One-GN transformation well on track. Hearing continued strong organic growth while Enterprise executed well in stabilizing markets and SteelSeries outperformed the market. Sequential margin improvements resulted in strong positive free cash
- - GN Store Nord
- GN delivered continued focused execution across the company resulting in 1% revenue growth compared to Q2 2023. Group organic revenue growth was 0%
- Adj. EBITA was DKK 495 million, equal to an adj. EBITA margin improvement of 1.9 percentage points compared to Q2 2023 (0.6 percentage points lower than Q3 2022), driven by tightly managed OPEX. This led to strong free cash flow excl. M&A of DKK 279 million and in combination with the disposal of BelAudição, the net interest-bearing debt decreased from DKK 12,073 million to DKK 11,333 million
- GN announced its transformation into one integrated company to capture innovation synergies, to better serve customer needs, and to simplify the operating model. This will entail freeing up resources to invest in future innovation and ultimately create shareholder value as a fully integrated innovation powerhouse. The company has identified DKK ~600 million in cost synergies (across COGS and OPEX) to be realized by 2026 of which roughly two-thirds will be achieved in 2024
- Reflecting the narrowed guidance for GN Hearing and GN Audio, GN Store Nord’s organic revenue growth guidance is narrowed from “-4% to +2%” to “-2% to 0%”. As a consequence of the identified cost synergies, the Group will incur a further DKK ~ -300 million in non-recurring items in 2023 due to redundancies and process streamlining activities. No non-recurring items for 2024 are expected to drive these synergies
- - GN Hearing
- GN Hearing delivered continued strong organic revenue growth of 15%, driven by strong performance of ReSound OMNIA resulting in continued significant market share gains in a stable growing hearing aid market
- Adj. EBITA margin was 16.4% in the Core business, equal to an increase of 2.3 percentage points compared to Q2 2023 (increase of 5.6 percentage points compared to Q3 2022), driven by tightly managed OPEX
- Following a stronger than expected Q3 2023, GN Hearing is narrowing its organic revenue growth guidance from “9% to 13%” to “11% to 13%”. The EBITA margin in the core business of “14% to 16%” is confirmed to allow for further investments to drive growth including launch activities for ReSound Nexia
- - GN Audio
- GN Audio executed well resulting in 4% revenue growth compared to Q2 2023. As a consequence of a high comparison base organic revenue growth was -8%
- The Enterprise market experienced general volume stabilization during the quarter, leading to Enterprise revenue in line with Q2 2023 resulting in an organic revenue growth of -13%
- Both Consumer and SteelSeries delivered solid double-digit revenue growth compared to Q2 2023. Strong execution in SteelSeries led to market share gains and organic revenue growth of 10%, while Consumer delivered -8% organic revenue growth
- Adj. EBITA margin was 11.9%, equal to an improvement of 2.4 percentage points compared to Q2 2023 (2.7 percentage points lower than Q3 2022), primarily driven by tightly managed OPEX
- Following a Q3 performance in line with expectations, GN Audio’s organic revenue guidance is narrowed from “-10% to -4%” to “-9% to -7%”. GN Audio’s adj. EBITA margin is confirmed at “10% to 12%”
Quotes from executive management
Peter Karlstromer, CEO of GN Store Nord, comments: “During Q3, GN Hearing delivered strong organic growth for the fourth consecutive quarter, our Enterprise business executed well in stabilizing markets, while our consumer-oriented businesses delivered strong double-digit revenue growth sequentially. As a whole, we saw continued strong execution across the company leading to improved margin levels compared to Q2 2023 and healthy cash flow, which together with the disposal of BelAudição supports the successful execution of GN’s capital plan. We are also excited to embark on the transformation into a one-company setup, which over time will unlock company-wide synergies due to a simpler, faster, and more powerful operating model.”
Financial overview Q3 2023
|GN Hearing||GN Audio|
|DKK million – Q3 2023||Core||Emerging||GN Hearing||Enterprise||Consumer||SteelSeries||GN Audio|
|Adj. EBITA margin **||16.4%||13.2%||11.9%|
|GN Store Nord*||GN Hearing||GN Audio|
|DKK million||Q3 2023||Q3 2022||Growth||Q3 2023||Q3 2022||Growth||Q3 2023||Q3 2022||Growth|
|Adj. Gross profit**||2,230||2,355||-5%||1,025||1,014||1%||1,205||1,341||-10%|
|Adj. Gross profit margin**||50.2%||50.1%||0.1%p||62.0%||65.3%||-3.3%p||43.2%||42.6%||0.6%p|
|Adj. EBITA margin**||11.1%||11.7%||-0.6%p||13.2%||7.7%||5.5%p||11.9%||14.6%||-2.7%p|
|Adj. Earnings per share (EPS)***||2.33||2.68||-13%|
|Free cash flow excl. M&A||279||-217||496||115||60||55||215||21||194|
* Including "Other", ** Excluding non-recurring items (DKK -36 million in OPEX in GN Audio, DKK -6 million in COGS in GN Hearing and DKK -23 million in OPEX in GN Hearing), *** Excluding non-recurring items (DKK -65 million OPEX and COGS) and amortization of acquired intangible assets
Financial guidance 2023
|Organic revenue growth||Adjusted EBITA margin2)||Non-recurring items (DKK million)3)|
|GN Hearing||11% to 13%||9% to 13%|
|- Core business||14% to 16%||14% to 16%||~ -150||~ -150|
|- Emerging Business1) (DKK million)||~ -150||~ -150|
|GN Audio||-9% to -7%||-10% to -4%||10% to 12%||10% to 12%||~ -150||~ -150|
|Other (DKK million)||~ -200||~ -200||~ -300|
|GN Store Nord||-2% to 0%||-4% to +2%||~ -600||~ -300|
Note 1) Emerging Business mainly includes the JabraEnhance.com (formerly Lively)
Note 2) Excluding non-recurring items
Note 3) GN is expecting to incur additional non-recurring items of DKK ~ -300 million in Q4 2023 related to the transformation of One-GN due to redundancies and process streamlining activities. These non-recurring items will most likely be incurred across legal entities. No non-recurring items for 2024 are expected to drive these synergies
Based on foreign exchange rates as of November 10, 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 11.00 a.m. CET on November 10, 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).
