Annual Report
2025
Demant A/S
Kongebakken 9
2765 Smørum
, Denmark
CVR no. 71186911
1 January
– 31 December 2025
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 2
We are pleased to present Demant’s Annual Re-
port 2025, prepared as an integrated report in ac-
cordance with the reporting framework of the In-
ternational Financial Reporting Standards (IFRS)
and the EU Corporate Sustainability Reporting Di-
rective (CSRD) and its European Sustainability
Reporting Standards (ESRS). It encompasses
both financial and sustainability performance for
the full calendar year 2025 presented in our Man-
agement statement, Sustainability statement and
Financial statements.
Annual Report 2025 addresses how we create
value for all our stakeholders as a leading hearing
healthcare company and the impact we have on
the environment and society. It provides a com-
prehensive overview of our strategy and business
model, the risks and opportunities we face as well
as our financial, environmental, social and govern-
ance performance.
All information related to the ESRS disclosure re-
quirements is provided with the corresponding
ESRS reference throughout Annual Report 2025.
You can find an overview of all the disclosure re-
quirements included and their location on pages
106-114.
You can find the auditor’s reports in the Signa-
tures section on page 199.
In the Document library of our News and media
section on www.demant.com, we provide access
to all our reports, including our Remuneration Re-
port, which offers an overview of the remuneration
of the Executive Board and the Board of Directors
in 2025, and the Corporate Governance Report,
which includes information on the company’s
management structure and a review on how we
address corporate governance pursuant to section
107b of the Danish Financial Statements Act and
the Nordic Main Market Rulebook for Issuers of
Shares prepared by Nasdaq.
Thank you for your interest in this Annual Report
2025. We hope it provides valuable insights and
that you enjoy reading it.
About this report
www.demant.com/reports
-2025/remuneration
-
report-2025
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 3
Overview 5
Market and strategy 14
Financial performance 20
Corporate governance 35
Sustainability in Demant 51
Environment 63
Social 79
Governance 97
Additional information 102
Consolidated financial statements 115
Parent financial statements 175
Statement by management 193
Independent auditor’s reports 195
Independent auditor’s limited assurance
report on the sustainability statement 199
Table of contents
Management's review comprises the Management statement and the Sustainability statement.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 6
We are guided by our purpose and strategic ambi-
tion to create life-changing differences through
hearing health. In 2025 we continued to impact
millions of people living with hearing loss, to de-
liver strong cash flow and to further improve our
sustainability metrics.
Performance highlights
Millions of lives improved
Scope 1 and 2 GHG emissions
Gender balance in leadership
Code of Conduct training
(Million)
2030
16 million
(Share of CO
2
e reduced)
2030
46%
(Share of under-represented gender)
2030
35%
(Share of relevant employees trained)
2030
100%
2030 target: More than 16 million lives improved
2
2030 target: 46% reduction in scope 1 and 2 green-
house gas (GHG) emissions vs. 2019
3
2030 target: Increase gender balance in top-level
management to 35/65% (female/male)
4
2030 target: Code of Conduct training to reach
100% of highly exposed employees
1
Comparative figures for 2023 have been restated to exclude Communications.
2
This represents the number of people who benefit from hearing aids from Demant.
3
The target for reduction in scope 1 and 2 market-based GHG emissions is calculated vs. the 2019 baseline of 31,980 tonnes of CO
2
e.
4
Actions to achieve gender representation targets will be implemented where permitted by applicable local laws and regulations.
Revenue
1
(DKK billion)
Medium- to long-term target: Growth of 8-10%
p.a. in local currencies
EBIT before special items
1
(DKK million)
Medium
- to long-term target: Incremental EBIT
margin expansion in constant currencies
Share buy-backs
(DKK million)
Medium
- to long-term target: Excess free cash
flow after acquisitions
to be used for share buy-backs
19.7
21.6
22.4
23.0
0
5
10
15
20
25
2022 2023 2024 2025
3,207
4,506
4,404
3,960
0
1,000
2,000
3,000
4,000
5,000
2022 2023 2024 2025
1,840
846
2,301
582
0
500
1,000
1,500
2,000
2,500
2022 2023 2024 2025
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 7
2025 has been a challenging year for the global
hearing healthcare market, which continued to be
impacted by macroeconomic uncertainties. These
dynamics have, unfortunately, reduced the willing-
ness to invest and resulted in delayed purchases.
In turn, this led to lower-than-normal growth in the
hearing healthcare market, especially in the US,
and thus intense competition.
Being one of the market leaders, we were influ-
enced by these market dynamics in 2025. The
Group saw organic revenue growth of 2% and an
operating profit before special items of DKK 3.96
billion. Our Hearing Care business area saw par-
ticularly good performance with revenue growth of
10% in local currencies.
We are pleased that the Group delivered results in
line with our updated expectations and maintained
industry-leading margins. However, we cannot be
fully satisfied with a year where we had to revise
our outlook downward twice. Against the backdrop
of a disappointing 2025, we have therefore pre-
sented an ambitious plan for 2026 for Demant to
improve profitability in the coming years. I will get
back to this plan below but let me first share high-
lights on how we delivered on our strategy
through consistent execution in 2025.
Fundamentals intact
Even windy conditions do not change our view of
the fundamentals of our industry – a growing need
for hearing healthcare driven by increasing elderly
populations all over the world. Our business is
based on a long-term and well-defined demand
for state-of-the-art hearing aids, diagnostic solu-
tions and personalised care. Our strategy is clear:
We want to become the leading hearing
healthcare company, driven by our ambition to im-
prove as many lives as possible and a purpose of
creating life-changing hearing health.
Our strategy to become the leader in hearing
healthcare guided our choices and decisions
throughout the year. We achieved significant mile-
stones.
Largest expansion in our history
We proudly announced and finalised the acquisi-
tion of KIND, one of the world’s leading retailers of
hearing aids. This – our largest-ever – expansion
of our global network of hearing care clinics com-
plements our long-term aspirations of helping
more people with hearing loss through personal-
ised care.
The KIND acquisition makes Demant a leading re-
tailer in Germany and will increase the Group’s
revenue by almost 10%. Acquiring KIND is yet an-
other strategic step for us to further consolidate
and grow our Hearing Care business. By adding a
broad national clinic network and a very strong
brand in Germany, we are now closer to even
more users. Combined with Demant’s existing
global clinic footprint, we now have more than
4,500 clinics globally. With this transaction, I am
delighted to have welcomed more than 3,000 new
employees to the Demant Group, now totalling ap-
proximately 26,000 life-changers.
Even though numbers speak volumes, they do not
necessarily tell the full story. By combining De-
mant’s innovative hearing aid technology and di-
agnostic equipment with professionalised hearing
care, we cover the entire journey – from diagnosis
and acceptance of hearing loss to getting a hear-
ing aid – helping more people, faster and better.
Helping more people is also about working to
lower the age threshold for starting hearing treat-
ment, meeting people physically and making hear-
ing treatment easy and accessible.
CEO letter
In an eventful year, Demant delivered results in line with our revised ex-
pectations, driven by strong performance in Hearing Care. We achieved
key strategic milestones with the acquisition of KIND and the launch of
the hearing aid sensation, Oticon Zeal. The year ended on a positive note
and, looking into 2026, we remain committed to our strategy, “leading
hearing healthcare”. In a global hearing healthcare market that remains
characterised by high macroeconomic uncertainties and intense competi-
tion, we have solid plans to strengthen Demant for the future.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 8
Unprecedented innovation
In 2025, we stayed on course by offering a clear
and focused hearing aid portfolio. We expanded
our AI-driven product range with even more
styles, including a truly compelling new product.
Few moments capture our purpose as clearly as
the launch of Oticon Zeal. The unseen in-ear
hearing aid unites discretion with full functionality
and directly addresses a classic barrier for first-
time hearing aid users.
People with hearing loss want discreet solutions,
but not at the expense of sound quality, reliability,
rechargeability or connectivity. Bringing AI-driven
sound processing, modern rechargeability and
broad smartphone connectivity together in a small
and ultra discreet device, Oticon Zeal is an “addic-
tive” first encounter.
In addition to Oticon’s activities, our other hearing
aid brands, Bernafon and Philips, also launched
products during the year. Hearing Aids generated
organic revenue growth of 2% in 2025, and we ex-
pect the business area to see improvements in
2026. This will be driven by Oticon Zeal and addi-
tional new products to be launched during the
year, as we prepare for an intense competitive en-
vironment where everyone will fight even harder
to compensate for the soft market.
Strengthening Diagnostics
The macroeconomic uncertainties also impacted
performance in our Diagnostics business area.
Despite a flat market, we managed to deliver or-
ganic revenue growth of 1% due to good commer-
cial performance in the fourth quarter. We also
saw strong tender wins and growth in service and
consumables during the year.
Throughout 2025, we have worked to solidify Di-
agnostics global leadership position through a
multi-brand strategy and key account wins. We
have implemented structural changes in the or-
ganisation to enable scale and efficiency, position-
ing the business area to further growth. This in-
cludes a sharpening of our distribution activities
and innovative product portfolio.
Focused on hearing healthcare
The year stood out as significant in terms of our
transition into a focused hearing healthcare com-
pany. We signed an agreement to sell Oticon
Medical in the fourth quarter, a transaction which
is expected to close in the beginning of 2026. It
has been a key priority to find a good new owner
of the business, ensuring that patients will also be
supported going forward. I am very happy that we
have succeeded in doing so.
In late December, we wrapped up our divestment
activities in 2025 when we signed an agreement
to sell our audio and headset business, EPOS.
Lives improved
Why is it important to be focused? In addition to
strengthening our core business, helping people
with hearing loss return to life-changing conversa-
tions and interaction with family, colleagues and
friends is what drives us.
In 2025, 1.6 million people were tested for hearing
loss in our clinics, and we improved more than
12.1 million lives with Demant’s hearing aids.
Thanks to higher unit sales in Hearing Aids and
supported by our acquisition of KIND, we are on
track to deliver on our impact targets: By 2030, we
want to improve more than 16 million lives and
raise awareness about hearing loss by testing
more than 2 million people in our clinics.
As we deliver on our core commitment to society,
creating life-changing hearing health, we also take
pride in making progress on our targets for the
broader ESG areas (Environment, Society, Gov-
ernance). In 2025, we thus reached an important
emissions milestone: We used 53% renewable
electricity, thus delivering on our target of 50% re-
newable electricity in own operations by 2025. We
also made good progress on our gender balance
target for the Group, reaching a female/male ratio
of 33%/67%, respectively, in our top manage-
ment.
An even stronger future
Also in 2025, we continued building the foundation
for an even stronger Demant for the benefit of our
customers, employees and shareholders.
Ensuring cost-effective best practices and scala-
ble solutions across the business is vital for oper-
ating the Demant Group even more effectively, as
we continue to grow.
This brings me back to our plan for 2026: While
we remain optimistic about the underlying need
for hearing treatment, we expect no signs of
changes to the soft global hearing healthcare mar-
ket and intense competition. In line with our strat-
egy and financial goals, we are executing a com-
pany‑wide initiative that will make Demant more
effective and lower cost growth in the coming
years. By optimising and tightly prioritising our
cost base, we will improve profitability in an ex-
panding business. And we will be keeping cus-
tomer focus and service high while continuing to
deliver innovative new solutions.
These will be key topics for 2026 in order for De-
mant to be able to create long-term value for all
our stakeholders, who put their faith in our com-
pany.
Thank you to our customers, users and share-
holders, for your trust throughout the year. And
thank you to our employees for your continued en-
gagement and dedication to delivering life-chang-
ing hearing healthcare.
Søren Nielsen
With the largest acquisition in our history, the launch of
a remarkable new hearing aid, Oticon Zeal, as well as a clear
direction for the future, we are building an even stronger De-
mant. We are committed to becoming the leader in hearing
healthcare and improving more lives through better hearing.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 9
Key figures and financial ratios
– year
(DKK million)
2025 2024 2023 2022 2021
Income statement
Revenue
22,971 22,419 21,601 19,705 17,905
Organic growth
2% 2% 14% 4% 27%
Gross profit
17,371 17,090 16,320 14,669 13,458
EBITDA
5,351 5,963 5,799 4,383 4,730
Operating profit before special items
3,960 4,404 4,506 3,207 3,663
Special items
-128 124 - - -
Operating profit (EBIT)
3,832 4,528 4,506 3,207 3,663
Net financial items
-731 -812 -761 -280 -202
Profit after tax
– continuing operations 2,367 2,892 2,823 2,276 2,711
Profit after tax
– discontinued operations -823 -504 -1,025 -192 -183
Profit for the year
1,544 2,388 1,798 2,084 2,528
Cash flow statement
Cash flow from operating activities (CFFO)
3,852 4,080 4,458 2,622 3,593
Acquisition of enterprises, participating
interests and activities
-6,285 -1,234 -935 -2,323 -708
Investment in property, plant and
equipment, net
-605 -545 -621 -630 -547
Free cash flow (FCF)
3,094 3,486 3,622 1,617 2,838
Share buy
-backs -582 -2,301 -846 -1,840 -3,200
Balance sheet
Equity
9,919 9,644 9,338 8,562 7,981
Total assets
39,074 32,450 30,546 29,857 24,860
Net interest
-bearing debt (NIBD) 18,742 13,545 12,280 12,711 9,150
Net working capital (NWC)
3,387 3,289 3,630 3,648 3,025
Financial ratios
Gross margin
75.6% 76.2% 75.6% 74.4% 75.2%
EBIT before special items margin
17.2% 19.6% 20.9% 16.3% 20.5%
Effective tax rate
23.7% 22.2% 24.6% 22.2% 21.7%
Gearing multiple
3.4 2.3 2.1 2.9 1.9
The Communications business has been reported as discontinued operations since 2024, and comparative figures for 2023 in the
income
statement and cash flow statement as well as related key figures and financial ratios excluding organic growth have been res
tated. The
Hearing Implant business has been reported as discontinued operations since 2022, and comparative figures for 2021 in the inc
ome
statement and cash flow statement as well as related key figures and financial ratios excluding organic growth were
restated.
2025 2024 2023 2022 2021
Sustainability impacts
Number of lives improved (million)
12.1 10.9 10.3 9.4 8.8
Number of people tested (million)
1.6 1.5 n.a. n.a. n.a.
Environment
Scope 1 and 2 market
-based GHG
emissions (tonnes of CO
2
e)¹
26,781 29,426 33,103 37,136 34,288
Scope 1 and 2 location
-based GHG
emissions (tonnes of CO
2
e)¹
35,401 33,686 33,323 31,224 29,258
Scope 3 GHG emissions (tonnes of
CO
2
e)²
194,976
209,282
231,282
217,096
182,547
Renewable electricity share
53% 35% 21% n.a. n.a.
Social
Gender balance, top
-level management
(female/male)
33/67% 31/69% 29/71% 23/77% 22/78%
Gender balance, all managers
(female/male)
51/49% 50/50% 48/52% 44/56% 43/57%
Inclusion score (1
-5) 4.30 4.27 4.26 n.a n.a
Engagement score (1
-5) 4.16 4.13 4.11 4.08 4.02
Average number of full
-time employees 22,248 21,381 20,690 19,239 16,866
All employees (headcounts)
26,704 22,639 22,240 n.a. n.a.
Governance
Code of Conduct training to highly exposed
employees
99% 76% n.a. n.a. n.a.
Whistleblower reports
126 87 90 47 48
Share ratios
Adjusted earnings per share
(adjusted EPS), DKK
11.74 12.74 12.64 10.06 11.48
Earnings per share (EPS), DKK
–
continuing operations
11.20 13.31 12.64 10.06 11.48
Earnings per share (EPS), DKK
7.31 10.99 8.04 9.21 10.70
Share price, end of period, DKK
215.20 264.20 296.00 192.55 335.10
We refer to
Note 1.1 for a description of the accounting policies for key figures and financial ratios.
