GN Store Nord A/S
Interim Report
Q2
2024
Interim Report Q2 2024
2/22
• GN executed strongly across the three divisions resulting in 5% or-
ganic revenue growth for the Group
• The Hearing division continued to gain significant market share
leading to 10% organic revenue growth, resulting in 5.3 percent-
age point increase in the divisional profit margin supported by syn-
ergies and the successful ReSound Nexia roll-out
• The Enterprise division continued its focused execution leading to
-3% organic revenue growth in a stabilizing market. The divisional
profit margin increased by 1.3 percentage points driven by syner-
gies, product mix, and strict cost control
• The Gaming & Consumer division delivered organic revenue
growth of 12% following strong execution in Gaming. The decision
to gradually wind-down Elite and Talk product lines resulted as
planned in increased promotional activities towards the end of the
quarter. Excluding the earlier announced extraordinary write-
downs, the divisional profit margin was 9.0% compared to 3.1% in
Q2 2023 driven by synergies, on top of channel investments
• Group reported EBITA ended at DKK 374 million (including DKK -
155 million in extraordinary costs related to the gradual wind-
down). Excluding these extraordinary costs, EBITA ended at DKK
529 million, equal to an EBITA margin of 11.8% driven by group-
wide synergies of DKK ~100 million and business mix, partly off-set
by net investments into IT and R&D
• Free cash flow excl. M&A ended at DKK 155 million in Q2 2024 as
a result of the healthy earnings level and a stable development in
net working capital. Consequently, the net interest-bearing debt
further declined resulting in an adj. leverage of 3.9x
• The full year guidance, which was adjusted on June 11, is con-
firmed
Strong execution leading to 5% organic
growth
and margin expansion
Financial overview Q2 2024
GN Store Nord
Hearing division
Enterprise division
Gaming & Consumer division
DKK million
Q2 2024
Q2 2023
Growth
Q2 2024
Q2 2023
Growth
Q2 2024
Q2 2023
Growth
Q2 2024
Q2 2023
Growth
Revenue
4,499
4,394
2%
1,792
1,719
4%
1,785
1,861
-4%
922
814
13%
Organic growth
5%
-8%
10%
15%
-3%
-23%
12%
-4%
Gross profit
2,334
2,222
5%
1,131
1,039
9%
977
986
-1%
226
197
15%
Gross profit margin
51.9%
50.6%
1.3%p
63.1%
60.4%
2.7%p
54.7%
53.0%
1.7%p
24.5%
24.2%
0.3%p
Divisional profit
1,239
1,128
10%
598
483
24%
618
620
0%
23
25
-8%
Divisional profit margin
27.5%
25.7%
1.8%p
33.4%
28.1%
5.3%p
34.6%
33.3%
1.3%p
2.5%
3.1%
-0.6%p
EBITA
374
331
13%
EBITA margin
8.3%
7.5%
0.8%p
Free cash flow excl. M&A
155
622
-467
Interim Report Q2 2024
2/22
11.8%
EBITA margin excluding
extraordinary wind-down costs
Organic growth
5%
Reported EBITA
margin
8.3%
Free cash flow excl.
M&A (DKKm)
155
Interim Report Q2 2024
3/22
Interim Report Q2 2024
4/22
GN delivered organic revenue growth of
5%, and improved underlying margins.
The One-GN transformation is on track
and delivered synergies in line with plans
Revenue
In Q2 2024, GN delivered organic revenue growth of 5%. This led to
group revenue of DKK 4,499 million, equal to revenue growth of 2%,
with -1% impact from the development in foreign exchange rates and
-2% impact from M&A driven by retail disposals including BelAudição.
In the first 6 months of the year, the organic revenue growth was 5%.
Gross profit
Gross profit increased to DKK 2,334 million in Q2 2024, including DKK
-60 million in inventory write-downs in connection with Elite and Talk
product lines, corresponding to a gross margin of 51.9%. Excluding the
extraordinary write-down, the gross margin ended at 53.2% compared
to an adj. gross margin of 50.8% in Q2 2023. The increase reflects
group-wide synergies and positive business mix, while partly being off-
set by retail disposals including BelAudição. In the first 6 months of the
year, the gross profit was DKK 4,609 million, equivalent to a gross mar-
gin of 52.4% (excluding the extraordinary write-downs the gross mar-
gin was 53.0%).
