GN Store Nord A/S
Interim Report
Q1 2024
Interim Report Q1 2024
2/21
• GN delivered continued execution across the three divisions result-
ing in 5% organic revenue growth for the Group
• The Hearing division delivered continued market share gains lead-
ing to 14% organic revenue growth, resulting in 8.2 percentage
point increase in the divisional profit margin supported by synergies
and a successful ReSound Nexia roll-out
• The Enterprise division continued its relentless commercial execu-
tion in a stabilizing market leading to 0% organic revenue growth.
The divisional profit margin increased by 5.7 percentage points
driven by easing freight costs, synergies, product mix, and strict
cost control
• The Gaming & Consumer division delivered organic revenue growth
of 0% due to a demanding comparison base from Q1 2023. The divi-
sional profit margin increased by 3.8 percentage points driven by
easing freight costs, synergies, and less promotional activity, while
investing in sales and marketing
• Group EBITA grew 114% to DKK 538 million, equal to an EBITA
margin of 12.5%, which was an improvement of 6.5 percentage
points compared to adj. EBITA in Q1 2023, driven by improved divi-
sional profits, tightly managed R&D and general admin costs. EBITA
was supported by total One-GN synergies of DKK ~90 million real-
ized in the quarter
• Free cash flow excl. M&A ended at DKK 46 million compared to
DKK -578 million in Q1 2023 primarily driven by a significant in-
crease in operating cash flow. As a consequence of the strong mar-
gin expansion and stable development in net interest-bearing debt,
the adj. leverage decreased from 4.5x in Q4 2023 to 4.0x in Q1 2024
• The full year guidance is confirmed
GN Store Nord delivered organic revenue growth
of
5% reaching an EBITA margin of 12.5%
Financial overview Q1 2024
GN Store Nord
Hearing division
Enterprise division
Gaming & Consumer division
DKK million
Q1 2024
Q1 2023
Growth
Q1 2024
Q1 2023
Growth
Q1 2024
Q1 2023
Growth
Q1 2024
Q1 2023
Growth
Revenue
4,303
4,214
2%
1,737
1,622
7%
1,751
1,767
-1%
815
825
-1%
Organic growth
5%
7%
14%
15%
0%
-3%
0%
17%
Gross profit*
2,275
2,058
11%
1,089
996
9%
963
883
9%
223
179
25%
Gross profit margin*
52.9%
48.8%
4.1%p
62.7%
61.4%
1.3%p
55.0%
50.0%
5.0%p
27.4%
21.7%
5.7%p
Divisional profit*
1,249
951
31%
599
427
40%
613
518
18%
37
6
517%
Divisional profit margin*
29.0%
22.6%
6.4%p
34.5%
26.3%
8.2%p
35.0%
29.3%
5.7%p
4.5%
0.7%
3.8%p
EBITA*
538
251
114%
EBITA margin*
12.5%
6.0%
6.5%p
Free cash flow excl. M&A
46
-578
624
*Excluding non-recurring items in Q1 2023
Interim Report Q1 2024
2/21
Organic growth
5%
EBITA margin
12.5%
Free cash flow excl.
M&A (DKKm)
46
Interim Report Q1 2024
3/21
Interim Report Q1 2024
4/21
GN delivered organic revenue growth of
5% leading to EBITA margin expansion
of 6.5%p supported by the gross margin
improvement and One-GN synergies
Revenue
Following the solid start to the year across GN’s three divisions, GN
Store Nord in Q1 2024 delivered organic revenue growth of 5%. This
led to group revenue of DKK 4,303 million, equal to a revenue growth
of 2%, with -1% impact from the development in foreign exchange
rates and -2% impact from M&A driven retail disposals including
BelAudição.
Gross profit
Gross profit increased to DKK 2,275 million in Q1 2024 corresponding
to a gross margin of 52.9% compared to an adj. gross margin of 48.8%
in Q1 2023. The strong increase reflects group-wide synergies, easing
freight costs and business mix, while partly being off-set by retail dis-
posals including BelAudição.
Divisional profit
As a function of the increase in gross profit as well as the prudently
managed sales and distribution costs, the divisional profit increased by
31% to DKK 1,249 million in Q1 2024. The development reflects an im-
provement in the divisional profit margin of 6.4 percentage points to
29.0% compared to an adjusted divisional profit margin of 22.6% in Q1
2023.
Development costs
Development costs decreased by 2% compared to adj. development
costs in Q1 2023, mainly due to timing effects of product roadmaps.
