- - GN Store Nord
- - GN Hearing
- - GN Audio
Quotes from executive management
Gitte Aabo, CEO of GN Hearing, comments: “The year initially was off to a good start, but recent developments related to the COVID-19 pose challenges on demand as people are restricted to stay at home, which significantly impacted our Q1 performance, and we now expect Q2 to be even more severely impacted by COVID-19. On this background, we have accelerated the launch of ReSound Assist Live, which was made available in key markets on April 2, 2020. This technology enables a new, groundbreaking way to access hearing care by reducing the need for in-office visits at a time when older, more vulnerable populations are advised to stay at home.”
René Svendsen-Tune, CEO of GN Audio, comments: “Based on GN Audio’s swift response to the growing demand in the second half of Q1 2020, as companies prepare for employees working from home, GN Audio delivered 22% organic growth in Q1 2020. At the same time, the production output has gradually recovered. GN Audio expects the current high demand to continue into Q2 2020, as companies establish new ways of working. Beyond this current exceptional demand, the global uncertainties allow GN Audio very limited visibility beyond Q2 on both the supply and demand side.”
Marcus Desimoni, CFO of GN Store Nord, comments: “We face the current adverse market conditions with a very sound balance sheet and ample sources of liquidity. As such, we have a solid foundation to face the financial challenges ahead of us.”
Financial highlights Q1 2020:
GN Hearing | GN Audio | GN Store Nord | |||||||
DKK million | Q1 2020 | Q1 2019 | Growth | Q1 2020 | Q1 2019 | Growth | Q1 2020 | Q1 2019 | Growth |
Revenue | 1,314 | 1,507 | -13% | 1,653 | 1,333 | 24% | 2,967 | 2,840 | 4% |
Organic growth | -14% | 8% | 22% | 36% | 3% | 19% | |||
Gross profit | 841 | 1,047 | -20% | 827 | 707 | 17% | 1,668 | 1,754 | -5% |
Gross margin | 64.0% | 69.5% | -5.5%p | 50.0% | 53.0% | -3.0%p | 56.2% | 61.8% | -5.6%p |
EBITA | 55 | 282 | -80% | 288 | 193 | 49% | 300 | 439 | -32% |
EBITA margin | 4.2% | 18.7% | -14.5%p | 17.4% | 14.5% | +2.9%p | 10.1% | 15.5% | -5.4%p |
Earnings per share (EPS) - DKK | 0.78 | 1.96 | -60% | ||||||
Free cash flow excl. M&A | -66 | -37 | -29 | -67 | 78 | -145 | -160 | -13 | -147 |
Financial guidance for 2020
The COVID-19 situation has and will not only impact GN’s operational performance in 2020, but it will also impact predictability and visibility across markets, partners and channels. Therefore, GN withdrew its financial guidance for 2020 on April 3, 2020
Teleconference
GN Store Nord will host a teleconference at 11.00 a.m. CET today. 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.
For further information, please contact:
Investors and analysts
Morten P. Toft
Vice President – Investor Relations & Treasury
Tel: +45 45 75 46 07
Or
Rune Sandager
Senior Manager – Investor Relations
Tel: +45 45 75 92 57
Press and the media
Lars Otto Andersen-Lange
Head of Media Relations & Corporate Public Affairs
Tel: +45 45 75 02 55
About GN Group
The GN Group enables people to Hear More, Do More and Be More through its intelligent hearing, audio and video collaboration solutions. Inspired by people and driven by our innovation leadership, we leverage technological synergies between our hearing and audio divisions to deliver unique and increasingly individualized user experiences in our products and solutions.
150 years ago, GN was founded with a truly innovative and global mindset. Today, we honor that legacy with world-leading expertise in the human ear, sound and video processing, wireless technology, miniaturization and collaborations with leading technology partners. GN's solutions are marketed by the brands ReSound, Beltone, Interton, Jabra, BlueParrott and FalCom in 100 countries. Founded in 1869, the GN Group employs 6,500 people and is listed on Nasdaq Copenhagen (GN.CO).
Visit our homepage GN.com - and connect with us on LinkedIn, Facebook and Twitter.
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