Divisional profit
As a function of the increase in gross profit as well as the prudently
managed sales and distribution costs, the divisional profit ended at
DKK 1,239 million in Q2 2024, including DKK -60 million in inventory
write-downs in connection with the Elite and Talk product lines.
Excluding the extraordinary write-downs, the divisional profit margin
ended at 28.9%. In the first 6 months of the year, the divisional profit
was DKK 2,488 million, equivalent to a divisional profit margin of
28.3% (excluding the extraordinary write-downs the divisional profit
margin was 28.9%).
Development costs
Development costs ended at DKK -442 million compared to adj. devel-
opment costs of DKK -333 million in Q2 2023. The increase reflects
timing effects of product roadmaps as well as DKK -95 million in ex-
traordinary write-downs in connection with the Elite and Talk product
lines. Excluding the extraordinary write-downs, the development costs
ended at DKK -347 million, which was slightly higher than in Q2 2023.
Management and administration costs
Management and administration costs increased by 2% compared to
adj. management and administration costs in Q2 2023 reflecting con-
tinued investments into IT and the new financial shared service center
currently being established in Poland.
EBITA
Group EBITA ended at DKK 374 million, which included DKK -155 mil-
lion in extraordinary write-downs in connection with the Elite and Talk
product lines. Excluding the extraordinary write-downs, the EBITA
ended at DKK 529 million compared to the adj. EBITA of DKK 404 mil-
lion in Q2 2023 driven by group-wide synergies, partly off-set by net in-
vestments into IT and R&D, corresponding to an EBITA margin of
11.8%. In the first 6 months of the year, the EBITA was DKK 912 mil-
lion, equivalent to an EBITA margin of 10.4% (excluding the extraordi-
nary write-downs the EBITA margin was 12.1%).
Other financial highlights
Amortization of acquired intangible assets amounted to DKK -89 mil-
lion compared to DKK -101 million in Q2 2023. Financial items were
GN Store Nord
Interim Report Q2 2024
Revenue (DKKm)
Gross profit (DKKm)
and gross margin (%)
Divisional
profit (DKKm) and divisional profit margin (%)
+12%
+10%
-3%
814
922
1,719
1,792
1,861
1,785
Q2 2023 Q2 2024
4,394
4,499
+5%
Organic growth
Enterprise division Hearing division Gaming & Consumer division
986 (53.0%)
1,039 (60.4%)
197 (24.2%)
Q2 2023
977 (54.7%)
1,131 (63.1%)
226 (24.5%)
Q2 2024
2,222 (50.6%)
2,334 (51.9%)
Enterprise division Hearing division Gaming & Consumer division
620 (33.3%)
483 (28.1%)
25 (3.1%)
Q2 2023
618 (34.6%)
598 (33.4%)
23 (2.5%)
Q2 2024
1,128 (25.7%)
1,239 (27.5%)
Enterprise division Hearing division Gaming & Consumer division
4/22
Interim Report Q2 2024
5/22
DKK -140 million in the quarter compared to DKK -129 million in Q2
2023. Share of profit (loss) in associates was DKK 0 million compared
to DKK -46 million in Q2 2023, while loss on disposals were DKK -1 mil-
lion in the quarter.
Profit before tax was DKK 144 million with the effective tax rate at
22.2%, leading to a net profit of DKK 112 million.
Cash flow development
GN Store Nord’s operational free cash flow increased by 10% leading
to DKK 722 million compared to DKK 654 million in Q2 2023, driven by
the strong earnings growth, while Q2 2023 was supported by a signifi-
cant improvement in trade payables driven by a new commercial
agreement with a major manufacturing and logistics provider. Invest-
ment activities excl. M&A ended at DKK -384 million, which was slightly
lower than in Q2 2023, leading to a free cash flow excl. M&A of DKK
155 million. In the first 6 months of the year, free cash flow excl. M&A
was DKK 201 million
Capital structure
Net interest-bearing debt ended at DKK 10,548 million, slightly lower
than the level realized in Q1 2024 following the positive cash flow gen-
eration. Driven by the strong underlying performance, adj. leverage
ended at 3.9x (reported leverage of 4.9x). By Q2 2024, GN had cash
and cash equivalents of DKK 694 million. Moreover, GN has access to
an undrawn revolving credit facility of DKK 3.9 billion (EUR 520 mil-
lion) with maturity in Q2 2027.