Management and administration costs
Management and administration costs increased by 3% compared to
adj. management and administration costs in Q1 2023 reflecting con-
tinued investments into IT and the new financial shared service center
currently being established in Poland.
EBITA
Group EBITA increased by 114% to DKK 538 million compared to the
adj. EBITA in Q1 2023 driven by the 31% growth in divisional profit,
partly off-set by net investments into back-office and IT. This led to a
12.5% EBITA margin in the quarter (compared to 6.0% adj. EBITA mar-
gin in Q1 2023).
Other financial highlights
Amortization of acquired intangible assets amounted to DKK -91 mil-
lion compared to DKK -102 million in Q1 2023. Financial items were
DKK -110 million in the quarter compared to DKK -125 million in Q1
2023. Share of profit (loss) in associates was DKK -6 million compared
to DKK -1 million in Q1 2023, while gain on disposals were DKK 12 mil-
lion in the quarter reflecting a non-cash gain from Beltone corporate
retails disposals.
Profit before tax was DKK 343 million, while the effective tax rate
ended at 22.4%, leading to a net profit of DKK 266 million.
Cash flow development
GN Store Nord delivered a significant increase in operational free cash
flow of 76% leading to DKK 783 million compared to Q1 2023, driven
by the strong earnings growth. Investment activities excl. M&A ended
at DKK -423 million, which was largely at the same level as Q1 2023.
GN Store Nord
Interim Report Q1 2024
4/21
Revenue (DKKm)
Gross profit
(DKKm) and gross margin (%)
*Excluding non
-recurring items
Divisional
profit (DKKm) and divisional profit margin (%)
*Excluding non-recurring items
+0%
+14%
+0%
825
815
1,622
1,737
1,767
1,751
Q1 2023* Q1 2024
4,214
4,303
+5%
Organic growth
Enterprise division Hearing division
Gaming & Consumer division
883 (50.0%)
996
(61.4%)
179 (21.7%)
Q1 2023*
963 (55.0%)
1,089 (62.7%)
223 (27.4%)
Q1 2024
2,058 (48.8%)
2,275
(52.9%)
+11%
Enterprise division Hearing division Gaming & Consumer division
518 (29.3%)
427 (26.3%)
6
(
0.7%)
Q1 2023*
613 (35.0%)
599 (34.5%)
37 (4.5%)
Q1 2024
951 (22.6%)
1,249 (29
.0%)
+31%
Enterprise division Hearing division Gaming & Consumer division
Interim Report Q1 2024
5/21
The impact from change in working capital was DKK -158 million in the
quarter, negatively impacted by traditional seasonality including yearly
bonus payments, but somewhat off-set by a strong reduction in receiv-
ables following a strong revenue generation in Enterprise by the end of
2023. Free cash flow excl. M&A ended at DKK 46 million, which was an
improvement of DKK 624 million compared to Q1 2023.
Capital structure
Net interest-bearing debt ended at DKK 10,584 million, largely at the
same level as in Q4 2023 following the stable cash flow generation.
Driven by the strong earnings improvement, adj. leverage decreased
from 4.5x by Q4 2023 to 4.0x by Q1 2024. The reported leverage ratio
was 5.0x reflecting DKK -516 million non-recurring items from Q2 2023
to Q4 2023. By Q1 2024, GN had cash and cash equivalents of DKK
1,224 million. Moreover, GN has access to an undrawn revolving credit
facility of DKK 3.9 billion (EUR 520 million) with maturity in Q2 2027.
One-GN
Over the past several years, GN has been redefined from a hardware to
a software-enabled company; repositioned from being perceived
mainly as a hearing aid company to becoming a fully integrated tech-
nology company with strong positions in attractive hearing, audio,
video, and gaming markets.
To unleash the full power of the organization, GN simplified the gov-
ernance setup during 2023. As part of the process, GN identified com-
pany-wide synergies which will support and accelerate the margin im-
provement across the Group. The company has identified DKK ~600
million in cost synergies (across COGS and OPEX) to be realized by
2026 of which roughly two-thirds will be achieved in 2024.
In Q1 2024, synergies worth of DKK ~90 million were realized as a re-
sult of the organizational changes executed last year, as well as
synergies of the merged operations team leveraging both structural
and operational synergies within sourcing, manufacturing, and distribu-
tion.
