Interim Report Q2 2024: Strong Execution Leading to Growth
In the second quarter of 2024, GN Store Nord showcased impressive operational performance, achieving a notable 5% organic revenue growth across the entire Group. This success stems from the company's unwavering commitment to strategic execution within its three divisions, resulting in significant market progress and enhanced profit margins.
Key Highlights from Q2 2024
During this quarter, the Hearing division stood out by capturing a considerable share of the market, resulting in an impressive 10% organic revenue growth. This achievement led to a remarkable 5.3 percentage point increase in the divisional profit margin, thanks to effective synergies and the successful launch of the ReSound Nexia brand.
Conversely, the Enterprise division concentrated its efforts in a stabilizing market, which resulted in a -3% organic revenue growth. However, diligent cost management and a favorable product mix contributed to a 1.3 percentage point rise in the divisional profit margin.
The Gaming & Consumer division experienced the most significant growth, with an organic revenue increase of 12%. This surge was driven by robust performance in the Gaming sector, even in light of previous announcements regarding the winding down of the Elite and Talk product lines, which led to increased promotional activities towards the end of the quarter.
Financial Overview
GN Store Nord reported an EBITA of DKK 374 million, factoring in DKK -155 million in extraordinary costs linked to the gradual winding down of certain product lines. When excluding these costs, the adjusted EBITA reached DKK 529 million, reflecting an EBITA margin of 11.8%. The growth in margins was further bolstered by synergies contributing nearly DKK 100 million, although investments in IT and R&D tempered overall gains.
The quarter also saw a healthy free cash flow, excluding M&A activities, amounting to DKK 155 million. Stable earnings and consistent performance across net working capital resulted in a reduction of net interest-bearing debt, achieving an adjusted leverage of 3.9x.
Guidance for 2024
GN Store Nord has reaffirmed its full-year guidance set earlier in the quarter, anticipating organic revenue growth between 2% and 6%, a reported EBITA margin of 12% to 13%, and free cash flow growth exceeding DKK 900 million.
Insights from Executive Management
Peter Karlstromer, CEO of GN Store Nord, commented on the company's excellent execution during Q2. He highlighted the success in defending and expanding market positions while steadily improving profit margins. The ongoing One-GN transformation is designed to create synergies that will pave the way for future success. Additionally, Karlstromer noted the strategic decision to divest Dansk HøreCenter, allowing GN Store Nord to focus its resources on innovation and delivering customer success on a global scale.
Conclusion and Future Outlook
As GN Store Nord progresses, its commitment to innovation in the hearing, audio, and gaming sectors remains a top priority. The company aims to build on its recent achievements, leveraging its extensive portfolio and strong market presence to continue driving growth and profitability.
Contact Information
For further inquiries, please reach out to:
Investor Relations
Rune Sandager +45 45 75 92 57
Media Relations
Steen Frentz Laursen +45 20 65 34 20
Frequently Asked Questions
What were the main highlights of GN Store Nord's Q2 2024 performance?
GN Store Nord achieved a 5% organic revenue growth, with significant contributions from the Hearing and Gaming & Consumer divisions, which saw growth rates of 10% and 12%, respectively.
How did the Enterprise division perform in Q2 2024?
The Enterprise division experienced a -3% organic revenue growth, but improved its profit margin by 1.3 percentage points through cost control and an improved product mix.
What is the EBITA reported by GN Store Nord for Q2 2024?
The reported EBITA for Q2 2024 was DKK 374 million, with an adjusted EBITA of DKK 529 million excluding extraordinary costs, leading to an EBITA margin of 11.8%.
What is GN Store Nord's guidance for the full year?
The company confirmed its guidance targeting organic revenue growth of 2% to 6%, an EBITA margin of 12% to 13%, and free cash flow exceeding DKK 900 million for the year.
How is GN Store Nord planning to focus its resources in the future?
Following the divestment of Dansk HøreCenter, GN Store Nord aims to allocate its resources towards enhancing innovation and paving the way for continued success for its customers globally.
