GN Store Nord A/S
Interim Report
Q3
2024
Interim Report Q3 2024
2/22
• The Hearing division continued to gain significant market share
leading to 10% organic revenue growth, while the divisional profit
margin increased by 5.9 percentage points to 34.8%
• The Enterprise division was negatively impacted by sell-in pres-
sure due to economic growth challenges in parts of Central Eu-
rope, while North America and Rest of World continued its stabili-
zation. Overall, organic revenue growth ended at -7%, while sell-
out growth was -3%. Despite the topline development, the com-
pany-wide synergies led to a divisional profit margin of 33.8%
• The Gaming & Consumer division executed strongly on the wind-
down of the Elite & Talk product lines, while SteelSeries was im-
pacted by a slightly declining market, and some quarterly fluctua-
tions including delays in certain order deliveries. The divisional
profit margin ended at 4.0% (including DKK -23 million in extraor-
dinary cost) reflecting significant promotional efforts to wind-
down product lines
• Group reported EBITA increased 29% to DKK 553 million, driven by
group-wide synergies of DKK ~115 million and strict cost focus, but
partly off-set by negative operating leverage in Enterprise, the signifi-
cant promotional efforts in Consumer and DKK -23 million in extraordi-
nary costs. This led to an EBITA margin of 13.3%, equal to a margin ex-
pansion of 3.6 percentage points
• Free cash flow excl. M&A ended at DKK 786 million (free cash flow incl.
M&A was DKK 892 million) driven by the solid earnings and a positive im-
pact from working capital. Net interest-bearing debt decreased to DKK
9.7 billion, equal to adj. leverage of 3.5x
• GN has throughout the year increased its earnings power and cash
flow generation, leading to an upgrade of the guidance on free
cash flow excl. M&A to “DKK >1,100 million” and a confirmation of
the EBITA margin guidance of “12 to 13%”. Following a somewhat
softer market development than earlier anticipated for Enterprise
and Gaming, GN adjusts its organic revenue growth guidance to
“1% to 2%”
Further margin expansion and strong cash
flow despite mixed growth across divisions
Financial overview Q3 2024
GN Store Nord
Hearing division
Enterprise division
Gaming & Consumer division
DKK million
Q3 2024
Q3 2023
Growth
Q3 2024
Q3 2023
Growth
Q3 2024
Q3 2023
Growth
Q3 2024
Q3 2023
Growth
Revenue
4,164
4,443
-6%
1,725
1,653
4%
1,680
1,838
-9%
759
952
-20%
Organic growth
-4%
0%
10%
15%
-7%
-13%
-20%
3%
Gross profit
2,283
2,224
3%
1,103
1,019
8%
927
976
-5%
253
229
10%
Gross profit margin
54.8%
50.1%
4.7%p
64.0%
61.6%
2.4%p
55.2%
53.1%
2.1%p
33.3%
24.1%
9.2%p
Divisional profit
1,198
1,133
6%
600
477
26%
568
635
-11%
30
21
43%
Divisional profit margin
28.8%
25.5%
3.3%p
34.8%
28.9%
5.9%p
33.8%
34.5%
-0.7%p
4.0%
2.2%
1.8%p
EBITA
553
430
29%
EBITA margin
13.3%
9.7%
3.6%p
Free cash flow excl. M&A
786
279
507
Interim Report Q3 2024
2/22
Organic growth
(0% excl. wind-down
products)
-4%
Reported EBITA
margin
13.3%
Free cash flow excl.
M&A (DKKm)
786
Interim Report Q3 2024
3/22
Interim Report Q3 2024
4/22
Continued successful group transfor-
mation led to increased profitability and
strong cash flow
Revenue
In Q3 2024, GN’s organic revenue growth ended at -4% (excluding the
Elite and Talk product lines the organic revenue growth was 0%). This
led to group revenue of DKK 4,164 million, equal to revenue growth of
-6%, with -1% impact from the development in foreign exchange rates
and -1% impact from M&A driven by retail disposals including
BelAudição. In the first 9 months of the year, the organic revenue
growth was 2% (excluding the Elite and Talk product lines the organic
revenue growth was 3%).
