- - GN Store Nord
- - GN Hearing
- - GN Audio
Quotes from executive management
Gitte Aabo, CEO of GN Hearing, comments: “It is very encouraging that GN Hearing in Q2 continued the strong performance we have seen since late 2022, making it the third consecutive quarter with strong double-digit organic growth. The hearing aid markets have broadly returned to healthy growth rates, and GN Hearing continues to significantly outperform the market due to the success of ReSound OMNIA.”
Peter Karlstromer, CEO of GN Audio, comments: “We continue to work ourselves through a challenging time in our markets. We focus on execution and we are pleased to deliver sequential growth and margin improvement over Q1, as well as our cash focused initiatives leading to a strong cash flow. We continue to balance cost control with continued strategic investments and are ready to capture opportunities as the market evolves.”
Financial overview Q2 2023
|GN Hearing||GN Audio|
|DKK million – Q2 2023||Core||Emerging||GN Hearing||Enterprise||Consumer||SteelSeries||GN Audio|
|Adj. EBITA margin **||14.1%||11.3%||9.5%|
|GN Store Nord*||GN Hearing||GN Audio|
|DKK million||Q2 2023||Q2 2022||Growth||Q2 2023||Q2 2022||Growth||Q2 2023||Q2 2022||Growth|
|Adj. Gross profit**||2,232||2,496||-11%||1,049||940||12%||1,183||1,556||-24%|
|Adj. Gross profit margin**||50.8%||51.4%||-0.6%p||61.0%||61.5%||-0.5%p||44.2%||46.8%||-2.6%p|
|Adj. EBITA margin**||9.2%||12.6%||-3.4%p||11.3%||3.2%||8.1%p||9.5%||18.0%||-8.5%p|
|Adj. Earnings per share (EPS)***||1.21||3.17||-62%|
|Free cash flow excl. M&A||622||-412||1,034||131||-326||457||464||49||415|
* Including "Other", ** Excluding non-recurring items (DKK -47 million in OPEX in GN Audio, DKK -10 million in COGS in GN Hearing and DKK -16 million in OPEX in GN Hearing), *** Excluding non-recurring items (DKK -73 million OPEX and COGS) and amortization of acquired intangible assets
Financial guidance 2023
|Organic revenue growth||Adjusted EBITA margin2)||Non-recurring items (DKK million)|
|GN Hearing||9% to 13%|
|- Core business||14% to 16%||~ -150|
|- Emerging Business1) (DKK million)||~ -150|
|GN Audio||-10% to -4%||10% to 12%||~ -150|
|Other (DKK million)||~ -200|
|GN Store Nord||-4% to +2%||~ -300|
Note 1) Emerging Business mainly includes the JabraEnhance.com (formerly Lively)
Note 2) Excluding non-recurring items
Based on foreign exchange rates as of August 16, 2023
Primary risk factors in relation to the financial guidance
The basic assumptions behind the guidance remain more uncertain than normal. Primary risk factors include inflationary pressures, consumer sentiment and general economic uncertainty. GN’s supply chains, including component sourcing and local and geopolitical instability and deteriorating trade relations may impact key suppliers and GN’s operations.
GN Store Nord will host a teleconference at 11.30 a.m. CEST on August 17, 2023. 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:
Anne Sofie Staunsbæk Veyhe +45 45 75 85 06
Rune Sandager +45 45 75 92 57
Steen Frentz Laursen +45 20 65 34 20
The forward-looking statements in this report reflect the management's current expectations of certain future events and financial results. Statements regarding the future are, naturally, subject to risks and uncertainties, which may result in considerable deviations from the outlook set forth. Furthermore, some of these expectations are based on assumptions regarding future events, which may prove incorrect. Changes to such expectation and assumptions will not be disclosed on an ongoing basis, unless required pursuant to general disclosure obligations to which GN is subject.
Factors that may cause actual results to deviate materially from expectations include – but are not limited to – general economic developments and developments in the financial markets, technological developments, changes and amendments to legislation and regulations governing GN’s markets, changes in the demand for GN's products, competition, fluctuations in sub-contractor supplies and developments in ongoing litigation (including but not limited to class action and patent infringement litigation in the United States).
The securities offered will not be and have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements
For more information, see the "Management's report" and "Risk management” elsewhere in the 2022 Annual Report. This Report should not be considered an offer to sell securities in GN.
GN brings people closer through our leading intelligent hearing, audio, video, and gaming solutions. Inspired by people and driven by innovation, we deliver technology that enhance the senses of hearing and sight. We help people with hearing loss overcome real-life challenges, improve communication and collaboration for businesses, and provide great experiences for audio and gaming enthusiasts.
GN was founded more than 150 years ago with a vision to connect the world. Today, inspired by our strong heritage, GN touches more lives than ever with our unique expertise and the broadest portfolio of products and services in our history – bringing people closer to what is important to them.
We market our solutions with the brands Jabra, ReSound, SteelSeries, Beltone, Interton, BlueParrott, Danavox, and FalCom in 100 countries. Founded in 1869, GN Group employs more than 7,500 people and is listed on Nasdaq Copenhagen (GN.CO).