Interim Report Q1 2018: Double digit organic growth drives strong EBITA margin increase. GN Audio upgrades organic growth guidance

Announcement

May 02, 2018

GN Store Nord A/S


  • GN Store Nord delivered 10% organic revenue growth in Q1 2018. Revenue growth was 3% including around (7)% impact from development in foreign exchange rates
  • EBITA margin increased 1.1 percentage points in Q1 2018 reflecting strong operational execution
  • EPS increased 11% compared to Q1 2017 and reached DKK 1.57
  • Continued strong cash conversion at 50% in Q1 2018
  • A new DKK 1 billion share buyback program is initiated
  • GN Audio’s organic growth guidance for 2018 is upgraded to “around 9%” from “more than 7%” following the strong performance in Q1 2018. The financial guidance for GN Hearing is unchanged
  • GN Hearing delivered 5% organic revenue growth in Q1 2018. Revenue growth was (1)% including around (7)% impact from the development in foreign exchange rates and around 1% contribution from M&A
  • EBITA increased 7% to DKK 262 million. The EBITA margin increased 1.4 percentage points and reached 19.2%
  • Free cash flow excl. M&A was DKK 103 million in Q1 2018, an increase of DKK 17 million compared to Q1 2017. Cash conversion at 39%
  • GN Audio delivered 17% organic revenue growth in Q1 2018. Revenue growth was 9% including around (8)% impact from the development in foreign exchange rates
  • The continued strong momentum was driven by Jabra's professional headsets business
  • EBITA increased 22% to DKK 126 million, compared to DKK 103 million in Q1 2017. The EBITA margin increased 1.5 percentage points and reached 13.5%
  • Free cash flow excl. M&A was DKK 99 million in Q1 2018, an increase of DKK 21 million compared to Q1 2017. Cash conversion at 79%

Quotes from the executive management

Anders Hedegaard, CEO of GN Hearing: “I’m pleased to see that we continue to leverage our industry-leading ReSound LiNX 3D product family, launched in May 2017. Our teams around the world build on the solid momentum created by our leading sound quality and unique remote fine-tuning. We are on track to deliver on our promises for 2018.”

René Svendsen-Tune, CEO of GN Audio: “We have entered 2018 like we exited 2017 – with very strong performance. I’m excited to see that our hard work yet again results in high organic growth and EBITA margin increase. With April’s launch of our new Jabra Engage product portfolio - the world’s most powerful professional wireless headsets - we are taking further steps to continue our growth story.”

Teleconference
GN will host a teleconference at 11.00 am CEST today. Please visit www.gn.com/investor to access the teleconference. Presentation material will be available on the website approximately one hour prior to the teleconference.

For further information please contact:

Peter Justesen
VP – Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 87 16

or

Rune Sandager
Senior Investor Relations Manager
GN Store Nord A/S
Tel: +45 45 75 92 57

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