Company announcement no 2009-06 12 May 2009
Interim information, first quarter 2009
Stabilised hearing aid market in first quarter
Positive reception of Group's many new products
In the past part of 2009, the Group's hearing aid business has developed
satisfactorily and in accordance with the plans made. Having been under pressure
in the second half-year 2008, in particular, the average wholesale prices
obtained by the Group's hearing aid business during this period are now back on
par with the prices obtained in the first quarter 2008.
Since autumn 2008, the Group's hearing aid business has significantly
strengthened its product offering, particularly through the many new products
presented at the US hearing aid convention AudiologyNOW! (AAA) at the beginning
of the second quarter 2009. The many product introductions have proceeded
satisfactorily.
In our Annual Report 2008, we announced that in 2009 the Group expects to see
growth in revenues exceeding market growth by 2-4%. Trends in the past part of
2009 support this expectation, which is therefore maintained.
It is estimated that following the gradual deterioration of market conditions
that characterised most of last year and particularly the second half-year,
development on the global hearing aid market has now stabilised. It is estimated
that in the first quarter 2009 the hearing aid market has seen flat development
compared with the same period last year.
In the past part of 2009, slightly improved and more stable market conditions
succeeded the unfavourable market conditions that characterised most of 2008 and
deteriorated as the year wore on. Thus, the Company estimates that if measured
in volume and if compared with the same period last year, the hearing aid market
has seen flat development in the first quarter 2009; or an estimated increase on
the fourth quarter 2008.
In the first quarter 2009, the Group's core business, i.e. the development,
manufacture and wholesale of hearing aids, has developed in accordance with the
plans made as indicated by the Dual launch as well as satisfactory Vigo and Epoq
sales. Unit sales to the British healthcare system (NHS) were, however, realised
somewhat under the first-quarter-2008 level, which is due to generally lower
demand by the NHS because of recent years' reduction of waiting lists. It is
estimated that the Group has maintained its market share with the NHS in the
first quarter 2009.
At the US hearing aid convention AAA held from 1 through 4 April 2009, the Group
presented a wide range of new products, which completed the significant
strengthening of the Group's product portfolio commenced by the introduction of
Vigo in spring 2008 and followed up by the Dual launch in autumn 2008.
At AAA, Oticon launched the two Hit families to the lower part of the mid-priced
segment as well as a new, compact and cosmetically attractive Power BTE
instrument with a classic hook. The new Power BTE instrument is available in
Oticon Epoq, Oticon Vigo and Oticon Hit. Moreover, Oticon presented a new,
compact, cosmetically attractive and moderate BTE version with a size-13
battery; this version is launched in all versions of Epoq, Vigo and Hit, or in a
total of seven price points, as is the case with the Power BTE.
Oticon ConnectLine was also launched at AAA: in addition to the existing
possibilities of using hearing aids together with a mobile phone or an MP3
player, it is now also possible to stream sound from TV and landline phones
directly to the user's hearing aids.
A new, wireless RITE hearing aid, Bernafon Vérité was also introduced at AAA.
With this introduction, Bernafon now has one of the market's most attractive
hearing aids in terms of cosmetics, audiology and other user benefits, including
wireless features.
All the new hearing aids have now been released for sale. Even though customer
feedback and the first few weeks' realised sales are encouraging, it is still a
bit too early to form a clear opinion on the rate of success of each individual
product.
In the past part of 2009, corporate retail activities succeeded in generating
increased revenues exceeding market growth.
Diagnostic Instruments has continued its positive development from 2008, albeit
at a slightly lower pace, whereas Personal Communication has to a greater extent
been impacted by the financial crisis and the economic slowdown. It is however
the Company's opinion that the Group continues to win market shares within these
business areas.
Expectations
In its Annual Report 2008, the Company stated that in 2009 the global hearing
aid market is expected to see flat development, and that average selling prices
are expected to contribute neutrally or negatively to market growth. In the
report, the Company also stated that in 2009 the Group expects to generate
growth in revenues exceeding market growth by 2-4%. Trends in the past part of
2009 support these expectations.
Further information:
Phone +45 3917 7100
www.demant.dk
Contact:
Niels Jacobsen, President & CEO
Other contacts:
Stefan Ingildsen, VP Finance and IR
Søren B. Andersson, IR Officer
