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Strong revenue and EBITA growth in GN Hearing and GN Audio – ReSound LiNX 3D announced at AAA

Announcement May 04, 2017
Published: 2017-05-04 06:59:58 CEST
GN Store Nord A/S
Interim report (Q1 and Q3)

Strong revenue and EBITA growth in GN Hearing and GN Audio – ReSound LiNX 3D announced at AAA

Copenhagen, 2017-05-04 06:59 CEST (GLOBE NEWSWIRE) --

  • GN delivered 15% revenue growth in Q1 2017 driven by strong performance in both GN Hearing and GN Audio. Organic growth was 5%
  • EBITA increased 8% in Q1 2017 compared to Q1 2016, while investing in future growth opportunities as part of the strategy for 2017 – 2019
  • Earnings per share (EPS) increased 4% compared to Q1 2016 and reached DKK 1.41
  • Continued increase in cash conversion, with Q1 2017 cash conversion of 44% compared to 9% in Q1 2016
  • The financial guidance for 2017 is confirmed
  • GN Hearing’s revenue increased 13% in Q1 2017, fueled by the acquisition of Audigy. Organic growth was 4%, despite a tough comparison base
  • EBITA increased 9% to DKK 245 million, compared to DKK 225 million in Q1 2016
  • In April 2017, GN Hearing announced its 5th generation 2.4 GHz hearing aid – ReSound LiNX 3D – offering unmatched sound quality, efficient fitting and ground-breaking remote fine-tuning
  • Free cash flow excl. M&A increased DKK 39million, leading to a cash conversion of 35%
  • GN Audio delivered 19% revenue growth in Q1 2017, with organic growth of 8%, driven by a strong performance across regions and channels
  • EBITA increased 14% and reached DKK 103 million in Q1 2017, compared to DKK 90 million in Q1 2016
  • Free cash flow excl. M&A increased DKK 49 million, leading to a cash conversion of 76%
  • The integration of VXi Corporation is progressing as planned and has strengthened GN Audio’s position on the important North American market
  • Launch of Jabra Speak 710 and Jabra Evolve 75, fortifying GN Audio’s leadership in the attractive CC&O market

Quotes from the executive management

Anders Hedegaard, CEO of GN Hearing: “Q1 was a solid start to the year across regions and channels. Early April, at AAA we announced our 5th generation of 2.4 GHz hearing aids, ReSound LiNX 3D. With unmatched sound quality, efficient fitting and ground-breaking remote finetuning, ReSound LiNX 3D pioneers a new hearing care experience. And ReSound LiNX 3D demonstrates, once again, that GN Hearing is at the absolute forefront of innovation in the hearing aid industry.”

René Svendsen-Tune, CEO of GN Audio: “In Q1 2017, we continued to deliver strong results in our professional business. In the quarter, we launched Jabra Speak 710, which further strengthened our leadership in the category of premium, portable speakerphones for conference calls and music. I am again very pleased to see our dedicated focus on developing innovative products and on ensuring best-in-class commercialization translating into a strong momentum that will allow us to continue to gain market shares.”

Teleconference
GN will host a teleconference at 11.00 am 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 teleconference.

For further information please contact:

Peter Justesen
VP – Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 87 16


GNSN-Interim-Report-Q1-2017-US.pdf