¹2023
-2021 numbers are restated due to methodological improvement.
²2024
-2021 numbers are restated due to methodological improvement.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 10
Key figures and financial ratios – half-year
(DKK million)
H2 2025
H1 2025 H2 2024 H1 2024 H2 2023
Income statement
Revenue
11,718
11,253 11,332 11,087 10,907
Organic growth
4%
0% 2% 3% 13%
Gross profit
8,824
8,547 8,580 8,510 8,303
EBITDA
2,758
2,593 3,066 2,897 3,010
Operating profit before special items
2,111
1,849 2,336 2,068 2,344
Special items
-128
- - 124 -
Operating profit (EBIT)
1,983
1,849 2,336 2,192 2,344
Net financial items
-346
-385 -402 -410 -399
Profit after tax
– continuing operations 1,237
1,130 1,538 1,354 1,452
Profit after tax
– discontinued operations -810
-13 -350 -154 -236
Profit for the period
427
1,117 1,188 1,200 1,216
Cash flow statement
Cash flow from operating
activities (CFFO)
2,339
1,513 2,589 1,491 2,540
Acquisition of enterprises, participating
interests and activities
-5,436
-849 -471 -763 -622
Investment in property, plant and
equipment, net
-298
-307 -259 -286 -320
Free cash flow (FCF)
1,968
1,126 2,329 1,157 2,071
Share buy
-backs -
-582 -1,164 -1,137 -829
Balance sheet
Equity
9,919
9,475 9,644 9,522 9,338
Total assets
39,074
32,640 32,450 32,390 30,546
Net interest
-bearing debt (NIBD) 18,742
14,099 13,545 13,853 12,280
Net working capital (NWC)
3,387
3,198 3,289 3,546 3,630
Financial ratios
Gross margin
75.3%
76.0% 75.7% 76.8% 76.1%
EBIT before special items margin
18.0%
16.4% 20.6% 18.7% 21.5%
Effective tax rate
24.4%
22.8% 20.5% 24.0% 25.3%
Gearing multiple
3.4
2.5 2.3 2.3 2.1
H2 2025
H1 2025
H2 2024
H1 2024
H2 2023
Sustainability impacts
Number of lives improved (million)
12.1
11.2 10.9 10.6 10.3
Number of people tested (million)
0.8
0.8 n.a. n.a. n.a.
Environment
Scope 1 and 2 market
-based GHG
emissions (tonnes of CO
2
e)¹ 13,553
13,228 15,571 13,855 16,322
Scope 1 and 2 location
-based GHG
emissions (tonnes of CO
2
e)¹ 18,166
17,235 17,328 16,358 16,451
Renewable electricity share
51%
55% 32% 38% 20%
Social
Gender balance, top
-level management
(female/male)
33/67%
31/69% 31/69% 30/70% 29/71%
Gender balance, all managers
(female/male)
51/49%
50/50% 50/50% 49/51% 48/52%
Average number of full
-time employees 22,719
21,777 21,389 21,373 21,413
Share ratios
Adjusted earnings per share
(adjusted EPS), DKK
6.40
5.34 7.13 5.61 6.50
Earnings per share (EPS), DKK
–
continuing operations
5.86
5.34 7.13 6.18 6.50
Earnings per share (EPS), DKK
2.03
5.28 5.52 5.47 5.44
Share price, end of period, DKK
215.20
264.20 264.20 301.40 296.00
Comparative figures for the Communications business for 2023 in the income statement and cash flow statement as well as relat
ed key
figures and financial ratios excluding organic growth have been restated.
We refer to
Note 1.1 for a description of the accounting policies for key figures and financial ratios.
¹2023 numbers are restated due to methodological improvement.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 11
Global HQ Direct sales markets
Research & Development
Distributor markets
Manufacturing and service
This is Demant
Our purpose
Life
-changing hearing health
More than 26,000 people
are employed globally
1.6 million people were
hearing-tested in 2025
12.1 million lives were
improved in 2025
Research and development
Innovation is a
n integral part of Demant’s strategy,
and we con
stantly strive for technological advance-
ments in our R&D
activities. Our main R&D sites
are located
in Denmark, Poland
and Malaysia, and
we
also have a few smaller R&D sites in other
countries
.
Manufacturing and service
Demant
has a strong manufacturing set-up with
two
main locations in Poland where we manufac-
tur
e hearing aids and diagnostic equipment for
global markets
. We also have a site in Mexico,
primarily for custom devices and servicing
of our
American markets
.
Sales and distribution
Demant serves customers in more than 130
countries. In
over 30 countries, we sell our prod-
ucts through our local sales
companies to hear-
ing care professionals
and through our own hear-
ing care clinics
to hearing impaired people. Re-
maining markets are serviced by distributors.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 12
ESRS 2 SBM-1. This page is part of limited assurance.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 13
Read more at demant.com/about/latest-news
Event highlights in 2025
31 January
Demant adds 77
clinics to the Group’s
network of hearing care
clinics by acquiring the
Ohrwerk Group
in Germany
22 October and
20 December
Wrap-up of divestment
activities: Demant
signed agreements to
sell Oticon Medical and
EPOS, respectively
9 April
Interacoustics
introduces a game-
changing audiometry
solution: Equinox Evo
and Touch Keyboard
11 June
Demant signed an
agreement to acquire
KIND and significantly
expands the Group’s
hearing care footprint
with around 650 clinics
1 September
Demant eliminates
51 tonnes of plastic
from production
22 October
Oticon introduces the
world’s most discreet
and complete hearing
aid, Oticon Zeal
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 15
The World Health Organization (WHO) estimates
that one in five people live with some degree of
hearing loss and that, due to increasing life expec-
tancy, this number is growing. Out of the total
number of people living with hearing loss, over
400 million people have a moderate to severe
hearing loss and would benefit from treatment.
However, less than 20% of people, who would
benefit from using a hearing aid, receive treat-
ment. This low number is particularly driven by re-
gions and countries that lack hearing health infra-
structure. Furthermore, barriers, such as lack of
awareness and stigmatisation, continue to limit
the wider adoption of hearing aids globally.
If left untreated, hearing loss impacts many as-
pects of life for the individual, from preventing ac-
tive participation in education and employment to
reducing interaction with family and friends, which
can potentially impact the individual’s physical and
mental health.
Hearing loss has a considerable economic impact
on society, beyond the financial challenges it can
present for the individual. The WHO estimates
that the global annual cost for society is USD 980
billion, consisting of healthcare costs incurred, if
hearing loss is not treated, as well as the costs of
educational support and loss of productivity due to
unemployment and premature retirement.
At Demant, we believe that alleviating hearing
loss starts with the hearing care professional, who
delivers personalised care by diagnosing and fit-
ting hearing aids based on a person’s needs.
Through best-in-class customer experience and
innovative solutions, we can help more people live
life to the fullest and thus contribute to creating a
better society.
The societal implications
of hearing loss
Source: World report on hearing, World Health Organi
zation, 2021
ESTIMATED
ANNUAL
GLOBAL COST
980
USD BILLION
INCLUDING
34
MILLION
CHILDREN
OVER
400
MILLION LIVING
WITH A M
ODERATE TO
SEVERE
HEARING LOSS
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 16
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 17
Our strategy focuses on creating value by growing
our business at a rate exceeding the market
growth rate, while improving our profitability
through economies of scale and efficiency. Our
strategy comprises three choices and three ena-
blers, all of which are considered key for Demant
in order to create value:
Fuel innovation and core technology
development
An important organic growth driver is to bring su-
perior technological solutions to the market in a
timely manner and in high quality. We are there-
fore firmly focused on investing in R&D in both
Hearing Aids and Diagnostics, aiming to make fur-
ther technological advances in our R&D pro-
gramme.
Participate in consolidation of
distribution and leverage commercial
position
Another key growth driver is the acquisition and
integration of hearing care clinics worldwide into
our existing network. We believe in the benefits of
specialised care and high-quality equipment. By
continuously expanding our network, we can
reach more people with our products and ser-
vices, thus delivering specialised hearing care. In
addition, our growing presence allows us to fur-
ther raise awareness about hearing loss and to
treat even more users in our clinics in the future.
Grow across geographies and channels
and in adjacent business activities
To enable future growth, we focus strongly on
growing sales in our existing markets as well as in
new markets and channels across the three busi-
ness areas. The aim is to deliver profitable growth
through market share gains, as we expand our ac-
tivities with both existing and new customers.
Leverage scalability and increase
business resilience
We leverage our size and ensure efficiency in
everything we do to increase profitability across
the Group. A continuing effort, as set out in our
strategy, is to optimise our operations and supply
chain to drive up the EBIT margin. Other im-
portant elements include ensuring that the Group
benefits from economies of scale through our
Group Services functions and investing in and im-
plementing global standard business processes
and applications to support further scalability.
Continuously drive a culture of inclusion
and engagement to a higher level
Demant is a global employer with more than
26,000 employees worldwide, all dedicated to cre-
ating life-changing differences through hearing
health. Our employees are our most valuable re-
source, as they are critical to Demant’s future suc-
cess. Therefore, it is essential that Demant is a
great company to work for and that we drive a
strong culture of inclusion and engagement. We
want to ensure that everyone can contribute with
their strengths, regardless of their background.
Our key focus is thus to further develop and en-
gage our employees and leaders.
Drive responsible and sustainable
business practices
We are committed to adding value responsibly
and sustainably, not only to meet requirements
and comply with increasing regulations in this
area, but also to align with the purpose and ambi-
tion of Demant. As part of our strategy, we have
ambitious 2030 targets for our core impact and
ESG focus areas to ensure that we continuously
apply responsible and sustainable business prac-
tices. Please refer to our sustainability strategy
model on page 53.
Medium- to long-term outlook
Our ambition and strategy are also reflected in our
medium- to long-term financial outlook. Please
note that the outlook contains forward-looking
statements that reflect Demant’s expectations of
future events and financial performance. Please
refer to Outlook for 2026 on page 34.
Revenue outlook: 8-10% growth p.a. in
local currencies
This assumes 6-8% organic growth based on an
assumed market growth rate of around 5% and an
acquisitive growth rate of approximately 2%.
EBIT margin outlook: Incremental margin
expansion
This assumes constant foreign exchange rates.
Capital allocation outlook: Excess free
cash flow after acquisitions used for
share buy-backs
This is subject to our long-term gearing multiple
target of 2.0-2.5.
Our strategy
Our Group strategy
– leading hearing healthcare – reflects our ambition
as the leading hearing healthcare company to improve as many lives as
possible. In doing so, we contribute to building a more sustainable world
and enable more people to enjoy life to the fullest.
Medium- to long-term outlook
REVENUE
8-10%
GROWTH P.A. IN
LOCAL CURRENCIES
EBIT MARGIN
INCREMENTAL EBIT
MARGIN EXPANSION
CAPITAL
ALLOCATION
EXCESS FREE
CASH FLOW AFTER
ACQUISITIONS USED
FOR SHARE
BUY-BACKS
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 18
Our Group strategy – leading
hearing healthcare – continues
to guide our priorities and
decisions.
Our PURPOSE is to create life-changing differences through hearing health
Our AMBITION is, as the leading hearing healthcare company,
to improve as many lives as possible
Our PRIORITISATION is to support the entire journey towards
better hearing by focusing on personalised care and innovative solutions
Our COMMITMENT
Customers
Deliver a world-class customer and user experi-
ence that exceeds expectations
Employees
Pursue an engaging, inclusive and innovative
work culture, enabling employees to develop
and grow
Investors
Drive attractive financial returns and growth
based on a resilient business model
Our CHOICES and ENABLERS support sustainable growth
CHOICES
Fuel innovation and core technology develop-
ment to ensure strong customer value generation
Participate in consolidation of distribution and
leverage commercial position
Grow across geographies and channels and in
adjacent business activities
ENABLERS
Leverage scalability and increase business
resilience
Continuously drive a culture of inclusion and
engagement
Drive responsible and sustainable business
practices
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 19
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 21
Group performance
Income statement
H1 H2 FY
(DKK million)
2025
2024
Growth
2025
2024
Growth
2025
2024
Growth
Revenue
11,253 11,087 1% 11,718 11,332 3% 22,971 22,419 2%
Production costs
-2,706 -2,577 5% -2,894 -2,752 5% -5,600 -5,329 5%
Gross profit
8,547 8,510 0% 8,824 8,580 3% 17,371 17,090 2%
Gross margin
76.0% 76.8% 75.3% 75.7% 75.6% 76.2%
R&D costs
-730 -733 0% -671 -661 2% -1,401 -1,394 1%
Distribution costs
-5,386 -5,154 5% -5,481 -5,092 8% -10,867 -10,246 6%
Administrative expenses
-596 -586 2% -583 -559 4% -1,179 -1,145 3%
Share of profit after tax, associates and joint ventures
14 31 -55% 22 68 -68% 36 99 -64%
Operating profit (EBIT) before special items
1,849 2,068 -11% 2,111 2,336 -10% 3,960 4,404 -10%
Operating profit (EBIT) margin before special items
16.4% 18.7% 18.0% 20.6% 17.2% 19.6%
Special items
- 124 n.a. -128 - n.a. -128 124 n.a.
Operating profit (EBIT)
1,849 2,192 -16% 1,983 2,336 -15% 3,832 4,528 -15%
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 22
Introduction
In 2025, Demant entered into agreements to sell
Oticon Medical, the former Hearing Implants busi-
ness area, and EPOS, the former Communica-
tions business area. These businesses were al-
ready recognised as discontinued operations as
reflected in the comparative figures in the income
statement and cash flow statement for 2023 and
2024. Comparative figures for 2021-2022 exclude
Hearing Implants but include Communications.
Revenue
The Group’s full-year revenue amounted to DKK
22,971 million, corresponding to a growth rate of
5% in local currencies. Organic growth was 2%,
which is in line with our revised expectations for
2025. Acquisitive growth was 3%, and exchange
rates impacted revenue by -2%, which includes
the effect of exchange rate hedging. Total re-
ported growth for 2025 was 2%.
Revenue in H2
Revenue for H2 amounted to DKK 11,718 million,
corresponding to a growth rate of 7% in local cur-
rencies. Organic growth was 4% and growth from
acquisitions 3%. Exchange rates impacted
revenue by -4%, predominantly due to the US dol-
lar, and total reported growth for H2 was 3%.
Organic growth in H2 was broad-based with solid
performance in Hearing Care despite market
weakness. Reported growth was further sup-
ported meaningfully by acquisitions, including the
KIND acquisition, which was closed in Q4. Hear-
ing Aids saw improved growth in H2, despite
lower sales to a large US retailer following an in-
crease in the number of suppliers to this customer
in H1. Diagnostics saw an improvement in organic
growth towards the end of the year, particularly in
Q4.
Revenue by geography in H2
Driven by Hearing Care, Europe delivered good
organic growth in H2, particularly in Poland and
France. Hearing Aids also saw good growth in
both France and the UK. Acquisitions, primarily in
Germany, continued to contribute to growth.
In North America, organic growth was positive in
H2, driven by Diagnostics and Hearing Care.
However, in the US, growth was negative and im-
pacted by weak market developments and by a
loss of market share, primarily due to lower sales
to a large retailer.
Five
-year revenue
(DKK million)
17,905
19,705
21,601
22,419
22,971
0%
5%
10%
15%
20%
10,000
14,000
18,000
22,000
26,000
2021 2022 2023 2024 2025
Organic growth
Revenue by business area
Growth
(DKK million)
H2 2025 H2 2024 Org. Acq. LCY FX Rep.