Gross profit
Gross profit ended at DKK 2,283 million in Q3 2024, corresponding to a
gross margin of 54.8% compared to 50.1% in Q3 2023. The strong im-
provement reflects group-wide synergies and positive business mix,
partly off-set by retail disposals including BelAudição and the signifi-
cant promotional effort to drive the wind-down of the Elite and Talk
product lines. In the first 9 months of the year, the gross profit was
DKK 6,892 million, equivalent to a gross margin of 53.2% (excluding
the extraordinary write-downs the gross margin was 53.6%).
Divisional profit
The divisional profit margin increased from 25.5% in Q3 2023 to 28.8%
in Q3 2024 supported by group synergies, despite the negative revenue
growth. In the first 9 months of the year, the divisional profit was DKK
3,686 million, equivalent to a divisional profit margin of 28.4%
(excluding the extraordinary write-downs the divisional profit margin
was 29.1%).
Development costs
Development costs ended at DKK -343 million compared to DKK -335
million in Q3 2023, reflecting an increase of 2%. The increase reflects
ongoing investments in customer-centric innovation and in driving syn-
ergies across the R&D organization.
Management and administration costs
Management and administration costs decreased by 18% compared to
Q3 2023 and ended at DKK -303 million. The development reflects cost
control across the company to counter the negative revenue develop-
ment and as well as early benefit of One-GN synergies.
EBITA
Group EBITA grew 29% to DKK 553 million compared to DKK 430 mil-
lion in Q3 2023, driven by group-wide synergies of DKK ~115 million
and good cost control, but partly off-set by negative operating lever-
age in Enterprise, the significant promotional efforts in Consumer and
DKK -23 million in extraordinary costs. The EBITA margin ended at
13.3% compared to 9.7% in Q3 2023. In the first 9 months of the year,
the EBITA was DKK 1,465 million, equivalent to an EBITA margin of
11.3% (excluding the extraordinary write-downs the EBITA margin was
12.7%).
Other financial highlights
Amortization of acquired intangible assets amounted to DKK -94 mil-
lion compared to DKK -99 million in Q3 2023. Financial items were DKK
-145 million in the quarter compared to DKK -91 million in Q3 2023,
which was a result of the refinancing of the convertible bond. Gain
(loss) on disposals were DKK 57 million in the quarter driven by the di-
vestment of Dansk HøreCenter.
GN Store Nord
Interim Report Q3 2024
Revenue (DKKm)
Gross profit (DKKm)
and gross margin (%)
Divisional
profit (DKKm) and divisional profit margin (%)
952
759
1,653
1,725
1,838
1,680
Q3 2023
Q3 2024
4,443
4,164
-4%
Organic growth
Enterprise division Hearing division Gaming & Consumer division
-20%
+10%
-7%
976 (53.1%)
1,019
(61.6%)
229 (24.1%)
Q3 2023
927 (55. 2%)
1,103 (64.0%)
253 (33.4%)
Q3 2024
2,224 (50. 1%)
2,283 (54.8%)
Enterprise division Hearing division Gaming & Consumer division
635 (
34.5%)
477 (28.9%)
21 (2.2%)
Q3 2023
568 (33.8%)
600 (34.8%)
30 (4.0%)
Q3 2024
1,133 (25.5%)
1,198 (28.8%)
Enterprise division Hearing division Gaming & Consumer division
4/22
Interim Report Q3 2024
5/22
Profit before tax was DKK 371 million with the effective tax rate at
22.1%, leading to a net profit of DKK 289 million.
Cash flow development
GN Store Nord’s operational free cash flow ended at DKK 729 million
in Q3 2024. The change in net working capital benefitted by DKK 395
million reflecting a decrease in trade receivables, which was supported
by the positive one-off impact from the wind-down of the Elite and
Talk product lines. Investment activities excl. M&A ended at DKK -220
million, which was somewhat lower than in Q3 2023 driven by timing
of product launches. Consequently, free cash flow excl. M&A ended at
DKK 786 million, representing the strongest third quarter cash flow
ever in the history of the company. The disposal of the Danish hearing
aid retailer, Dansk HøreCenter, contributed with an additional DKK 106
million, leading to a free cash flow of DKK 892 million in the quarter. In
the first 9 months of the year, free cash flow excl. M&A was DKK 987
million.
