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Annual Report 2023: Strong execution across the company led to 13% organic revenue growth in GN Hearing and -8% organic revenue growth in GN Audio, while generating DKK 1.1 billion in free cash flow excl. M&A

GN Store Nord A/S
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GN Store Nord A/S
GN Store Nord A/S

2023 highlights

  • GN delivered DKK 18.1 billion revenue with organic revenue growth of -1%, as a result of 13% organic revenue growth in GN Hearing and -8% organic revenue growth in GN Audio

  • Adj. EBITA of DKK 1.8 billion

  • New capital plan from May 2023 provides solid foundation for strategy execution. Free cash flow excl. M&A of DKK 1,092 million which together with the other pillars of the capital plan drove a DKK 4 billion reduction in net interest-bearing debt. Adj. leverage ended at 4.5x

  • Transforming GN’s businesses into a one-company setup and simplifying the Group’s governance structure allowing for a more streamlined and customer-focused organizational setup

In 2023, GN executed well and delivered strong results in markets that presented a mix of tailwinds and headwinds.

In the hearing aid business, GN executed strongly leading to market share gains as a result of 13% organic revenue growth – in line with financial guidance. The performance was broad-based across channels driven by the successful ReSound OMNIA family with 12% organic revenue growth in the Core business and 33% organic revenue growth in the Emerging business. Revenue reached DKK 6,802 million, compared to DKK 6,227 million in 2022, including M&A impact of -1% while impact from foreign exchange rates was -2%.

In the Enterprise business, GN executed solidly in challenging market conditions and against a high comparison base, while defending its global market leadership positioning GN well for the anticipated enterprise market recovery. SteelSeries continued its strong execution and once again took significant market share in a flat market, while the consumer business took important steps to improve profitability by narrowing the product portfolio and launching one mid-range and two new premium true wireless earbuds, Jabra Elite 8 Active and Elite 10. The execution led to -8% organic revenue growth for GN Audio – in line with financial guidance. Revenue in 2023 reached DKK 11,318 million, compared to DKK 12,460 million in 2022, while impact from foreign exchange rates was -1%.

GN Store Nord delivered a substantial free cash flow excl. M&A of DKK 1,092 million compared to DKK -1,291 million in 2022, mainly driven by the solid earnings level and a positive change in working capital related to inventory reductions as well as a significant improvement in trade payables driven by a new commercial agreement with a major manufacturing and logistics provider. Consequently, GN has reduced its debt significantly by DKK 4 billion through substantial positive free cash flow excl. M&A combined with a successful equity raise, a competitive debt refinancing, and attractive disposal of selected assets, thus extending the maturity of remaining material debt to Q3 2026.

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