Hearing Aids, total revenue
6,252 6,183 4% 0% 4% -3% 1%
Hearing Aids, internal revenue
-1,325 -1,183 9% 5% 14% -2% 12%
Hearing Aids, external revenue
4,927 5,000 3% -1% 2% -3% -1%
Hearing Care
5,575 5,098 4% 9% 13% -4% 9%
Diagnostics
1,216 1,234 3% 0% 3% -5% -1%
Group
11,718 11,332 4% 3% 7% -4% 3%
Growth
(DKK million)
FY 2025 FY 2024 Org. Acq. LCY FX Rep.
Hearing Aids, total revenue
12,473 12,413 2% 1% 2% -2% 0%
Hearing Aids, internal revenue
-2,632 -2,391 7% 4% 11% -1% 10%
Hearing Aids, external revenue
9,841 10,022 0% 0% 0% -2% -2%
Hearing Care
10,724 9,932 3% 7% 10% -2% 8%
Diagnostics
2,406 2,465 1% 0% 1% -3% -2%
Group
22,971 22,419 2% 3% 5% -2% 2%
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 23
Organic growth in Asia was positive in H2, which
was primarily driven by Japan. China delivered
good performance in Hearing Care, but the Group
saw flat growth in the country, reflecting continu-
ously challenging market dynamics, which also
impacted Diagnostics negatively.
In the Pacific region, good organic growth was
driven by Australia. In our Rest of world region,
we realised strong organic growth fuelled by sev-
eral markets in South America.
Gross profit
The Group’s gross profit increased by 2% to DKK
17,371 million in 2025, corresponding to a gross
margin of 75.6%. This is a decline of 0.6 percent-
age points compared to 2024, primarily driven by
weak market growth, particularly in the US, and by
ASP headwinds in Hearing Aids from geography
and channel mix changes. Increasing costs due to
a higher share of rechargeable devices also had a
negative impact on the Group’s gross margin.
For H2, the Group’s gross profit amounted to DKK
8,824 million, leading to a gross margin of 75.3%,
which is a decline of 0.4 percentage points com-
pared to H2 2024. Despite a positive impact from
business mix, the decline was primarily driven by
geography and channel mix changes in Hearing
Aids and by our Diagnostics business, where the
gross margin was negatively impacted by tariffs.
Foreign exchange rates also had a slightly nega-
tive impact on the gross margin.
Operating expenses (OPEX)
For the full year, OPEX increased by 7% in local
currencies of which only 3 percentage points re-
late to organic growth and 4 percentage points to
acquisitive growth.
In H2, reported OPEX saw flat sequential devel-
opment compared to H1 2025, which is in line with
our expectations and reflects a continued focus on
cost management. Distribution costs were the
main driver of the increase in absolute terms
driven by acquisitions in Hearing Care. Due to ef-
forts to control costs in H2 2024, organic OPEX
growth was 5%, and we saw an additional impact
of acquisitions of 5 percentage points. Foreign ex-
change rates reduced OPEX by 4%, primarily due
to a decline in the US dollar.
Five
-year gross profit
(DKK million)
Five-year OPEX
(DKK million)
13,458
14,669
16,320
17,090
17,371
73%
75%
77%
79%
4,000
9,000
14,000
19,000
2021 2022 2023 2024 2025
Margin
10,014
11,584
11,882
12,785
13,447
6,000
9,000
12,000
2021 2022 2023 2024 2025
Revenue by geographic region
Growth
(DKK million)
H2 2025 H2 2024 Org. Acq. Rep.
Europe
5,362 4,733 6% 8% 13%
North America
4,428 4,622 2% 0% -4%
Asia
1,034 1,088 2% 0% -5%
Pacific region
551 560 4% 2% -2%
Rest of world
343 329 12% -6% 4%
Total
11,718 11,332 4% 3% 3%
OPEX by function
Growth
(DKK million)
H2 2025 H2 2024 Org. Acq. Rep.
R&D costs
671 661 2% 0% 2%
Distribution costs
5,481 5,092 5% 6% 8%
Administrative expenses
583 559 10% 0% 4%
Total
6,735 6,312 5% 5% 7%
Revenue by geographic region
FY2025
Europe
44%
North America
39%
Asia
9%
Pacific region
5%
Rest of world
3%
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 24
Share of profit after tax from
associates
For the full year, the share of profit after tax from
associates amounted to DKK 36 million compared
to DKK 99 million in 2024. In H2, the share of
profit after tax from associates amounted to DKK
22 million.
Operating profit (EBIT) before
special items
In line with our updated expectations, the Group’s
EBIT before special items amounted to DKK
3,960 million in 2025, corresponding to an EBIT
margin before special items of 17.2%.
In H2, EBIT before special items was DKK 2,111
million. The EBIT margin before special items was
18.0%, a contraction of 2.6 percentage points
compared to H2 2024. EBIT before special items
was negatively impacted by exchange rates and
by lower operating leverage in Hearing Aids,
driven by weaker-than-normal growth in the hear-
ing aid market and by a loss of market share in
the US.
In 2025, we did not recognise any fair value ad-
justments of non-controlling interests in step ac-
quisitions, contingent considerations etc. to EBIT
before special items (DKK 13 million in 2024).
Please refer to Financial statements, Note 7.1, for
more details.
Special items
In 2025, we recognised special items of DKK -128
million, which exclusively relate to H2. The special
items partly relate to acquisition costs associated
with the acquisition of KIND, as announced on 1
December 2025, and partly to a non-cash adjust-
ment of a previously recognised step-up gain on
FUEL Medical Group in 2024. Please refer to Fi-
nancial statements, Note 2.8, for further details.
Operating profit (EBIT)
For the full year, reported EBIT amounted to DKK
3,832 million, corresponding to an EBIT margin of
16.7%. In H2, reported EBIT amounted to DKK
1,983 million, corresponding to an EBIT margin of
16.9% due to the special items mentioned above.
Financial items
For the full year, net financial items amounted to
DKK -731 million, a decrease of DKK 81 million
compared to 2024. The decrease primarily relates
to lower interest expenses following a lower aver-
age interest rate level in 2025. In H2, net financial
items totalled DKK -346 million, a decrease of
DKK 56 million versus H2 2024.
Profit for the year – continuing
operations
Reported profit before tax from continuing opera-
tions amounted to DKK 3,101 million in 2025,
which is a decrease of 17% compared to 2024,
due to the lower reported EBIT and special items.
Tax amounted to DKK 734 million, resulting in an
effective tax rate of 23.7%. This is slightly higher
than expected and entirely due to the adjustment
of the step-up gain recognised under special
items, which is not tax deductible. For H2, profit
before tax from continuing operations was DKK
1,637
million, and tax amounted to DKK 400 mil-
lion.
For the full year, reported net profit for continuing
operations was DKK 2,367 million, resulting in ad-
justed earnings per share (EPS) of DKK 11.74. In
H2, the reported net profit for continuing opera-
tions was DKK 1,237 million, corresponding to an
adjusted EPS of DKK 6.40. Please refer to Finan-
cial statements, Note 1.1, for our definition of ad-
justed EPS.
Profit for the year – discontinued
operations
Profit after tax from discontinued operations,
which comprise Communications and Hearing Im-
plants, amounted to DKK -823 million in 2025,
which was slightly better than expected. In H2,
profit after tax from discontinued operations
amounted to DKK -810 million.
The loss in H2 is primarily related to various non-
cash charges in respect of balance sheet adjust-
ments following the agreement to sell EPOS and
to provisions for future services and deliverables
according to the agreement to sell Oticon Medical.
Profit for the year
For the Group as a whole, profit after tax in 2025
amounted to DKK 1,544 million, which is in line
with our expectations. This corresponds to an
EPS of DKK 7.31. In H2, net profit after tax was
DKK 427 million, with an EPS of DKK 2.03.
At the annual general meeting, the Board of Direc-
tors will propose that the entire profit for the year
will be retained and transferred to the company’s
reserves.
Half
-year EBIT before special
items
(DKK million)
Adjusted earnings per share
(
adjusted EPS)
(DKK per share)
Five-year EBIT before special
items
(DKK million)
2,162
2,344
2,068
2,336
1,849
2,111
0%
10%
20%
30%
0
1,000
2,000
3,000
H1
2023
H2
2023
H1
2024
H2
2024
H1
2025
H2
2025
Margin
11.48
10.06
12.64
12.74
11.74
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2021 2022 2023 2024 2025
3,663
3,207
4,506
4,404
3,960
0%
10%
20%
30%
0
2,000
4,000
6,000
2021 2022 2023 2024 2025
Margin
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 25
Cash flow statement
The Group continues to be very cash-generative,
and 2025 was another year of strong cash flow
generation. Cash flow from operating activities
(CFFO) amounted to DKK 3,852 million, which is
a decrease of 6%, driven by the lower operating
profit and higher tax payments. CFFO was also
strong in H2, amounting to DKK 2,339 million.
In 2025, our net investments in property, plant and
equipment and intangible assets (CAPEX)
amounted to DKK 810 million. CAPEX relative to
revenue was 4%, which is in line with our me-
dium- to long-term ambition of 4%. In H2, CAPEX
Full
-year cash flow
(DKK million)
H2
cash flow
(DKK million)
was DKK 409 million, an increase of 10% on the
same period in 2024, primarily due to slightly
higher investments in production facilities.
Net investments in other non-current assets,
which comprise customer loans and loans to as-
sociates, amounted to a positive impact of DKK
52 million. Net investments thus totalled DKK 758
million in 2025. For H2, net investments in other
non-current assets amounted to a positive impact
of DKK 38 million, resulting in total net invest-
ments of DKK 371 million.
Free cash flow
Following strong cash flow generation but also
higher investments, the free cash flow before ac-
quisitions and divestments decreased by 11% to
DKK 3,094 million for the full year. In H2, the free
cash flow decreased by 16% to DKK 1,968 mil-
lion.
Acquisitions of enterprises
Net cash flow relating to acquisitions and divest-
ments totalled an outflow of DKK 6,285 million for
the year. The significant increase was driven by
the acquisition of KIND, a leading retailer in Ger-
many. In H2, when closing of the KIND acquisition
took place, the cash flow from acquisitions and di-
vestments amounted to an outflow of DKK 5,436
million, relating entirely to acquisitions in Hearing
Care.
Share buy-backs
In 2025, the Group bought back a total of
2,272,349 shares worth DKK 582 million under
the share buy-back programme, until it was sus-
pended on 11 June 2025 following the announce-
ment to acquire KIND. The shares were bought at
an average price of DKK 255.97. In H2, the Group
did not purchase any shares under the share buy-
back programme.
Cash flow from discontinued operations
Driven by positive cash flows in both Communica-
tions and Hearing Implants, the net cash flow from
discontinued operations was DKK 121 million for
the full year and DKK 117 million in H2. Please re-
fer to Financial statements, Note 7.2, for more de-
tails.
5,351
-758
-985
-660
146
3,094
0
1,000
2,000
3,000
4,000
5,000
6,000
2,758
-371
-356
-313
250
1,968
1,500
1,700
1,900
2,100
2,300
2,500
2,700
2,900
1
Other contains non-cash items, working capital and
provisions
.
CFFO
(DKK million)
CAPEX
(DKK million)
3,593
2,622
4,458
4,080
3,852
0
2,000
4,000
6,000
2021 2022 2023 2024 2025
711
908
813
748
810
0%
2%
4%
6%
0
200
400
600
800
1,000
2021 2022 2023 2024 2025
CAPEX % of revenue
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 26
Balance sheet
As at 31 December 2025, the Group’s total assets
amounted to DKK 39,074 million. This is an in-
crease of 20% compared to 31 December 2024,
entirely driven by acquisitions, which added 25
percentage points. The total balance sheet
amount includes DKK 699 million relating to Com-
munications and Hearing Implants, which are rec-
ognised as assets held for sale, pending closing
of the agreements to sell the businesses.
The increase in total assets is primarily due to an
increase in goodwill related to acquisitions. Due to
the consolidation of KIND following closing of the
acquisition on 1 December 2025, this is also the
case if we look at the development from 30 June
2025.
Net working capital
Net working capital (NWC) increased by 3% rela-
tive to the end of 2024, amounting to DKK 3,387
million, while the NWC-to-revenue ratio was flat at
15%. The increase in NWC is primarily the result
of acquisitions made towards the end of 2025,
leading to a higher level of inventory and trade re-
ceivables. If we adjust for the impact of the KIND
acquisition, net working capital would have de-
clined slightly compared to the end of 2024.
Please refer to Financial statements, Note 1.1, for
our definition of NWC.
Net interest-bearing debt
Net interest-bearing debt (NIBD) increased by
38% in 2025 and thus amounted to DKK 18,742
million as at 31 December 2025. The full-year in-
crease is primarily due to an extraordinarily high
spend on acquisitions during the year, including
the acquisition of KIND. As a result of the increase
in NIBD, our gearing multiple increased from 2.3
at the end of 2024 to 3.4 at the end of 2025, which
is, as expected, above our medium- to long-term
gearing target of 2.0-2.5.
Equity
Total equity for the full year increased by 3% to
DKK 9,919 million of which DKK 78 million is at-
tributable to non-controlling interests and DKK
9,841 million to the shareholders of Demant A/S.
The development was positively impacted by
profit but was somewhat offset by share buy-
backs and currency translation. In H2, total equity
increased by 5% compared to 30 June, mainly be-
cause of profit generated by the Group.
Employees
As at 31 December 2025, the Group had 26,704
employees compared to 22,639 at the end of
2024, an increase of 18%. The increase is mainly
due to an increase in the number of employees
from acquisitions, with the acquisition of KIND
alone adding more than 3,000 employees to the
Group.
Hedging activities
The material forward exchange contracts in place
as at 31 December 2025 to hedge against the
Group’s exposure to movements in exchange
rates are shown in the table below.
Hedging activities
Currency
Hedging
period
Average
hedging rate
USD
18 months 658
JPY
10 months 4.47
AUD
10 months 413
GBP
11 months 813
CAD
11 months 466
PLN
11 months 171
Events after the balance
sheet date
On 30 January 2026, the transaction to sell EPOS
closed, cf. the investor news published that day.
Apart from the above, no events have occurred af-
ter the reporting date of importance to the consoli-
dated financial statements.
Five-year NWC
(DKK million)
1
Other contains exchange rate adjustments in subsidiaries, hedging, defined benefit plans, share-based compensation etc.
Five-year NIBD
(DKK million)
Equity
(DKK million)
3,025
3,648
3,630
3,289
3,387
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0
1,000
2,000
3,000
4,000
5,000
2021 2022 2023 2024 2025
NWC/revenue
9,150
12,711
12,280
13,545
18,742
0.0
1.0
2.0
3.0
4.0
5.0
0
5,000
10,000
15,000
20,000
2021 2022 2023 2024 2025
Gearing multiple
9,644
1,544
-582
-687
9,919
1.1.
2025
Profit
Share
buy-backs
Other¹
31.12.
2025
7,000
7,500
8,000
8,500
9,000
9,500
10,000
10,500
11,000
11,500
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 28
Market developments
Based on available market statistics, covering
around two-thirds of the market, and on our own
assumptions, we estimate that the global hearing
aid market saw unit growth of 3% in 2025. This is
below both our expectations at the beginning of
the year and the structural growth rate of 4-6%
due to general macroeconomic uncertainties.
Growth in 2025 was primarily driven by Europe,
with France – as expected – delivering high sin-
gle-digit unit growth. The Rest of world region was
also a driver of market growth during the year,
while North America was a drag on growth in
2025. Driven by the factors mentioned here, we
estimate that geography and channel mix
changes resulted in an ASP development of
around -1%, leading to estimated growth in value
of around 2%.
Q4 market update
We estimate that unit growth in the global market
was 4% in Q4. Growth was thus at the lower end
of the normal 4-6% growth range, though an im-
provement relative to Q3, primarily driven by the
NHS in the UK. As a result of geography and
channel mix developments, we estimate that the
global hearing aid market saw negative ASP de-
velopment in Q4.
