1
Interim Report
2024
2
Key figures and financial ratios
H1 2024 H1 2023
Full year
2023
Other key figures
Gearing multiple (NIBD/EBITDA)
2.3 2.4 2.1
Earnings per share (EPS), DKK
- continuing operations 6.18 6.14 12.64
Earnings per share (EPS)
5.47 2.60 8.04
Free cash flow per share (FCFPS)
5.28 6.95 16.23
Share price, end of period
301.40 288.50 296.00
Average number of shares outstanding
218.97 223.17 223.13
Average number of employees
21,373 20,429 20,690
Scope 1 & 2 CO2e emissions (
market-based)¹, tonnes 16,219 15,760 31,036
Scope 1 & 2 CO2e emissions (location
-based)¹, tonnes 16,381 15,851 31,256
Renewable electricity share¹
24% 23% 22%
Gender diversity, Board of Directors (women/men)²
25/75% 40/60% 40/60%
Gender diversity, all managers (women/men)
49/51% 47/53% 48/52%
Gender diversity, top
-level management (women/men) 30/70% 27/73% 29/71%
Gender diversity, top
-level management teams (on/off target) 81/19% 72/28% 80/20%
As a consequence of the review of the strategic options for Communications, comparative figures for 2023 in the income statem
ent
and cash flow statement as well as related key figures and financial ratios excluding organic growth have been restated.
¹20
23 numbers are restated due to a methodological improvement.
²Shareholder
-elected members.
(DKK million)
H1 2024 H1 2023
Full year
2023
Income statement
Revenue
11,087 10,694 21,601
Organic growth
3% 15% 14%
Gross margin
76.8% 75.0% 75.6%
EBITDA
2,897 2,789 5,799
EBITDA margin
26.1% 26.1% 26.8%
Operating profit (EBIT) before special items
2,068 2,162 4,506
EBIT margin before special items
18.7% 20.2% 20.9%
EBIT
2,192 2,162 4,506
EBIT margin
19.8% 20.2% 20.9%
Net financial items
-410 -362 -761
Profit after tax
- continuing operations 1,354 1,371 2,823
Profit after tax
- discontinued operations -154 -789 -1,025
Profit for the period
1,200 582 1,798
Balance sheet
Total assets
32,390 29,833 30,546
Net interest
-bearing debt (NIBD) 13,853 12,197 12,280
Equity
9,522 8,990 9,338
Cash flow statement
Cash flow from operating activities (CFFO)
1,491 1,918 4,458
Investments in property, plant and equipment, net
286 301 621
Free cash flow
1,157 1,551 3,622
Share buy
-backs 1,137 17 846
3
Introduction
The Group reports revenue and growth
rates on a quarterly basis, whereas full
income statement, balance sheet and cash
flow statement are only reported on a
half-yearly basis. Unless otherwise indi-
cated, the commentary below relates to
H1 2024.
As a result of the discontinuation of Hear-
ing Implants and the decision to undertake
a review of the strategic options for Com-
munications, these business areas are rec-
ognised as discontinued operations, and
comparative figures have been restated to
reflect this.
Revenue
Group revenue amounted to DKK 11,087
million, corresponding to a growth rate of
5% in local currencies. Organic growth
was 3%, which was below our expecta-
tions, even if we take a strong compara-
tive base in H1 2023 into account where
the Group saw very significant growth.
This development was driven by a shortfall
of revenue in Hearing Aids and Diagnos-
tics, and the Group unexpectedly did not
see growth improving from Q1 to Q2, as
both quarters delivered 3% organic growth.
Growth from acquisitions was 2% for the
Group, primarily related to Hearing Care,
but we also saw a small positive contribu-
tion from Hearing Aids. Exchange rates
impacted revenue by -1% driven by minor
movements in our main trading currencies.
In terms of geography, we saw growth be-
ing relatively evenly split between regions,
with North America and the Pacific region
delivering the highest organic growth
rates.
North America saw moderate organic
growth despite very strong growth in the
comparative period. This growth was sup-
ported by positive market developments but
was negatively impacted by a significant
Group financial review
Income statement
(DKK million)
H1 2024 H1 2023 Growth
Revenue
11,087 10,694 4%
Production costs
-2,577 -2,677 -4%
Gross profit
8,510 8,017 6%
Gross margin
76.8% 75.0%
R&D costs
-733 -607 21%
Distribution costs
-5,154 -4,726 9%
Administrative expenses
-586 -562 4%
Share of profit after tax, associates and joint ventures
31 40 -23%
Operating profit (EBIT) before special items
2,068 2,162 -4%
Operating profit (EBIT) margin before special items
18.7% 20.2%
Special items
124 -
Operating profit (EBIT)
2,192 2,162 1%
Revenue by business area
Growth
(DKK million)
Q2
2024
Q2
2023 O
rg. Acq.
LCY FX Rep.
Hearing Aids
3,123 3,040 3% 1% 4% -2% 3%
Internal sales to
He
aring Care
-609 -530 12% 3% 14% 0% 15%
Sales to external
cu
stomers
2,514 2,510 1% 1% 2% -2% 0%
Hearing Care
2,516 2,290 5% 4% 9% 0% 10%
Diagnostics
634 632 0% 0% 0% 0% 0%
Group
5,664 5,432 3% 2% 5% -1% 4%
Growth
(DKK million)
H1
2024
H1
2023
O
rg. Acq.
LCY FX Rep.
Hearing Aids
6,230 6,088 3% 1% 4% -1% 2%
Internal sales to
He
aring Care
-1,208 -1,100 6% 3% 10% 0% 10%
Sales to external
cu
stomers
5,022 4,988 2% 0% 2% -2% 1%
Hearing Care
4,834 4,508 3% 4% 7% 0% 7%
Diagnostics
1,231 1,198 3% 0% 3% 0% 3%
Group
11,087 10,694 3% 2% 5% -1% 4%
4
loss of market share in managed care due
to our chosen brand strategy in Hearing
Aids in the US.
In Europe, organic growth was driven by
several smaller countries with Poland and
Spain as the largest positive contributors.
France and the UK, on the other hand,
both saw negative organic growth. In
terms of acquisitions, we saw positive
contributions from Germany and Belgium.
Asia saw slight organic growth despite
continuing challenging market dynamics in
China. Organic growth in our Rest of world
region was also positive and mainly driven
by Brazil.
In the Pacific region, Australia saw solid
organic growth, but on a reported basis,
revenue development was mostly offset by
headwinds from exchange rate effects.
