Sennheiser Group has reported a 3.8 per cent downturn in its annual turnover, dropping to €658.4 million. The company says this is due to it placing greater emphasis on its core business, citing the fact that during the year it left 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 Japanese government phased out subsidies on wireless microphones during the reporting year). Despite the downturn, Sennheiser’s profit before taxes rose by 15.2 percent (€4.6 million) to €34.9 million compared to the same period in the previous year. Research and development were further strengthened: Sennheiser invested €54.5 million, 16 percent 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,’ explains Dr. Andreas Sennheiser, Co-CEO of Sennheiser. ‘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,’ adds 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.’
Overall, Sennheiser’s consumer products showed an increase in turnover while professional products dipped. Similarly, sales to the EMEA region grew while those to the APAC region fell.