One-GN
To set up GN for future success, a simplified governance setup was ex-
ecuted during 2023. As part of the process, GN identified company-
wide synergies which will support and accelerate the margin improve-
ment 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 is expected to be achieved in 2024.
In Q2 2024, synergies worth of DKK ~100 million were realized as a re-
sult of the organizational changes executed last year, as well as syner-
gies of the merged operations team leveraging both structural and op-
erational synergies within sourcing, manufacturing, and distribution. In
the first 6 months of the year, GN has realized DKK ~190 million in syn-
ergies.
Management quote
”In Q2, we continued to execute well. We defended, or expanded, our
market leading positions, while improving our underlying margins. In
parallel, we are pursuing the One-GN transformation leading to syner-
gies and a set-up that helps us drive further success into the future. The
wind-down of the Elite and Talk product lines is progressing in accord-
ance with our plans. Recently, we also announced our decision to divest
Dansk HøreCenter, which will allow us to further focus our resources
and energy to drive innovation and success for our customers world-
wide.“
Peter Karlstromer, CEO of GN Store Nord
Interim Report Q2 2024
EBITA (DKKm)
Net interest
-bearing debt (DKKm)
Free cash flow (DKKm)
5/22
73
125
9.2%
Q2 2023 (adj.) Underlying
improvement
11.8%
Q2 2024 excl.
extraordinary
costs
-155
Extraordinary
costs related
to wind-down
8.3%
Q2 2024
(reported)
529
374
Q2 2023
(reported)
Non-
recurring
items
404
331
7.5%
12,073
11,333
10,567
10,584
10,548
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Net interest-bearing debt (DKKm)
Adj. leverage 5.0x 4.9x 4.5x 4.0x 3.9x
722
155
-68
-384
-56
-59
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 Q2 2024
6/22
Key assumptions
Hearing division
Following very strong market growth in 2023, GN expects the markets
to return to historical growth rates in 2024 supported by ongoing fa-
vorable demographic trends. As such, GN projects 4-6% market vol-
ume 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. Thanks to the market success, the Hearing division is trending
towards the upper half of the overall organic growth assumption of 8%
to 12%. GN is also well underway to deliver an EBITA margin of 18% to
20% in the core hearing aid business.
Enterprise division
Following a longer period of difficulties in the broader Enterprise
equipment market we have seen a gradual stabilization. This stabiliza-
tion has continued in the first half of 2024, but the market is yet to re-
turn to positive growth. The long-term attractiveness of the market is
fully intact, but the return to growth has taken slightly longer than ear-
lier assumed. As we assess it now, we believe that the addressable En-
terprise market will return to positive value growth, but most likely not
until the end of 2024.
GN expects to be able to continue to defend its market-leading posi-
tion in Enterprise headsets driven by the updated and innovation-led
product portfolio and to win market share in Enterprise video due to in-
dustry-leading offering, channel access strength, and strong partner-
ships. As a result of this, the Enterprise division is trending towards the
lower half of the overall organic growth assumption of -3% to +5%.
Gaming & Consumer division
GN continues to project a slightly growing value market for GN’s ad-
dressable Gaming & Consumer market in 2024. Because of the gradual
wind-down of the Elite and Talk product lines the Gaming & Consumer
division is assumed to deliver organic revenue growth of -10% to -2%
reflecting the announcement on June 11, 2024. This reflects around
DKK 450 million lower revenue in Consumer compared to 2023, as well
as an assumption that Gaming is currently trending towards the upper
half of the original +2% to +10% organic growth assumption. As a re-
sult of the gradual wind-down the group will incur extraordinary costs
of around DKK -200 million in 2024, including severance payments,
write-down of prior development projects and inventories, of which the
majority is expected to be non-cash.
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.