Capital structure
Due to the strong cost focus and realization of company-wide syner-
gies, the net interest-bearing debt decreased by DKK 850 million from
Q2 2024 and ended at DKK 9,698 million corresponding to an adj. lev-
erage of 3.5x (reported leverage of 4.3x). By Q3 2024, GN had cash and
cash equivalents of DKK 1,100 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
To set the company up for success, the governance structure was sim-
plified in 2023. As part of this process, GN identified company-wide
synergies which supports and accelerates the margin improvement
across the Group. The company 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 Q3 2024, synergies worth of DKK ~115 million were realized as a re-
sult of the organizational changes executed last year, as well as lever-
aging both structural and operational synergies within sourcing, manu-
facturing, and distribution. In the first 9 months of the year, GN has re-
alized slightly more than DKK 300 million in synergies, which brings us
well on track to deliver on our synergy targets.
As presented at the Capital Markets Day in May 2024, GN has taken
steps to drive agility and scale into GN’s manufacturing and supply
chain setup. This is being executed to make sure that the company can
deliver on the recent strong hearing aid growth and capture benefits of
working closer as a company. At the same time these changes serve to
diversify the manufacturing footprint to ensure required flexibility in a
world with more geopolitical uncertainty. These steps will be further
accelerated in 2025.
Management quote
”As a result of the continued execution of our transformation to unfold
the full value of GN’s potential, we significantly increased our margins
and generated strong cash flow of DKK 800 million. Our Hearing divi-
sion continued to perform very well with market share gains and solid
growth. Our Enterprise division faced headwinds from challenged mar-
kets in major European countries, while the U.S. and Rest of World saw
recovering enterprise markets. Our Gaming business had a difficult quar-
ter, but we remain confident that the business will be back in growth
mode in Q4. Overall, I am pleased with the progress we are making with
creating a stronger GN and preparing us for future growth.“
Peter Karlstromer, CEO of GN Store Nord
Interim Report Q3 2024
EBITA (DKKm)
Net interest
-bearing debt (DKKm)
Free cash flow (DKKm)
5/22
65
81
9.7%
Q3 2023 Non-recurring
items
11.1%
Q3 2023 (adj.) Underlying
development
13.8%
Q3 2024 excl.
extraordinary
costs
-23
Extraordinary
costs related
to wind-down
13.3 %
Q3 2024
(reported)
430
495
576
553
Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024
11,333
10,567
10,584
10,548
9,698
Net interest-bearing debt (DKKm) Adj. leverage
4.9x
4.5
x 4.0x 3.9x 3.5x
729
786
395
Cash flow
from
operating
activities
Changes
in working
capital
-220
Cash flow
from investing
activities excl.
M&A
-34
Tax payments
-84
Financial
items
FCF excl. M&A
Interim Report Q3 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
volume growth and -1% to -2% market ASP decline.
Driven by the strong continued momentum and market share gains
with ReSound Nexia, GN expects the Hearing division to trend towards
the upper half of the original organic growth assumption of 8% to 12%.
As a function of the strong growth, the Hearing division is projecting an
EBITA margin in the core hearing aid business of around 20% for 2024.
Enterprise division
The market stabilization observed in the first half of 2024 has contin-
ued into H2 2024 in North America and Rest of World. However, parts
of Central Europe have experienced some sell-in pressure due to eco-
nomic growth challenges. As a result of this, the Enterprise division is
currently assuming an overall organic revenue growth of around -3%
for 2024 compared to the original assumption of -3% to +5%. The long-
term attractiveness of the market is fully intact, why it is currently the
planning assumption that the addressable Enterprise market will con-
tinue to improve in 2025, which is supported by the current trend in
sell-out data.
Gaming & Consumer division
Following 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 com-
pared to 2023, as well as an assumption that Gaming is currently
trending towards the middle of the original +2% to +10% organic
growth assumption due to some recent market softness. As a result 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 ma-
jority 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.