Management quote
“The results in Q1 2024 demonstrates that we are on track with the
transformation of GN and delivering the business performance and
value creation we have promised. Our Hearing division continues its
great momentum supporting existing and new customers, and we are
pleased to continue to gain share. Our Enterprise division has executed
well based on our industry-leading product portfolio and strong position
in a stabilizing market. In Gaming & Consumer we were up against diffi-
cult comparison numbers from last year and, still, we delivered revenue
on par with last year, which was in line with how we planned. Across the
Group we see strong improvement in profitability. So, overall, we are
moving in the right direction.”
Peter Karlstromer, CEO of GN Store Nord
Interim Report Q1 2024
EBITA (DKKm)
*Excluding non
-recurring items
Net interest
-bearing debt (DKKm)
Free cash flow (DKKm)
5/21
217
70
6.0%
Q1 2023* Gross profit
contribution
OPEX contribution
12.5%
Q1 2024
251
538
15,275
12,073
11,333
10,567
10,584
Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
Net interest -bearing debt (DKKm)
Adj. leverage
5.8x 5.0x 4.9x 4.5x 4.0x
783
46
-158
-423
-86
-70
Cash flow
from
operating
activities
Changes
in working
capital
Cash flow
from investing
activities excl.
M&A
Tax payments Financial
items
FCF excl. M&A
Interim Report Q1 2024
6/21
Key assumptions
Hearing division
Following a very strong market growth in 2023, GN expects the mar-
kets to return to historical growth rates supported by ongoing favora-
ble demographic trends. As such, GN projects 4-6% market volume
growth and -1% to -2% market ASP decline.
Driven by the overwhelmingly positive feedback on ReSound Nexia, GN
expects continued strong market share gains on top of a very success-
ful 2023. Consequently, the Hearing division assumes to contribute
with organic revenue growth of 8% to 12%. Moreover, the underlying
assumptions include an EBITA margin in the core hearing aid business
of 18% to 20%.
Enterprise division
Following some very difficult years in the broader Enterprise equip-
ment market, 2023 saw some general volume stabilization. Supported
by early signs of a healthier PC market at the end of 2023 and an ex-
pected increase in broader IT equipment spend during 2024, GN pro-
jects that the addressable Enterprise market will return to positive
value growth sometime during 2024.
GN expects to be able to continue to defend its market-leading position
in Enterprise headsets driven by the updated and innovation-led prod-
uct portfolio and to win market share in Enterprise video due to our in-
dustry-leading offering, channel access strength, and strong partner-
ships with leading software vendors. Consequently, the Enterprise divi-
sion assumes to contribute with organic revenue growth of -3% to 5%.
Gaming & Consumer division
The broader Consumer market experienced general stabilization during
2023, following a very difficult 2022. Despite the current macro eco-
nomic headwinds and related impact on consumer sentiment, GN pro-
jects a slightly growing value market for GN’s addressable Gaming &
Consumer market in 2024.
GN expects to be able to defend its market share in the true wireless
segment driven by continued innovation and continue to gain market
share within SteelSeries because of the very strong brand and innova-
tion leadership. Consequently, the Gaming & Consumer division as-
sumes to contribute with organic revenue growth of 2% to 10%.
Financial guidance 2024
Forward-looking statements
The forward-looking statements in this report reflect the
management's current expectations of certain future events and
financial results. Statements regarding the future are, naturally,
subject to risks and uncertainties, which may result in
considerable deviations from the outlook set forth.
Furthermore, some of these expectations are based on
assumptions regarding future events, which may prove
incorrect. Changes to such expectation and assumptions will not
be disclosed on an ongoing basis, unless required pursuant to
general disclosure obligations to which GN is subject.
Factors that may cause actual results to deviate materially from
expectations include – but are not limited to – general economic
developments and developments in the financial markets as well
as foreign exchange rates, technological developments, changes
and amendments to legislation and regulations governing GN’s
markets, changes in the demand for GN's products, competition,
fluctuations in sub-contractor supplies, and developments in
ongoing litigation (including but not limited to class action and
patent infringement litigation in the United States).
For more information, please see the "Management's report"
and "Risk management” sections in the Annual Report 2023.
This Interim Report should not be considered an offer to sell
securities in GN.
organic revenue
growth
2% to 8%
12%
to 14%
EBITA
margin
>700
Free cash flow
excl
. M&A
(DKKm)
GN Store Nord
Confirmed as communicated on February 8, 2024
Interim Report Q1 2024
7/21
ReSound Nexia driving continued market
share gains leading to 14% organic reve-
nue growth and 8.2%p improvement in
divisional profit margin
Revenue
The Hearing division had a strong start to the year with 14% organic
revenue growth driven by the successful global roll-out of
ReSound Nexia, resulting in continued market share gains. In the quar-
ter, the global hearing aid market is estimated to have grown in line
with the historical value growth rates predominantly driven by a con-
tinued strong U.S. market, while the European and RoW markets grew
slower than the global average.