Gross profit
The Group’s gross profit amounted to DKK
8,510 million, which is an increase of 6%
compared to H1 2023. The gross margin
was 76.8%, an increase of 1.8 percentage
points compared to H1 2023, which is bet-
ter than expected. This development can
be attributed to a positive ASP develop-
ment in Hearing Aids due to our continu-
ous focus to improve our product mix and
to a meaningful gross margin improvement
in Diagnostics. Moreover, the gross margin
development was positively impacted by
changes in the business mix, and exchange
rate effects also had a slightly positive im-
pact.
Gross profit
by half-year
(DKK million)
1
2022 figures have not been restated to reflect the review of
the strategic options for Communications.
Operating expenses (OPEX)
Total OPEX amounted to DKK 6,473 million,
corresponding to 10% growth in local cur-
rencies compared to H1 2023.
OPEX grew by 7% organically, but our or-
ganic OPEX growth declined sequentially
from Q1 to Q2. The OPEX growth was due
to increased spending in H2 2023, reflect-
ing our continuous commitment to invest in
R&D and distribution. After having annual-
ised the increased spending from H2 2023
and due to us having generated lower-
than-expected revenue in H1, we have
taken certain cost-saving initiatives across
the Group to achieve a better balance be-
tween revenue and OPEX growth in H2.
Acquisitions, primarily in Hearing Care,
added 3% to the Group’s OPEX, while
exchange rate effects were 0%.
Operating profit (EBIT) before
special items
The Group’s EBIT before special items
amounted to DKK 2,068 million, corre-
sponding to a growth rate of -4% com-
pared to H1 2023. The EBIT margin before
special items was 18.7%, a contraction of
1.5 percentage points compared to H1
2023. The decline is due to weaker-than-
expected revenue growth in H1 2024,
leading to lower operating leverage, as
well as strong profitability in the compara-
tive period. Relative to H1 2023, exchange
rates had an insignificant impact on the
Group’s EBIT before special items.
7,083
7,586
8,017
8,303
8,510
4,000
5,000
6,000
7,000
8,000
9,000
H1
2022¹
H2
2022¹
H1
2023
H2
2023
H1
2024
OPEX by half-year
(DKK million)
1
2022 figures have not been restated to reflect the review of
the strategic options for Communications.
5,552
6,032
5,895
5,987
6,473
3,000
4,000
5,000
6,000
7,000
H1
2022¹
H2
2022¹
H1
2023
H2
2023
H1
2024
OPEX by function
Change
(DKK million)
H1 2024 H1 2023 DKK LCY Org.
R&D costs
733 607 21% 21% 21%
Distribution costs
5,154 4,726 9% 9% 5%
Administrative expenses
586 562 4% 4% 4%
Total
6,473 5,895 10% 10% 7%
Revenue by geographic region
Change
(DKK million)
H1 2024 H1 2023 DKK LCY Org.
Europe
4,569 4,273 7% 6% 2%
North America
4,609 4,461 3% 4% 3%
Asia
1,058 1,120 -6% 2% 2%
Pacific region
536 532 1% 6% 6%
Rest of world
315 308 2% 2% 2%
Total
11,087 10,694 4% 5% 3%
5
EBIT before special items by
half
-year
(DKK million)
1
2022 figures have not been restated to reflect the review of
the strategic options for Communications.
In line with our acquisition strategy, we
recognised fair value adjustments of non-
controlling interests in step acquisitions,
contingent considerations etc., totalling a
net positive fair value adjustment on EBIT
before special items of DKK 8 million (DKK
29 million in H1 2023).
Special items
We recognised two extraordinary non-
operational and non-cash items totalling
DKK 124 million, which are recognised as
special items. This relates to a positive im-
pact from the fair value adjustment of a
large acquisition, which was partly offset
by an updated accounting treatment of
certain earnout payments related to acqui-
sitions.
Operating profit (EBIT)
Reported EBIT amounted to DKK 2,192
million, resulting in an EBIT margin of
19.8%.
Financial items
Reported net financial items amounted to
an expense of DKK 410 million, which is an
increase of DKK 48 million compared to
last year, primarily due to higher interest
expenses.
Profit for the period
Reported profit before tax amounted to
DKK 1,782 million, a minor decrease of 1%,
driven by a lower operating profit and in-
creased financial expenses, which were
partially offset by positive special items.
Tax for the period amounted to DKK 428
million, corresponding to an effective tax
rate of 24.0%. This resulted in profit after
tax generated by the Group’s continuing
operations of DKK 1,354 million, which is
a decrease of 1% compared to H1 2023,
corresponding to earnings per share (EPS)
of DKK 6.18.
Profit after tax from discontinued opera-
tions amounted to DKK -154 million. The
loss was higher than expected and is
attributable to operating losses in Commu-
nications and in our cochlear implants (CI)
business, where the latter also saw certain
one-off charges related to the divestment
of our CI business to Cochlear in May 2024.
The operating activities of our bone an-
chored hearing systems (BAHS) business
were positive. Please refer to Note 2 for
more details.
For the Group as a whole, profit after tax
was DKK 1,200 million, corresponding to
EPS of DKK 5.47, an increase of 110%
compared to H1 2023 where we saw profit
after tax being negatively impacted by non-
recurring, non-cash write-downs of assets
related to the CI business.
Cash flow statement
For the Group’s continuing operations,
cash flow from operating activities (CFFO)
was very solid and amounted to DKK
1,491 million. This is a 22% decrease com-
pared to H1 2023, primarily due to higher
tax payments and increased net financial
expenses.
Net investments resulted in a cash flow of
DKK -334 million of which DKK -375 million,
or 3% of Group revenue, relates to net in-
vestments in property, plant and equip-
ment and in intangible assets (CAPEX).
Compared to H1 2023, CAPEX decreased
by DKK 31 million, or 8%, due to slightly
lower investments in property, plant and
equipment. Net investments in other non-
current assets, which mostly comprise loans
to customers and associates, amounted to
DKK 41 million compared to DKK 39 million
in H1 2023.
1,588
1,619
2,162
2,344
2,068
0
500
1,000
1,500
2,000
2,500
H1
2022¹
H2
2022¹
H1
2023
H2
2023
H1
2024
EPS for continuing operations
by half
-year
(DKK)
1
2022 figures have not been restated to reflect the review of
the
strategic options for Communications.
CAPEX by half-year
(DKK million)
1
2022 figures have not been restated for the review of the
stra-
tegic options for Communications.