In terms of geography and compared to the same
period last year, we estimate that unit growth in
Europe was 8% in Q4. Growth was driven by the
NHS in the UK and by France, which continued to
contribute to growth due to the four-year anniver-
sary of the hearing healthcare reform imple-
mented in 2021. Excluding the NHS and France,
growth in Europe would have been 3%. In Ger-
many, growth was negative, which is partly due to
strong comparative figures in Q4 2024. In addition
to the previously mentioned markets, we estimate
that several of the smaller European markets saw
good growth in the period.
Growth in North America was 0% in Q4, as we
saw a continuously weak market and tough com-
parative figures. The US commercial market deliv-
ered flat growth, as negative growth in managed
care was offset by slight growth in the private-pay
market. Growth in Veterans Affairs (VA) ended on
a soft note with -1% growth.
Looking beyond North America and Europe, we
estimate that unit growth in our Rest of world re-
gion was 3% in Q4. Growth in China improved se-
quentially, leading to growth in Q4, despite contin-
uously challenging market dynamics. Growth in
Australia was positive and in Japan, the market
saw slight growth. Outside of those markets, we
estimate that several emerging markets saw good
growth in Q4.
Business update
In 2025, total revenue in Hearing Aids amounted
to DKK 12,473 million, corresponding to an or-
ganic growth rate of 2% (Q4: 5%). Acquisitive
growth of 1% (Q4: 0%) relates to the acquisition in
Q2 2024 of a value-added distributor. We saw an
impact of -2% (Q4: -3%) of changes in foreign ex-
change rates, which primarily relate to the US dol-
lar.
Internal revenue from sales to our Hearing Care
business accounted for 21% of total revenue. Un-
less otherwise specified, our commentary below
focuses on total revenue, including revenue from
sales through our own retail clinics, and thus co-
vers our total wholesale activities. However, inter-
nal revenue is eliminated from reported revenue
for the Group.
In 2025, Hearing Aids delivered growth below our
original expectations. This was mainly due to
weak market developments, particularly in the US,
and to a loss of market share in the US, primarily
due to lower sales to a large retailer. Despite this,
we saw improving growth throughout the year,
which was also supported by our position in man-
aged care.
Unit growth was 4%, but we saw a drag from ASP
developments of -2% due to unfavourable
geography and channel mix changes, including a
flat US market. In H2, growth in units improved
significantly, reflecting year-over-year market
share gains across a number of important coun-
tries. This growth should be seen against the
backdrop of a lower ASP due to continued weak-
ness in the US commercial market and the devel-
opment in our channel mix.
Growth in units and ASP
(LCY)
H1 2025 H2 2025 FY 2025
Units
3% 6% 4%
ASP
-2% -2% -2%
Total
1% 4% 2%
Hearing Aids
, total revenue
(DKK million)
Q1 2025
Q2 2025
Q3 2025
Q4 2025
FY 2025
Revenue
3,148 3,073 3,012 3,240 12,473
Growth
Organic -1% 0% 3% 5% 2%
Acquisitions 2% 1% 0% 0%
1%
Local currencies
1%
1%
3%
5%
2%
FX
1% -2% -3% -3% -2%
Total
1% -2% 0% 2% 0%
Estimated market unit growth in 2025 by region
(vs. 202
4)
Q1 Q2 Q3 Q4 FY
Europe
4% 3% 4% 8% 5%
North America
-3% 2% 2% 0% 1%
US (commercial) -5% 4% 2% 0%
0%
US (VA) -1% 1% 4% -1%
1%
Rest of world
4% 5% 4% 3% 4%
Global
2%
3%
3%
4%
3%
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 29
Oticon Zeal
Q4 business update
When we look at Q4, growth to external custom-
ers was 2% in local currencies of which organic
growth accounted for 4 percentage points and ac-
quisitive growth for -1 percentage point. Growth
improved sequentially despite continued market
weakness and lower sales in the US. We also
launched Oticon Zeal™ in a number of European
countries, where the product has created excite-
ment amongst hearing care professionals. How-
ever, the impact on Q4 was small due to the
phased launch.
In Europe, external revenue growth was strong,
driven by both market share gains and good mar-
ket growth across the region. In France, we con-
tinued to see a positive effect of the four-year an-
niversary of the hearing healthcare reform imple-
mented in 2021, resulting in high unit growth. In
the UK, growth was very strong, driven by the
NHS, and we also saw good growth in many of
our medium-sized markets.
In North America, we continue to see the weaker-
than-normal hearing aid market having a signifi-
cant negative impact on our business. In addition,
we also saw loss of market share in the US com-
pared to last year, primarily due to lower sales to
a large retailer. In the important VA channel, our
market share in units was 18.9% in Q4, which is a
slight decrease compared to last year due to com-
petitive launches, but roughly in line with Q3 2025.
In Canada, growth was strong, partly driven by
easier comparative figures.
Sales growth in Asia was positive in Q4, driven by
broad-based growth outside of China, where we
continue to see challenging market dynamics.
Due to Australia, growth in the Pacific region was
negative. In our Rest of world region, mostly com-
prising emerging markets, we saw good growth,
particularly in South America.
Product update
At the German hearing aid congress EUHA in Oc-
tober 2025, we announced and launched Oticon
Zeal™, a new, groundbreaking hearing aid. Oti-
con Zeal™ unites a discreet design, cutting-edge
connectivity, rechargeability and exceptional
sound quality. All this is combined with AI sound
processing and flexible fitting options, which has
created excitement among hearing care profes-
sionals, with feedback so far being very positive.
The product was initially launched in Denmark,
the UK and Switzerland and to a minor degree in
Germany in Q4 2025. The launch continues with a
global roll-out in H1 2026, including in the US
where it became available for sale in January.
In Q1 2026, we will further expand our portfolio of
solutions with additional form factors to reach
even more people with our latest generation of
hearing aid technology. This is exemplified by the
release of Oticon Verit™, a hearing aid for users
who prefer disposable batteries. In H1, our portfo-
lio of hearing aids with disposable batteries will
also be expanded to our other hearing aid brands,
Bernafon and Philips. In addition to these re-
leases, Oticon will expand its latest Sirius platform
to a new family of paediatric products, Oticon Play
SI. All releases in Q1 will be featuring our indus-
try-leading connectivity with Auracast™ and
Google Fast Pair™.
Revenue and growth
Growth
(DKK million)
Q4 2025 Q4 2024 Org. Acq. LCY FX Rep.
Hearing Aids, total revenue
3,240 3,179 5% 0% 5% -3% 2%
Hearing Aids, internal revenue¹
-663 -583 11% 5% 16% -2% 14%
Hearing Aids, external revenue
2,577 2,596 4% -1% 2% -3% -1%
Growth
(DKK million)
FY 2025 FY 2024 Org. Acq. LCY FX Rep.
Hearing Aids, total revenue
12,473 12,413 2% 1% 2% -2% 0%
Hearing Aids, internal revenue¹
-2,632 -2,391 7% 4% 11% -1% 10%
Hearing Aids, external revenue
9,841 10,022 0% 0% 0% -2% -2%
¹Revenue 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 nor
mal commercial terms.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 31
Counselling in a clinic
Market developments
Please refer to the Hearing Aids section above for
details on developments in the hearing aid market
in 2025, but note that our Hearing Care business
is not present in many emerging markets or in
government channels. Overall, we estimate that
the growth rate in the part of the market where
Hearing Care is active was roughly in line with the
global market growth rate in units of around 3% in
2025.
Business update
Hearing Care delivered a solid performance in a
weaker-than-normal hearing aid market in 2025.
Revenue in Hearing Care amounted to DKK
10,724 million. We delivered organic growth of 3%
(Q4: 5%), driven by strong growth in Poland,
France and several of our medium-sized markets.
Acquisitions added 7% (Q4: 12%), with Germany
as the most significant contributor. In December
2025, we completed the acquisition of KIND, one
of the world’s leading retailers of hearing aids with
around 650 hearing care clinics. This acquisition
also had an impact on growth in Q4. Demant’s
largest-ever acquisition, KIND has expanded our
global Hearing Care business to now comprise
more than 4,500 clinics worldwide. Acquisitions
help elevate our business to a stronger
commercial position and further increase profita-
bility in the respective countries.
Growth in Europe was good, driven by strong de-
velopment in our existing network and by green-
field openings. Following an expected slow start to
the year, we delivered strong unit growth in
France due to the four-year anniversary of the
French hearing healthcare reform. The strong unit
growth was, however, somewhat offset by product
mix changes, leading to negative ASP develop-
ment. As a result, organic growth in France was in
the mid-single digits. In addition, several of our
medium-sized markets continue to contribute to
good growth in Europe.
In North America, organic growth was slightly pos-
itive, driven by the US despite a weak US com-
mercial market, which saw flat growth in 2025.
For our total Hearing Care business, growth was
mainly driven by unit sales, but we also saw a
positive ASP development, driven by favourable
product mix changes and despite negative geog-
raphy mix changes.
Q4 business update
In Q4, organic growth was 5%, reflecting continu-
ously solid business momentum in many medium-
sized as well as large markets. In North America,
we saw improving sequential growth in Q4 com-
pared to Q3, despite a somewhat weaker underly-
ing market development.
In absolute terms, Europe was the largest growth
driver in Q4, with particularly strong performance
in Poland. In France, the four-year anniversary of
the French hearing healthcare reform continues to
drive strong unit growth, and although the ASP
development was negative due to product mix
changes, we delivered good growth in the
country. Several other medium-sized markets also
performed well.
In North America, the US delivered good organic
growth in Q4, but this was partially offset by nega-
tive organic growth in Canada.
Australia saw good growth in Q4, continuing the
improved momentum from Q3 compared to H1. In
China, we delivered good organic growth driven
by ASP tailwind due to positive product mix
changes.
Hearing Care
(DKK million)
Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025
Revenue
2,547 2,602 2,537 3,038 10,724
Growth
Organic 4% 1% 4% 5%
3%
Acquisitions 5% 5% 5% 12%
7%
Local currencies
9% 6% 9% 17% 10%
FX
1% -2% -3% -4% -2%
Total
10% 3% 6% 13% 8%
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 33
Interacoustics Equinox Evo
Market developments
We estimate that the market for diagnostic instru-
ments and services saw flat growth in 2025, but
growth dynamics improved somewhat towards the
end of the year. This is due to macroeconomic un-
certainties, particularly in the US, resulting in re-
duced investments in clinical and hospital equip-
ment. Despite improvements throughout the year,
headwinds in the Chinese market also continued
to be a drag on growth.
The service and consumables market saw growth
but not sufficiently to offset negative growth in the
instrument market, resulting in a growth rate in the
total market for diagnostic equipment well below
the structural market growth rate of 4-6% per
year.
Business update
Diagnostics generated revenue of DKK 2,406 mil-
lion in 2025 with organic growth of 1% (Q4: 8%),
which is lower than our original expectations for
the year.
The market for diagnostic instruments saw a soft
start to the year, and in light of these soft market
developments, we estimate that our organic
growth rate was roughly in line with the market
growth rate in 2025. During the year, our strong
position in the service and consumables business
helped us maintain our market position.
Overall, organic growth in 2025 was impacted by
challenging market dynamics in North America,
mainly in the US due to increased macroeconomic
uncertainties. In China, we made good progress in
achieving several regulatory approvals, giving us
access to public markets, and we expect to con-
tinue this work in the coming year. Despite these
efforts, adverse market developments in China
had a negative impact on growth. Organic growth
in Europe was, however, positive and thus offset
some of the drag from Asia and North America.
Q4 business update
Organic growth was 8% in Q4, a strong accelera-
tion compared to Q3, fuelled by our service and
consumables business, but our diagnostic instru-
ments business also performed well. The develop-
ment in Q4 was driven by strong growth in Europe
and North America, the latter being our largest re-
gion.
In North America, both the US and Canada saw
strong growth, driven by our service and consum-
ables business.
In Q4, we realised strong growth in Europe, partic-
ularly in the UK and Germany and across some of
our medium-sized markets. However, this growth
was partially offset by negative growth in a num-
ber of other European markets.
Australia delivered very strong growth in Q4, pri-
marily driven by instrument sales. The lack of mo-
mentum in China continued to be a drag on
growth in Asia, which was also negatively im-
pacted by general market weakness and our lim-
ited access to public markets. Thus, growth re-
mained negative.
Diagnostics
(DKK million)
Q1 2025
Q2 2025
Q3 2025
Q4 2025
FY 2025
Revenue
603 587 567 649 2,406
Growth
Organic 0% -4% -1% 8% 1%
Acquisitions 0% 0% 0% 0%
0%
Local currencies
0% -4% -1% 8% 1%
FX
1% -4% -4% -6% -3%
Total
1% -7% -5% 2% -2%
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 34
Forward-looking statements
This report contains forward-looking statements
that reflect Demant’s current expectations regard-
ing future events and financial performance.
Forward-looking statements are statements other
than historical facts and include, without limitation,
statements that may predict, forecast, indicate or
imply future events, results, performance or
achievements and may include words such as
“believe”, “expect”, “anticipate”, “intend”, “plan”,
“estimate”, “project”, “will”, “may”, “could” or simi-
lar expressions. These statements are based on
assumptions, estimates and predictions that may
prove incorrect and are subject to risks, uncertain-
ties and other factors that could cause actual re-
sults to differ materially from those expressed or
implied.
Factors that may affect future results include, but
are not limited to, risks associated with the hear-
ing healthcare industry and Demant’s operations
as described in this Annual Report and other pub-
licly available materials. Accordingly, undue reli-
ance should not be placed on these forward-look-
ing statements.
Except as required by applicable law or regula-
tion, Demant undertakes no obligation to update
any forward-looking statements to reflect changes
in actual results, expectations or events.
Financial outlook
Our outlook for 202
6 is summarised in the table below:
Organic growth
3
-6%
EBIT
before special items
DKK
4,100-4,500 million
Share buy
-backs
None
The outlook is based on a number of
key assumptions as described below:
•
Due to general macroeconomic uncertainty, we expect the value growth rate in the global hearing aid
market to be 2-4% in 2026, which is a conservative assumption temporarily below our medium- to
long-term assumption.
•
We expect a limited impact of tariffs on the Group, but we include an impact of around DKK -
25 million
of tariffs in 2026 on our Diagnostics business area based on currently implemented tariffs in the US.
•
We have launched a company-wide initiative for Demant to improve profitability, which is expected to
lead to cost reductions, positively impacting EBIT before special items of around DKK 250 million in
2026. The majority of the impact is expected to materialise in H2, leading to an EBIT before special
items being skewed towards H2.
•
Due to exchange rate movements during 2025, we expect an impact of exchange rates on EBIT be-
fore special items of around DKK -200 million compared to 2025 with the split expected to be evenly
distributed between H1 and H2.
•
We expect KIND to contribute approximately DKK 300 million to the Group’s EBIT before special
items in 2026.
•
We expect to incur costs recognised as special items totalling DKK 325 million. These costs relate to
previously communicated transaction and integration costs following the acquisition of KIND amount-
ing to approximately DKK 125 million. In addition, the announced organisational and structural
changes to the Group will entail one-off costs of an additional DKK 200 million primarily related to sev-
erance payments and cost related to the announced measures.
For modelling purposes, we provide further assumptions for 202
6 below:
Acquisitive growth
8
% based on revenue from acquisitions completed as at 2 February
202
6
FX growth
-
2% based on exchange rates as at 2 February 2026, including the im-
pact of hedging
Special items
DKK
-325 million
Effective tax rate
Around 23%
Outlook for 2026
Philips
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 36
Risk management activities in the Demant Group
include a variety of risk areas, many of which may
impact the performance and reputation of the
Group. The overall responsibility for risk manage-
ment lies with the Executive Leadership Team,
but risk management activities are carried out
throughout the organisation on a day-to-day basis.