The organic revenue growth was a result of market share gains across
all three regions with particular strong performance in the independent
market in North America as well as in Australia and France. By the end
of the quarter, the full family of ReSound Nexia was largely available
across most key markets except for among other VA and China. The
strong start to the year led to an overall revenue of DKK 1,737 million,
equal to a growth of 7%, due to -2% impact from the development in
foreign exchange rates and -5% impact from M&A driven by the dis-
posal of BelAudição and Beltone corporate retail.
Gross profit
Gross profit ended at DKK 1,089 million, translating into a gross margin
of 62.7%, which was 1.3 percentage points higher than the adj. gross
margin in Q1 2023 supported by group synergies and the early success
of ReSound Nexia, but partly off-set by retail disposals including
BelAudição.
Sales and distribution costs
Sales and distribution costs decreased 14% to DKK -490 million in Q1
2024 compared to DKK -569 million in Q1 2023. The reduction in costs
was supported by retail disposals including BelAudição, an earlier rec-
ognized pension provision and timing of certain cost items.
Divisional profit
Divisional profit was DKK 599 million equal to a growth of 40% com-
pared to adj. divisional profit in Q1 2023. This was driven by the strong
topline growth, the gross margin improvement, and tightly managed
sales and distribution costs. As a result, the divisional profit margin in-
creased 8.2 percentage points compared to Q1 2023. The divisional
profit margin including non-recurring items increased by 10.3 percent-
age points.
EBITA margin
Because of the strong start to the year, the EBITA margin in the core
hearing aid business ended at 19.9% using 2023 cost allocation meth-
odology on group development costs and general and administrative
costs. This reflects the gross margin improvement as well as tightly
managed OPEX including timing of certain cost items and the pension
provision.
Business highlights
At the beginning of February, GN expanded its ReSound Nexia family
with a new range of styles all offering the next era of connectivity. The
ReSound Nexia portfolio offers a full range of popular styles, top-rated
for sound quality and hearing in noise. Designed to take advantage of
the new Bluetooth® Low Energy (LE) Audio benefits, ReSound Nexia is
the world’s first hearing aid to connect with Auracast broadcast de-
vices, the new breakthrough in assistive listening technology.
Hearing division
Interim Report Q1 2024
7/21
Revenue (DKKm)
Gross profit (DKKm)
*Excluding non
-recurring items
Divisional
profit (DKKm)
*Excluding non
-recurring items
1,622
1,737
Q1 2023
+14%
Organic
revenue growth
-2%
FX growth
-5%
M&A growth Q1 2024
+7%
61.4%
Q1 2023*
62.7%
Q1 2024
996
1,089
+9%
1.3%p
26.3%
Q1 2023
*
34.5%
Q1 2024
427
599
+40%
8.2%p
Interim Report Q1 2024
8/21
Continued market stabilization and fo-
cused execution led to 0% organic reve-
nue growth. Gross margin improvement
led to improved divisional profit margin
by 5.7%p
Revenue
The Enterprise division had a solid start to the year in a stabilizing mar-
ket environment with 0% organic revenue growth driven by continued
commercial execution. Compared to Q1 2023, the stable development
was broad-based across regions supported by market share gains
across headsets and video collaboration.
During the quarter, leading indicators for the broader enterprise equip-
ment spend, including PC shipments, continue to be supportive, under-
pinning the expectation that the enterprise market will return to posi-
tive growth sometime during 2024.
The solid start to the year led to an overall revenue of DKK 1,751 mil-
lion, equal to a revenue growth of -1%, due to -1% impact from the de-
velopment in foreign exchange rates.
Gross profit
Gross profit increased by 9% to DKK 963 million, translating into a
gross margin of 55.0%, reflecting a 5.0 percentage points improvement
compared to Q1 2023 supported by group synergies, product mix and
easing freight costs.
Sales and distribution costs
Sales and distribution costs decreased by 4% to DKK -350 million in Q1
2024 compared to DKK -365 million in Q1 2023. The development
reflects continued channel investments, while being more than off-set
by cost phasing of certain marketing activities.
Divisional profit
Divisional profit was DKK 613 million compared to DKK 518 million in
Q1 2023 driven by the improved gross margins, group synergies and
cost phasing of marketing costs. As a result, the divisional profit margin
ended at 35.0% compared to 29.3% in Q1 2023.
