Highlights

• GN executed strongly across the three divisions resulting in 5% organic revenue growth for the Group

• The Hearing division continued to gain significant market share leading to 10% organic revenue growth, resulting in 5.3 percentage point increase in the divisional profit margin supported by synergies and the successful ReSound Nexia roll-out

• The Enterprise division continued its focused execution leading to -3% organic revenue growth in a stabilizing market. The divisional profit margin increased by 1.3 percentage points driven by synergies, product mix, and strict cost control

• The Gaming & Consumer division delivered organic revenue growth of 12% following strong execution in Gaming. The decision to gradually wind-down Elite and Talk product lines resulted as planned in increased promotional activities towards the end of the quarter. Excluding the earlier announced extraordinary write-downs, the divisional profit margin was 9.0% compared to 3.1% in Q2 2023 driven by synergies, on top of channel investments

• Group reported EBITA ended at DKK 374 million (including DKK -155 million in extraordinary costs related to the gradual wind-down). Excluding these extraordinary costs, EBITA ended at DKK 529 million, equal to an EBITA margin of 11.8% driven by group-wide synergies of DKK ~100 million and business mix, partly off-set by net investments into IT and R&D

• Free cash flow excl. M&A ended at DKK 155 million in Q2 2024 as a result of the healthy earnings level and a stable development in net working capital. Consequently, the net interest-bearing debt further declined resulting in an adj. leverage of 3.9x

• The full year guidance, which was adjusted on June 11, is confirmed

Financial guidance for 2024

Quotes from Executive Management
Peter Karlstromer, CEO of GN Store Nord, comments: “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.”

Financial overview Q2 2024

Teleconference
GN Store Nord will host a teleconference at 11.00 a.m. CET on August 22, 2024. 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.