Risk management is an integral part of the man-
agement of the Demant Group. Risks to which
business areas, markets and operations are ex-
posed are identified, monitored and mitigated at
all management levels. Through frequent and
transparent reporting, these measures ensure that
key risks are escalated to the business area lead-
ership, to functional boards, to the Executive
Leadership Team and, if relevant, to the audit
committee and ultimately the Board of Directors.
We have established a number of functional
boards to ensure focus on governance, develop-
ment and risk management in key areas globally,
i.e. IT, Finance, HR, Sustainability & Communica-
tion and Legal & Compliance. The functional
boards are responsible for risk management in
their respective areas and for ensuring that poli-
cies, guidelines and processes are established to
monitor risks and new legislation.
The audit committee oversees the risk manage-
ment processes related to financial risks, including
sufficient and efficient internal controls. The audit
committee has assessed the Group’s existing
control environment and concluded that it is ade-
quate.
Business ethics is an integral part of conducting
business in a global world with many stakehold-
ers. We continuously expand and improve the
Group’s business ethics programme to reflect our
all-important commitment to a high level of busi-
ness ethics, including our Code of Conduct, a
global whistleblower scheme as well as global pol-
icies and guidelines on business ethics. For more
information, please refer to the Sustainability
statement on page 99.
Innovation risks
We operate in highly product-driven markets
where significant R&D initiatives help underpin our
market position. It is vital for us to maintain our in-
novative edge.
We leverage the latest technologies in our prod-
ucts and services, such as AI and Deep Neural
Networks. This drives the continuous develop-
ment of new innovative solutions, enhancing the
user experience of our offerings.
We protect and maintain patents for our own
groundbreaking technology, while ensuring that
we do not infringe the rights of others.
We must continue to attract the most competent
employees in key areas. A key way to achieve this
is to maintain our strong company culture and
high employee engagement. Our investments in
people development, leadership training and infor-
mation-sharing platforms are key to achieving this
objective.
Product requirement risks
As a major player in the hearing healthcare mar-
ket, Demant is exposed to certain regulatory risks
in terms of changes to product requirements. We
adhere to regulatory requirements applying to our
products and services to ensure that our products
are safe and effective to use and meet the re-
quirements and needs of our users.
We continuously engage with customers,
healthcare practitioners and other stakeholders to
ensure that we meet their needs when developing
innovative products. We incorporate the require-
ments of international standards and regulations
into the design and development of our products
to ensure compliance with regulations and product
safety.
All processes in our quality management systems
(QMS) contribute to ensuring that our products
are effective and safe for our users. Notified bod-
ies and various national health authorities inspect
our QMS on a yearly basis. Demant works contin-
uously to improve these systems. As a general
principle, our products are designed and marketed
in compliance with risk management guidelines
under ISO 14971 to ensure the safety of our us-
ers. In case of an unexpected incident, we act fast
and decisively, following our processes and main-
taining a transparent dialogue with relevant stake-
holders. For more information on how we manage
product quality and safety, please refer to page
94.
Supply chain risks
Stability in sourcing and delivering high-quality
manufactured goods on time are crucial for us to
fulfil the commitments we have made to our cus-
tomers.
Risks and risk management
• Risk management is an integral part of
the management of the Demant Group.
• Risks are identified, monitored and miti-
gated at all management levels.
• Functional boards exist to ensure focus
on governance, development and risk
management.
• The audit committee oversees financial
risks and internal controls.
• We are committed to a high level of busi-
ness ethics.
Organisation and governance
Innovation and operations
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 37
Supply disruptions may result in delayed deliver-
ies or inefficient production set-ups. Lockdowns
and other restrictions may also affect the global
supply chain and thus increase the risk of sudden
changes.
We have business and contingency plans in place
to ensure service to our customers in the best
possible way in any given situation.
We closely monitor our supply situation and aim to
maintain adequate safety stocks to counter poten-
tial interruptions in our production. Our main pro-
duction facilities in Poland and Mexico are in close
proximity to our largest markets, which is im-
portant for us to be able to quickly and efficiently
serve our customers in case of dynamic changes
in the supply chain.
We continuously evaluate our production footprint
and dependency on key suppliers to strike a
sound balance between flexibility, exposure and
costs. We collaborate closely with our highly spe-
cialised suppliers and ensuring sufficient inventory
levels.
In our supply chain and throughout our organisa-
tion, we actively work to ensure a safe and engag-
ing working environment.
For more information on how we manage poten-
tially negative impacts on our employees and peo-
ple in our supply chain as well as potential risks
linked to these, please refer to pages 81-90.
Sustainability risks
For information about sustainability-related risks,
please refer to the Sustainability statement on
pages 56-60.
The hearing healthcare market consists of highly
specialised players that operate in an extremely
competitive market. While navigating current mar-
ket conditions, we monitor potential shifts in the
competitive landscape to ensure that we respond
swiftly and effectively to changes in the market.
Macroeconomic impacts on markets
Historically, the hearing healthcare market has
seen stable growth driven by demographic
changes.
The current macroeconomic uncertainties may
have an adverse effect on the demand for hearing
healthcare solutions in some regions. Further-
more, higher inflation rates are impacting econo-
mies in some markets. In case of macroeconomic
or geopolitical headwinds, we seek to adapt our
organisation, activities and costs accordingly to
mitigate financial impacts in the affected markets.
Although the demand for hearing aids continues
to grow due to an increasing elderly population, it
may decline if consumer contact is limited, as a
significant part of our sales is based on in-person
counselling of individuals with hearing difficulties.
Such limitations may result from weather condi-
tions, travel restrictions, pandemics etc., but are
usually local in nature.
Regulatory risks in the markets
The Group is exposed to a high number of regula-
tory risks related to reimbursement schemes and
public tenders in the markets where we operate.
In most markets, the current regulatory landscape
is considered stable, so for the time being, we do
not expect significant changes in the regulatory
environment. Regulatory and commercial risks
may overlap, if the level of reimbursement
changes, or if the method of distribution in a mar-
ket changes.
While regulatory changes are an intrinsic part of
the hearing healthcare market, we feel well posi-
tioned to respond to such changes in the commer-
cial environment. We continue to monitor changes
to the regulatory landscape and engage in dia-
logues with regulators as part of our business
planning.
Regulation and Sanction-related risks
The Group is subject to regulations governing the
export of products from our production sites and
their import into markets where they are sold.
Changes in import regulations or tariffs may lead
to additional costs. To mitigate such risks, we con-
tinuously monitor regulatory developments and
evaluate alternative production locations and sup-
ply chain configurations where feasible.
In addition, the Group operates in markets that
may be subject to EU or US sanctions, including
financial sanctions, trade/export controls, and re-
strictions on entities and individuals. To ensure
compliance, distributors and business partners in
these regions undergo sanction checks, and firm
actions are taken when necessary. Geopolitical
developments may increase the scope of sanc-
tions, potentially resulting in a complete halt of
trade in certain markets, as experienced with Rus-
sia and Belarus.
The Group continues to closely monitor evolving
legislation and strengthen systems and processes
to maintain robust controls and documentation for
compliance.
Innovation and operations – continued
Market and customer risks
• We operate in highly product-driven mar-
kets.
• We protect and maintain our technology
through patents.
• We leverage the latest technologies in
our products and services.
• We continuously engage with customers,
healthcare practitioners and other stake-
holders to ensure that we meet their
needs when developing innovative prod-
ucts.
• We have business and contingency plans
in place to ensure service to our custom-
ers in the best possible way in any given
situation.
• We continuously evaluate our production
footprint and dependency on key suppli-
ers to strike a sound balance between
flexibility, exposure and costs. We collab-
orate closely with our highly specialised
suppliers.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 38
Go-to-market risks
Market developments in recent years have con-
firmed our belief in the importance of providing a
combination of personal counselling, individual fit-
ting, life-long service and highly advanced tech-
nology.
In the US market, a large part of hearing aid pur-
chases continues to be covered by insurance
companies. The prevalence of large managed
care organisations poses a risk to average selling
prices in the hearing aid market, as volumes are
increasingly consolidated among fewer players.
This may also impact customer loyalty and the
general level of fitting fees in hearing aid clinics.
Aside from the dynamics of managed care, new
channels have emerged in recent years, including
over-the-counter hearing aids, which have been
publicly available since 2022. While these devices
increase general access to treating hearing loss,
their impact on the prescription hearing aid market
in the US remains limited. Recently, new form fac-
tors have also entered the over-the-counter hear-
ing aid market, and while this may increase
awareness of hearing loss and expand the pene-
tration of hearing healthcare solutions to new us-
ers, it could pose a risk to the prescription hearing
aid market, if successful.
• We monitor potential changes to the
competitive landscape to ensure that we
respond swiftly.
• We seek to adapt our organisation, activi-
ties and costs to mitigate the financial im-
pacts of macroeconomic uncertainties.
• We adapt our operating model when we
see changes to reimbursement schemes
in markets where we operate.
• We continue to monitor changes in the
regulatory landscape and engage in dia-
logues with regulators.
• We are committed to complying with leg-
islation regarding financial sanctions, ex-
port controls and other types of sanc-
tions.
Market and customer risks – continued
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 39
Financial risk management focuses on identifying
risks related to changes in the financial markets
and to customers’ propensity to pay for products
and services.
The Executive Leadership Team monitors the
management of financial risks and risks relating to
counterparties of the company to ensure that
these remain well-balanced. Financial risks are
managed centrally by Group Treasury, which is
responsible for securing attractive funding under
the prevailing market conditions and for monitor-
ing and mitigating risks related to liquidity, interest
rates and exchange rates. Risks related to coun-
terparties are managed in the individual markets.
Capital structure, funding and liquidity
The Group remains highly cash-generating from
operating activities with a strong balance sheet.
The Group continuously adapts its capital struc-
ture to the prevailing market conditions to secure
attractive financing. Demant secures funding
based on a strong commitment by our core banks
to provide longer-term bank facilities. To mitigate
potential liquidity and refinancing risks, the Group
has secured considerable undrawn committed
credit facilities from its core banking relations.
In relation to R&D, Demant obtains financing from
the Nordic Investment Bank and the European In-
vestment Bank, which include covenants with
which Demant fully complies.
To minimise financing risks, Demant aims for
more than 50% of its credit facilities to be commit-
ted with long-term maturity. Group Treasury moni-
tors market conditions on an ongoing basis and
plans and executes refinancing when deemed ap-
propriate to mitigate maturity risks. Driven by the
KIND acquisition, Demant’s financial gearing mul-
tiple is currently above the communicated target
range of 2.0-2.5. The Group will prioritise
deleveraging and expects to return to its medium-
to long-term gearing target within 18-24 months
after closing of the KIND transaction.
Interest rate risks
Despite an increasing debt level, the financial ex-
penses decreased in 2025, largely driven by de-
creasing interest rates during the year as well as
reduced credit margins.
Currently, around 50% of the Group’s next-twelve-
months interest expenses on its debt is funded
through fixed-rate facilities or hedged through fi-
nancial instruments that limit interest rate risk.
The Group seeks to maintain a balanced mix be-
tween fixed- and floating-rate debt.
Exchange rate risks
The Group is exposed to exchange rate risks, as it
trades with counterparties in a number of coun-
tries, and as it has cash flows in different curren-
cies. It is therefore important to adequately bal-
ance foreign exchange rate risks to avoid unex-
pected adverse impacts on the Group’s financial
performance.
The majority of Group companies transact mainly
in local currencies and are therefore exposed to
limited exchange rate risks.
The Group does not hedge translation risks result-
ing from the consolidation of Group accounts into
Danish kroner. Most Group companies are in-
voiced by the Danish production entities. Around
two-thirds of the invoices out of Denmark are is-
sued in currencies other than Danish kroner or eu-
ros. To reduce our exchange rate exposure, we
continuously seek to balance incoming and out-
going cash flows in our main trading currencies as
much as possible. To ensure predictability in
terms of net profit, we hedge expected future net
cash flows, mainly through forward exchange con-
tracts with a horizon of up to 18 months.
In addition, the Group seeks to balance our on-
balance net exposure in our main trading curren-
cies and to hedge this exposure, where relevant.
It is the Group’s policy to hedge only financial
risks arising from our commercial activities and
not to undertake any financial transactions of a
speculative nature.
Credit risks
From a commercial point of view, the Group is ex-
posed to credit risks if our customers fail to pay for
products and services provided. Such risks mainly
relate to trade receivables and loans to customers
or business partners, and failure to adequately
manage credit risks may adversely impact the
Group.
To minimise the risk of suffering losses on cus-
tomers, the Group monitors its credit risks on an
ongoing basis. The Group generally has a diversi-
fied customer base, and in 2025, the accumulated
revenue from our ten largest customers ac-
counted for approximately 11% of total consoli-
dated revenue. We regularly adjust our financial
accounts to reflect the current credit risks.
When granting loans to business partners, we re-
quire our counterparties to provide security in their
business. We estimate that, in general, the risk
relative to our total credit exposure is well-bal-
anced at Group level, and historically, we have
only incurred limited credit-related losses.
The credit risk on cash is managed in accordance
with the Group’s policy by selecting core banking
partners, all with strong credit ratings. Due to its
global presence and operations, the Group holds
some cash balances. However, these are
distributed across multiple banks and locations,
thus minimising the associated credit risk.
Please refer to Financial statements, Note 4.1.
• To mitigate potential liquidity and refi-
nancing risks, the Group has secured ac-
cess to considerable undrawn committed
credit facilities.
• We limit interest rate risks by hedging
part of our exposure.
• We continuously seek to balance and, if
relevant, to hedge our foreign exchange
rate exposure.
• We monitor the credit risks related to
business partners on an ongoing basis.
Financial risks
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 40
Maintaining appropriate corporate governance is
an ongoing focus area for the Board of Directors
and Executive Board in Demant.
Once a year, the Board of Directors and Executive
Board review the company’s corporate govern-
ance principles, including principles that derive
from legislation, recommendations and good prac-
tices. We are committed to developing and main-
taining a transparent corporate governance struc-
ture that promotes responsible business behav-
iour and long-term value creation.
Recommendations issued by the Danish Commit-
tee on Corporate Governance and adopted by
Nasdaq Copenhagen are best-practice guidelines
for the governance of companies admitted to trad-
ing on a regulated market in Denmark.
When reporting on corporate governance, we fol-
low the ‘comply or explain’ principle. Demant com-
plies with 38 of the 40 recommendations. In the
two cases where we have chosen to deviate from
a recommendation, we provide well-founded ex-
planations and explain what we do instead. To fur-
ther increase transparency, we provide supple-
mentary and relevant information, even when we
comply with the recommendations.
Corporate Governance Report 2025 provides a
complete presentation of the recommendations
and how we comply with them. The report as well
as the financial reporting process and internal
control described in Risk management activities in
this Annual Report 2025 constitute Demant’s
statement on corporate governance, cf. section
107b of the Danish Financial Statements Act.
Governance framework
1
ESRS 2 GOV-1. All sections below this header are part of limited assurance.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 41
Board meeting at Headquarters
Evaluation of the performance of
the Board of Directors
Once a year, the Board of Directors performs an
evaluation of the Board’s work. The evaluation is
performed either through personal, individual in-
terviews with the Chair and each of the Board
members or by means of a questionnaire to be
filled out by the individual Board members. In both
instances, the findings of the evaluation are pre-
sented and discussed at the subsequent Board
meeting. At least every third year, the evaluation
is performed with external assistance.
In 2025, the evaluation was performed by means
of a questionnaire. Overall, the evaluation con-
firmed that the Board is satisfied with its govern-
ance structures and furthermore confirmed that
the interaction between the Board members works
well. The Board of Directors is keen to keep focus
on and allocate time to the long-term strategic de-
velopment of the company to continuously ensure
that the company’s potential is fully exploited. The
Board is content with its structure and committee
work. Particularly, separating the audit committee
meetings from the ordinary Board meetings and
integrating the work of the IT security committee
into the audit committee has worked well, as it
makes it possible to focus on more in-depth dis-
cussions on the relevant topics.