Confirmed as communicated on June 11, 2024
Interim Report Q2 2024
7/22
ReSound Nexia is driving significant mar-
ket share gains, leading to 10% organic
revenue growth and strong margin im-
provement
Revenue
The Hearing division continued to gain market shares by delivering
10% organic revenue growth driven by the global success of ReSound
Nexia. In Q2, the global hearing aid market is estimated to have grown
in line with the historical value growth rates driven by a continued
strong U.S. market, while the European and Rest of World (RoW) mar-
kets 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 North America,
the U.K., Spain and India. During the quarter, ReSound Nexia was
launched into VA resulting in a solid early uptake. The performance in
the quarter led to an overall revenue of DKK 1,792 million, equal to 4%
revenue growth, due to -2% impact from the development in foreign
exchange rates and -4% impact from M&A driven by the disposal of
BelAudição and Beltone corporate retail. In the first 6 months of the
year, the organic revenue growth was 12%.
Gross profit
Gross profit reached DKK 1,131 million, translating into a gross margin
of 63.1%, which was 2.1 percentage points higher than the adj. gross
margin in Q2 2023 supported by group synergies and the continued
success of ReSound Nexia, but partly off-set by retail disposals includ-
ing BelAudição.
Sales and distribution costs
Sales and distribution costs decreased by 3% to DKK -533 million in Q2
2024 compared to DKK -547 million in Q2 2023. The reduction was
supported by retail disposals including BelAudição.
Divisional profit
Divisional profit was DKK 598 million equal to 19% growth compared
to adj. divisional profit in Q2 2023. This was driven by the strong top-
line growth, the gross margin improvement, and tightly managed sales
and distribution costs. As a result, the divisional profit margin in-
creased by 4.1 percentage points compared to Q2 2023. In the first 6
months of the year, the divisional profit margin was 33.9%.
EBITA margin
The EBITA margin in the core hearing aid business ended at 18.1% us-
ing 2023 cost allocation methodology on group development costs
and general and administrative costs compared to 14.1% in Q2 2023.
In the first 6 months of the year, the EBITA margin in the core business
was 18.9%.
Business highlights
At the beginning of August, GN announced an expansion to the
ReSound Nexia family with its smallest wireless In the Canal (ITC) hear-
ing aid in a non-rechargeable design and a new wireless CROS BTE so-
lution.
In August, GN announced the divestment of Dansk HøreCenter. The
transaction demonstrates GN’s commitment to its successful strategy
of not owning retail and focus on being a key partner to strong inde-
pendent hearing aid dispensers. In line with this strategy, GN has over
the past couple of years divested the majority of its retail stores to fo-
cus its investments on synergetic assets that are accretive to growth
and margins.
Hearing division
Interim Report Q2 2024
7/22
Revenue (DKKm)
Gross profit (DKKm)
Divisional
profit (DKKm)
1,719
1,792
Q2 2023
+10%
Organic
revenue growth
-2%
FX growth
-4%
M&A growth Q2 2024
+4%
60.4%
Q2 2023
63.1%
Q2 2024
1,039
1,131
+2.7%p
28.1%
Q2 2023
33.4%
Q2 2024
483
598
+5.3%p
Interim Report Q2 2024
8/22
In a quarter with continued market sta-
bilization, the organic revenue growth
ended at -3%. Focused cost control led
to an improvement in the divisional
profit margin of 1.3%p
Revenue
In Q2 2024, the Enterprise division delivered organic revenue growth of
-3%, including flat growth in professional headsets.
In the quarter, the Enterprise market continued its stabilization phase.
The market is estimated to be declining slightly year-over-year, which
was also the case in Q1 2024. The long-term attractiveness of the en-
terprise market driven by hybrid working and the continued upgrade of
collaboration tools to make the experience seamless and more effi-
cient is fully intact, but the return to market growth is taking slightly
longer than anticipated in the beginning of the year. It is still expected
that the addressable Enterprise market is returning to positive growth,
but most likely not until the end of 2024. This is further supported by
overall datapoints on increasing IT budgets.
The development in the quarter led to an overall revenue of DKK 1,785
million, equal to revenue growth of -4%, due to -1% impact foreign ex-
change effects. In the first 6 months of the year, the organic revenue
growth was -2%.
Gross profit
Gross profit decreased by 1% to DKK 977 million, translating into a
gross margin of 54.7%, reflecting a 1.7 percentage points improvement
compared to Q2 2023 supported by group synergies. In the first 6
months of the year, the gross margin was 54.9%.
