Hearing Healthcare
DEMANT INTERIM REPORT 2021
Unit growth and ASP growth in H1 were 50% and
4%, respectively, compared to the same period last
year, which was heavily impacted by coronavirus.
Compared to H1 2019, revenue growth was driven
by ASP growth of 14% due to differences in the pace
of recovery between regions with different ASP dy-
namics. This drove large geography mix effects. Unit
growth was more modest at 3%.
Unit and ASP growth in H1 2021
Compared to H1 2019, North America was the main
growth driver in H1 due to a combination of strong
market recovery and success in the commercial part
of the US where Oticon More was rolled out in Janu-
ary. In addition, Oticon More was launched success-
fully in VA in May, resulting in market share gains in
this important sales channel. In Canada, revenue re-
covered at a significantly slower pace due to the
continued impact of coronavirus-related restrictions
in certain regions.
Compared to H1 2019, growth in Europe was solid,
albeit lower than in North America. France was the
primary positive driver on the back of the hearing
healthcare reform, but we also saw strong growth in
a number of other markets, including Spain and
Scandinavia. In the UK, we saw strong recovery in
the private market, but the slow recovery in the NHS
was a drag on overall growth. In the large German
market, recovery lagged behind recovery in most
other European markets.
In Asia, we saw strong growth compared to H1 2019,
driven by China, South Korea and a number of
smaller markets, whereas continued restrictions in
Japan were a drag on revenue growth. Similarly,
growth in the Pacific region was strong, driven by
both Australia and New Zealand, despite temporary,
local restrictions in certain areas in the reporting pe-
riod. Our Other countries region, which mostly com-
prises emerging markets, remained heavily impacted
by coronavirus and as expected, recovery in this re-
gion has been slow.
Looking ahead, we are now ready to expand the prod-
uct line-up of the flagship hearing aid families offered
by all our brands, including the Oticon More family,
by introducing a new non-rechargeable miniRITE
style, which will be available at the three upper price
points. All hearing aid brands will also introduce a
new CROS solution in a rechargeable miniRITE
style. In addition to these new hearing aids, we will
introduce a new, portable SmartCharger that fits our
latest generation of rechargeable hearing aids.
HEARING CARE
In H1 2021, revenue in Hearing Care grew by 78% in
local currencies with more than 72% organic growth
and slightly more than 5% acquisitive growth. Com-
pared to H1 2019, organic growth was 15% and ac-
quisitive growth 7%.
Revenue
We saw strong performance in our Hearing Care
business area in H1, as markets recovered from
coronavirus and as restrictions were gradually eased
in most places. Growth was first and foremost driven
by France where our strong position enabled us to
leverage the strong demand created by the reform.
While revenue growth in Hearing Care was mostly
driven by unit growth due to low comparative figures
for H1 2020, we also saw growth in the ASP driven
by the launch of Oticon More.
Generally speaking, increasing vaccination rates
supported market recovery in H1. Initially, the US
and UK markets recovered at the fastest pace, but a
range of other markets saw similar progress in the
latter part of the reporting period. Throughout the pe-
riod, we saw a higher-than-normal share of existing
users than new users, but we expect the share of
new users to increase gradually in the coming
months.
Revenue in North America was below the normal
level in H1 on the back of a slow start to the year
due to restrictions across the region. In the latter part
of the reporting period, we saw significant improve-
ments in the US, whereas renewed restrictions im-
pacted revenue in Canada. Growth in the region was
supported by acquisitions, primarily in Canada.
Revenue in Europe was very strong in H1 and above
the normal level, driven primarily by extraordinary
growth in France. As expected, the extraordinary ef-
fect of the French reform gradually faded towards
the end of the reporting period, as demand began to