Interim Report Q1 2024: GN Store Nord delivered organic revenue growth of 5% reaching an EBITA margin of 12.5%

GN Store Nord A/S
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GN Store Nord A/S
GN Store Nord A/S

Highlights

  • GN delivered continued execution across the three divisions resulting in 5% organic revenue growth for the Group

  • The Hearing division delivered continued market share gains leading to 14% organic revenue growth, resulting in 8.2 percentage point increase in the divisional profit margin supported by synergies and a successful ReSound Nexia roll-out

  • The Enterprise division continued its relentless commercial execution in a stabilizing market leading to 0% organic revenue growth. The divisional profit margin increased by 5.7 percentage points driven by easing freight costs, synergies, product mix, and strict cost control

  • The Gaming & Consumer division delivered organic revenue growth of 0% due to a demanding comparison base from Q1 2023. The divisional profit margin increased by 3.8 percentage points driven by easing freight costs, synergies, and less promotional activity, while investing in sales and marketing

  • Group EBITA grew 114% to DKK 538 million, equal to an EBITA margin of 12.5%, which was an improvement of 6.5 percentage points compared to adj. EBITA in Q1 2023, driven by improved divisional profits, tightly managed R&D and general admin costs. EBITA was supported by total One-GN synergies of DKK ~90 million realized in the quarter

  • Free cash flow excl. M&A ended at DKK 46 million compared to DKK -578 million in Q1 2023 primarily driven by a significant increase in operating cash flow. As a consequence of the strong margin expansion and stable development in net interest-bearing debt, the adj. leverage decreased from 4.5x in Q4 2023 to 4.0x in Q1 2024

  • The full year guidance is confirmed

Financial guidance for 2024

 

Organic revenue growth

EBITA margin

Free cash flow excl. M&A (DKK million)

GN Store Nord

2% to 8%

12% to 14%

>700

Quotes from Executive Management
Peter Karlstromer, CEO of GN Store Nord, comments: “The results in Q1 2024 demonstrates that we are on track with the transformation of GN and delivering the business performance and value creation we have promised. Our Hearing division continues its great momentum supporting existing and new customers, and we are pleased to continue to gain share. Our Enterprise division has executed well based on our industry-leading product portfolio and strong position in a stabilizing market. In Gaming & Consumer we were up against difficult comparison numbers from last year and, still, we delivered revenue on par with last year, which was in line with how we planned. Across the Group we see strong improvement in profitability. So, over-all, we are moving in the right direction.”

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