Sales and distribution costs
Sales and distribution costs decreased by 2% to DKK -359 million in Q2
2024 compared to DKK -366 million in Q2 2023. The development
reflects continued channel investments, while being more than off-set
by focused cost control.
Divisional profit
Divisional profit was DKK 618 million compared to DKK 620 million in
Q2 2023 primarily as a result of the topline development. The divi-
sional profit margin increased by 1.3 percentage points to 34.6% driven
by group synergies despite slightly lower volumes. In the first 6 months
of the year, the divisional profit margin was 34.8%.
Business highlights
In July, GN launched Jabra+ for admins which allows IT professionals to
manage their installed base of Jabra video products in a seamless and
scalable way. GN is strongly committed to further drive enterprise
class benefits across the portfolio by combining leading hardware and
software solutions.
Enterprise division
Interim Report Q2 2024
8/22
Revenue (DKKm)
Gross profit (DKKm)
Divisional
profit (DKKm)
1,861
1,785
Q2 2023
-3%
Organic
revenue growth
-1%
FX growth
0%
M&A growth Q2 2024
-4%
53.0%
Q2 2023
54.7%
Q2 2024
986
977
+1.7%p
33.3%
Q2 2023
34.6%
Q2 2024
620
618
+1.3%p
Interim Report Q2 2024
9/22
12% organic revenue growth driven by
continued market share gains in Gaming
Gradual wind-down of the Elite and Talk product lines
On June 11, 2024, GN announced a gradual wind-down of the Elite and
Talk product lines to increase focus and resources on more attractive
parts of GN’s business. The wind-down will further support GN’s tar-
geted margin expansion towards the 2028 target of 16-17% and allow-
ing to focus future investments and leadership efforts towards more
attractive opportunities. The gradual wind-down is progressing accord-
ing to the plan and is still expected to be completed by the end of 2024
with total extraordinary costs of around DKK -200 million assumed.
Revenue
The Gaming & Consumer division delivered organic revenue growth of
12% following strong execution and market share gains in Gaming and
strong market reception of the new true wireless earbuds.
The global Gaming market continued its recent stabilization trend in
volumes, and the broader market was positively impacted by less pro-
motional activity in general supporting global ASP levels. The gaming
business delivered organic revenue growth of 12% leading to a revenue
of DKK 611 million compared to DKK 543 million in Q2 2023. The con-
sumer business delivered organic revenue growth of 14% leading to a
revenue of DKK 311 million compared to DKK 271 million in Q2 2023
driven by a strong market reception of the new true wireless earbuds.
The development during the quarter led to an overall revenue of DKK
922 million for the division, equal to revenue growth of 13%, with 1%
impact from the development in foreign exchange rates. In the first 6
months of the year, the organic revenue growth was 6%.
Gross profit
Gross profit reached DKK 226 million in Q2 2024 (DKK 186 million in
Gaming and DKK 40 million in Consumer) corresponding to a gross
margin of 24.5%, which includes DKK -60 million in inventory write-
downs in connection with Elite and Talk product lines. Excluding the
extraordinary write-downs, the gross margin ended at 31.0% compared
to 24.2% in Q2 2023 supported by group synergies.
Sales and distribution costs
Sales and distribution costs increased by 18% to DKK -203 million in
Q2 2024 compared to DKK -172 million in Q2 2023. The development
reflects continued channel investments and marketing activity in a
market which is anticipated to be recovering.
Divisional profit
The divisional profit ended at DKK 23 million, including DKK -60 million
in inventory write-downs. Excluding the extraordinary write-downs, the
divisional profit ended at DKK 83 million, corresponding to a divisional
profit margin of 9.0% compared to 3.1% in Q2 2023. In the first 6
months of the year, the divisional profit margin was 3.5% (Excluding
the extraordinary write-downs, the divisional profit margin was 6.9%).
Business highlights
In May, SteelSeries launched Arctis Nova 5 and the companion app,
which provides console gamers with an in-game audio advantage over
existing products on the market.
In June, GN launched the second generation of Elite 8 Active and Elite
10 true-wireless earbuds. Building upon the same great design and suc-
cess of their predecessors, these next-generation earbuds come with
enhancements that strengthen the audio experience. The launch marks
GN’s final product releases under the Elite series and will support re-
tailers in the gradual wind-down of the mentioned product lines.
