Interim Report Q3 2024: Further margin expansion and strong cash flow despite mixed growth across divisions

HighlightsThe Hearing division continued to gain significant market share leading to 10% organic revenue growth, while the divisional profit margin increased by 5.9 percentage points to 34.8%The Enterprise division was negatively impacted by sell-in pressure due to economic growth challenges in parts of Central Europe, while North America and Rest of World continued its stabilization. Overall, organic revenue growth ended at -7%, while sell-out growth was -3%. Despite the topline...

Ballerup, 06/11/2024 (informazione.it - comunicati stampa - salute e benessere)

Following very strong market growth in 2023, GN expects the markets to return to historical growth rates in 2024 supported by ongoing favorable demographic trends. As such, GN projects 4-6% market volume growth and -1% to -2% market ASP decline. Driven by the strong continued momentum and market share gains with ReSound Nexia, GN expects the Hearing division to trend towards the upper half of the original organic growth assumption of 8% to 12%. As a function of the strong growth, the Hearing division is projecting an EBITA margin in the core hearing aid business of around 20% for 2024.

The market stabilization observed in the first half of 2024 has continued into H2 2024 in North America and Rest of World. However, parts of Central Europe have experienced some sell-in pressure due to economic growth challenges. As a result of this, the Enterprise division is currently assuming an overall organic revenue growth of around -3% for 2024 compared to the original assumption of -3% to +5%. The long-term attractiveness of the market is fully intact, why it is currently the planning assumption that the addressable Enterprise market will continue to improve in 2025, which is supported by the current trend in sell-out data.

Following the gradual wind-down of the Elite and Talk product lines the Gaming & Consumer division is assumed to deliver organic revenue growth of -10% to -2% reflecting the announcement on June 11, 2024. This reflects around DKK 450 million lower revenue in Consumer compared to 2023, as well as an assumption that Gaming is currently trending towards the middle of the original +2% to +10% organic growth assumption due to some recent market softness. As a result of the gradual wind-down the group will incur extraordinary costs of around DKK -200 million in 2024, including severance payments, write-down of prior development projects and inventories, of which the majority is expected to be non-cash.

Peter Karlstromer, CEO of GN Store Nord, comments: 

GN Store Nord will host a teleconference at 11.00 a.m. CET on November 7, 2024. Please visit www.gn.com/investor to access the teleconference. Presentation material will be available on the website prior to the start of the teleconference.

Rune Sandager +45 45 75 92 57



Steen Frentz Laursen +45 20 65 34 20

The forward-looking statements in this report reflect the management's current expectations of certain future events and financial results. Statements regarding the future are, naturally, subject to risks and uncertainties, which may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect. Changes to such expectations and assumptions will not be disclosed on an ongoing basis, unless required pursuant to general disclosure obligations to which GN is subject.

Factors that may cause actual results to deviate materially from expectations include – but are not limited to – general economic developments and developments in the financial markets as well as foreign exchange rates, technological developments, changes and amendments to legislation and regulations governing GN's markets, changes in the demand for GN's products, competition, fluctuations in sub-contractor supplies, and developments in ongoing litigation (including but not limited to class action and patent infringement litigation in the United States).

For more information, please see the "Management's report" and "Risk management” sections in the Annual Report. This Report should not be considered an offer to sell securities in GN.

GN brings people closer through our leading intelligent hearing, audio, video, and gaming solutions. Inspired by people and driven by innovation, we deliver technologies that enhance the senses of hearing and sight. We help people with hearing loss overcome real-life challenges, improve communication and collaboration for businesses, and provide great experiences for audio and gaming enthusiasts. GN was founded more than 150 years ago with a vision to connect the world. Today, inspired by our strong heritage, GN touches more lives than ever with our unique expertise and the broadest portfolio of products and services in our history – bringing people closer to what is important to them.

We market our solutions with the brands Jabra, ReSound, SteelSeries, Beltone, Interton, BlueParrott, Danavox, and FalCom in 100 countries. Founded in 1869, GN Group employs more than 7,000 people and is listed on Nasdaq Copenhagen (GN.CO).

Visit our homepage GN.com and connect with us on LinkedIn, Facebook and X.

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