The collaboration between the Board of Directors
and the Executive Board works well, and there is
an open and trustful working atmosphere. The
work performed by the Board of Directors takes its
starting point in the annual wheel, which is regu-
larly refined and updated and ensures the Board’s
commitment and immersion into relevant areas.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 42
Board committees
In 2025, the company had three Board commit-
tees: an audit, a nomination and a remuneration
committee.
The audit committee has been engaged in the
acquisition of KIND announced in June, including
financing of the acquisition. Other topics for the
committee have been the divestments of Oticon
Medical and EPOS and efforts to continue to bal-
ance the level of reporting pursuant to the Corpo-
rate Sustainability Reporting Directive. In 2025,
the committee assumed oversight of the com-
pany’s IT security from the IT security committee
that was dissolved. Furthermore, the committee
receives reports from the Group Data Privacy Of-
ficer on a regular basis.
The nomination committee has been engaged in
activities in relation to its normal tasks pursuant to
the committee charter. At the beginning of 2025,
the committee proposed Katrin Pucknat as new
member of the Board. She was subsequently
elected to the Board. The Chair has decided not
to stand for re-election at the upcoming general
meeting. The committee has therefore been en-
gaged in making proposals for the future composi-
tion of the Board.
The remuneration committee has been engaged
in supervising the remuneration structure, includ-
ing an annual review of the Remuneration Policy.
The remuneration committee has prepared a pro-
posal for a revised Remuneration Policy, which by
legal provision is subject to shareholder approval
at the annual general meeting every four years, cf.
below. The Remuneration Policy will be proposed
for adoption at the annual general meeting on 5
March 2026.
Board of Directors’ and Executive
Board’s remuneration
Demant has a Remuneration Policy and publishes
a Remuneration Report.
The committee is satisfied with the current Policy,
which aims to align the Executive Board’s focus
and value creation on important parameters. How-
ever, as the Policy is subject to shareholder ap-
proval at the upcoming general meeting, an edito-
rial review has been made.
The Remuneration Policy remains materially un-
changed. However, it has undergone targeted
clarifications and editorial adjustments to improve
readability, making its core principles and provi-
sions more transparent and easier to navigate.
Please refer to Remuneration Report 2025 on our
website for further details.
The Report will be submitted for advisory vote at
the annual general meeting in March 2026.
Independence and meeting attendance overview
Meeting attendance
Name
Role Independence
Board of
Directors
Audit
committee
Nomination
committee
Remuneration
committee
Niels B. Christiansen Chair, chair of remunera-
tion and nomination com-
mittees
Not independent 8/8
6/6 4/4
Niels Jacobsen Vice Chair Not independent 8/8 3/3 6/6 4/4
Thomas Duer Staff-elected member N/A 8/8
Heidir Hørby Staff-elected member N/A 8/8
Katrin Pucknat
1
Member Independent 6/6
Sisse Fjelsted
Rasmussen
Member, chair of audit
committee
Independent 8/8 3/3
Anders Højsgaard
Thomsen
Staff-elected member N/A 8/8
Kristian Villumsen Member Independent 7/8 3/3
Lars Nørby Johansen
Chair of Board of Directors
of William Demant Foun-
dation
N/A
6/6
Søren Nielsen President & CEO N/A
6/6
1
In 2025, Katrin Pucknat was elected to the Board of Directors at the annual general meeting.
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 43
Share price development
The price of Demant shares decreased by 18.5%
in 2025, and on 31 December 2025, the share
price was DKK 215.2. This corresponds to a mar-
ket capitalisation of DKK 45.4 billion (excluding
treasury shares). The average daily trading turno-
ver in 2025 was DKK 66 million. The company is a
constituent of the OMX Copenhagen 25 Index
(C25), which covers the 25 largest and most fre-
quently traded shares on Nasdaq Copenhagen.
The C25 Index increased by 2.7% during the year.
Ownership
William Demant Foundation is the majority share-
holder in Demant through its investment company
William Demant Invest and has previously com-
municated its intention to maintain an ownership
interest of 55-60% of Demant’s share capital. As
at 31 December 2025, William Demant Founda-
tion held – either directly or indirectly – approxi-
mately 59% of the share capital, excluding treas-
ury shares.
No other shareholders had flagged an ownership
interest of 5% or more as at 31 December 2025.
Demant had approximately 34,000 individual in-
vestors as at 31 December 2025. Excluding
shares held by William Demant Foundation, we
estimate approximately 40% of the share capital is
registered in Denmark and 25% is registered in
North America. The remaining 35% of the share
capital is estimated to be split between the re-
maining geographies, but is predominantly regis-
tered in Europe.
As at 31 December 2025, the company held
2,896,054 treasury shares, corresponding to 1.4%
of the share capital.
Shareholder information
Share information
(DKK 1,000)
2025 2024 2023 2022 2021
Share capital at 1 January
44,218 44,788 46,076 48,025 48,138
Capital reduction
-1,459 -570 -1,288 -1,950 -113
Share capital at 31 December
42,759 44,218 44,788 46,076 48,025
Nominal value per share, DKK
0.2 0.2 0.2 0.2 0.2
Total number of shares, thousand
213,795 221,090 223,939 230,378 240,127
Highest share price, DKK
293.4 371.0 312.3 339.3 394.7
Lowest share price, DKK
209.6 249.4 190.0 173.1 219.6
Share price, year
-end, DKK 215.2 264.2 296.0 192.6 335.1
Market capitalisation at 31 December, DKK million¹
45,385 56,278 65,284 42,977 77,117
Average daily trading turnover, DKK million¹ ²
65.8 93.6 85.6 76.2 111.0
Average number of shares, million¹
211.3 217.2 223.1 226.0 234.8
Number of shares at 31 December, million¹
210.9 213.0 220.5 223.2 230.1
Number of treasury shares at 31 December, million
2.9 8.1 3.4 7.2 10.0
¹Excluding treasury shares
²Average daily trading turnover on Nasdaq
Shareholder structure as at
31 December 202
5
(excluding treasury shares)
William Demant Foundation
59%
Free float
41%
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 44
Share capital
As at 31 December 2025, Demant’s nominal
share capital was DKK 42,758,932.60 divided into
213,794,663 shares of DKK 0.20 each.
All shares are the same class and carry one vote
each. The change compared to the year before is
due to the cancellation of treasury shares amount-
ing to DKK 1,459,025.80, which was approved at
the annual general meeting on 6 March 2025.
The Board of Directors is authorised to increase
the company’s share capital by a total nominal
value of up to DKK 4,800,000. This increase may
consist of no more than DKK 4,800,000 of the
share capital with pre-emptive rights for existing
shareholders and of no more than DKK 4,800,000
of the share capital without pre-emptive rights for
existing shareholders. The company’s share capi-
tal can also be increased through a combination
of share capital with and without pre-emptive
rights, but it cannot exceed a total nominal value
of DKK 4,800,000. Furthermore, the Board of Di-
rectors is authorised to increase the share capital
by an additional nominal value of up to DKK
2,500,000 from shares offered to employees. All
authorisations have been decided by the annual
general meeting and are valid until 1 March 2026.
Capital allocation
The company follows the principles of its capital
allocation policy and uses its cash flow from oper-
ating activities for value-adding investments and
acquisitions. Subject to Demant’s targeted gearing
multiple of 2.0-2.5 measured as net interest-bear-
ing debt relative to EBITDA before special items,
any excess liquidity is distributed back to share-
holders through share buy-backs.
Until the next annual general meeting in March
2026, the Board of Directors has been authorised
to let the company buy back shares at a nominal
value of up to 10% of the share capital. The pur-
chase price may not deviate by more than 10%
from the price quoted on Nasdaq Copenhagen.
Investor Relations (IR)
Demant strives to ensure a steady and consistent
flow of information to IR stakeholders in order to
promote the basis for a fair pricing of the com-
pany’s shares – pricing that will at any time reflect
the company’s strategies, financial capabilities
and outlook for the future. The flow of information
contributes to a reduction of the company-specific
risk associated with investing in Demant shares,
leading to a reduction of the company’s cost of
capital.
We aim to reach this goal by continuously provid-
ing relevant, correct, adequate and timely infor-
mation in our company announcements. In the
course of the year, we publish an annual report,
an interim report as well as interim management
statements pertaining to Q1 and Q3, all of which
contain updates on the Group and its financial po-
sition and results in relation to the full-year out-
look, including updates on important events and
transactions in the period under review.
We strive to maintain an active and open dialogue
with analysts and with current and potential inves-
tors, which helps the company stay updated on
the views, interests and opinions of the company’s
various stakeholders. At our annual general meet-
ing and through presentations, individual meet-
ings, participation in investor conferences,
webcasts, capital markets days etc., we aim to
maintain an ongoing dialogue with a broad spec-
trum of stakeholders. In 2025, we held around 400
investor meetings and presentations.
We also use our website, www.demant.com, as a
means of communication with our stakeholders.
At the end of 2025, 23 equity analysts were cover-
ing Demant. We refer to our website for a full list
of analyst coverage.
Demant has a three-week quiet period prior to
publication of annual reports, interim reports and
interim management statements during which
time communication with IR stakeholders on the
current market development is restricted.
Five-year development in share price
100
150
200
250
300
350
400
Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25
Share price (DKK)
Demant OMX C25 (Rebased)
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 45
Annual general meeting 2026
The annual general meeting will be held on Thurs-
day, 5 March 2026, at 3:00 p.m. Shareholders can
attend the meeting physically at the company’s
headquarters. The meeting will also be webcast
live on our shareholder portal, and the webcast
will be accessible on our website afterwards.
Contact information for investors
and analysts
Phone: +45 3917 7300
E-mail: info@demant.com
Company announcements and investor news in 2025
10 Jan Transactions with Demant shares by managers and closely related parties
5 Feb Annual Report 2024
5 Feb Notice of Annual General Meeting
6 Mar Decisions of Annual General Meeting
2 Apr Transactions with Demant shares by managers and closely related parties
4 Apr Completion of capital reduction
6 May Revised financial outlook for 2025 and Interim Management Statement for Q1 2025
11 Jun Demant to acquire KIND and significantly expand the Group’s hearing care footprint
12 Aug Revised financial outlook for 2025 and Interim Report 2025
12 Aug Interim Report 2025
9 Oct Niels B. Christiansen, Chair of the Board of Demant, will not stand for re-election
22 Oct Demant to sell Oticon Medical to Impilo
22 Oct Demant-owned Oticon announces the launch of Oticon Zeal
TM
4 Nov Interim Management Statement for Q3 2025
19 Nov Demant obtains regulatory approval for the acquisition of KIND
1 Dec Demant closes the acquisition of KIND
3 Dec Financial calendar 2026
20 Dec Demant sells EPOS to ACCO Brands
Peter Pudselykke
Head of Investor Relations
Gustav Høegh
Investor Relations Officer
Financial calendar 2026
21 Jan Deadline for submission of items for the agenda of annual general meeting
3 Feb Annual Report 2025
5 Mar Annual general meeting
5 May Interim Management Statement for Q1 2026
11 Aug Interim Report 2026
3 Nov Interim Management Statement for Q3 2026
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 46
Board of Directors
Katrin Pucknat
(
female)
Born 19
76
Nationality:
German
No
shares
Sisse Fjelsted
Rasmussen
(
female)
Born 1967
Nationality: Danish
1,475 shares
(
unchanged)
Joined the Board in 2025
P
ositions: ResMed Inc. (Chief Marketing Officer)
and Consumer Sleep Solutions LLC
(M)
Education:
Holds a BSc in Business Marketing
from University of Phoenix, USA
Joined the Board in 2021
Chair of the audit committee
Positions:
Conscia A/S (M), Dades A/S (M),
Hempel Foundation (M),
(chair of Audit Com-
mitee
), Kirk Kapital A/S (M) and Schouw & Co (M),
(
chair of Audit Commitee)
Education:
Holds an MSc in Business
Administration
and Auditing from Copenhagen
Business School (CBS) and
is a state-authorised
public accountant
1
ESRS 2 GOV-1. Competences are part of limited assur-
ance.
Abbreviations
C = Chair, VC = Vice Chair, M = Member
Niels B. Christiansen
(
male)
Chair
Born 1966
Nationality: Danish
8,060
shares
(
unchanged)
Niels Jacobsen
(
male)
Vice Chair
Born 1957
Nationality: Danish
8
01,340 shares
(
unchanged)
Joined the Board in 2008
Chair since 2017
Chair of the nomination
and remuneration
committees
P
ositions: LEGO A/S (CEO & President), LEGO
Holding
(CEO), Coloplast A/S (M), K2 Fonden af
2023 (M)
, William Demant Foundation (VC), Wil-
liam Demant Invest A/S (M), Tetra Laval S.A. (M)
and Committee on Business Policy under the Con-
federation of Danish Industry (
M)
Education
: Holds an MSc in Engineering from
the Technical University of Denmark and an MBA
from INSEAD
Joined the Board in 2017
Vice Chair since 2017
Member of the audit, nomination
and remunera-
tion committees
P
ositions: William Demant Invest A/S (CEO),
Thomas B. Thrige Foundation (C)
, Central Board
of the Confederation of Danish Industry (M)
and
Federation
of Industrial Employers in Denmark
(
C). Related to William Demant Invest: Embla
Medical hf. (C)
, Jeudan A/S (C) and Vision RT
Ltd. (C)
Education:
Holds an MSc in Economics from
Aarhus University
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 47
Heidir Hørby
(
female)
Born 1974
Nationality: Danish
662
shares
(
+71)
Anders Højsgaard
Thomsen
(
male)
Born 1977
Nationality: Danish
2
,346 shares
(
+637)
Staff-elected Board member since 2023
Considered
independent: N/A
P
ositions: Demant facility in Ballerup, Denmark,
Quality Systems Engineer
Has been with the Demant Group since 1994
Education
: N/A
Staff-elected Board member since 2024
Joined the Board of Directors as
an alternate
in
2024
Considered
independent: N/A
P
ositions: Demant, Director, Audiological
Solutions, R&D
Has been with the Demant Group since 2002
Education
: Holds an MSc in Engineering from
the Technical University of Denmark
Kristian Villumsen
(
male)
Born 1970
Nationality: Danish
4,130
shares
(
unchanged)
Thomas Duer
(
male)
Born 1973
Nationality: Danish
1,335
shares
(
unchanged)
Joined the Board in 2021
Member of the audit committee
Positions:
Evido ApS (C) and UV Medico A/S
(VC)
Education:
Holds an MSc in Political Science
from Aarhus University and a Master in Public
Policy from Harvard University
, USA
Staff
-elected Board member in 2015
Re
joined the Board of Directors as an alternate
in 2023
Considered
independent: N/A
P
ositions: Demant, Director, Audiological
Solutions
, R&D
Has been with the Demant Group since 2002
Education:
Holds an MSc in Electrical Engineer-
ing from the Technical University of Denmark
1 ESRS 2 GOV-1. Competences are part of limited as-
surance.