Gaming & Consumer division
Content
Page 9/22
Interim Report Q2 2024
9/22
Revenue (DKKm)
Gross profit (DKKm)
Divisional
profit (DKKm)
814
922
Q2 2023
+12%
Organic
revenue growth
+1%
FX growth
0%
M&A growth Q2 2024
+13%
24.2%
Q2 2023
24.5%
Q2 2024
197
226
+0.3%p
3.1%
Q2 2023
2.5%
Q2 2024
25
23
-0.6%p
Interim Report Q2 2024
10/22
Teleconference
GN will host a teleconference at 11.00 am CET on August 22, 2024.
Please visit www.gn.com to access the teleconference. Presentation
material will be available on the website prior to the start of the tele-
conference.
Financial calendar 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 Q2 2024
11/22
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 20
Note 4 – Shareholdings 20
Content
Financial statements
11/22
Interim Report Q2 2024
Interim Report Q2 2024
12/22
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Income statement
Revenue
Hearing
1,719
1,653
1,808
1,737
1,792
6,802
Enterprise
1,861
1,838
1,997
1,751
1,785
7,463
Gaming & Consumer
814
952
1,264
815
922
3,855
Total
4,394
4,443
5,069
4,303
4,499
18,120
Organic growth
Hearing
15%
15%
7%
14%
10%
13%
Enterprise
-23%
-13%
-9%
0%
-3%
-13%
Gaming & Consumer
-4%
3%
6%
0%
12%
5%
Total
-8%
0%
0%
5%
5%
-1%
Gross profit
Hearing
1,039
1,019
1,039
1,089
1,131
4,076
Enterprise
986
976
1,056
963
977
3,901
Gaming & Consumer
197
229
363
223
226
968
Total
2,222
2,224
2,458
2,275
2,334
8,945
Gross profit margin
Hearing
60.4%
61.6%
57.5%
62.7%
63.1%
59.9%
Enterprise
53.0%
53.1%
52.9%
55.0%
54.7%
52.3%
Gaming & Consumer
24.2%
24.1%
28.7%
27.4%
24.5%
25.1%
Total
50.6%
50.1%
48.5%
52.9%
51.9%
49.4%
Divisional profit
Hearing
483
477
522
599
598
1,874
Enterprise
620
635
669
613
618
2,442
Gaming & Consumer
25
21
180
37
23
232
Total
1,128
1,133
1,371
1,249
1,239
4,548
Divisional margin
Hearing
28.1%
28.9%
28.9%
34.5%
33.4%
27.6%
Enterprise
33.3%
34.5%
33.5%
35.0%
34.6%
32.7%
Gaming & Consumer
3.1%
2.2%
14.2%
4.5%
2.5%
6.0%
Total
25.7%
25.5%
27.0%
29.0%
27.5%
25.1%
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Other Group information
Depreciation and software amortization
-113
-108
-221
-101
-99
-551
EBITDA
444
538
487
639
473
1,751
EBITA
331
430
266
538
374
1,200
Amortization and impairment of acquired intangible assets
-101
-99
-90
-91
-89
-392
Profit (loss)
43
227
39
266
112
266
Free cash flow excl. M&A
622
279
769
46
155
1,092
Acquisitions and divestments of companies
-
441
-
-35
-
405
Free cash flow
622
720
769
11
155
1,497
Quarterly reporting by segment
Interim Report Q2 2024
13/22
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Revenue
Production costs
-2,165
-2,172
-4,193
-4,345
-9,175
Gross profit
Development costs
-442
-370
-793
-737
-1,546
Selling and distribution costs
-1,095
-1,094
-2,121
-2,219
-4,397
Management and administrative expenses
-421
-428
-773
-804
-1,810
Other operating income and costs, net
-2
-10
EBITA*
Amortization and impairment of acquired intangible assets
-89
-101
-180
-203
-392
Gain (loss) on divestment of operations etc.
-1
Operating profit (loss)
Share of profit (loss) in associates
-46
-6
-47
-64
Financial items
-140
-129
-250
-254
-462
Profit (loss) before tax
Tax on profit (loss)
-32
-13
-109
-77
Profit (loss) for the period
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-22
Earnings per share (EPS):
Earnings per share (EPS)
-0.17
Earnings per share, fully diluted (EPS diluted)
-0.17
* 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.
