One-GN transformation well on track. Hearing continued strong organic growth while Enterprise executed well in stabilizing markets and SteelSeries outperformed the market. Sequential margin improvements resulted in strong positive free cash

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

- - GN Store Nord

  • GN delivered continued focused execution across the company resulting in 1% revenue growth compared to Q2 2023. Group organic revenue growth was 0%

  • Adj. EBITA was DKK 495 million, equal to an adj. EBITA margin improvement of 1.9 percentage points compared to Q2 2023 (0.6 percentage points lower than Q3 2022), driven by tightly managed OPEX. This led to strong free cash flow excl. M&A of DKK 279 million and in combination with the disposal of BelAudi??o, the net interest-bearing debt decreased from DKK 12,073 million to DKK 11,333 million

  • GN announced its transformation into one integrated company to capture innovation synergies, to better serve customer needs, and to simplify the operating model. This will entail freeing up resources to invest in future innovation and ultimately create shareholder value as a fully integrated innovation powerhouse. The company has identified DKK ~600 million in cost synergies (across COGS and OPEX) to be realized by 2026 of which roughly two-thirds will be achieved in 2024

  • Reflecting the narrowed guidance for GN Hearing and GN Audio, GN Store Nord’s organic revenue growth guidance is narrowed from “-4% to +2%” to “-2% to 0%”. As a consequence of the identified cost synergies, the Group will incur a further DKK ~ -300 million in non-recurring items in 2023 due to redundancies and process streamlining activities. No non-recurring items for 2024 are expected to drive these synergies

- - GN Hearing

  • GN Hearing delivered continued strong organic revenue growth of 15%, driven by strong performance of ReSound OMNIA resulting in continued significant market share gains in a stable growing hearing aid market

  • Adj. EBITA margin was 16.4% in the Core business, equal to an increase of 2.3 percentage points compared to Q2 2023 (increase of 5.6 percentage points compared to Q3 2022), driven by tightly managed OPEX

  • Following a stronger than expected Q3 2023, GN Hearing is narrowing its organic revenue growth guidance from “9% to 13%” to “11% to 13%”. The EBITA margin in the core business of “14% to 16%” is confirmed to allow for further investments to drive growth including launch activities for ReSound Nexia

- - GN Audio

  • GN Audio executed well resulting in 4% revenue growth compared to Q2 2023. As a consequence of a high comparison base organic revenue growth was -8%

  • The Enterprise market experienced general volume stabilization during the quarter, leading to Enterprise revenue in line with Q2 2023 resulting in an organic revenue growth of -13%

  • Both Consumer and SteelSeries delivered solid double-digit revenue growth compared to Q2 2023. Strong execution in SteelSeries led to market share gains and organic revenue growth of 10%, while Consumer delivered -8% organic revenue growth

  • Adj. EBITA margin was 11.9%, equal to an improvement of 2.4 percentage points compared to Q2 2023 (2.7 percentage points lower than Q3 2022), primarily driven by tightly managed OPEX

  • Following a Q3 performance in line with expectations, GN Audio’s organic revenue guidance is narrowed from “-10% to -4%” to “-9% to -7%”. GN Audio’s adj. EBITA margin is confirmed at “10% to 12%”

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