with absolutely second-to-none new product launch procedures.”
Widex Wave builds on two cornerstones: Upgrade and Innovate. Upgrade will take everything that Widex did well in IMPACT and perfect it over the next strategic period, while Innovate will invest resources in ensuring that the company accelerates its innovative product launches.
Widex has created a new function – Global Innovation – that takes the innovation element out of the Research & Development function to ensure the necessary focus and prioritization.
The company’s focus on ground-breaking launches was again exemplified by the launch in late April of the WIDEX EVOKE™ hearing aid, – the first hearing aid to feature advanced machine learning technology in real time
. Although too late in the year to affect the financial year 2017/18, sales in the first four months of the new financial year have been strong and have contributed to continue growth and Widex’s ability to maintain average sales prices in the market.
“We have increased our launch speed significantly over the last few years and we will continue to bring innovative products to the market in a faster tempo,” said Jørgen Jensen.
The proposed merger with Sivantos was announced after the end of the financial year and has no material impact on the company’s results.
Key Financial highlights
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|Million DKK || 2017/18|| 2016/17 || 2015/16 |
| Net turnover|| 4,466|| 4,346|| 3,855|
| Gross results|| 3,071|| 2,929|| 2,623|
| Normalised EBITA|| 901|| 790|| 682|
| EBITA margin|| 20.2%|| 18.2%|| 17.7%|
| Net results||380|| 372|| 284|
| Equity|| 2,173|| 1,936|| 1,575|
| Return on equity||18.5|| 21.2|| 19.2|
| Equity ratio|| 49.8|| 44.8|| 44.5|
| Net Working Capital|| 584||626|| 623|
| Cash flow from ordinary operating activities|| 835|| 727|| 796|
| Cash flow from investment activities|| -423|| -832|| -613|