5.07
4.99
6.14
6.50
6.18
0.00
2.00
4.00
6.00
8.00
H1
2022¹
H2
2022¹
H1
2023
H2
2023
H1
2024
404
504
406
407
375
0%
2%
4%
6%
0
200
400
600
H1
2022¹
H2
2022¹
H1
2023
H2
2023
H1
2024
CAPEX
CAPEX % of revenue
Cash flow by main items
(DKK million)
H1 2024 H1 2023 Change
CFFO
1,491 1,918 -22%
Net investments
-334 -367 -9%
Free cash flow before acquisitions and divestments
1,157 1,551 -25%
Acquisitions and divestments etc.
-763 -313 >100%
Share buy
–backs -1,137 -17 >100%
Other financing activities
946 -1,069 n.a.
Cash flow for the period
203 152 34%
6
The free cash flow before acquisitions and
divestments decreased by 25% to DKK
1,157 million because of the lower CFFO.
Cash spent on acquisitions totalled DKK
763 million and mainly relates to the ac-
quisition of a value-added distributor in
Hearing Aids and to bolt-on acquisitions
in Hearing Care.
Share buy-backs amounted to DKK 1,137
million as of 30 June, as the Group bought
back 3,300,002 shares at an average price
of DKK 344.52. The Group remains com-
mitted to continuing to buy back shares,
however subject to profitability, cash flow
generation and acquisitions.
Other financing activities resulted in a
cash inflow of DKK 946 million, which pri-
marily relates to the continuous refinanc-
ing of our borrowings.
Net cash flow from continuing operations
amounted to DKK 203 million and net cash
flow from discontinued operations to DKK
-292 million. Please refer to Note 2 for
more details.
Balance sheet
As of 30 June 2024, total assets amounted
to DKK 32,390 million, which is a 6% in-
crease since 31 December 2023. This in-
crease was predominantly driven by addi-
tions from acquisitions of 6%, while the or-
ganic contribution and exchange rate
effects were both roughly flat. The amount
includes DKK 1,796 million relating to Com-
munications and Hearing Implants, which
are recognised as assets held for sale.
The increase in total assets was primarily
driven by an increase in other non-current
assets, most of which relates to goodwill in
respect of acquisitions.
The Group’s net working capital decreased
by 2% to DKK 3,546 million relative to the
end of 2023. This change is primarily a re-
flection of the reclassification of Communi-
cations to assets held for sale. Adjusted for
balance sheet reclassifications, net work-
ing capital increased slightly, mainly driven
by higher inventories.
Net interest-bearing debt (NIBD) amounted
to DKK 13,853 million as of 30 June 2024,
an increase of 13% compared to 31 De-
cember 2023. Relative to a 12-month roll-
ing EBITDA, this corresponds to a gearing
multiple of 2.3 at the end of H1. Thus, the
gearing multiple is comfortably within our
medium- to long-term target of 2.0-2.5.
The Group’s equity increased by DKK 184
million, or 2%, to DKK 9,522 million relative
to the end of 2023, as profit for the period
more than offset the share buy-backs
made during the period.
Employees
At the end of H1, Demant had 21,501
employees compared to 21,081 at the
beginning of the year and 20,679 at the
end of H1 2023. The increase in employees
mainly relates to acquisitions made during
the year.
Hedging activities
The material forward exchange contracts
in place as of 30 June 2024 to hedge
against the Group’s exposure to move-
ments in exchange rates are shown in
the table below.
Hedging activities
Currency
Hedging
period
Average
hedging rate
USD
11 months 679
JPY
9 months 4.70
AUD
10 months 450
GBP
12 months 855
CAD
11 months 504
PLN
9 months 167
CFFO by half-year
(DKK million)
1
2022 figures have not been restated for the review of the
stra-
tegic options for Communications.
915
1,707
1,918
2,540
1,491
0
500
1,000
1,500
2,000
2,500
3,000
H1
2022¹
H2
2022¹
H1
2023
H2
2023
H1
2024
Balance sheet by main items
(DKK million)
H1 2024 FY 2023 Change
Lease assets
2,630 2,596 1%
Other non
-current assets 19,108 18,566 3%
Inventories
2,674 2,845 -6%
Trade receivables
3,705 3,650 2%
Cash
1,048 1,138 -8%
Other current assets
1,429 1,468 -3%
Assets held for sale
1,796 283 >100%
Total assets
32,390 30,546 6%
Equity
9,522 9,338 2%
Lease liabilities
2,732 2,686 2%
Other non
-current liabilities 13,292 12,301 8%
Trade payables
858 799 7%
Other current liabilities
5,634 5,333 6%
Liabilities related to assets held for sale
352 89 >100%
Total equity and liabilities
32,390 30,546 6%
7
Sustainability
Our core commitment to society is to help
people overcome hearing loss and improve
their quality of life through innovative solu-
tions. Caring for people’s hearing loss goes
hand in hand with caring for the environ-
ment and society, which is why Demant
works with two strategic sustainability pri-
orities: climate impact and diversity, equity
and inclusion.
Climate impact
In H1, total scope 1 and 2 CO2e emissions
amounted to 16,219 tonnes (market-based
emissions), which represents a 3% increase
compared to H1 2023. The increase in our
scope 1 and 2 emissions is mainly related
to new acquisitions in our Hearing Care
business.
For the first time, and in order to provide
more transparency on the mechanisms
that drive our transition to renewable elec-
tricity, we also include location-based
emissions in our reporting, as they do not
take purchased off-site renewable electric-
ity into account. Our total scope 1 and 2
location-based emissions amounted to
16,381 tonnes.
Demant’s renewable electricity share re-
mains stable with a 1 percentage point in-
crease compared to same period last year.
The slight change is due to increased ca-
pacity from onsite renewable electricity
projects already implemented. Demant
aims to reach 50% renewable electricity
in 2025 and 100% by 2030. The transition
to renewable electricity is an important
step towards reducing our scope 1 and 2
CO2e emissions and meeting our commit-
ments to the Science Based Targets initia-
tive. In that context, Demant has commit-
ted to reducing its aggregate scope 1 and
2 market-based emissions by 46% from a
2019 base year.
Diversity, equity and inclusion
In 2022, Demant introduced targets for
gender diversity in top-level management,
and during the last years, we have actively
worked towards improving the gender bal-
ance in the Group. In H1, we reached our
2025 target of having 30% women in top-
level management (VP level and above),
with leadership training and recruitment
initiatives driving the progress. Further-
more, we aim to increase the number of
top-level management teams that have a
diverse gender composition by improving
the balance of the gender composition in
each team. We have already surpassed
our target of having at least 75% of top-
level management teams with a maximum
of 75% of the same gender in 2025. In H1,
81% of teams were on target.
There is also an increase in women among
all managers in Demant. The share of
women and men in management positions
was 49% and 51%, respectively, at the
end of H1.
