The Sennheiser Group generated a turnover of €667.7 million in fiscal year 2017, which is €9.3 million, or 1.4 percent, more than in 2016. Earnings before taxes declined to €-4.5 million compared to €34.9 million in the previous year. This includes restructuring costs of around €21.6 million, which are reported in the expenses as one-time effects. Sennheiser further developed its organizational structure in 2017 to counteract the decline in earnings and secure long-term profitable growth, thereby positioning the family business successfully for the future. Sennheiser also increased its investments in research and development by 6.2 percent compared to the previous year to €57.8 million.
The two divisions, consumer and professional, were further strengthened by bringing together general functions such as product management, marketing, and sales in the organizational units. In the professional market, the company aims to further strengthen core competencies such as wireless microphone technology for the future, while its focus in the consumer market is on smart and connected audio experiences. An important component of both divisional strategies remains the AMBEO 3D audio technology program.
The professional division generated a turnover of €318.9 million in fiscal year 2017. This corresponds to a moderate increase of €2.6 million, or 0.8 percent, compared to the previous year. With the introduction of the Digital 6000 wireless microphone system and the XS Wireless 1 and 2 microphone series, the division particularly strengthened Sennheiser’s wireless offering. The consumer division generated a turnover of €348.8 million in the past fiscal year, for a slight increase of €6.7 million, or 2 percent, over the previous year.
Turnover in the APAC region amounted to €141.5 million in the year under review. In the Americas, the turnover increased by €5.7 million, or 3.4 percent, year on year to €174.5 million. The performance of the US dollar, which significantly depreciated in value against the euro over the course of the year, had a limiting effect. Turnover in the EMEA region fell by €6.5 million, or 1.8 percent, to €351.7 million. Particularly in Germany, intensified competitive pressure became noticeable; turnover in the home region of the Sennheiser Group decreased by €3.6 million, or 3.5 percent, to €99.6 million. The Sennheiser Group once again increased its investment in R&D activities by 6.2 percent to €57.8 million compared to the previous year. Research and development expenses thus amounted to 8.7 percent of turnover. In total, 416 employees worldwide worked in research and development.