BALLERUP, DENMARK — GN Store Nord A/S has reported robust financial results for the second quarter of 2024, highlighting the company’s continued success in navigating a challenging market environment. The group achieved a 5% organic revenue growth, driven by strong execution across its divisions, leading to a margin expansion that underscores GN’s strategic initiatives.
Key Highlights
- Total Revenue: GN’s total revenue reached DKK 4,499 million (~$651M USD), marking a 2% increase year-over-year, driven by 5% organic growth.
- Hearing Division: Achieved 10% organic revenue growth, with total revenue of DKK 1,792 million (~259M USD). The division’s profit margin improved by 5.3 percentage points to 33.4%, supported by the success of ReSound Nexia.
- Enterprise Division: Reported a 3% decline in organic revenue, with total revenue of DKK 1,785 million (~$258M USD). Despite the decline, the division’s profit margin increased by 1.3 percentage points to 34.6%, thanks to cost control and synergies.
- Gaming & Consumer Division: Recorded 12% organic revenue growth, with total revenue of DKK 922 million (~$133M USD). The profit margin, excluding extraordinary costs, was 9.0%, up from 3.1% in Q2 2023.
Financial Performance and Strategic Initiatives
Group EBITA for the quarter stood at DKK 374 million (~$54M USD), including DKK -155 million (approximately USD -22 million) in extraordinary costs related to the wind-down of the Elite and Talk product lines. Excluding these costs, EBITA was DKK 529 million (~$76M USD), resulting in an EBITA margin of 11.8%.
The increase in margins was attributed to group-wide synergies, which contributed approximately DKK 100 million (~$14.5M USD), as well as a favorable business mix, though partially offset by continued investments in IT and R&D.
“In Q2, we continued to execute well. We defended, or expanded, our market leading positions, while improving our underlying margins. In parallel, we are pursuing the One-GN transformation leading to synergies and a set-up that helps us drive further success into the future. The wind-down of the Elite and Talk product lines is progressing in accordance with our plans. Recently, we also announced our decision to divest Dansk HøreCenter, which will allow us to further focus our resources and energy to drive innovation and success for our customers world-wide.”
–Peter Karlstromer, CEO of GN Store Nord
Divisional Performance
Hearing Division: The Hearing division continued to be a key growth driver for GN, with a strong performance attributed to the global success of ReSound Nexia. The division’s revenue growth of 10% organically reflects significant market share gains, particularly in North America. The division’s profit margin also saw substantial improvement, reaching 33.4%, a 5.3 percentage point increase from the previous year.
Enterprise Division: While the Enterprise division faced a 3% decline in organic revenue, it managed to maintain profitability through strict cost control and effective execution. The division’s profit margin improved to 34.6%, demonstrating the resilience of GN’s enterprise business despite the challenging market conditions.
Gaming & Consumer Division: The Gaming & Consumer division posted strong results with a 12% organic revenue growth. However, the division is undergoing a strategic realignment, including the gradual wind-down of its Elite and Talk product lines. Despite these challenges, the division achieved a significant improvement in its profit margin, excluding extraordinary costs.
Outlook for 2024
GN Store Nord has confirmed its full-year financial guidance for 2024, projecting an organic revenue growth of 2% to 6%, a reported EBITA margin of 12% to 13%, and a free cash flow exceeding DKK 900 million (~$130M USD)
The company remains focused on its One-GN transformation, which is expected to drive further synergies and operational efficiencies. With the wind-down of less profitable product lines and a continued emphasis on innovation and market expansion, GN believes it is well-positioned to sustain its growth trajectory and deliver value to its stakeholders in the coming quarters.
About GN
GN brings people closer through our leading intelligent hearing, audio, video, and gaming solutions. Inspired by people and driven by innovation, we deliver technologies 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 7,000 people and is listed on Nasdaq Copenhagen (GN.CO).
Source: GN
