
10
Operating profit (EBIT)
EBIT in H1 amounted to DKK 1,695 million,
which compares to an EBIT of DKK 1,718
million in H1 2021, corresponding to a 1%
decline. The resulting EBIT margin is 18.9%,
which is a decrease of 2.2 percentage
points compared to H1 2021. Adjusted
for the temporary cost savings and the
estimated extraordinary impact of the
French reform, the EBIT margin increased
by around 1 percentage point compared
to H1 2021, in part supported by positive
exchange rate effects.
Share of profit after tax in associates and
joint ventures amounted to DKK 57 million
in H1, which is unchanged compared to last
year and reflects continued good perfor-
mance by associates in our Hearing Care
business.
(DKK million)
*2020 figures have not been restated for the discontinua-
tion of Hearing Implants.
Management
commentary
Market trends
Overall, the hearing healthcare market,
which comprises the markets for hearing
aids and diagnostic instruments and ser-
vices, developed in line with historical
growth rates in H1 compared to pre-
pandemic levels, albeit with differences
between individual market segments
and regions.
Hearing aid market
Based on available market statistics,
covering slightly less than two-thirds of
the market, and on our own assumptions,
we estimate that the global hearing aid
market saw unit growth of around 8% in
H1, with 12% in Q1 and 5% in Q2 com-
pared to the same periods in 2021. In H1,
the market continued to see significant
growth in some government channels that
have been lagging, such as the NHS and
VA, although these had not yet fully nor-
malised compared to pre-pandemic levels.
Emerging markets saw particularly strong
growth in the period. In Q2, however, the
market saw slowing growth due to coro-
navirus impacts in Asia and the Pacific
region and to general consumer uncer-
tainty, not least in markets dominated
by private pay, such as the US. These
headwinds outweighed any tailwinds
from the release of pent-up demand.
Compared to pre-pandemic levels in H1
2019, we estimate that unit growth in H1
for the total market was in line with the
structural growth rate of 4-6% per year.
However, geography and channel mix
changes led to a larger-than-expected
ASP decline in the period. Consequently,
value growth in the hearing aid market
was below expectations.
Relative to the same period in 2021, growth
in Europe in H1 2022 was driven by signif-
icant recovery in the NHS, particularly in
Q1. Several other European markets also
developed well in the period. Germany
saw double-digit growth in H1, which to
some extent reflects slower growth in the
comparative period. In France, growth was
roughly flat in H1 but, as expected, nega-
tive in Q2 due to the boost last year from
the hearing healthcare reform.
Unit growth in North America was predo-
minantly driven by VA, which saw strong
growth in Q1. The commercial channel
also delivered positive unit growth in H1,
but growth was slightly negative in Q2
and lower than expected. Compared to
pre-pandemic levels, the US market de-
veloped in line with the structural growth
rate, as did Canada, which saw solid
growth throughout H1.
Looking beyond Europe and North Amer-
ica, we estimate that market unit growth
in China was negative in H1, significantly
impacted by coronavirus lockdowns during
most of Q2, although the situation improved
materially towards the end of the period.
Also, growth in Australia was negative in
H1 due to coronavirus-related restrictions
and floodings during the period. Japan de-
livered growth with sequential improve-
ment between Q1 and Q2, but the market
growth rate remains below the structural
growth rate.
While a few emerging markets are still
impacted by coronavirus, most emerging
markets have recovered strongly and saw
very strong growth in H1.
Diagnostic instruments market
The market for diagnostic instruments
and services remains resilient. We esti-
mate that compared to last year, growth
in H1 was above the estimated structural
market growth rate of 3-5% per year.
-214
1,425
1,718
1,907
1,695
-500
0
500
1,000
1,500
2,000
H1
2020*
H2
2020*
H1
2021
H2
2021
H1
2022
Estimated hearing aid market unit growth in 2022 by region
Q1 Q2 H1
20% 9% 14%
8% 1% 4%
US (commercial) 6% -1% 2%
US (VA) 19% 2% 9%
4% 4% 4%
12% 5% 8%
4% 6% 5%