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Profit (loss) for the period
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.
-54
-162
-216
Tax relating to other comprehensive income
-5
-3
-10
-3
-11
Other comprehensive income for the period
-43
-148
-180
Total comprehensive income for the period
-148
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-11
-170
Consolidated income
statement
Consolidated statement of
comprehensive income
Interim Report Q2 2024
14/22
Jun. 30 2024
Mar. 31 2024
Dec. 31 2023
Sep. 30 2023
Jun. 30 2023
DKK million
(unaud.)
(unaud.)
(aud.)
(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 Q2 2024
15/22
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Operating activities
Operating profit (loss)
Depreciation, amortization and impairment
Other non-cash adjustments
Cash flow from operating activities before changes in working capital
Changes in working capital
-68
-226
Cash flow from operating activities before financial items and tax
Financial items, net
-59
-70
-129
-179
-347
Tax paid, net
-56
-35
-142
-116
-175
Cash flow from operating activities
Investing activities
Development projects
-247
-248
-455
-497
-951
Investments in other intangible assets, net
-74
-90
-162
-204
-351
Investments in property, plant and equipment, net
-44
-45
-32
-113
Investments in other non-current assets, net
-19
-70
-145
-112
-131
Company acquisitions
-35
-36
-36
Company divestments
Cash flow from investing activities
-384
-408
-842
-881
-1,141
Cash flow from operating and investing activities (free cash flow)
Q2 2024
Q2 2023
YTD 2024
YTD 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Financing activities
Proceeds from share placement, net of costs
Paid dividends
-18
-32
-32
Share-based payment (exercised)
Increase/decrease in bank loans and other adjustments
-681
-2,855
-1,638
-2,538
-2,948
Cash flow from financing activities
-681
-232
-1,638
-312
Net cash flow
-526
-1,472
Cash and cash equivalents, beginning of period
Adjustment foreign currency, cash and cash equivalents
-4
-6
-10
-13
Cash attributable to the assets held for sale
-52
-52
Cash and cash equivalents, end of period
Consolidated statement of cash flows
Interim Report Q2 2024
16/22
Q2 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
Adjustment of cash flow hedges
Foreign exchange adjustments,
etc.
Tax relating to other comprehen-
sive income
-10
-10
-10
Other comprehensive income for
the period
Total comprehensive income for
the period
Share-based payment (granted)
Reclassification of non-control-
ling interests by
recognizing a put
option liability
-28
Balance at June 30, 2024
-866
-2,725
* shares of DKK 4 each
Q2 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
-22
-22
Adjustment of cash flow hedges
Foreign exchange adjustments,
etc.
-160
-160
-160
Tax relating to other comprehen-
sive income
-3
-3
-3
Other comprehensive income for
the period
-160
-146
-146
Total comprehensive income for
the period
-160
-22
-168
-146
Increase of share capital, net of
costs
Share-based payment (granted)
Share-based payment (exercised)
-6
Treasury shares placement, net of
costs
Reclassification of non-control-
ling interests by recognizing a put
option liability
-21
-21
Paid dividends
-32
-32
Balance at June 30, 2023
-1,006
-37
-2,813
* shares of DKK 4 each
Consolidated statement of changes in equity
Interim Report Q2 2024
17/22
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 Q2 2024
18/22
Note 2 – Segment disclosures Q2 2024
Income statement
Hearing
Enterprise
Gaming & Consumer
Consolidated total
Q2 2024
Q2 2023
Q2 2024
Q2 2023
Q2 2024
Q2 2023
Q2 2024
Q2 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
1,792
1,719
1,785
1,861
922
814
4,499
4,394
Production costs
-661
-680
-808
-875
-696
-617
-2,165
-2,172
Gross profit
1,131
1,039
977
986
226
197
2,334
2,222
Selling and distribution costs
-533
-556
-359
-366
-203
-172
-1,095
-1,094
Divisional profit
598
483
618
620
23
25
1,239
1,128
Development costs
-442
-370
Management and administrative expenses
-421
-428
Other operating income and costs, net
-2
1
EBITA*
374
331
Amortization and impairment of acquired in-
tangible assets
-89
-101
Gain (loss) on divestment of operations etc.