Business highlights
With a fully updated product portfolio across all Enterprise segments,
the quarter was characterized by marketing and sales execution activi-
ties. A new global marketing campaign, “the unmeetables”, was
launched to communicate how Jabra’s market leading professional
headsets support hybrid working in a differentiated way with the ulti-
mate aim to move knowledge workers to enterprise grade headsets. To
continue to sustain the strong channel partner relationships, 2024 part-
ner launch events were hosted across the globe and video commerciali-
zation built momentum with launches of video partner programs
across Europe.
Enterprise division
Interim Report Q1 2024
8/21
Revenue (DKKm)
Gross
profit (DKKm)
*Excluding non
-recurring items
Divisional
profit (DKKm)
*Excluding non
-recurring items
1,767
1,751
Q1 2023
0%
Organic
revenue growth
-1%
FX growth
0%
M&A growth Q1 2024
-1%
50.0%
Q1 2023*
55.0%
Q1 2024
883
963
+9%
5.0%p
29.3%
Q1 2023*
35.0%
Q1 2024
518
613
+18%
5.7%p
Interim Report Q1 2024
9/21
0% organic revenue growth due to a de-
manding comparison base from Q1
2023. Gross margin improvements led to
3.8%p improvement in the divisional
profit margin
Revenue
The Gaming & Consumer division delivered organic revenue growth of
0% due to a demanding comparison base from Q1 2023, where the divi-
sion grew 17% organically. The performance was driven by heathy
growth in Gaming, while the Consumer business was impacted by a
challenging comparison base from last year, which included some large
one-offs deals.
The global Gaming & Consumer market continued its recent stabiliza-
tion trend in volumes, and the broader market was positively impacted
by less promotional activity in general supporting global ASP levels.
The solid start to the year led to an overall revenue of DKK 815 million,
equal to revenue growth of -1%, due to -1% impact from the develop-
ment in foreign exchange rates.
Gross profit
Gross profit reached DKK 223 million in Q1 2024 corresponding to a
gross margin of 27.4% compared to 21.7% in Q1 2023. The increase in
gross margin was driven by higher ASP as a result of limited promo-
tional activity, group synergies, as well as easing freight costs.
Sales and distribution costs
Sales and distribution costs increased by 8% to DKK -186 million in Q1
2024 compared to DKK -173 million in Q1 2023. The development
reflects continued channel investments and marketing activity in a
market which is anticipated to be recovering.
Divisional profit
As a function of the significant increase in gross profit as well as the
prudently managed sales and distribution costs, the divisional profit in-
creased to DKK 37 million in Q1 2024. The development reflects an im-
provement in the divisional profit margin of 3.8 percentage points to
4.5% compared to 0.7% in Q1 2023.
Business highlights
SteelSeries’ software suite GG continues to see momentum and to-
gether with the hardware supports a leading gaming experience. Mo-
ments, an application that enables gamers to capture, edit and publish
game highlights exceeded the 1 billion captured clips mark, while So-
nar, a suite that enables unprecedented control of the audio experi-
ence, crossed 2 million monthly active users.
SteelSeries continued to expand its retail footprint, adding new distri-
bution in the United States, Nordics, France, Poland, Australia, Bene-
lux, and Mexico.
Jabra Elite 8 Active was selected as a Best Workout Earbuds in the Roll-
ing Stone 2024 Audio Awards and Elite 10 received an Editor’s Choice
award from USA Today’s consumer product review site, Reviewed.com.
Gaming & Consumer division
Content
Page 9/21
Interim Report Q1 2024
9/21
Revenue (DKKm)
Gross profit (DKKm)
*Excluding non
-recurring items
Divisional
profit (DKKm)
*Excluding non
-recurring items
825
815
Q1 2023
0%
Organic
revenue growth
-1%
FX growth
0%
M&A growth Q1 2024
-1%
21.7%
Q1 2023*
27.4%
Q1 2024
179
223
+25%
5.7%p
0.7%
Q1 2023*
4.5%
Q1 2024
6
37
+517%
3.8%p
Interim Report Q1 2024
10/21
Teleconference
GN will host a teleconference at 11.00 am CET on May 2, 2024. Please
visit www.gn.com to access the teleconference. Presentation material
will be available on the website prior to the start of the teleconference.