Financial guidance updated on November 6, 2024
organic revenue
growth
1% to 2%
12
%
to 13%
EBITA
margin
>1,100
Free cash flow
excl. M&
A (DKKm)
GN Store Nord
Interim Report Q3 2024
7/22
ReSound Nexia drove significant market
share gains, leading to 10% organic rev-
enue 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 the Re-
Sound Nexia family. In Q3 2024, the global hearing aid market is esti-
mated to have grown at the low end of the historical value growth
rates driven by a continued robust U.S. market, while the European and
Rest of World (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 independ-
ent market in North America, Italy, Germany and ANZ. The organic
growth was also supported by continued strong growth in the OTC
business, JabraEnhance.com. The performance in the quarter led to
overall revenue of DKK 1,725 million, equal to 4% revenue growth, due
to -1% impact from the development in foreign exchange rates and
-5% impact from M&A driven by the disposal of BelAudição, Beltone
corporate retail and Dansk HøreCenter. In the first 9 months of the
year, the organic revenue growth was 11%.
Gross profit
Gross profit reached DKK 1,103 million, translating into a gross margin
of 64.0%, which is more than 2 percentage points higher than the gross
margin in Q3 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 7% to DKK -503 million in Q3
2024 compared to DKK -542 million in Q3 2023, which was primarily
driven by retail disposals including BelAudição.
Divisional profit
Divisional profit ended at DKK 600 million, which was 26% higher than
in Q3 2023. This was driven by the strong topline growth, the gross
margin expansion, and well controlled sales and distribution costs. As a
result, the divisional profit margin increased by almost 6 percentage
points compared to Q3 2023. In the first 9 months of the year, the divi-
sional profit margin was 34.2%.
EBITA margin
The EBITA margin in the core hearing aid business ended at 21.3% us-
ing 2023 cost allocation methodology on group development costs
and general and administrative costs compared to 16.4% in Q3 2023.
In the first 9 months of the year, the EBITA margin in the core business
was 19.7%.
Business highlights
In September, GN closed 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 Q3 2024
7/22
Revenue (DKKm)
Gross profit (DKKm)
Divisional
profit (DKKm)
1,653
1,725
Q3 2023
+10%
Organic
revenue growth
-1%
FX growth
-5%
M&A growth Q3 2024
+4%
61
.6%
Q3 2023
64.0%
Q3 2024
1,019
1,103
+2.4%p
28.9%
Q3 2023
34.8%
Q3 2024
477
600
+5.9%p
Interim Report Q3 2024
8/22
Company transformation supports divi-
sional profit margin of 34%. Pressure on
revenue due to economic growth chal-
lenges in parts of Central Europe.
Revenue
In Q3 2024, the Enterprise division delivered organic revenue growth of
-7%, driven by sell-in pressure due to economic growth challenges in
parts of Central Europe, while North America and Rest of World deliv-
ered flat growth. While the organic revenue growth was -7%, the sell-
out growth was -3%, reflecting a continued healing and stabilizing end-
market.
The sell-in organic revenue growth is a combination of positive growth
in video, negative growth in headsets, and a significantly negative
growth in the speakerphone category in line with recent quarters. In
terms of sell-out growth, the headset category was flat in the quarter.
The development in the quarter led to an overall revenue of DKK 1,680
million, equal to revenue growth of -9%, due to -2% impact from for-
eign exchange effects. In the first 9 months of the year, the organic
revenue growth was -4%. Excluding the speakerphone category, the
Enterprise division delivered flat organic revenue growth for the first 9
months of the year.
The long-term attractiveness of the enterprise market is fully intact
driven by hybrid working and the continued upgrade of collaboration
tools to make the experience seamless and more efficient. It is cur-
rently the planning assumption that the addressable Enterprise market
will continue to improve in 2025, which is supported by the current
trend in sell-out data as well as a more normalized comparison base for
the speakerphone category.
Gross profit
Gross profit ended at DKK 927 million, translating into a gross margin
of 55.2%, reflecting a 2.1 percentage points improvement compared to
Q3 2023 supported by group synergies. In the first 9 months of the
year, the gross margin was 55.0%.
Sales and distribution costs
Sales and distribution costs ended at DKK -359 million in Q3 2024
compared to DKK -341 million in Q3 2023. The development reflects a
very strong cost focus, while executing certain channel investments
under the assumption of a slowly recovering enterprise market.