Abbreviations
C = Chair, VC = Vice Chair, M = Member
Overview
Market and strategy Financial performance Corporate governance Demant Annual Report 2025 48
Executive Leadership Team
Søren Nielsen
1
(
male)
President & CEO
Born 1970
Nationality: Danish
44
,114 shares
(+
2,746)
René Schneider
1
(
male)
CFO
Born 1973
Nationality: Danish
23
,835 shares
(+
1,337)
Niels Wagner
1
(
male)
President
Born 1971
Nationality: Danish
33
,224 shares
(+
3,284)
Anne-Karen Hunt
(
female)
President
Born 19
77
Nationality: German
No Shares
Joined the company in 1995
Education:
Holds an MSc in Engineering from
the Technical University of Denmark
Competences:
Broad business and leadership
experience from various management positions
in the Group, including the commercial area,
product innovation, quality and strategic devel-
opment. International board experience, strong
insights into the MedTech industry as wel
l as a
wide network in the global hearing healthcare
community
Other positions:
HIMPP A/S (VC), HIMSA II
A/S (C), EHIMA (M), Vision RT Ltd. (M),
DOVISTA A/S (
VC), Committee on Business
Policy under the Confederation of Danish Indus-
try (M), Central Board of the Confederation of
Danish Industry (M)
and Life Science Board un-
der
the Confederation of Danish Industry (C)
Area of responsibility:
President of the
Hearing Aids business area
Joined the company in 2015
Education:
Holds an MSc in Economics from
Aarhus University
Competences:
Broad business and financial
leadership experience from various manage-
ment positions with major listed companies,
including
international experience in such areas
as streamlining and re
-establishing companies,
completing M&A and driving value creation
Areas of responsibility:
President of Group
Services
, i.e. Finance, HR, IT and Corporate
Functions
Joined the company in 2007
(also
employed with the company 1996-2003)
Education:
Holds an MSc in Economics from
Aarhus University
Competences:
Broad business and leadership
experience from various management positions
in the Group, including M&A, and head
of the
Group’s many hearing aid clinics operating under
various brands
Area of responsibility:
President of the Hearing
Care business area
Joined the company in 2024
Education
: Holds a BSc in Marketing and Econom-
ics from the University of Bayreuth and an MSc in
Business Administration (MBA) from the University
of Düsseldorf
, Germany
Competences:
In-depth business and leadership
experience from
major, global healthcare compa-
nies
, including strong international experience in
such areas as marketing and sales with focus
on
driv
ing value creation
Area of responsibility
: President of the Diagnostics
business area
1
Registered with the Danish Business Authority as
member of the Executive Board
Abbreviations
C = Chair, VC = Vice Chair, M = Member
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 50
Sustainability statement.
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 52
Read more about Demant’s strategy on pages 17 to 19.
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 53
*Actions to achieve gender representation targets will be implemented in accordance with applicable local laws and regulations.
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 54
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 55
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 56
Financially material
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 57
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 58
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 59
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 60
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 61
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 62
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 64
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 65
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 66
Upstream
Own operations
Own Hearing Clinic
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 67
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 68
Solar cells on new Diagnostics building in Rosówek Poland
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 69
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 70
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 71
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 72
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 73
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 74
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 75
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 76
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 77
Sustainability in
Demant Environment Social Governance Additional information Demant Annual Report 2025 78
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 80
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 81
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 82
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 83
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 84
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 85
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 86
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 87
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 88
S1-16
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 89
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 90
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 91
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 92
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 93
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 94
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 95
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 96
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 98
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 99
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 100
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 101
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 103
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 104
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 105
IRO-2
Disclosure requirements in ESRS covered by the
undertaking’s sustainability statement
Sustainability
104
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 106
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 107
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 108
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 109
ESRS S1
-16 97 (b) Excessive CEO pay ratio
x
Own workforce
88
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 110
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 111
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 112
Sustainability
in Demant Environment Social Governance Additional information Demant Annual Report 2025 113
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 116
Consolidated statement of comprehensive income
(DKK million)
2025 2024
Profit for the year
Foreign currency translation adjustment, subsidiaries
-886 265
Value adjustments of hedging instruments:
Value adjustment for the year
Value adjustment transferred to revenue
-108 -5
Tax on currency translation and value adjustments
-42 22
Items that have been or may subsequently be reclassified to the
income statement
-736 191
Actuarial gains/losses on defined benefit plans
Tax on actuarial gains/losses on defined benefit plans
-5 4
Items that will not subsequently be reclassified to the income
statement
Other comprehensive income
-719 178
Comprehensive income
Comprehensive income attributable to:
Demant A/S’ shareholders
Non
-controlling interests -1 1
Consolidated income statement
(DKK million)
Note 2025 2024
Revenue
2.1 22,971 22,419
Production costs
2.2 / 2.3 / 2.4 -5,600 -5,329
Gross profit
R&D costs
2.2 / 2.3 -1,401 -1,394
Distribution costs
2.2 / 2.3 -10,867 -10,246
Administrative expenses
2.2 / 2.3 / 9.2 -1,179 -1,145
Share of profit after tax, associates
4.4 / 7.1 36 99
Operating profit (EBIT) before special items
Special items
2.8 -128 124
Operating profit (EBIT)
Financial income
5.2 102 113
Financial expenses
5.2 -833 -925
Profit before tax
Tax on profit for the year
6.1 -734 -824
Profit after tax
– continuing operations 2,367 2,892
Profit after tax
– discontinued operations 7.2 -823 -504
Profit for the year
Profit for the year attributable to:
Demant A/S' shareholders
Non
-controlling interests -1 1
Earnings per share (EPS), DKK
– continuing operations 5.7 11.20 13.31
Diluted earnings per share (DEPS), DKK
–
continuing operations 5.7 11.20 13.31
Earnings per share (EPS), DKK
5.7 7.31 10.99
Diluted earnings per share (DEPS), DKK
5.7 7.31 10.99
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 117
(DKK million)
Note 2025 2024
Equity and liabilities
Share capital
5.6 43 44
Other reserves
Equity attributable to Demant A/S' shareholders
Equity attributable to non
-controlling interests 77 80
Equity
Borrowings
5.3 16,411 12,487
Lease liabilities
4.3 / 5.3 2,571 2,104
Deferred tax liabilities
6.2 812 634
Provisions
8.1 / 8.2 221 213
Other liabilities
5.3 / 8.3 547 461
Deferred revenue
8.4 1,170 812
Non
-current liabilities 21,732 16,711
Borrowings
5.3 1,194 423
Lease liabilities
4.3 / 5.3 812 667
Trade payables
5.3 923 658
Income tax
Provisions
8.1 / 8.2 91 93
Other liabilities
5.3 / 8.3 2,438 2,617
Unrealised losses on derivatives
3.3 / 5.3 / 5.4 / 5.5 24 102
Deferred revenue
8.4 862 588
Liabilities related to assets held for sale
7.2 621 344
Current liabilities
Liabilities
Equity and liabilities
Consolidated balance sheet 31 December
(DKK million)
Note 2025 2024
Assets
Intangible assets
4.1 20,379 15,066
Property, plant and equipment
4.2 3,428 2,909
Lease assets
4.3 3,259 2,665
Investments in associates
4.4 370 363
Receivables from associates
4.4 / 5.3 / 9.1 166 193
Other investments
5.3 / 5.5 13 9
Customer loans
2.6 / 4.4 / 5.3 494 519
Other receivables
4.4 / 5.3 171 217
Deferred tax assets
6.2 719 588
Other non
-current assets 5,192 4,554
Non
-current assets 4.5 28,999 22,529
Inventories
2.4 2,620 2,500
Trade receivables
2.5 / 5.3 3,765 3,563
Receivables from associates
4.4 / 5.3 / 9.1 200 200
Income tax
Customer loans
2.6 / 4.4 / 5.3 150 155
Other receivables
4.4 / 5.3 575 454
Unrealised gains on derivatives
3.3 / 5.3 / 5.4 / 5.5 140 31
Prepaid expenses
Cash
5.3 1,330 1,112
Assets held for sale
7.2 699 1,393
Current assets
Assets
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 118
(DKK million)
Note 2025 2024
Repayments of borrowings
5.3 -3,467 -5,023
Proceeds from borrowings
5.3 8,320 6,424
Change in short
-term bank facilities 5.3 -167 -586
Repayments of lease liabilities
4.3 / 5.3 -777 -750
Transactions with non
-controlling interests -2 -3
Share buy
-backs -582 -2,301
Cash flow from financing activities (CFFF)
Cash flow for the period, net
– continuing operations
Cash flow for the period, net
– discontinued operations 7.2 121 -16
Cash flow for the year, net
Cash and cash equivalents at the beginning of the year
Foreign currency translation adjustment of cash and cash
equivalents
-37 -23
Cash and cash equivalents at the end of the year
Breakdown of cash and cash equivalents at the end of the
year:
Cash
5.3 1,330 1,112
Cash and cash equivalents at the end of the year
Consolidated cash flow statement
(DKK million)
Note
2025
2024
Operating profit (EBIT)
Non
-cash items etc. 2.7 1,729 1,233
Change in receivables etc.
-325 -119
Change in inventories
Change in trade payables and other liabilities etc.
Change in provisions
Dividends received
Cash flow from operating profit
Financial income etc. received
Financial expenses etc. paid
-738 -884
Income tax paid
-985 -779
Cash flow from operating activities (CFFO)
Acquisition of businesses
7.1 -6,285 -1,234
Investments in intangible assets
-205 -203
Investments in property, plant and equipment
-652 -576
Disposal of property, plant and equipment
Investments in other non
-current assets -256 -251
Disposal of other non
-current assets 308 405
Cash flow from investing activities (CFFI)
-7,043 -1,828
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 119
Consolidated statement of changes in equity
(DKK million)
Other reserves
Share capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
Demant A/S’
shareholders’
share
Non-
controlling
interests’
share
Equity
Equity at 1.1.2025
Comprehensive income:
Profit for the year
Other comprehensive income:
Foreign currency translation adjustment, subsidiaries
Value adjustments of hedging instruments:
Value adjustment for the year
Value adjustment transferred to revenue
Actuarial gains/losses on defined benefit plans
Tax on other comprehensive income
Other comprehensive income
Comprehensive income for the year
Share buy
-backs - - - -582 -582 - -582
Share
-based compensation - - - 34 34 - 34
Capital reduction through cancellation of treasury shares
-1 - - 1 - - -
Transactions with non
-controlling interests - - - - - -2 -2
Equity at 31.12.2025
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 120
Consolidated statement of changes in equity (continued)
(DKK million)
Other reserves
Share capital
Foreign
currency
translation
reserve
Hedging
reserve
Retained
earnings
Demant A/S’
shareholders’
share
Non-
controlling
interests’
share
Equity
Equity at 1.1.2024
Comprehensive income:
Profit for the year
Other comprehensive income:
Foreign currency translation adjustment, subsidiaries
Value adjustments of hedging instruments:
Value adjustment for the year - - -91 - -91 - -91
Value adjustment transferred to revenue - - -5 - -5 - -5
Actuarial gains/losses on defined benefit plans
Tax on other comprehensive income
Other comprehensive income
Comprehensive income for the year
Share buy
-backs - - - -2,301 -2,301 - -2,301
Share
-based compensation - - - 44 44 - 44
Capital reduction through cancellation of treasury shares
-1 - - 1 - - -
Transactions with non
-controlling interests - - - - - -3 -3
Equity at 31.12.2024
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 121
Section 1 – page 122
Basis for preparation
1.1 Group accounting policies
1.2 Accounting estimates and judgements
Section 2 – page 127
Operating activities and
cash flow
2.1 Revenue and segment disclosures
2.2 Employees
2.3 Amortisation, depreciation and
impairment losses
2.4 Inventory
2.5 Trade receivables
2.6 Customer loans
2.7 Specification of non-cash items
2.8 Specification of special items
Section 3 – page 137
Exchange rates
3.1 Exchange rate risk policy
3.2 Sensitivity analysis in respect of
exchange rates
3.3 Hedging and forward exchange
contracts
Section 4 – page 140
Asset base
4.1 Intangible assets
4.2 Property, plant and equipment
4.3 Leases
4.4 Other non-current assets
4.5 Non-current assets by geographic
region
Section 5 – page 148
Capital structure and
financial management
5.1 Financial risk management and capital
structure
5.2 Net financial items
5.3 Financial instruments
5.4 Interest rate risks
5.5 Fair value hierarchy
5.6 Share capital
5.7 Earnings per share
Section 6 – page 156
Tax
6.1 Tax on profit
6.2 Deferred tax
Section 7 – page 160
Acquisitions, discontinued
operations and assets
held for sale
7.1 Acquisition of businesses
7.2 Discontinued operations and assets
held for sale
7.3 Divestment of businesses and
activities
Section 8 – page 167
Provisions, other liabilities
etc.
8.1 Provisions
8.2 Employee benefit obligations
8.3 Other liabilities
8.4 Deferred revenue
8.5 Contingent liabilities
Section 9 – page 172
Other disclosure
requirements
9.1 Related parties
9.2 Fees to auditors
9.3 Events after the balance sheet date
Parent balance sheet 31 December
Parent statement of changes in equity
Section 10 – page 179
Notes to Parent financial
statements
10.1 Parent accounting policies
10.2 Employees
10.3 Fees to statutory auditors
10.4 Net financial items
10.5 Tax on profit for the year and
deferred tax
10.6 Proposed distribution of net profit
10.7 Intangible assets
10.8 Property, plant and equipment
10.9 Financial assets
10.10 Financial liabilities
10.11 Treasury shares
10.12 Interest rate risk
10.13 Contingent liabilities
10.14 Related parties
10.15 Events after the balance sheet date
Section 11 – page 187
Subsidiaries and
associates
Notes to consolidated financial statements
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 123
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 124
1.1 Group accounting policies (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 125
1.1 Group accounting policies (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 126
1.1 Group accounting policies (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 128
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 129
2.1 Revenue and segment disclosures (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 130
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 131
2.2 Employees (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 132
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 133
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 134
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 135
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 136
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 138
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 139
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 141
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 142
4.1 Intangible assets (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 143
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 144
4.2 Property, plant and equipment (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 145
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 146
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 147
4.4 Other non-current assets (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 149
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 150
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 151
5.3 Financial instruments (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 152
5.3 Financial instruments (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 153
5.3 Financial instruments (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 154
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 155
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 157
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 158
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 159
6.2 Deferred tax (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 161
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 162
7.1 Acquisition of businesses (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 163
7.1 Acquisition of businesses (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 164
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 165
7.2 Discontinued operations and assets held for sale (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 166
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 168
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 169
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 170
8.2 Employee benefit obligations (continued)
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 171
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 173
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 174
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 176
Parent income statement
(DKK million)
Note 2025 2024
Revenue
- -
Administrative expenses
10.2 / 10.3 -91 -113
Operating loss (EBIT)
-91 -113
Share of profit after tax, subsidiaries
10.9 846 2,575
Share of profit after tax, associates
10.9 -4 -2
Gain/loss on divestment of businesses and activities
- -527
Financial income
10.4 468 312
Financial expenses
10.4 -596 -643
Profit before tax
623 1,602
Tax on profit for the year
10.5 41 56
Profit for the year
10.6 664 1,658
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 177
(DKK million)
Note 2025 2024
Assets
Goodwill
13 17
Intangible assets
10.7 13 17
Land and buildings
- 24
Property, plant and equipment
10.8 - 24
Lease assets
- 1
Investments in subsidiaries
10.9 17,840 18,019
Loans to subsidiaries
10.9 10,444 3,890
Investments in associates
10.9 25 28
Other investments
2 2
Other receivables
10 -
Deferred tax assets
13 3
Other non
-current assets 28,334 21,943
Non
-current assets 28,347 21,984
Receivables from subsidiaries
1 -
Income tax
53 45
Other receivables
60 6
Prepaid expenses
32 32
Cash
65 5
Current assets
211 88
Assets
28,558 22,072
(DKK million)
Note 2025 2024
Equity and liabilities
Share capital
10.10 43 44
Other reserves
3,322 2,712
Retained earnings
664 1,657
Total equity
4,029 4,413
Provisions
1,157 1,058
Provisions
1,157 1,058
Borrowings
10.11 16,363 12,474
Lease liabilities
10.11 - 1
Other liabilities
59 97
Non
-current liabilities 10.11 16,422 12,572
Borrowings
10.11 1,130 377
Debt to subsidiaries
5,710 3,404
Other liabilities
110 248
Current liabilities
6,950 4,029
Liabilities
23,372 16,601
Equity and liabilities
28,558 22,072
Parent accounting policies
10.1
Contingent liabilities
10.13
Related parties
10.14
Events after the balance sheet date
10.15
Parent balance sheet 31 December
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 178
(DKK million)
Other reserves
Share capital
Foreign cur-
rency transla-
tion reserve
Hedging
reserve
Reserve
according to
equity
method
Retained
earnings
Total equity
Equity at 1.1.2024
45
-83
-19
2,414
2,426
4,783
Profit for the year
-
-
-
2,573
-915
1,658
Dividends received
-
-
-
-1,104
1,104
-
Foreign currency translation adjustment of investments in subsidiaries etc.