AttachmentsTo view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
About GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire by notified
Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire by notified
RESULT OF RIKSBANK CERTIFICATE SALE5.12.2023 10:15:00 CET | Press release
AuctionAuction resultsAuction date2023-12-05Start date2023-12-06Maturity date2023-12-13Interest rate4.00 %Offered volume, SEK bn1 017.0Total bid amount, SEK bn900.150Accepted volume, SEK bn900.150Number of bids18Percentage allotted, %100.00
Sanoma Corporation - Managers' Transactions5.12.2023 10:15:00 CET | Press release
Sanoma Corporation, Managers’ Transactions, 5 December 2023 at 11:15 EET Sanoma Corporation - Managers' Transactions ___________________________________________ Person subject to the notification requirement Name: Holding Manutas Oy Position: Closely associated person (X) Legal person (1):Person Discharging Managerial Responsibilities In Issuer Name: Anna Herlin Position: Member of the Board Issuer: Sanoma Oyj LEI: 743700XJC24THUPK0S03 Notification type: INITIAL NOTIFICATION Reference number: 45256/5/6 ____________________________________________ Transaction date: 2023-12-04 Venue: AQEU Instrument type: SHARE ISIN: FI0009007694 Nature of transaction: ACQUISITION Transaction details (1): Volume: 250 Unit price: 6.88 EUR (2): Volume: 250 Unit price: 7.04 EUR Aggregated transactions (2): Volume: 500 Volume weighted average price: 6.96 EUR ____________________________________________ Transaction date: 2023-12-04 Venue: BEUP Instrument type: SHARE ISIN: FI0009007694 Nature of transaction: A
nuam exchange and Nasdaq Form Strategic Technology Partnership to Develop New Marketplace in Latin America5.12.2023 10:00:00 CET | Press release
Nasdaq’s institutional grade infrastructure to underpin creation of a single market for the three countriesofChile, Perú, and Colombia Flexible and scalable technology will help develop sophisticated, global capital markets ecosystem NEW YORK and SANTIAGO, Chile, Dec. 05, 2023 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) and nuam exchange (Chilean Stock Exchanges: NUAM) formed by the merger of Santiago, Lima, and Colombia stock exchanges, today announced a strategic technology partnership that will underpin the integration, development, and expansion of the new marketplace in Latin America. nuam exchange is seeking to establish a unique, open, and transformative market that can strengthen its domestic economies, whilst scaling to become a leading global exchange group. It is aiming to offer a truly integrated market across multiple asset classes and market infrastructures, broadening its range of products and services as it expands. Nasdaq welcomes the opportunity to partner with nuam exc
Ekstraordinære indfrielser (CK93)5.12.2023 10:00:00 CET | pressemeddelelse
KommuneKredit offentliggør hermed oplysninger om ekstraordinære indfrielser (CK93) pr. 11 december 2023. Der er pr. opgørelsesdagen ingen ekstraordinære indfrielser. For yderligere informationer om dataformat og –indhold henvises til Nasdaqs hjemmeside. Med venlig hilsen KommuneKredit
DSV, 1074 - SHARE BUYBACK IN DSV A/S5.12.2023 09:40:20 CET | Press release
Company Announcement No. 1074 On 24 October 2023, we initiated a share buyback programme, as described in Company Announcement No. 1066. According to the programme, the company will in the period from 24 October 2023 until 31 January 2024 purchase own shares up to a maximum value of DKK 2,500 million, and no more than 4,000,000 shares, corresponding to 1.83% of the share capital at commencement of the programme. The programme has been implemented in accordance with Regulation No. 596/2014 of the European Parliament and Council of 16 April 2014 (“MAR”) (save for the rules on share buyback programmes set out in MAR article 5) and the Commission Delegated Regulation (EU) 2016/1052, also referred to as the Safe Harbour rules. The following transactions have been recorded under the programme: Trading dayTrading platformNumber of shares bought backAverage transaction priceAmount DKKAccumulated trading for days 1-24999,3741,058.461,057,801,90425:27 November 2023AQEU7,5801,061.81CEUX19,0091,06