Following the 2024 annual general meet-
ing where Anja Madsen stepped down
from the Board of Directors, the Board of
Directors will only have four shareholder-
elected members until the next annual
general meeting. Currently, the share-
holder-elected members of the Board con-
sist of one woman and three men. This
gender distribution is considered balanced
for a Board of its size, and according to the
guidance of the Danish Business Authority,
it constitutes an even distribution. The
Board of Directors plans to propose to ex-
pand with a fifth member again at the an-
nual general meeting in 2025 and remains
committed to its stated target of having a
40/60% gender diversity ratio in the Board.
Events after the reporting
period
On 14 August 2024, the Group announced
the conclusion of the review of strategic
options for its Communications business.
Despite EPOS being well-exposed in the
market with leading technology, a robust
go-to-market set-up and a strong brand,
the current loss-making financial condition
of the business was a barrier for reaching
an agreement. Consequently, we have de-
cided to initiate a significant restructuring
plan of the EPOS business, which entails
an intention to rightsize the organisation
and creating a more focused business. The
process will commence immediately, and
following the restructuring, we intend to
carry on with the divestment of EPOS.
There have been no other events that ma-
terially change the assessment of this In-
terim Report 2024 from the balance sheet
date and up to today.
Key sustainability figures by half-year
H1 2024 H1 2023 Change
Scope 1 and 2 CO2e emissions (market
-based)¹,
tonnes
16,219 15,760 3%
Scope 1 and 2 CO2e emissions (location
-based)¹,
tonnes
16,381 15,851 3%
Renewable electricity share¹
24% 23% 1 p.p.
H1 2024 FY 2023 Change
Gender diversity, Board of Directors (women/men)²
25/75% 40/60% -15 p.p.
Gender diversity, all managers (women/men)¹
49/51% 48/52% 1 p.p.
Gender diversity, top
-level management
(women/men)¹
30/70% 29/71% 1 p.p.
Gender diversity, top
-level management teams
(on/off target)¹
81/19% 80/20% 1 p.p.
¹2023 numbers are restated due to the review of the strategic options for Communications and a methodological improvement.
²Shareholder
-elected members.
8
The outlook is based on a number of key
assumptions as described below
• We expect the unit growth rate in the
global hearing aid market in 2024 to be
in line with the structural growth rate of
4-6% and the hearing aid market to see
flattish ASP development for the year.
• We expect the cash allocated to bolt-on
acquisitions in 2024 to be higher than
normal due to acquisitions already made
in 2024 and a continuously good pipe-
line of attractive opportunities.
• In Hearing Aids, the loss of market
share in managed care and the lack of
ability to fully compensate through ad-
ditional sales to independents in the US
are assumed to continue at the current
low level for the remainder of 2024.
• In order to achieve a better balance be-
tween revenue and OPEX growth, we
have taken certain cost-saving initia-
tives across the Group. When including
the effect of these initiatives, we expect
OPEX to grow organically in the low-to-
mid single digits in H2 compared to the
same period last year.
• We expect the loss after tax related to
Communications to be DKK 500 million
(previously loss after tax of DKK 100-
150 million). This follows a higher oper-
ating loss than expected in H1 as well
as one-off costs of DKK 400 million re-
lated to the intended restructuring of
EPOS.
• Following the divestment of our coch-
lear implants business in May 2024, our
bone anchored hearing systems
business will remain with the Group for
now, pending a review of our strategic
options. For the full year 2024, we ex-
pect the loss after tax related to Hear-
ing Implants to be around DKK 50 mil-
lion (previously DKK 0 million) due to a
slightly higher operating loss in Coch-
lear Implants in H1 and certain one-off
costs related to the divestment of our CI
business to Cochlear.
Outlook for 2024
Outlook for 2024
Our outlook for 2024, which is summarised in the table below, is updated to reflect
higher
expectations of share buy-backs:
Organic growth
2
-4%
EBIT
before special items
DKK
4,300-4,600 million
Share buy
-backs
Around
DKK 2,300 million (previously more than DKK 2,000 million)
For modelling purposes, we provide further assumptions for 2024 below:
Acquisitive
growth
2
% based on revenue from acquisitions completed as of 13 August
2024
FX growth
-
1% based on exchange rates as of 13 August 2024 and including
the impact of hedging
Effective tax rate
Around 24
%
Loss
from discontinued
operations
Around
DKK 550 million (previously DKK 100-150 million), of which
around
DKK 500 million relates to Communications and DKK 50 mil-
lion to
Hearing Implants
Special items
Positive by
around DKK 125 million
Modelling assumptions for 2024
Assumptions for 2024
9
Market trends
Overall, the hearing healthcare market,
which comprises the markets for hearing
aids and diagnostic instruments and ser-
vices, saw growth in line with the struc-
tural growth rate of 4-6%.
Hearing aid market
Based on available market statistics,
covering approximately two-thirds of the
market, and on our own assumptions, we
estimate that the global hearing aid mar-
ket saw unit growth of around 4% in H1,
with 3% in Q1 and 5% in Q2 compared to
the same periods in 2023. The acceleration
in unit growth from Q1 to Q2 was primarily
driven by slightly easier comparative fig-
ures, and from a geographical perspective,
we estimate that all regions saw positive
unit growth in the period under review.
We estimate that in H1, ASP development
was flattish, as geography and channel
mix changes drove slightly positive ASP
developments in Q1 and slightly negative
ASP developments in Q2. Overall, value
growth in the hearing aid market was
within our medium- to long-term expecta-
tions.
In H1, we estimate that unit growth in Eu-
rope was 4%, with accelerating growth
trends from Q1 into Q2. The strong unit
growth in Q2 was driven primarily by
strong double-digit growth in the NHS due
to soft comparative figures. When exclud-
ing this channel, growth in Europe was
slightly positive. In Germany, market
growth was solid in Q2, which was also
the case in several other smaller European
markets. In France, the market continues
to see flat growth following the hearing
healthcare reform in 2021, and growth
was slightly negative in Q2.
In North America, the market saw strong
growth of 8% in H1, driven by the US com-
mercial market where growth was driven
equally by independents and managed
care. Growth in the US commercial market
decelerated from Q1 to Q2 following very
strong growth in Q1, but despite the decel-
eration, growth continued to develop at a
good pace. In VA, growth in H1 was flat,
as slightly negative growth in Q1 was off-
set by modest growth in Q2. In Canada,
growth was strong in H1.