Financial calendar 2024
Capital Markets Day May 7, 2024
Interim Report Q2 2024: August 22, 2024
Interim Report Q3 2024: November 7, 2024
For further information please contact:
Rune Sandager
Head of Investor Relations
GN Store Nord A/S
Email: rsandager@gn.com
Tel: +45 45 75 92 57
GN Store Nord A/S
Lautrupbjerg 7
2750 Ballerup
Denmark
Company reg. no. 2425784
Additional information
Interim Report Q1 2024
11/21
Financial statements
Quarterly reporting by segment 12
Consolidated income statement 13
Consolidated statement of comprehensive
income 13
Consolidated balance sheet 14
Consolidated statement of cash flows 15
Consolidated statement of changes in equity 16
Notes
Note 1 – Accounting policies 17
Note 2 – Segment disclosures Q1 2024 18
Note 3 – Incentive plans 19
Note 4 – Shareholdings 19
Content
Financial statements
11/21
Interim Report Q1 2024
Interim Report Q1 2024
12/21
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Income statement
Revenue
Hearing
1,622
1,719
1,653
1,808
1,737
6,802
Enterprise
1,767
1,861
1,838
1,997
1,751
7,463
Gaming & Consumer
825
814
952
1,264
815
3,855
Total
4,214
4,394
4,443
5,069
4,303
18,120
Organic growth
Hearing
15%
15%
15%
7%
14%
13%
Enterprise
-3%
-23%
-13%
-9%
0%
-13%
Gaming & Consumer
17%
-4%
3%
6%
0%
5%
Total
7%
-8%
0%
0%
5%
-1%
Gross profit
Hearing
979
1,039
1,019
1,039
1,089
4,076
Enterprise
883
986
976
1,056
963
3,901
Gaming & Consumer
179
197
229
363
223
968
Total
2,041
2,222
2,224
2,458
2,275
8,945
Gross profit margin
Hearing
60.4%
60.4%
61.6%
57.5%
62.7%
59.9%
Enterprise
50.0%
53.0%
53.1%
52.9%
55.0%
52.3%
Gaming & Consumer
21.7%
24.2%
24.1%
28.7%
27.4%
25.1%
Total
48.4%
50.6%
50.1%
48.5%
52.9%
49.4%
Divisional profit
Hearing
392
483
477
522
599
1,874
Enterprise
518
620
635
669
613
2,442
Gaming & Consumer
6
25
21
180
37
232
Total
916
1,128
1,133
1,371
1,249
4,548
Divisional margin
Hearing
24.2%
28.1%
28.9%
28.9%
34.5%
27.6%
Enterprise
29.3%
33.3%
34.5%
33.5%
35.0%
32.7%
Gaming & Consumer
0.7%
3.1%
2.2%
14.2%
4.5%
6.0%
Total
21.7%
25.7%
25.5%
27.0%
29.0%
25.1%
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Other group information
Depreciation and software amortization
-109
-113
-108
-221
-101
-551
EBITDA
282
444
538
487
639
1,751
EBITA
173
331
430
266
538
1,200
Amortization and impairment of acquired intangible assets
-102
-101
-99
-90
-91
-392
Profit (loss)
-43
43
227
39
266
266
Free cash flow excl. M&A
-578
622
279
769
46
1,092
Acquisitions and divestments of companies
-36
-
441
-
-35
405
Free cash flow
-614
622
720
769
11
1,497
Quarterly reporting by segment
Interim Report Q1 2024
13/21
Q1 2024
Q1 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(aud.)
Revenue
Production costs
-2,028
-2,173
-9,175
Gross profit
Development costs
-351
-367
-1,546
Selling and distribution costs
-1,026
-1,125
-4,397
Management and administrative expenses
-352
-376
-1,810
Other operating income and costs, net
-8
EBITA*
Amortization and impairment of acquired intangible assets
-91
-102
-392
Gain (loss) on divestment of operations etc.
-1
Operating profit (loss)
Share of profit (loss) in associates
-6
-1
-64
Financial items
-110
-125
-462
Profit (loss) before tax
-56
Tax on profit (loss)
-77
-77
Profit (loss) for the period
-43
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-54
Earnings per share (EPS):
Earnings per share (EPS)
-0.42
Earnings per share, fully diluted (EPS diluted)
-0.42
* Excluding gain (loss) on divestments of operations etc. and
amortization of acquired intangible assets but including amortization of devel-
opment projects and software developed in-house.
Q1 2024
Q1 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(aud.)
Profit (loss) for the period
-43
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gains (losses)
-2
Tax relating to actuarial gains (losses)
-2
Items that may be reclassified subsequently to profit or loss
Adjustment of cash flow hedges
Foreign exchange adjustments, etc.
