GN 2018 Annual Report: Company Posts 13% Organic Growth and Margin Increase

BALLERUP, DENMARK — GN Store Nord’s 2017 – 2019 strategy continues to pay off for the company. In its 2018 Annual Report, the company has posted organic revenue growth of 13%, based on the strong performance of both the GN Hearing and Audio divisions. With important product launches during the year, GN believes it is well positioned for 2019 and beyond.

During 2018, GN Hearing continued the successful commercialization of its ReSound LiNX 3D family of premium products. The company bolstered its offerings in the Fall of 2018 with the launch of the launch of ReSound LiNX Quattro, what the company describes as “the world’s first Premium-Plus hearing aid. A new chip platform allows ReSound LiNX Quattro users to benefit from improved sound experience and long lasting Li-ion rechargeable battery.

The performance during the year led to 7% organic revenue growth, with 10% organic growth in the 4th Quarter

GN’s Audio division further strengthened its world-leading position in the Call Center & Office (CC&O) market during 2018. The Audio group witnessed very strong performance across regions and channels driven by new product launches, leading to 21% organic revenue growth and 26% growth in EBITA.

GN Audio’s ongoing re-positioning of the consumer business resulted in strong organic revenue growth, driven among others by the successful true wireless Jabra Elite family.

 

Financial highlights Q4 2018  

  • GN Store Nord delivered 19% revenue growth in Q4 2018. Organic growth was 18%. EBITA increased by 9% to DKK 688 million (approximately $104.5 million USD), equal to an EBITA margin of 21.6%
  • GN Hearing delivered 10% revenue growth in Q4 2018. Organic growth was also 10%, driven by continued strong performance in the independent market. EBITA decreased by 3% to DKK 385 million (approximately $58.5 million USD), with the EBITA margin reaching 23.4%, reflecting development from foreign exchange rates and R&D capitalization fluctuations as a function of timing of product launches
  • GN Audio delivered 31% revenue growth in Q4 2018. Organic growth was 28%, driven by strong performance across the CC&O and the consumer business. EBITA increased by 28% to DKK 348 million (approximately $52.8 million USD), with the EBITA margin reaching 22.6%

 

GN Financial Guidance for 2019

 

GN is entering the last year of the strategy 2017 – 2019: Hear More, Do More, Be More, where GN has set ambitious financial targets: 

Based on the strong current momentum in both GN Hearing and GN Audio, the company believes that it is well positioned for 2019 and beyond. The financial outlook for 2019 assumes continued strong profitable growth:

*Before extraordinary one-off costs related to the acquisition of Altia Systems Inc. (announced on 19 February 2019), which impact GN Audio’s EBITA margin negatively by around 1 percentage point in 2019. The acquisition is expected to be accretive to GN Audio’s financials from 2020

In 2019, GN is targeting a double-digit percentage increase in earnings per share (EPS).

 

Source: GN


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