In This Article:
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Organic Revenue Growth: 1% for the year; 10% in hearing, -3% in enterprise, 7% in gaming, -31% in consumer wind down.
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Gross Margin: Increased to 53.2% from 49.4% in '23.
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EBITDA Margin: 12%, up from 6.6% in '23.
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Free Cash Flow: DKK 1.1 billion.
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Synergies Realized: DKK 430 million.
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Hearing Division Organic Growth: 10% with a gross margin of 62.8%.
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Enterprise Division Organic Growth: -3% with a gross margin of 55.7%.
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Gaming Division Organic Growth: 7% with a gross margin of 29.8%.
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Leverage: Reduced to 3.5 times from 4.5 times last year.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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GN Store Nord AS (GGNDF) achieved a strong 10% organic growth in its hearing division, building on a 13% growth from the previous year.
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The company reported a 79% increase in EBITDA, resulting in a 12% EBITDA margin, up from 6.6% the previous year.
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The OneGN transformation initiative delivered company-wide synergies of around DKK430 million, slightly ahead of the original plan.
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The gaming division, particularly SteelSeries, experienced a strong finish to the year with a 16% organic revenue growth in Q4.
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GN Store Nord AS (GGNDF) successfully reduced its net interest-bearing debt, improving its leverage ratio from 4.5 times to 3.5 times.
Negative Points
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The enterprise division experienced a negative 3% organic revenue growth for the year, with a slight improvement to negative 2% in Q4.
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The consumer division saw a significant decline of 31% in organic growth due to the wind down of the Elite and Talk product lines.
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The company anticipates a 0.5-percentage-point negative margin impact from tariffs between China and the US, mainly affecting the gaming and enterprise divisions.
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GN Store Nord AS (GGNDF) faces potential headwinds from FX rates, particularly the appreciated US dollar, which could impact the EBITDA margin.
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The company expects continued costs related to service and warranty commitments from the wind down, estimated at around DKK50 million.
Q & A Highlights
Q: Can you provide insights into the assumptions behind the 12% to 14% EBITDA guidance, particularly regarding tariffs, competition in hearing, and recovery in audio? A: The guidance reflects our trajectory towards a long-term EBITDA margin of 16% to 17%. The midpoint of 13% is our best estimate, considering FX and tariffs. The range is influenced by revenue performance, with synergies potentially offsetting some challenges. We aim for a balanced outlook, anchored in the midpoint.