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Sennheiser reports reduced turnover but increased profits as company focuses on 'core business'

Laura  Barnes
Sennheiser reports reduced turnover but increased profits as company focuses on 'core business'

Sennheiser has generated a turnover of €658.4 million for the fiscal year 2016, a decline of 3.8%. The audio specialist says this is primarily due to placing greater focus on “the core business”.

During the reporting year, Sennheiser exited the aviation segment and also ended relationships with third-party brands in the Professional Systems Division. In addition, the termination of governmental subsidies in Japan affected the turnover.

The Group's profit before taxes rose by 15.2% to €34.9 million compared to the same period in the previous year. Research and development were further strengthened, with the firm investing €54.5 million – a total of 16% more than in 2015.

"Coming from a very strong year in 2015, we were unable to build on the previous turnover growth in the reporting year. This was mainly due to placing strategic focus on core business in our Professional Systems Division," explained Dr. Andreas Sennheiser, Co-CEO of Sennheiser.
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"At the same time, in 2016 we did a lot of groundwork to ensure our future success by delivering even greater innovation and value to our customers," added Co-CEO Daniel Sennheiser. “As a family-owned company, we focus on the long term and pursue a clear goal: shaping the future of audio.”

Despite the decrease in turnover, the Sennheiser Group was able to significantly increase its profitability.

In fiscal year 2016, profit before taxes increased by €4.6 million to €34.9 million, which was mainly due to reduction in material, personnel and other operating expenses.

€358.2 million of the total sales of the Sennheiser Group were accounted for by the EMEA region, which showed a slight turnover growth of 0.3% compared to the previous year. In the Americas region, the group achieved €168.8 million, 6.1% less than in 2015.

The turnover of the Professional Systems Division amounted to €316.3 million, a decrease of €31.7 million or 9.1% compared to the previous year. This can mainly be attributed to the withdrawal from the aviation business, the separation of selected third-party brands and the end of the governmental subsidies in Japan. In contrast, the Consumer Electronic Division continued its growth, generating turnover of €342.1 million. Compared to the previous year, growth was slightly more modest, at €5.8 million and 1.7%, respectively.

Tags: sennheiser , profit report

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