-108
-216
Tax relating to other comprehensive income
-5
-11
Other comprehensive income for the period
-105
-180
Total comprehensive income for the period
-148
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-159
Consolidated income
statement
Consolidated statement of
comprehensive income
Interim Report Q1 2024
14/21
Mar. 31
2024
Dec. 31
2023
Sep. 30
2023
Jun. 30
2023
Mar. 31
2023
DKK million
(unaud.)
(aud.)
(unaud.)
(unaud.)
(unaud.)
Assets
Intangible assets
Property, plant and equipment
Investments in associates
Deferred tax assets
Other non-current assets
Total non-current assets
Inventories
Trade receivables
Tax receivables
Other receivables
Cash and cash equivalents
Total current assets
Assets held for sale
Total assets
Equity and liabilities
Equity
Bank loans and issued bonds, non-current
Lease liabilities, non-current
Pension obligations
Provisions, non-current
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities
Bank loans and issued bonds, current
Lease liabilities, current
Trade payables
Tax payables
Provisions, current
Other current liabilities
Total current liabilities
Liabilities directly associated with assets held for sale
Total equity and liabilities
Consolidated balance sheet
Interim Report Q1 2024
15/21
Q1 2024
Q1 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(aud.)
Operating activities
Operating profit (loss)
Depreciation, amortization and impairment
Other non-cash adjustments
-1
Cash flow from operating activities before changes in working capital
Changes in working capital
-158
-397
Cash flow from operating activities before financial items and tax
Financial items, net
-70
-109
-347
Tax paid, net
-86
-81
-175
Cash flow from operating activities
-141
Investing activities
Development projects
-208
-249
-951
Investments in other intangible assets, net
-88
-112
-351
Investments in property, plant and equipment, net
-1
-34
-113
Investments in other non-current assets, net
-126
-42
-131
Company acquisitions
-35
-36
-36
Company divestments
Cash flow from investing activities
-458
-473
-1,141
Cash flow from operating and investing activities (free cash flow)
-614
Q1 2024
Q1 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(aud.)
Financing activities
Proceeds from share placement, net of costs
Paid dividends
-14
-32
Share-based payment (exercised)
Increase/decrease in bank loans and other adjustments
-957
-2,948
Cash flow from financing activities
-957
-312
Net cash flow
-946
-310
Cash and cash equivalents beginning of period
Adjustment foreign currency, cash and cash equivalents
-4
-13
Cash and cash equivalents, end of period
Consolidated statement of cash flows
Interim Report Q1 2024
16/21
Q1 2024
Other reserves
DKK million
Share
capital*
Foreign
exchange
adjust-
ments
Hedging
reserve
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
share-
holders in
GN Store
Nord A/S
Non-con-
trolling
interests
Total
equity
Balance at December 31, 2023
-1,062
-11
-2,725
Profit (loss) for the period
Actuarial gains (losses)
Tax relating to actuarial gains
(losses)
Adjustment of cash flow hedges
Foreign exchange adjustments,
etc.
Tax relating to other comprehen-
sive income
-5
-5
-5
Other comprehensive income for
the period
Total comprehensive income for
the period
Share-based payment (granted)
-6
-6
-6
Reclassification of non-control-
ling interests by recognizing a put
option liability
-12
Paid dividends
Balance at March 31, 2024
-963
-2,725
* shares of DKK 4 each
Q1 2023
Other reserves
DKK million
Share
capital*
Foreign
exchange
adjust-
ments
Hedging
reserve
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
share-
holders in
GN Store
Nord A/S
Non-con-
trolling
interests
Total
equity
Balance at December 31, 2022
-846
-51
-3,366
Profit (loss) for the period
-54
-54
-43
Adjustment of cash flow hedges
Foreign exchange adjustments,
etc.
-108
-108
-108
Tax relating to other comprehen-
sive income
Other comprehensive income for
the period
-108
-105
-105
Total comprehensive income for
the period
-108
-54
-159
-148
Transaction costs
-8
-8
-8
Share based payment (exercised)
-1
Tax related to share-based incen-
tive plans
-
-
-
-
-
-
-
-
-
Reclassification of non-control-
ling interests by recognizing a put
option liability
-3
-3
Paid dividends
-14
-14
Balance at March 31, 2023
-954
-48
-3,365
Consolidated statement of changes in equity
Interim Report Q1 2024
17/21
Note 1 – Accounting policies
This interim report has been prepared in accordance with IAS 34 “In-
terim Financial Reporting” as adopted by the EU and Danish interim fi-
nancial reporting requirements for listed companies.