-
7
-
148
-
155
Other changes in equity in subsidiaries
-
-
-
68
1
69
Share buy
-backs -
-
-
-
-2,301
-2,301
Capital reduction through cancellation of treasury shares
-1
-
-
-
1
-
Share
-based compensation -
-
-
-
12
12
Other changes in equity
-
-
-
-
37
37
Equity at 31.12.2024
44
-76
-19
4,099
365
4,413
Profit for the year
-
-
-
842
-178
664
Dividends received
-
-
-
-1,082
1,082
-
Foreign currency translation adjustment of investments in subsidiaries etc.
-
-75
-
-502
-
-577
Other changes in equity in subsidiaries
-
-
-
28
-
28
Value adjustment for the year
-
-
23
-
-
23
Tax relating to changes in equity
-
-
-5
-
-
-5
Share buy
-backs -
-
-
-
-582
-582
Capital reduction through cancellation of treasury shares
-1
-
-
-
1
-
Share
-based compensation -
-
-
-
6
6
Other changes in equity
-
-
7
-
52
59
Equity at 31.12.2025
43
-151
6
3,385
746
4,029
Parent statement of changes in equity
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 180
The financial statements of the Parent, Demant
A/S, are presented in accordance with the provi-
sions of the Danish Financial Statements Act for
class D entities.
The financial statements of the Parent are pre-
sented in Danish kroner (DKK), which is also the
functional currency for the Parent. The accounting
policies are the same as last year.
In respect of recognition and measurement, the
Parent’s accounting policies are generally con-
sistent with the Group’s accounting policies. The
instances in which the Parent’s accounting poli-
cies deviate from those of the Group are de-
scribed below.
The Parent has decided to apply recognition and
measurement in accordance with IFRS 15 and 16.
The standards affect the Parent’s proportionate
share of its subsidiaries’ equity value, and IFRS
16 affects the Parent’s leases.
Income statement
Tax
The Parent is jointly taxed with its Danish subsidi-
aries and its parent, William Demant Invest A/S.
Current income tax is allocated to the jointly taxed
Danish companies in proportion to their taxable in-
come.
Balance sheet
Goodwill
Goodwill is amortised on a straight-line basis over
20 years. The 20-year amortisation period appro-
priately reflects the long-term nature of the eco-
nomic benefits derived from the acquired hearing
healthcare businesses. Goodwill is written down
to its recoverable amount, if lower than its carrying
amount.
Rights
Rights acquired are amortised on a straight-line
basis over their estimated useful lives and meas-
ured at cost less accumulated amortisation and
impairment losses. The amortisation period is five
years. Rights acquired are written down to their
recoverable value, if lower than their carrying
value.
Investments in subsidiaries and
associates
Investments in subsidiaries and associates are
recognised and measured using the equity
method, i.e. interest is measured at the propor-
tionate share of the equity values of such subsidi-
aries and associates with the addition or deduc-
tion of the carrying amount of goodwill and with
the addition or deduction of unrealised intra-group
profits or losses, respectively.
The Parent’s proportionate shares of profits or
losses in subsidiaries and associates are recog-
nised in the income statement after elimination of
unrealised intra-group profits or losses less any
amortisation and impairment of goodwill.
Subsidiaries and associates with negative equity
values are measured at DKK 0, and any receiva-
bles from such companies are written down with
the Parent’s share of the negative equity value to
the extent that such receivable is considered irre-
coverable. If the negative equity value exceeds
the value of receivables, if any, such residual
amount is recognised under provisions to the ex-
tent that the Parent has a legal or constructive ob-
ligation to cover liabilities incurred by the particu-
lar subsidiary or associate.
On distribution of profit or loss, net revaluation
and net impairment losses on investments in sub-
sidiaries and associates are transferred to
reserves for net revaluation according to the eq-
uity method.
Loans to and receivables from
subsidiaries
Loans to and receivables from subsidiaries are
recognised at amortised cost and subsequently
measured after deduction of allowance for losses
based on an individual assessment.
Other investments
On initial recognition, other investments are meas-
ured at cost. Subsequently, they are measured at
fair value on the balance sheet date, and any
changes in fair values are recognised in the in-
come statement under net financial items.
Provisions
Provisions include liabilities, which are uncertain
in respect of the amount or the timing of their set-
tlement. Provisions may include different types of
liabilities, such as deferred tax liabilities, pension
obligations, investments in subsidiaries with nega-
tive equity as well as provisions for disputes etc.
Debt to subsidiaries
Debt to subsidiaries is measured at amortised
cost.
Statement of changes in equity
In compliance with the format requirements of the
Danish Financial Statements Act, any items in-
cluded under comprehensive income in the con-
solidated financial statements are recognised di-
rectly in equity in the Parent financial statements.
Cash flow statement
In compliance with section 86(4) of the Danish Fi-
nancial Statements Act, a cash flow statement is
not prepared for the Parent, such statement being
included in the consolidated cash flow statement.
10.1 Parent accounting policies
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 181
(DKK million)
2025 2024
Employee costs
Wages and salaries
82 103
Share
-based remunera-
tion
9 12
Defined benefit plans
- -
Total
91 115
Average number of
full
-time employees 52 52
For further details on the remuneration of the Ex-
ecutive Board and the Board of Directors and the
share-based remuneration programme, please re-
fer to Note 2.2.
10.2 Employees
Remuneration to Executive Board and Board of Directors (included in employee costs)
(DKK million)
2025
2024
Executive Board:
Wages and salaries
25.0 25.1
Cash bonus
1.3 0.6
Share
-based remuneration 9.5 10.5
Total
35.8 36.2
Board of Directors:
Fee
5.2 5.1
Total
5.2 5.1
Total
41.0 41.3
10.3 Fees to statutory auditors
(DKK million)
2025 2024
Statutory audit fee
3 2
Other assurance engagements
2 3
Tax services
1 -
Other services
- 1
Total
6 6
10.4 Net financial items
(DKK million)
2025
2024
Interest from subsidiaries
411 288
Interest
on cash and bank deposits 7 1
Foreign exchange gains, net
50 23
Financial income
468 312
Interest to subsidiaries
-144 -129
Interest
on bank debt -433 -500
Transaction costs
-19 -14
Financial expenses
-596 -643
Net financial items
-128
-331
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 182
10.5 Tax on profit for the year and deferred tax
(DKK million)
2025 2024
Current tax on profit for the year
37 48
Adjustment of current tax, prior years
-6 1
Change in deferred tax
10 8
Adjustment of deferred tax, prior years
- -1
Tax on profit for the year
41 56
Deferred tax, net at 1.1.
3 -4
Changes in deferred tax
10 8
Adjustment of deferred tax, prior years
- -1
Deferred tax, net at 31.12.
13 3
10.6 Proposed distribution of net profit
(DKK million)
2025 2024
Transferred to reserves for net revaluation according to the equity method
842 2,573
Retained earnings
-178 -915
Total
664 1,658
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 183
10.7 Intangible assets
(DKK million)
Goodwill
Rights and
other
intangible
assets
Total
intangible
assets
Cost at 1.1.2025
65
11
76
Cost at 31.12.2025
65
11
76
Amortisation at 1.1.2025
-48
-11
-59
Amortisation
-4
-
-4
Amortisation at 31.12.2025
-52
-11
-63
Carrying amount at 31.12.2025
13
-
13
Cost at 1.1.2024
65
11
76
Cost at 31.12.2024
65
11
76
Amortisation at 1.1.2024
-45
-11
-56
Amortisation
-3
-
-3
Amortisation at 31.12.2024
-48
-11
-59
Carrying amount at 31.12.2024
17
-
17
10.8 Property, plant and equipment
(DKK million)
Land and
buildings
Cost at 1.1.2025
31
Disposals
-31
Cost at 31.12.2025
-
Depreciation and impairment losses at 1.1.2025
-7
Disposals
7
Depreciation and impairment losses at 31.12.2025
-
Carrying amount at 31.12.2025
-
Cost at 1.1.2024
31
Cost at 31.12.2024
31
Depreciation and impairment losses at 1.1.2024
-7
Depreciation and impairment losses at 31.12.2024
-7
Carrying amount at 31.12.2024
24
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 184
The carrying amount of investments in
subsidiaries includes capitalised goodwill of DKK
14,006 million (DKK 9,224 million in 2024). Amor-
tisation of capitalised goodwill for the year was
DKK 818 million (DKK 695 million in 2024).
Loans to subsidiaries of DKK 10,444 million (DKK
3,890 million in 2024) are considered additions to
the total investments in the particular business
and are therefore considered non-current.
Please refer to Section 11 for further information
on subsidiaries and associates.
10.9 Financial assets
(DKK million)
2025
2024
Investments in
subsidiaries
Loans to
subsidiaries
Investments in
associates
Investments in
subsidiaries
Loans to
subsidiaries
Investments in
associates
Cost at 1.1.
12,138
3,890
50
13,266
3,014
50
Foreign currency translation adjustments
-
-203
-
-
64
-
Additions
431
6,782
-
234
839
-
Divestments
-
-
-
-498
-
-
Disposals
-92
-25
-
-864
-27
-
Cost at 31.12.
12,477
10,444
50
12,138
3,890
50
Value adjustments at 1.1.
4,823
-
-22
2,447
-
-20
Foreign currency translation adjustments
-502
-
1
148
-
-
Share of profit after tax
846
-
-4
2,575
-
-2
Dividends received
-1,082
-
-
-1,104
-
-
Divestments
-
-
-
-47
-
-
Disposals
93
-
-
736
-
-
Other adjustments
28
-
-
68
-
-
Value adjustments at 31.12.
4,206
-
-25
4,823
-
-22
Carrying amount at 31.12.
16,683
10,444
25
16,961
3,890
28
Subsidiaries with negative equity reclassified to provisions
1,157
-
-
1,058
-
-
Carrying amount after reclassification
17,840
10,444
25
18,019
3,890
28
Non
-current financial assets 17,840
10,444
25
18,019
3,890
28
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 185
The weighted average effective interest rate for
debt to credit institutions and short-term bank fa-
cilities in 2025 was 2.7% (3.5% in 2024).
Interest-bearing debt broken down by currency:
89% in Danish kroner (79% in 2024), 9% in euros
(15% in 2024) and 2% in US dollars (6% in 2024).
10.11 Treasury shares
Please refer to Note 5.6.
(DKK million)
Contractual cash flows
Less than
1 year
1-3 years
4-5 years
More than
5 years
Total
Carrying
amount
2025
Debt to credit institutions etc.
1,562
15,226
702
1,065
18,555
17,440
Short
-term bank facilities etc. 55
-
-
-
55
53
Lease liabilities
-
-
-
-
-
-
Contingent liabilities¹
3
59
-
-
62
62
Financial liabilities
1,620
15,285
702
1,065
18,672
17,555
2024
Debt to credit institutions etc.
591
10,127
1,832
1,314
13,864
12,639
Short
-term bank facilities etc. 223
-
-
-
223
212
Lease liabilities
-
1
-
-
1
1
Contingent liabilities¹
-
43
44
-
87
87
Financial liabilities
814
10,171
1,876
1,314
14,175
12,939
¹Included in other liabilities.
10.10 Financial liabilities
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 186
Sensitivity analysis in respect of
interest rates
Based on bank debt facilities at the balance sheet
date, a rise of 1 percentage point in the general
interest rate level will result in an increase in the
Parent’s annual interest expenses before tax of
approximately DKK 97 million (DKK 64 million in
2024). Around 50% (around 50% in 2024) of the
interest-bearing debt is subject to fixed or limited
interest rates, partly due to a bought interest rate
swap, and partly due to loans being raised at fixed
interest rates.
10.13 Contingent liabilities
Demant A/S has provided security in respect of
credit facilities established by Danish subsidiaries.
These credit facilities totalled DKK 1,220 million
as at 31 December 2025 (DKK 1,095 million in
2024) of which DKK 153 million was utilised (DKK
101 million in 2024).
Demant A/S has provided security in respect of
rent as well as guarantees concerning the contin-
uous operation and settlement of liabilities in 2025
for some of its subsidiaries.
The Parent is jointly taxed with William Demant In-
vest A/S, which is the administration company,
and with all Danish subsidiaries of both. Under the
Danish Corporation Tax Act, Demant A/S is first of
all fully liable for corporate tax payments and for
withholding tax at source in respect of interest,
royalties and dividends in relation to its own sub-
sidiaries and is secondly liable for tax payments
due for William Demant Invest A/S and its partly
owned subsidiaries.
For the purposes of section 357 of the Republic of
Ireland Companies Act 2014, Demant A/S has un-
dertaken to indemnify the creditors of its subsidi-
aries incorporated in the Republic of Ireland in re-
spect of all losses and liabilities for the financial
year ending on 31 December 2025 or any
amended financial period incorporating said finan-
cial year. No material loss is expected to arise
from this guarantee.
10.14 Related parties
William Demant Foundation, Kongebakken 9,
2765 Smørum, Denmark, is the only related party
with a controlling interest. Controlling interest is
achieved through a combination of William De-
mant Foundation’s own shareholdings and the
shareholdings of William Demant Invest A/S for
which William Demant Foundation exercises the
voting rights. Subsidiaries and associated compa-
nies of William Demant Invest A/S are related par-
ties to Demant A/S.
Related parties with significant influence are the
company’s Board of Directors and their related
parties. Furthermore, related parties are the Exec-
utive Board and companies in which the above
persons have significant interests.
Demant A/S has not entered into any related‑party
transactions that were not conducted on an arm’s
length basis, in accordance with section 98 c of
the Danish Financial Statements Act.
10.15 Events after the balance
sheet date
Please refer to Note 9.3.
Interest rate swap DKK/DKK
(DKK million)
2025
Start
Expiry
Interest
rate/strike
Contractual
amount
at year-end
Positive
fair value
at year-end
Negative
fair value
at year-end
2023
2026
3.27% 1,000
-
12
2025
2026
2.02% 1,000
-
-
2024
2027
2.22% 746
2
-
2025
2027
2.05% 1,000
2
-
2026
2027
2.26% 1,000
-
1
2025
2031
2.20% 895
14
-
5,641
18
13
2024
2023
2026
3.27% 1,000
-
22
2025
2026
2.02% 1,000
1
-
2024
2027
2.22% 746
1
-
2025
2027
2.05% 1,000
1
-
2026
2027
2.26% 1,000
-
1
2025
2031
2.20% 895
3
5,641
6
23
10.12 Interest rate risk
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 188
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 189
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 190
Consolidated financial statements
Parent financial statements Demant Annual Report 2025 191
Statement by management
Independent auditor’s report Independent assurance report Demant Annual Report 2025 193
Statement by management
Independent auditor’s report Independent assurance report Demant Annual Report 2025 194
Executive Board
Board of Directors
Statement by management
Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 195
Report on the audit of the
Financial Statements
Independent auditor’s reports
Statement by management
Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 196
Statement by management
Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 197
Statement by management
Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 198
, 3 February 2026
CVR No 3377 1231
Statement by management
Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 199
Statement by management
Independent auditor’s report Independent auditor’s limited assurance report on the sustainability statement Demant Annual Report 2025 200
CVR No 33 77 12 31