Looking beyond Europe and North Amer-
ica, we estimate that market unit growth
in Rest of world was slightly positive at
1% in H1, with growth driven by smaller
export markets and Australia. We esti-
mate that unit growth in China was
slightly positive in Q2, which was sup-
ported by easy comparative figures. How-
ever, the overall market dynamics continue
to remain challenging. In Japan, growth
was negative throughout H1 following
good development throughout most of
2023.
Diagnostic instruments market
We estimate that compared to H1 last
year, growth in the market for diagnostic
instruments and services was at the low
end of the estimated structural market
growth rate of 4-6% per year due to the
current market slowdown, including head-
winds in the Chinese market from the on-
going Made in China initiatives.
Management commentary
Estimated hearing aid market unit growth in 2024 by region
(vs. 2023)
Q1 Q2 H1
Europe
1% 8% 4%
North America
10% 6% 8%
US (commercial) 13% 6%
9%
US (VA) -1% 1%
0%
Rest of world
1% 2% 1%
Global
3% 5% 4%
10
Hearing Aids
Total revenue in Hearing Aids was DKK
6,230 million, an increase of 2% (Q2: 3%)
compared to H1 2023. Growth was pri-
marily driven by organic growth of 3% (Q2:
3%). Acquisitions in Hearing Aids added
growth of 1% (Q2: 1%), which was, how-
ever, offset by exchange rate effects of
-1% (Q2: -2%).
Hearing Aids
(DKK million)
H1 2024 H1 2023
Revenue
6,230 6,088
Growth
Organic
3%
Acquisitions
1%
Local currencies
4%
FX
-1%
Total
2%
Internal revenue from sales to our Hearing
Care business area accounted for 19% of
total revenue and external sales for the
remaining 81%. The commentary below
focuses on total revenue, including revenue
from sales through our own retail clinics.
Growth in the period under review was be-
low our expectations, even if we take very
strong comparative figures into account.
This is primarily the result of lower-than-
expected revenue growth in the US due to
a significant loss of market share with
managed care and of a generally intense
competitive environment in more price-fo-
cused channels and segments. In Q1, we
launched Oticon Intent, which was, as ex-
pected, received well by the independent
channel.
Growth in units and ASP
(local
currencies)
H1 2023 H2 2023 H1 2024
Units
18% 11% -6%
ASP
4% 7% 11%
Total
23% 18% 4%
When we look at our total hearing aid
sales, the adverse developments men-
tioned before resulted in unit growth of -
6%, which has, however, been more than
offset by a positive development in the av-
erage selling price (ASP) of 11% due to
product and channel mix changes.
Compared to 2023, organic growth in Eu-
rope was solid. Following a flat Q1, growth
accelerated in Q2, with growth supported
by market improvement. In H1, growth
was primarily driven by our medium-sized
markets, including Spain and Poland. As
far as our major markets are concerned,
growth in Germany was slightly positive,
while growth in France was slightly nega-
tive, although both markets saw improving
growth rates in Q2. In the UK, growth was
slightly negative despite positive market
development, but sales to independents in
the UK market saw solid growth.
North America delivered slight organic
growth in H1, driven by increased sales to
VA due to market share gains realised in
2023. Following our strategic decision to
position our brands more clearly across
channels in the US, we saw significant loss
of market share with managed care in Q2,
which has not been fully compensated by
additional sales to independents in the US.
Despite the current headwinds, we remain
firmly committed to our brand strategy in
the US. Outside the US, growth in Canada
was strong in the reporting period.
Organic growth in Asia was slightly nega-
tive despite good growth in several me-
dium-sized markets. This was, however,
not enough to offset negative growth in
Japan due to soft market dynamics. Or-
ganic growth in China was slightly posi-
tive, but continues to be impacted by the
competitive dynamics in the market.
Our Pacific region saw growth in the pe-
riod under review, as both Australia and
New Zealand delivered good growth. Our
Rest of world region, which mostly com-
prises emerging markets, saw flat growth.
Hearing Care
Revenue in Hearing Care amounted to
DKK 4,834 million, an increase of 7% com-
pared to H1 2023. Organic growth was
Revenue and growth
Growth
(DKK million)
Q2 2024 Q2 2023 Org. Acq. LCY FX Rep.
Hearing Aids
3,123 3,040 3% 1% 4% -2% 3%
Internal sales to Hearing Care*
-609 -530 12% 3% 14% 0% 15%
Sales to external customers
2,514 2,510 1% 1% 2% -2% 0%
Growth
(DKK million)
H1 2024 H1 2023 Org. Acq. LCY FX Rep.
Hearing Aids
6,230 6,088 3% 1% 4% -1% 2%
Internal sales to Hearing Care*
-1,208 -1,100 6% 3% 10% 0% 10%
Sales to external customers
5,022 4,988 2% 0% 2% -2% 1%
*Revenue from internal sales to Hearing Care is eliminated from the reported revenue for the Group, i.e. we only include reve
nue from external customers. The pricing used in internal transactions is
determined on an arm’s length basis and thus reflects normal commercial terms.
11
3% (Q2: 5%) and acquisitive growth 4%
(Q2: 4%). The latter is mainly attributable
to acquisitions in Germany and Belgium.
Exchange rate effects were 0% (Q2: 0%)
Hearing Care
(DKK million)
H1 2024 H1 2023
Revenue
4,834 4,508
Growth
Organic
3%
Acquisitions
4%
Local currencies
7%
FX
0%
Total
7%
Following a slow start to the year with flat
organic growth in Q1, momentum acceler-
ated in Q2 as expected, with many of our
medium-sized markets delivering strong
organic growth and with improved mo-
mentum in France. Growth was driven
equally by growth in units sold and a posi-
tive ASP development due to geography
mix.
In Europe, we saw positive developments
in most of our markets, with particularly
strong organic growth in Spain and Po-
land. However, organic growth in France
was slightly negative in H1, although
growth accelerated from Q1 and was pos-
itive in Q2. Acquisitive growth was strong,
primarily in Germany and Belgium.
Organic growth in North America was
positive, driven by solid growth in Canada.
In the US, growth accelerated in Q2, lead-
ing to slightly positive organic growth in
H1, despite a negative impact of lower
customer traffic covered by managed care.
Growth, although to a lesser extent, was
also supported by acquisitions, primarily in
Canada.
In Australia, we saw solid organic growth
supported by positive market developments
and in China, we saw negative growth,
with the market being continuously im-
pacted by market headwinds.
Diagnostics
In Diagnostics, revenue was DKK 1,231
million, an increase of 3% (Q2: 0%) com-
pared to the same period last year. Growth
was entirely driven by organic growth of
3% (Q2: 0%), while acquisitions and ex-
change rate effects were both 0% (Q2: 0%).
