German sound brand Sennheiser has increased their losses in Australia, according to their latest financial filings. The business was acquired in 2021 by Swiss hearing aid Company Sonova, with the bulk of the losses made while under Sennheiser family ownership.

In their latest financial filings with the Australian Competition & Consumer Commission, the business reported revenues of $47.8M. This includes revenues from their B2b products for several months, which is the side of the business retained by the Sennheiser family.

Consolidated losses came in for the last financial year reported at $964,417, while Company losses were $846,046.

Revenues are tipped to fall, as previous revenues included B2b products.

Executives at Sennheiser Australia are not returning calls.

The ASIC report claims that on 7 May 2021, the directors of the ultimate parent entity announced a plan to carve out and dispose of the global group’s consumer electronics business.

The group will continue to focus its activities in the professional audio equipment market.

The ultimate parent entity entered into a binding agreement on 31 January 2022 to dispose of the consumer business assets and liabilities, and was expected to complete the sale by 28 February 2022.

The Group has recognised an impairment loss in respect of the consumer business-related assets, including customer relationship intangibles and right-of-use assets.

The big question now is if the consumer business was struggling under the Sennheiser family, how is Senovo going to make the numbers add up in a downturn market.

The business was a no-show at CES 2023, despite Senovo claiming back in 2021 that they intend to invest in the brand.

Recently it was announced that Sonova is establishing a new category for early entry hearing solutions, with the launch of the Sennheiser Conversation Clear Plus earbuds.

Recently, headphone competitor Sony released an in ear pair of over-the-counter hearing buds that also amplify music.

The new speech-enhanced Sonova hearable helps users improve their comprehension in noisy environments.

Conversation Clear Plus earbuds can be used whenever users want effortless, clear conversations in typically noisy environments, such as in a restaurant or on a loud street.

Credit: Sennheiser

This is achieved following the development of advanced Sonova technologies and audiological expertise integrated into the Conversation Clear Plus earbuds.

An independent study shows 95 per cent of users experienced significant speech enhancement in noisy situations when using the product.

An app permits Conversation Clear Plus users to tailor their listening preferences, such as the amount of background noise they want to hear, while integrated true wireless technology allows a rapid connection to any Bluetooth-enabled device.

The Sennheiser family, who closed down their Sydney, Martin Place store prior to the announcement, signed a long-term licensing deal with Sonova so the company could use the Sennheiser brand on a consumer range of products.

When the business was taken over, Sonova said they were committed to premium headphones, audiophile products, enhanced hearables and soundbars, and that the four key product categories was their focus going forward.

One of the big new products is the Sennheiser Ambeo Soundbar Plus, which has been described as an impressive piece of kit.

The Sennheiser offering can be paired with multiple subwoofers; a feature that Tech Radar claims puts even the best Sonos surround setups in the shade.

The premium headphone market is currently valued at around $20bn annually, and is expected to grow threefold to $60bn in the next seven years.

That growth will be driven by smartphone attachment, Currently, only about 20 per cent of smartphone users own a pair of true wireless earphones. This figure will grow to 70 per cent in the next seven years, according to a report by UBS.

The technology behind true wireless headphones and hearing aids is also converging to create a rapidly growing market for enhanced hearing products, known as “hearables”. Sonova believes its acquisition of the Sennheiser Consumer business will put it in a strong position to lead that market.