New standards, interpretations, and amendments adopted by GN
Store Nord
As of January 1, 2024, GN Store Nord adopted all relevant new or re-
vised International Financial Reporting Standards and IFRIC Interpreta-
tions with effective date January 1, 2024, or earlier. The new or revised
Standards and Interpretations did not affect recognition and measure-
ment or result in any material changes to disclosures. Apart from this,
the accounting policies applied are unchanged from those applied in
the Annual Report 2023.
Identification of Reportable Segments
Effective January 1, 2024, the Group’s segment reporting will now oc-
cur on the following three divisions:
• Hearing;
• Enterprise; and
• Gaming & Consumer
Prior to January 1, 2024, GN Hearing and GN Audio were the reporta-
ble segments in the Group. The comparative segment results have
been restated for comparison purposes as required by IFRS 8 Operat-
ing Segments. Segment performance is now evaluated on Divisional
profit. Divisional profit is calculated as gross profit less selling and dis-
tribution costs.
Interim Report Q1 2024
18/21
Note 2 – Segment disclosures Q1 2024
Income statement
Hearing
Enterprise
Gaming & Consumer
Consolidated total
Q1 2024
Q1 2023
Q1 2024
Q1 2023
Q1 2024
Q1 2023
Q1 2024
Q1 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
1,737
1,622
1,751
1,767
815
825
4,303
4,214
Production costs
-648
-643
-788
-884
-592
-646
-2,028
-2,173
Gross profit
1,089
979
963
883
223
179
2,275
2,041
Selling and distribution costs
-490
-587
-350
-365
-186
-173
-1,026
-1,125
Divisional profit
599
392
613
518
37
6
1,249
916
Development costs
-351
-367
Management and administrative expenses
-352
-376
Other operating income and costs, net
-8
-
EBITA*
538
173
Amortization and impairment of acquired in-
tangible assets
-91
-102
Gain (loss) on divestment of operations etc.
12
-1
Operating profit (loss)
459
70
Share of profit (loss) in associates
-6
-1
Financial items
-110
-125
Profit (loss) before tax
343
-56
Tax on profit (loss)
-77
13
Profit (loss) for the period
266
-43
Additional information
Hearing
Enterprise
Gaming & Consumer
Consolidated total
Q1 2024
Q1 2023
Q1 2024
Q1 2023
Q1 2024
Q1 2023
Q1 2024
Q1 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Europe
470
496
1,043
1,079
281
259
1,794
1,834
North America
893
762
348
341
372
397
1,613
1,500
Rest of World
374
364
360
347
162
169
896
880
Revenue
1,737
1,622
1,751
1,767
815
825
4,303
4,214
Revenue growth composition
Organic growth
14%
15%
0%
-3%
0%
17%
5%
7%
FX growth
-2%
2%
-1%
0%
-1%
0%
-1%
1%
M&A growth
-5%
4%
0%
0%
0%
0%
-2%
1%
Revenue growth
7%
21%
-1%
-3%
-1%
17%
2%
9%
Incurred development costs
-420
-464
Capitalized development costs
207
249
Amortization, impairment and depreciation
of development projects**
-138
-152
Expensed development costs
-351
-367
EBITDA
639
282
Depreciation and software amortization
-101
-109
EBITA*
538
173
EBITA margin
12.5%
4.1%
Number of employees, end of period
7,047
7,667
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amorti
zation of devel-
opment projects and software developed in-house.
** Does not include amortization of acquired intangible assets, cf. definition of EBITA
Interim Report Q1 2024
19/21
Note 3 – Incentive plans
As of March 31, 2024, the total number of outstanding options in GN
Store Nord is 4,911,962 (3.3% of the shares issued in GN Store Nord).
Note 4 – Shareholdings
On March 31, 2024, members of the board of directors and the execu-
tive management, respectively, own 63,123 and 44,254 shares in GN
Store Nord.
On March 31, 2024, GN owns 5,300,179 treasury shares, equivalent to
3.5% of the 150,912,715 shares issued.
The GN stock is 100% free float, and the company has no dominant
shareholders. William Demant Invest A/S has reported an ownership in-
terest in excess of 10% of GN’s share capital. Foreign ownership of GN
is estimated to be around 65%.
Interim Report Q1 2024
20/21
Executive Management
Board of Directors
Interim Report Q1 2024
21/21
Co.reg. no 2425 7843