Following a strong Q1, which was sup-
ported by slightly easier comparative fig-
ures due to the ramp-up of the new Diag-
nostics production facility in Q1 2023, or-
ganic growth – unexpectedly – decelerated
to 0%, primarily because of a soft market
for diagnostic equipment. This includes
market-specific headwinds in China from
the ongoing Made in China initiatives and
negative growth in our balance products
category. Overall, growth was primarily
driven by the services and consumables
categories, although growth in instrument
revenue was also positive, and particularly
strong within hearing instrument fitting so-
lutions.
Diagnostics
(DKK million)
H1 2024 H1 2023
Revenue
1,231 1,198
Growth
Organic
3%
Acquisitions
0%
Local currencies
3%
FX
0%
Total
3%
In terms of geographies, absolute growth
was highest in North America, which saw
solid organic growth in both Canada and
the US, but the Pacific region also deliv-
ered good growth. In Asia, growth was
slightly positive, despite negative growth
in China due to the earlier mentioned mar-
ket dynamics. European markets were a
drag on growth, primarily due to soft sales
in the UK following lower growth in the
NHS.
12
Management statement
Executive Board
Board of Directors
13
Discontinued operations
The Hearing Implants and Communica-
tions businesses are presented as discon-
tinued operations. Comparative figures
have been restated.
Consolidated income statement
(DKK million)
H1 2024 H1 2023
Full year
2023
Revenue
Production costs
-2,577 -2,677 -5,281
Gross profit
R&D costs
-733 -607 -1,226
Distribution costs
-5,154 -4,726 -9,554
Administrative expenses
-586 -562 -1,102
Share of profit after tax, associates and joint ventures
Operating profit (EBIT) before special items
Special items
Operating profit
Financial income
Financial expenses
-463 -406 -856
Profit before tax
Tax on profit for the period
-428 -429 -922
Profit after tax
- continuing operations 1,354 1,371 2,823
Profit after tax
- discontinued operations -154 -789 -1,025
Profit for the period
(DKK million)
H1 2024 H1 2023
Full year
2023
Profit for the period attributable to:
Demant A/S' shareholders
Non
-controlling interests 1 1 3
Earnings per share (EPS), DKK
- continuing operations 6.18 6.14 12.64
Diluted earnings per share (DEPS), DKK
- continuing
operations
Earnings per share (EPS), DKK
Diluted earnings per share (DEPS), DKK
14
Consolidated statement of comprehensive income
(DKK million)
H1 2024 H1 2023
Full year
2023
Profit for the year
Foreign currency translation adjustment, subsidiaries
Value adjustments of hedging instruments:
Value adjustment for the period
-41 36 41
Value adjustment transferred to revenue
-3 -46 -106
Tax on items that have been or may subsequently be
reclassified to the income statement
Items that have been or may subsequently be reclassified
to the income statement
Actuarial gains/losses on defined benefit plans
-3 - -19
Tax on items that will not subsequently be reclassified
to the income statement
-1 - 4
Items that will not subsequently be reclassified to the
income statement
-4 - -15
Other comprehensive income/loss
Comprehensive income
Comprehensive income attributable to:
Demant A/S’ shareholders
Non
-controlling interests 1 1 3
Breakdown of tax on other comprehensive income:
Foreign currency translation adjustment, foreign enterprises
Value adjustment of hedging instruments for the period
Value adjustment of hedging instruments transferred to
revenue
Actuarial gains/losses on defined benefit plans
-1 - 4
Tax on other comprehensive income
15
Assets held for sale
The assets of the Hearing Implants and
Communications businesses are presented
as assets held for sale. Comparative figures
have not been restated.
Consolidated balance sheet
(DKK million)
H1 2024 H1 2023
Full year
2023
Assets
Goodwill
Patents and licences
Other intangible assets
Prepayments and assets under development
Intangible assets
Land and buildings
Plant and machinery
Other plant, fixtures and operating equipment
Leasehold improvements
Prepayments and assets under construction
Property, plant and equipment
Lease assets
Investments in associates and joint ventures
Receivables from associates and joint ventures
Other investments
Customer loans
Other receivables
Deferred tax assets
Other non
-current assets 4,384 4,590 4,809
Non
-current assets 21,738 20,306 21,162
(DKK million)
H1 2024 H1 2023
Full year
2023
Inventories
Trade receivables
Receivables from associates and joint ventures
Income tax
Customer loans
Other receivables
Unrealised gains on financial contracts
Prepaid expenses
Cash
Assets held for sale
Current assets
Assets
16
Liabilities related to assets held for sale
The liabilities of the Hearing Implants and
Communications businesses are presented
as liabilities related to assets held for sale.
Comparative figures have not been re-
stated.
Consolidated balance sheet
(DKK million)
H1 2024 H1 2023
Full year
2023
Equity and liabilities
Share capital
Other reserves
Equity attributable to Demant A/S' shareholders
Equity attributable to non
-controlling interests 83 6 82
Equity
Borrowings
Lease liabilities
Deferred tax liabilities
Provisions
Other liabilities
Deferred income
Non
-current liabilities 15,374 11,587 14,346
Borrowings
Lease liabilities
Trade payables
Payables to associates and joint ventures
Income tax
Provisions
Other liabilities
Unrealised losses on financial contracts
Deferred income
Liabilities related to assets held for sale
Current liabilities
Liabilities
Equity and liabilities
17
Discontinued operations
The Hearing Implants and Communica-
tions businesses are presented as discon-
tinued operations. Comparative figures
have been restated.
Consolidated cash flow statement
(DKK million)
H1 2024 H1 2023
Full year
2023
Operating profit (EBIT)
Non
-cash items etc. 579 691 1,280
Change in receivables etc.
-314 -315 -158
Change in inventories
-271 13 -120
Change in trade payables and other liabilities etc.
