BALLERUP, DENMARK — The GN Group reported 19% organic revenue growth in the first quarter of 2019. Earnings Per Share (EPS) increased 25% compared to the same period last year.
GN Interim Report Q1 2019 Highlights
- GN Hearing delivered 8% organic revenue growth in Q1 2019. Revenue growth was 10% including around 2% impact from the development in foreign exchange rates
- EBITA increased 8% to DKK 282 million ($42.3M USD). The EBITA margin reached 18.7%, slightly lower than Q1 2018 driven by the strong gross margin increase “but more than off-set by the development in foreign exchange rates”
- Free cash flow excl. M&A was DKK 37 million ($5.5M USD) in Q1 2019 impacted by traditional seasonality and higher level of trade receivables and inventories due to the successful ReSound LiNX Quattro
- GN Audio delivered 36% organic revenue growth in Q12019, driven by very strong performance across the business. Revenue growth was 43% including around 5% impact from the development in foreign exchange rates and around 2% impact from M&A
- EBITA increased 53% to DKK 193 million ($29M USD) – after transaction related costs of DKK 45 million ($6.75M USD) associated with the acquisition of Altia Systems. The EBITA margin increased 1.0 percentage points vs Q1 2018 and reached 14.5%, or 17.9% before transaction related costs
- Free cash flow excl. M&A was DKK 78 million ($11.7M USD) in Q1 2019, translating into a cash conversion of 40%
- GN Audio upgraded the full year guidance on April 12, 2019
“With 8% organic revenue growth in Q1 2019, we see that GN Hearing’s innovation strategy is working as planned. Audiologists and users really appreciate what they can accomplish with our new Premium-Plus hearing aid ReSound LiNX Quattro, and we also see continued strong performance by the full product family in ReSound LiNX 3D.”
–Jakob Gudbrand, CEO of GN Hearing
Scott Davis Named President of GN Hearing, North America
It was also reported this week that industry veteran, and former Sivantos CEO for North America, Scott Davis has been named as president of GN Hearing North America. Davis will begin his new post starting on June 1st.
As incoming president of GN North America, Davis will oversee the GN’s ReSound, Beltone, Audigy, and FalCom businesses in the US and Canada. He will report directly into GN Hearing CEO Jakob Gudbrand.