Interim Report Q1 2015 Copenhagen, 2015-04-29 07:3

Copenhagen, 2015-04-29 07:30 CEST (GLOBE NEWSWIRE) -- GN ReSound drives group EBITA increase of 15% with 10% organic growth in Hearing Instruments

• GN Store Nord delivered 4% organic growth and increased EBITA by 14% in constant currencies and by 15% in reported figures. The strong development was based on a continued fundamental business improvement leading to higher margins in constant currencies in both GN ReSound and GN Netcom
• GN ReSound’s growth momentum in 2014 continued into Q1 2015 driven by strong commercial execution leading to 9% organic growth in GN ReSound and 10% organic growth in Hearing Instruments
• The launch of the innovative ReSound LiNX ^2™ and Beltone Legend™ from early March 2015 is off to a strong start with very positive feedback from dispensers and users. The launch represents the fourth generation of 2.4 GHz technology hearing aids and a further advancement of GN ReSound’s technology lead
• GN ReSound’s EBITA increased by 22% in constant currencies reflecting a strong underlying improvement in the gross margin as well as operating leverage. In reported figures, EBITA increased by 18% to DKK 200 million
• GN Netcom’s performance in Q1 2015 was affected by unusual low market activity in the Unified Communications (UC) segment and a market decline in traditional mono Bluetooth-headsets. The organic growth in the CC&O business was 3%, and the overall organic growth for GN Netcom was (3)%
• GN Netcom increased both the gross margin and the EBITA margin in constant currencies (up by 2.3 percentage points and by 0.2 percentage points respectively). The reported gross margin increased by 1.3 percentage points to 53.9% reflecting the favorable product mix development. Reported EBITA of DKK 110 million was up by 6% from last year
• The growth outlook in UC continues to be deemed highly attractive. A solid pipeline of orders positions GN Netcom well for strong growth in 2015
• In March 2015, GN paid dividend of DKK 151 million and initiated a new DKK 500 million share buyback program reflecting the continued solid business performance. As per April 29, 2015, GN has bought back shares amounting to DKK 416 million during 2015 through Safe Harbor programs
• GN’s financial guidance for 2015 is confirmed for both GN ReSound, GN Netcom and Other activities. GN expects organic revenue growth of “more than 8%” and EBITA of “more than DKK 1,480 million”

Quotes from the executive management

Anders Hedegaard, CEO of GN ReSound: “Q1 was a strong start to the year. We were able to extend and strengthen our partnership with Costco and delivered 10% organic Hearing Instruments growth. I am personally highly encouraged by the feedback we have received following our launch of ReSound LiNX ² - clearly underlining that we have taken another significant step forward in hearing aid technology to improve the quality of life for hearing impaired”

René Svendsen-Tune, CEO of GN Netcom: “The first quarter of the year was characterized by weak market conditions, but we continued to fortify our competitive position. From my role at the Board, I know that quarterly fluctuations are inherent in a project-based business like Unified Communications, and with the strong pipeline and differentiated product portfolio I fundamentally believe we are all set for strong growth going forward”

Teleconference

GN will host a teleconference at 2.00 pm CEST today. Please visit www.gn.com/investor to access the teleconference. Presentation material will be available on the website approximately one hour prior to the start of the teleconference.

For further information please contact:

Michael Bjergby VP – Investor Relations & Treasury GN Store Nord A/S Tel: +45 45 75 02 92

or

Michael Nass Nielsen Manager – IR & Competitive Intelligence GN Store Nord A/S Tel: +45 45 75 02 40