Change in provisions
-11 11 51
Dividends received
Cash flow from operating profit
Financial income etc. received
Financial expenses etc. paid
-445 -332 -707
Income tax paid
-511 -302 -662
Cash flow from operating activities (CFFO)
Acquisition of enterprises, participating interests and
activities
-763 -313 -935
Investments in intangible assets
-89 -105 -192
Investments in property, plant and equipment
-288 -310 -643
Disposal of property, plant and equipment
Investments in other non
-current assets -88 -132 -269
Disposal of other non
-current assets 129 171 246
Cash flow from investing activities (CFFI)
-1,097 -680 -1,771
(DKK million)
H1 2024 H1 2023
Full year
2023
Repayments of borrowings
-2,536 -2,598 -6,743
Proceeds from borrowings
Change in short
-term bank facilities 414 -275 -168
Repayments of lease liabilities
-359 -326 -687
Transactions with non
-controlling interests -1 -1 -3
Share buy
-backs -1,137 -17 -846
Cash flow from financing activities (CFFF)
-191 -1,086 -2,413
Cash flow for the period, net
- continuing operations 203 152 274
Cash flow for the period, net
- discontinued operations -292 -93 -232
Cash flow for the year, net
-89 59 42
Cash and cash equivalents at the beginning of the year
Foreign currency translation adjustment of cash and cash
equivalents
-1 -31 -34
Cash and cash equivalents at the end of the year
Breakdown of cash and cash equivalents at the end of the
year:
Cash
Cash and cash equivalents at the end of the year
18
Consolidated statement of changes in equity
(DKK million)
Other reserves
Share
capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
Demant
A/S’ share-
holders’
share
Non-
controlling
interests’
share
Equity
Equity at 1.1.2024
-103
Comprehensive income:
Profit for the period
Other comprehensive income:
Foreign currency translation adjustment, subsidiaries
Value adjustments of hedging instruments:
Value adjustment for the period
-41
-41
-41
Value adjustment transferred to revenue
-3
-3
-3
Actuarial gains/losses on defined benefit plans
-3
-3
-3
Tax on other comprehensive income
-1
Other comprehensive income/loss
-34
-4
Comprehensive income/loss for the period
-34
Share buy
-backs
-1,137
-1,137
-1,137
Share
-based compensation
Capital reduction through cancellation of treasury shares
-1
Equity at 30.06.2024
-12
19
Consolidated statement of changes in equity
(DKK million)
Other reserves
Share
capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
Demant
A/S’ share-
holders’
share
Non-
controlling
interests’
share
Equity
Equity at 1.1.2023
Comprehensive income:
Profit for the period
Other comprehensive income:
Foreign currency translation adjustment, subsidiaries
-177
-177
-177
Value adjustments of hedging instruments:
Value adjustment for the period
Value adjustment transferred to revenue
-46
-46
-46
Tax on other comprehensive income
Other comprehensive income/loss
-177
-8
-185
-185
Comprehensive income/loss for the period
-177
-8
Share buy
-backs
-17
-17
-17
Share
-based compensation
Capital reduction through cancellation of treasury shares
-1
Transactions with non
-controlling interests
-1
-1
Non
-controlling interests on acquisition
Equity at 30.06.2023
-106
20
In H1 2024, the Group acquired a number
of minor retail entities in North America,
Europe and the Pacific region in Hearing
Care as well as a value-added distributor
in Hearing Aids.
The Group paid acquisition costs exceed-
ing the fair values of the acquired assets,
liabilities and contingent liabilities. Such
positive balances in value can be attributed
to expected synergies between the activi-
ties of the acquired entities and our existing
activities, to future growth opportunities
and to the value of staff competencies in
the acquired entities. These synergies are
not recognised separately from goodwill,
as they are not separately identifiable.
At the time of acquisition, non-controlling
interests’ shares of acquisitions were
measured at their proportionate shares of
the total fair value of the acquired entities,
including goodwill. On obtaining a control-
ling interest through step acquisitions,
previously held non-controlling interests
are at the time of obtaining control in-
cluded in the income statement at their
fair value with fair value adjustments.
Note 1 – Acquisition of enterprises and activities
(DKK million)
H1 2024
H1 2023
Europe
North
America
Pacific
region
Total
Total
Intangible assets
8
24
-
32
31
Property, plant and equipment
8
3
-
11
42
Other non
-current assets 73
13
3
89
130
Inventories
7
1
-
8
35
Current receivables
9
45
-
54
72
Cash and cash equivalents
10
77
-
87
27
Non
-current liabilities -92
-14
-2
-108
-337
Current liabilities
-31
-44
-1
-76
-88
Acquired net assets
-8
105
-
97
-88
Goodwill
177
1,272
6
1,455
604
Acquisition cost
169
1,377
6
1,552
516
Carrying amount of non
-controlling interests on obtaining control -25
-301
-
-326
-80
Fair value adjustment of non
-controlling interests on obtaining control -8
-327
-
-335
-26
Contingent consideration and deferred payments
-13
-69
-
-82
-121
Acquired cash and cash equivalents
-10
-77
-
-87
-27
Cash acquisition cost
113
603
6
722
262
Figures are shown at fair value on the acquisition date.
21
In H1 2024, a few adjustments were made
to the preliminary recognition of acquisi-
tions made in 2023. These adjustments
were made in respect of payments made,
contingent considerations provided and
net assets and goodwill acquired. The im-
pact of these adjustments on goodwill was
DKK 5 million (DKK 3 million in H1 2023),
and the impact on contingent considera-
tions was DKK -1 million (DKK 2 million in
H1 2023). In relation to acquisitions with
final recognition in 2020-2023, adjust-
ments were made in 2024 in respect of
estimated contingent considerations.
Such adjustments were recognised in
the income statement.
The total impact on the income statement
of fair value adjustments of non-controlling
interests in step acquisitions amounted to
DKK 335 million (DKK 26 million in H1
2023). For acquisitions, adjustments of
contingent considerations made via the
income statement in the amount of DKK 0
million (DKK 3 million in H1 2023) are rec-
ognised under distribution costs.
Of total acquisition costs in the reporting
period, the fair value of estimated contin-
gent considerations in the form of earnouts
or deferred payments accounted for DKK
82 million (DKK 121 million in H1 2023).
Earnouts depend on the results of the ac-
quired entities for a period of 1-5 years
after takeover and can total a maximum
of DKK 82 million (DKK 121 million in H1
2023) for acquisitions.
The acquired assets include contractual
receivables amounting to DKK 50 million
(DKK 33 million in H1 2023) of which DKK
1 million (DKK 0 million in H1 2023) was
thought to be uncollectible at the date
of the acquisition. Of total goodwill in the
amount of DKK 1,455 million (DKK 604
million in H1 2023), DKK 65 million (DKK
11 million in H1 2023) can be amortised
for tax purposes.
Transaction costs in connection with ac-
quisitions made in 2024 amounted to DKK
5 million (DKK 4 million in H1 2023) and
are recognised under distribution costs.
Revenue and profit after tax generated by
the acquired enterprises since our acquisi-
tion in 2024 amount to DKK 87 million
(DKK 99 million in H1 2023) and DKK 4
million (DKK 4 million in H1 2023), respec-
tively. Had such revenue and profit been
consolidated on 1 January 2024, we esti-
mate that consolidated pro forma revenue
and profit before tax would have been
DKK 11,184 million (DKK 11,191 million in
H1 2023) and DKK 1,205 million (DKK 584
million in H1 2023), respectively. Without
taking synergies with our core business
into account, we believe that these pro
forma figures reflect the level of consoli-
dated earnings after our acquisition of
the enterprises.