Divisional profit
Divisional profit ended at DKK 568 million compared to DKK 635 mil-
lion in Q3 2023 primarily as a result of the topline development. As a
consequence of the negative operating leverage, the divisional profit
margin decreased by 0.7 percentage points. In the first 9 months of the
year, the divisional profit margin was 34.5%.
Business highlights
During the quarter, GN released new versions of the Jabra Evolve 65,
and several Jabra Engage headsets, making them compatible with the
EU regulation around batteries and repairability. Moreover, software
upgrades to the Jabra PanaCast 50 VBS were released. This included a
new dynamic composition and audio experience.
Enterprise division
Interim Report Q3 2024
8/22
Revenue (DKKm)
Gross profit (DKKm)
Divisional
profit (DKKm)
1,838
1,680
Q3 2023
-7%
Organic
revenue growth
-2%
FX growth
0%
M&A growth Q3 2024
-9%
53.1%
Q3 2023
55.2%
Q3 2024
976
927
+2.1%p
34.5%
Q3 2023
33.8%
Q3 2024
635
568
-0.7%p
Interim Report Q3 2024
9/22
Important gaming innovation launched
boding well for Q4. Wind-down pro-
gressing according to plan.
Revenue
The Gaming & Consumer division delivered organic revenue growth of
-20% following strong execution in Consumer controlling the wind-
down and a slightly declining gaming equipment market. The develop-
ment during the quarter led to an overall revenue of DKK 759 million
for the division, equal to an organic revenue growth of -20%. In the
first 9 months of the year, the organic revenue growth was -4%.
The gaming business delivered organic revenue growth of -4% leading
to a revenue of DKK 595 million compared to DKK 623 million in Q3
2023, reflecting a slightly declining market, and some quarterly fluctu-
ations including delays in certain order deliveries. The consumer busi-
ness delivered revenue of DKK 164 million, reflecting an organic reve-
nue growth of -50% due to the wind-down.
Gross profit
Gross profit reached DKK 253 million in Q3 2024 (DKK 224 million in
Gaming and DKK 29 million in Consumer) corresponding to a gross
margin of 33.3% compared to 24.1% in Q3 2023 supported by group
synergies, but off-set by significant promotional activities in Consumer
to support the ongoing wind-down. Moreover, the gross profit in gam-
ing was supported by a release of earlier recognized provisions in rela-
tion to the ongoing changes in the supply chain integration.
Sales and distribution costs
Sales and distribution costs ended at DKK -223 million in Q3 2024 (in-
cluding DKK -23 million in extraordinary wind-down costs) compared
to DKK -208 million in Q3 2023, reflecting continued channel invest-
ments and marketing activity going into the fourth quarter of the year.
Divisional profit
The divisional profit ended at DKK 30 million, including DKK -23 million
in extraordinary wind-down costs. This translated into a divisional
profit margin of 4.0% compared to 2.2% in Q3 2023. In the first 9
months of the year, the divisional profit margin was 3.6% (excluding
the extraordinary write-downs, the divisional profit margin was 6.9%).
Business highlights
In September, SteelSeries launched the new Apex Pro Gen 3 series of
keyboard. Building on the legacy as the world’s fastest gaming key-
boards, the Apex Pro Gen 3 models further evolve SteelSeries’ unparal-
leled intelligence, speed, and durability. Equipped with cutting-edge
technology, the Apex Pro Gen 3 series provides gamers with an unri-
valed gaming experience.
Furthermore, also in September, SteelSeries launched a new bench-
mark for earbuds with the introduction of Arctis Gamebuds. Utilizing
GN earbud know-how with over 62,000 ear scans helped build the per-
fect design, with multiple silicone tips included for a secure fit and
maximum comfort. SteelSeries brings Arctis audio heritage and signa-
ture sound to a compact form factor through a chipset that creates a
true low latency gaming audio experience, augmented by the recently
launched app where gamers can select an optimized sound profile to
the game played.
