GN Store Nord Q2 2024 Interim Report: Steady Growth and Profitability
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Interim Report Q2 2024: Strong Execution Leading to Growth
GN Store Nord continues to demonstrate strong operational performance in the second quarter of 2024, achieving a remarkable 5% organic revenue growth across the Group. The company's dedication to strategic execution across its three divisions has resulted in significant market advancements and improved profit margins.
Key Highlights from Q2 2024
During this quarter, the Hearing division excelled, capturing substantial market share and delivering an impressive 10% organic revenue growth. This success translated to a notable 5.3 percentage point increase in the divisional profit margin, driven by effective synergies and the successful rollout of the ReSound Nexia brand.
On the other hand, the Enterprise division focused its efforts amidst a stabilizing market, resulting in a -3% organic revenue growth. Nevertheless, strict cost management and a favorable product mix led to a 1.3 percentage point increase in the divisional profit margin.
The Gaming & Consumer division saw the most significant growth with an organic revenue increase of 12%. This growth was attributed to strong performance in the Gaming sector despite earlier announcements regarding the wind-down of the Elite and Talk product lines, culminating in increased promotional activities towards the quarter's end.
Financial Overview
GN Store Nord reported an EBITA of DKK 374 million, after accounting for DKK -155 million in extraordinary costs associated with the gradual product line wind-down. Excluding these costs, the adjusted EBITA stood at DKK 529 million, equivalent to an EBITA margin of 11.8%. The growth in margins was further supported by synergies contributing nearly DKK 100 million, although investments in IT and R&D moderated overall gains.
The quarter also saw a healthy free cash flow, excluding M&A activities, amounting to DKK 155 million. The stable earnings and consistent performance across net working capital have resulted in reduced net interest-bearing debt, achieving an adjusted leverage of 3.9x.
Guidance for 2024
GN Store Nord has confirmed the full-year guidance outlined earlier in the quarter, foreseeing organic revenue growth in the range of 2% to 6%, a reported EBITA margin between 12% to 13%, and a free cash flow growth that exceeds DKK 900 million.
Insights from Executive Management
Peter Karlstromer, CEO of GN Store Nord, remarked on the excellent execution during Q2. He noted the company's success in defending and expanding market positions while steadily enhancing profit margins. The ongoing One-GN transformation aims to foster synergies that will lay the groundwork for future success. Further, Karlstromer mentioned the strategic decision to divest Dansk HøreCenter, allowing GN Store Nord to concentrate resources on innovation and delivering customer success on a global scale.
Conclusion and Future Outlook
As GN Store Nord moves forward, its commitment to innovation in the hearing, audio, and gaming sectors remains paramount. The Company aims to build on its recent successes, leveraging its extensive portfolio and strong market presence to continue driving growth and profitability.
Contact Information
For further inquiries, please contact:
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.
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