The above statements of the fair values
of acquisitions are not considered final
until 12 months after takeover.
Acquisitions after the reporting period
Demant has acquired additional minor
distribution enterprises from the reporting
date and until the date of publication of
this Interim Report 2024. We are in the
process of estimating their fair values.
The acquisition costs are expected to
relate primarily to goodwill.
Note 1 – Acquisition of enterprises and activities
22
On 5 February 2024, the Group announced
the decision to undertake a review of the
strategic options for its Communications
business. On 14 August 2024, the Group
announced the conclusion of the review of
strategic options for its Communications
business. Consequently, we have decided
to initiate a significant restructuring plan of
the EPOS business. The process will com-
mence immediately, and following the re-
structuring, the Group intends to carry on
with the divestment of EPOS. Following
the announcement, the Communications
business still meets the criteria of being
classified as held for sale and/or a discon-
tinued operation.
On 21 May 2024, the Group finalised the
divestment of the cochlear implants (CI)
business to Cochlear Limited after all regu-
latory approvals and customary closing
conditions had been fulfilled. The divest-
ment of the CI business resulted in a loss
of DKK 36 million in H1.
As previously communicated, the bone an-
chored hearing systems (BAHS) business
will remain with Demant for now, pending
the review of our strategic options of how
we realise the decision to exit the business
area. BAHS continues to be considered a
discontinued operation.
In H1, discontinued operations realised a
loss after tax of DKK 154 million, including
a loss relating to the divestment of the CI
business. The remaining amount of DKK
-118 million is related to an operating loss
in the CI business and Communications
business, which has not been offset by
positive developments in the BAHS busi-
ness.
Accounting policies
Discontinued operations represent a sepa-
rate line of business disposed of or in prep-
aration for sale. The results of discontinued
operations are presented separately in the
income statement, and comparative fig-
ures are restated. Assets and liabilities of
discontinued operations are presented as
separate items in the balance sheet, and
cash flow from discontinued operations
are presented separately in the cash flow
statement.
Note 2 – Discontinued operations and assets held for sale
Note 2.1 - Discontinued operations
(DKK million)
H1 2024 H1 2023
Full year
2023
Revenue
602 714 1,351
Expenses
-719 -1,516 -2,430
Gain/loss on sale of assets and businesses
-36 - -
Amortisation, depreciation and impairment losses
-78 -31 -61
Profit before tax
- discontinued operations -231 -833 -1,140
Tax on profit for the period
77 44 115
Profit for the period
- discontinued operations -154 -789 -1,025
Profit for the period for discontinued operations
attributable to:
Demant A/S' shareholders
-154 -789 -1,025
-154 -789 -1,025
Earnings per share (EPS), DKK
-0.71 -3.54 -4.60
Diluted earnings per share (DEPS), DKK
-0.71 -3.54 -4.60
Cash flow from discontinued operations:
Cash flow from operating activities (CFFO)
-134 -67 -348
Cash flow from investing activities (CFFI)
-5 -10 -39
Cash flow from financing activities (CFFF)
-153 -16 155
Cash flow for the period, net
- discontinued operations -292 -93 -232
23
Following the divestment of the CI busi-
ness, assets classified as held for sale at
30 June 2024 comprise the Communica-
tions business and the BAHS business.
The comparative figures only include the
Hearing Implants business.
Accounting policies
Assets and liabilities of discontinued oper-
ations and assets held for sale, except fi-
nancial assets etc., are measured at the
lower of their carrying amount and their
fair value less costs to sell. Non-current
assets held for sale are not depreciated.
Key accounting estimates and
judgements
No key estimates were identified.
Note 2 – Discontinued operations and assets held for sale
Note 2.2 – Assets held for sale and liabilities related to
assets held for sale
(DKK million)
H1 2024 H1 2023
Full year
2023
Balance sheet items
Intangible assets
539 97 97
Property, plant and equipment
27 1 1
Lease assets
53 1 1
Deferred tax assets
54 32 44
Other non
-current assets 155 3 1
Non
-current assets 828 134 144
Current assets
968 170 139
Assets held for sale
1,796 304 283
Provisions
1 6 8
Deferred tax liabilities
19 6 -
Lease liabilities
54 2 1
Other liabilities
278 43 80
Liabilities related to assets held for sale
352 57 89
24
In May 2024, the Group divested its CI
business to Cochlear Limited, and no con-
sideration was paid as part of the transac-
tion.
In H1, the divestment resulted in a loss of
DKK 36 million of which DKK 11 million re-
lates to transaction costs. The total trans-
action costs incurred by the Group in rela-
tion to the divestment of the CI business
amount to DKK 66 million.
Accounting policies
Gains or losses from the divestment of en-
terprises and activities are determined as
the difference between the selling price
and the carrying amount of the net assets
divested.
Transaction costs and any provisions made
for obligations related to the divestment of
enterprises and activities are deducted.
Note 2 – Discontinued operations and assets held for sale
Note 2.3 - Divestment of enterprises and activities
(DKK million)
H1 2024
Gain/loss on divestment of enterprises and activities
Selling price for discontinued operations
-
Net assets sold
-619
Reversal of initial impairment of net assets
612
Provisions as a result of the transaction
-18
Foreign currency translation reserve and hedging of net investment
-
Transaction costs
-11
Gain/loss on divestment of enterprises and activities
-36
Net profit from divestment of enterprises and activities
Profit from divested discontinued operations
-51
Gain/loss on divestment of enterprises and activities
-36
Net profit/loss from divestment of enterprises and activities
-87
25
This Interim Report 2024 is presented in
accordance with IAS 34, Interim Financial
Reporting, as adopted by the EU, and fur-
ther Danish disclosure requirements in re-
spect of interim reports for listed compa-
nies. We have not prepared a separate in-
terim report for the Parent. The Report is
presented in Danish kroner (DKK), which
is the functional currency of the Parent.
The accounting policies used for this In-
terim Report 2024 are the same as the
accounting policies used for our Annual
Report 2023 to which we refer for a full
description. The Group has adopted all
new, amended and revised accounting
standards and interpretations as pub-
lished by the IASB and adopted by the
EU, effective for the accounting period
beginning on 1 January 2024. The amend-
ments, revised standards and interpreta-
tions have not had a significant effect.
Note 3 – Accounting policies and estimates