Gaming & Consumer division
Content
Page 9/22
Interim Report Q3 2024
9/22
Revenue (DKKm)
Gross profit (DKKm)
Divisional
profit (DKKm)
952
759
Q3 2023
-20%
Organic
revenue growth
0%
FX growth
0%
M&A growth Q3 2024
-20%
24.1%
Q3 2023
33.3%
Q3 2024
229
253
+9.2%p
2.2%
Q3 2023
4.0%
Q3 2024
21
30
+1.8%p
Interim Report Q3 2024
10/22
Teleconference
GN will host a teleconference at 11.00 am CET on November 7, 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 2025
Annual Report 2024: February 6, 2025
Annual General Meeting* March 12, 2025
Interim Report Q1 2025: May 1, 2025
Interim Report Q2 2025: August 21, 2025
Interim Report Q3 2025: November 6, 2025
* Proposals to the agenda for the GN Store Nord Annual General Meet-
ing must be submitted no later than six weeks before the meeting (i.e.
January 28, 2025)
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. 24257843
Additional information
Interim Report Q3 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 Q3 2024 18
Note 2 – Segment disclosures YTD 2024 19
Note 3 – Incentive plans 20
Note 4 – Shareholdings 20
Note 5 – Divestment of companies 20
Content
Financial statements
11/22
Interim Report Q3 2024
Interim Report Q3 2024
12/22
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Income statement
Revenue
Hearing
1,653
1,808
1,737
1,792
1,725
6,802
Enterprise
1,838
1,997
1,751
1,785
1,680
7,463
Gaming & Consumer
952
1,264
815
922
759
3,855
Total
4,443
5,069
4,303
4,499
4,164
18,120
Organic growth
Hearing
15%
7%
14%
10%
10%
13%
Enterprise
-13%
-9%
0%
-3%
-7%
-13%
Gaming & Consumer
3%
6%
0%
12%
-20%
5%
Total
0%
0%
5%
5%
-4%
-1%
Gross profit
Hearing
1,019
1,039
1,089
1,131
1,103
4,076
Enterprise
976
1,056
963
977
927
3,901
Gaming & Consumer
229
363
223
226
253
968
Total
2,224
2,458
2,275
2,334
2,283
8,945
Gross profit margin
Hearing
61.6%
57.5%
62.7%
63.1%
64.0%
59.9%
Enterprise
53.1%
52.9%
55.0%
54.7%
55.2%
52.3%
Gaming & Consumer
24.1%
28.7%
27.4%
24.5%
33.3%
25.1%
Total
50.1%
48.5%
52.9%
51.9%
54.8%
49.4%
Divisional profit
Hearing
477
522
599
598
600
1,874
Enterprise
635
669
613
618
568
2,442
Gaming & Consumer
21
180
37
23
30
232
Total
1,133
1,371
1,249
1,239
1,198
4,548
Divisional margin
Hearing
28.9%
28.9%
34.5%
33.4%
34.8%
27.6%
Enterprise
34.5%
33.5%
35.0%
34.6%
33.8%
32.7%
Gaming & Consumer
2.2%
14.2%
4.5%
2.5%
4.0%
6.0%
Total
25.5%
27.0%
29.0%
27.5%
28.8%
25.1%
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Other Group information
Depreciation and software amortization
-108
-221
-101
-99
-96
-551
EBITDA
538
487
639
473
649
1,751
EBITA
430
266
538
374
553
1,200
Amortization and impairment of acquired intangible assets
-99
-90
-91
-89
-94
-392
Profit (loss)
227
39
266
112
289
266
Free cash flow excl. M&A
279
769
46
155
786
1,092
Acquisitions and divestments of companies
441
-
-35
-
106
405
Free cash flow
720
769
11
155
892
1,497
Quarterly reporting by segment
Interim Report Q3 2024
13/22
Q3 2024
Q3 2023
YTD 2024
YTD 2023
Full Year
2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Revenue
Production costs
-1,881
-2,219
-6,074
-6,564
-9,175
Gross profit
Development costs
-343
-335
-1,136
-1,072
-1,546
Selling and distribution costs
-1,085
-1,091
-3,206
-3,310
-4,397
Management and administrative expenses
-303
-368
-1,076
-1,172
-1,810
Other operating income and costs, net
-9
EBITA*
Amortization and impairment of acquired intangible assets
-94
-99
-274
-302
-392
Gain (loss) on divestment of operations etc.
