July 6, 2020 / 5:07 AM / in a month

BRIEF-Sonova Sees H1 Group Sales At Around 65-75% Of Prior Year Levels

July 6 (Reuters) - SONOVA HOLDING AG:

* TODAY PROVIDES AN INTERIM BUSINESS UPDATE

* SONOVA’S BUSINESS ACTIVITIES HAVE PICKED UP FROM LOW POINT OF 35% IN APRIL 2020, REACHING 59% OF PRIOR YEAR LEVELS FOR FIRST THREE MONTHS OF FY 2020/21 AT CONSTANT EXCHANGE RATES

* SONOVA EXPECTS SALES FOR FIRST HALF OF FY 2020/21 TO REACH 65-75% OF PRIOR YEAR LEVEL AND TO ACHIEVE A POSITIVE ADJUSTED EBITA MARGIN IN SINGLE-DIGITS FOR SAME PERIOD, BOTH AT CONSTANT EXCHANGE RATES

* MEASURES ARE EXPECTED TO RESULT IN RESTRUCTURING COSTS OF CHF 40-60 MILLION IN FY 2020/21 AND TO LEAD TO ANNUAL COST SAVINGS OF CHF 50-70 MILLION ONCE FULLY IMPLEMENTED

* MOMENTUM IMPROVED SEQUENTIALLY EACH MONTH, RESULTING IN GROUP SALES AT 59% OF PRIOR YEAR LEVELS FOR FIRST THREE MONTHS OF FY 2020/21 AT CONSTANT EXCHANGE RATES

* SONOVA HAS FURTHER STRENGTHENED ITS FINANCIAL POSITION BY ISSUING BONDS TOTALING CHF 830 MILLION IN FY 2020/21 AND BY PAYING A STOCK DIVIDEND

* CURRENTLY EXPECTS GROUP SALES IN FIRST HALF OF FY 2020/21 TO REACH AROUND 65-75% OF PRIOR YEAR LEVELS AND TO ACHIEVE A POSITIVE ADJUSTED EBITA MARGIN IN SINGLE-DIGITS, BOTH ASSUMING CONSTANT EXCHANGE RATES

* REMAINS CAUTIOUS ABOUT EXTENT OF FURTHER RECOVERY IN SECOND HALF OF FY 2020/21 AND POTENTIAL IMPACT ON DEMAND INCLUDING FROM GENERAL ECONOMIC ENVIRONMENT Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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