BALLERUP, DENMARK – The GN Store Nord released its second quarter (Q2) results for 2018, reporting strong double digit organic revenue grown and margin increase. The results exceeded analyst expectations, particularly for the company’s Audio division, which has been performing particularly well.
Some of the highlights of the company’s Interim Report 2018 included:
- 11% organic revenue growth in Q2 2018. Revenue growth at 7% including around (5)% impact from development in foreign exchange rates
- EBITA margin increase of 1.5 percentage points in Q2 2018
- Earnings Per Share (EPS) increased 10% compared to Q2 2017
- GN Hearing delivered 6% organic revenue growth in Q2 2018. Revenue growth was 1% including around (5)% impact from the development in foreign exchange rates
- EBITA increased 9% to DKK 278 million (approximately $43.2 million USD). The EBITA margin increased 1.4 percentage points vs Q2 2017 and reached 19.4%
- GN Audio delivered unprecedented 19% organic revenue growth in Q2 2018. Revenue growth was 16% including around (4)% impact from the development in foreign exchange rates. The continued strong momentum was driven by Jabra’s professional headset business
According to the report, GN Audio’s organic growth guidance for 2018 was upgraded to 16-19%, which is up from previous guidance of “up to 15%” following the strong performance in Q2 2018. The financial guidance for GN Hearing remains unchanged.
René Svendsen-Tune, CEO of GN Audio commented on the results, “I’m very pleased with the continued strong execution and performance across the entire organization. Again in Q2, we delivered market-leading organic growth – surpassing our own ambitious targets. Our CC&O business continued to deliver strong double digit organic growth, and our consumer business returned to positive organic growth.”
“In Q2, we saw continued strong demand in the important independent market for our ground-breaking ReSound LiNX 3D product family. And in August we announced our new Premium-Plus ReSound LiNX Quattro hearing aid, confirming that our innovation machine continues to deliver. With the combination of ReSound LiNX 3D and the newly announced ReSound LiNX Quattro we are on track to deliver on our promises for 2018.”
–Anders Hedegaard, CEO of GN Hearing
Following the increase in company sales and profit forecast for 2018, GN’s shares rose 4 percent in early morning trading. The company’s stock has gained 57 percent so far this year.
Source: GN Store Nord, Reuters