-1
1
Operating profit (loss)
284
231
Share of profit (loss) in associates
-
-46
Financial items
-140
-129
Profit (loss) before tax
144
56
Tax on profit (loss)
-32
-13
Profit (loss) for the period
112
43
Additional information
Hearing
Enterprise
Gaming & Consumer
Consolidated total
Q2 2024
Q2 2023
Q2 2024
Q2 2023
Q2 2024
Q2 2023
Q2 2024
Q2 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Europe
467
510
965
1,035
310
287
1,742
1,832
North America
918
819
410
451
443
382
1,771
1,652
Rest of World
407
390
410
375
169
145
986
910
Revenue
1,792
1,719
1,785
1,861
922
814
4,499
4,394
Revenue growth composition
Organic growth
10%
15%
-3%
-23%
12%
-4%
5%
-8%
FX growth
-2%
-3%
-1%
-1%
1%
-1%
-1%
-2%
M&A growth
-4%
0%
0%
0%
0%
0%
-2%
0%
Revenue growth
4%
12%
-4%
-24%
13%
-5%
2%
-10%
Incurred development costs
-478
-431
Capitalized development costs
267
248
Amortization, impairment and depreciation
of development projects**
-231
-187
Expensed development costs
-442
-370
EBITDA
473
444
Depreciation and software amortization
-99
-113
EBITA*
374
331
EBITA margin
8.3%
7.5%
Number of employees, end of period
7,162
7,483
* 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 Q2 2024
19/22
Note 2 – Segment disclosures YTD 2024
Income statement
Hearing
Enterprise
Gaming & Consumer
Consolidated total
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
3,529
3,341
3,536
3,628
1,737
1,639
8,802
8,608
Production costs
-1,309
-1,323
-1,596
-1,759
-1,288
-1,263
-4,193
-4,345
Gross profit
2,220
2,018
1,940
1,869
449
376
4,609
4,263
Selling and distribution costs
-1,023
-1,143
-709
-731
-389
-345
-2,121
-2,219
Divisional profit
1,197
875
1,231
1,138
60
31
2,488
2,044
Development costs
-793
-737
Management and administrative expenses
-773
-804
Other operating income and costs, net
-10
1
EBITA*
912
504
Amortization and impairment of acquired in-
tangible assets
-180
-203
Gain (loss) on divestment of operations etc.
11
-
Operating profit (loss)
743
301
Share of profit (loss) in associates
-6
-47
Financial items
-250
-254
Profit (loss) before tax
487
-
Tax on profit (loss)
-109
-
Profit (loss) for the period
378
-
Additional information
Hearing
Enterprise
Gaming & Consumer
Consolidated total
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
YTD 2024
YTD 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Europe
937
1,006
2,008
2,114
591
546
3,536
3,666
North America
1,811
1,581
758
792
815
779
3,384
3,152
Rest of World
781
754
770
722
331
314
1,882
1,790
Revenue
3,529
3,341
3,536
3,628
1,737
1,639
8,802
8,608
Revenue growth composition
Organic growth
12%
15%
-2%
-15%
6%
4%
5%
-1%
FX growth
-2%
0%
-1%
0%
0%
-1%
-1%
0%
M&A growth
-4%
2%
0%
0%
0%
0%
-2%
0%
Revenue growth
6%
17%
-3%
-15%
6%
3%
2%
-1%
Incurred development costs
-898
-895
Capitalized development costs
474
497
Amortization, impairment and depreciation
of development projects**
-369 -339
Expensed development costs
-793
-737
EBITDA
1,112
726
Depreciation and software amortization
-200
-222
EBITA*
912
504
EBITA margin
10.4%
5.9%
Number of employees, end of period
7,162
7,483
* 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 Q2 2024
20/22
Note 3 – Incentive plans
As of June 30, 2024, the total number of outstanding options in GN
Store Nord is 4,908,940 (3.3% of the shares issued in GN Store Nord).
Note 4 – Shareholdings
On June 30, 2024, members of the board of directors and the executive
management, respectively, own 70,123 and 44,254 shares in GN Store
Nord.
On June 30, 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 70%.
Interim Report Q2 2024
21/22
Executive Management
Board of
Directors
Interim Report Q2 2024
22/22
Co.reg. no 2425 7843