Double-digit organic growth in both Hearing Instruments and CC&O. Full-year guidance confirmed

Announcement

Aug 11, 2016
GN Store Nord A/S
Quarterly report

Double-digit organic growth in both Hearing Instruments and CC&O. Full-year guidance confirmed

Copenhagen, 2016-08-11 06:59 CEST --

  • GN delivered 11% revenue growth in Q2 2016, organic growth was 9%, driven by strong performance in Hearing Instruments and CC&O 
  • Earnings per share (EPS) reached DKK 1.57, an increase of 26% compared to Q2 2015
  • Free cash flow excl. M&A increased by DKK 92 million compared to Q2 2015, equivalent to an increase of 28%, leading to cash conversion of 121% 
  • Financial guidance for 2016 is confirmed, including the communicated seasonality in earnings reflecting among other investments during early parts of the year to further support the strong current growth momentum
  • GN Hearing delivered 12% revenue growth. Organic growth was 9% driven by 10% organic growth in Hearing Instruments
  • GN Hearing’s EBITA increased 14% and reached DKK 248 million. The EBITA margin ended at 17.4%, compared to 17.2% in Q2 2015. The result includes transaction costs of DKK 22 million expensed in H1 2016 relating to the Audigy Group acquisition with the cost mainly impacting Q2 2016
  • GN Hearing’s free cash flow excl. M&A increased by DKK 59 million compared to Q2 2015. Cash conversion ended at 115%, compared to 103% in Q2 2015
  • With the first significant M&A transaction in recent years, GN Hearing further strengthened its market position in the US with the acquisition of Audigy Group
  • GN Audio delivered 9% organic growth driven by 15% organic growth in CC&O and with (7)% organic growth in the Mobile division
  • GN Audio’s EBITA increased 7% and reached DKK 115 million. The EBITA margin ended at 14.0%, reflecting a 0.5 percentage point increase in constant currencies driven by strong CC&O performance
  • GN Audio’s free cash flow excl. M&A increased by DKK 39 million compared to Q2 2015. Cash conversion ended at 139%, compared to 113% in Q2 2015 

Quotes from the executive management

Anders Hedegaard, CEO of GN Hearing: “The very strong momentum in GN Hearing continued in Q2 2016. In a highly competitive landscape, GN Hearing continues to gain market share. This is the result of a combination of an industry leading product portfolio and strong execution of our commercial excellence initiatives. Also, in the quarter, GN Hearing’s commitment to support independent hearing healthcare professionals was further strengthened with the acquisition of Audigy Group, the US based provider of business and performance management solutions”

René Svendsen-Tune, CEO of GN Audio: “In Q2 2016, we further strengthened our world leading position in the CC&O market. It is truly satisfying to report strong growth and market share gains in this attractive area. Our ability to continuously convert the positive revenue growth into strong cash generation and an attractive earnings level is very encouraging and it proves that the hard work of our employees is paying off”

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

Michael Nass Nielsen
Manager – Investor Relations
GN Store Nord A/S
Tel: +45 45 75 02 40


GNSN-Interim-Q2-2016-EN.pdf