Operating profit (loss)
Share of profit (loss) in associates
-5
-6
-52
-64
Financial items
-145
-91
-395
-345
-462
Profit (loss) before tax
Tax on profit (loss)
-82
-68
-191
-68
-77
Profit (loss) for the period
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
Earnings per share (EPS):
Earnings per share (EPS)
Earnings per share, fully diluted (EPS diluted)
* 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.
Q3 2024
Q3 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
-25
Foreign exchange adjustments, etc.
-288
-92
-34
-216
Tax relating to other comprehensive income
-10
-13
-11
Other comprehensive income for the period
-303
-92
-180
Total comprehensive income for the period
-14
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-32
Consolidated income
statement
Consolidated statement of
comprehensive income
Interim Report Q3 2024
14/22
Sep. 30 2024
Jun. 30 2024
Mar. 31 2024
Dec. 31 2023
Sep. 30 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(aud.)
(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
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
Total equity and liabilities
Consolidated balance sheet
Interim Report Q3 2024
15/22
Q3 2024
Q3 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
-102
-33
-78
Cash flow from operating activities before changes in working capital
Changes in working capital
Cash flow from operating activities before financial items and tax
Financial items, net
-84
-112
-213
-291
-347
Tax paid, net
-34
-31
-176
-147
-175
Cash flow from operating activities
Investing activities
Development projects
-128
-246
-583
-743
-951
Investments in other intangible assets, net
-54
-55
-216
-259
-351
Investments in property, plant and equipment, net
-11
-21
-56
-53
-113
Investments in other non-current assets, net
-27
-11
-172
-123
-131
Company acquisitions
-35
-36
-36
Company divestments
Cash flow from investing activities
-114
-956
-773
-1,141
Cash flow from operating and investing activities (free cash flow)
Q3 2024
Q3 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
-32
-32
Share-based payment (exercised)
Increase/decrease in bank loans and other adjustments
-480
-98
-2,118
-2,636
-2,948
Cash flow from financing activities
-480
-60
-2,118
-312
Net cash flow
-1,060
Cash and cash equivalents, beginning of period
Adjustment foreign currency, cash and cash equivalents
-6
-2
-4
-13
Cash attributable to the assets held for sale
Cash and cash equivalents, end of period
Consolidated statement of cash flows
Interim Report Q3 2024
16/22
Q3 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
Foreign exchange adjustments,
etc.
-92
-92
-92
Other comprehensive income for
the period
-92
-92
-92
Total comprehensive income for
the period
-92
Share-based payment (granted)
Reclassification of non-control-
ling interests by recognizing a put
option liability
-46
Balance at September 30, 2024
-1,154
-11
-2,725
* shares of DKK 4 each
Q3 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
Adjustment of cash flow hedges
Foreign exchange adjustments,
etc.
-34
-34
-34
Tax relating to other comprehen-
sive income
-13
-13
-13
Other comprehensive income for
the period
-34
Total comprehensive income for
the period
-34
Increase of share capital, net of
costs
Share-based payment (granted)
Share-based payment (exercised)
-57
Treasury shares placement, net of
costs
Reclassification of non-control-
ling interests by recognizing a put
option liability
-4
Paid dividends
-32
-32
Balance at September 30, 2023
-880
-2
-2,741
* shares of DKK 4 each
Consolidated statement of changes in equity
Interim Report Q3 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 occur
on the following three divisions:
• Hearing;
• Enterprise; and
• Gaming & Consumer
Prior to January 1, 2024, GN Hearing and GN Audio were the reportable
segments in the Group. The comparative segment results have been re-
stated for comparison purposes as required by IFRS 8 Operating Seg-
ments. Segment performance is now evaluated on Divisional profit. Di-
visional profit is calculated as gross profit less selling and distribution
costs.
Interim Report Q3 2024
18/22
Note 2 – Segment disclosures Q3 2024
Income statement
Hearing
Enterprise
Gaming & Consumer
Consolidated total
Q3 2024
Q3 2023
Q3 2024
Q3 2023
Q3 2024
Q3 2023
Q3 2024
Q3 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
1,725
1,653
1,680
1,838
759
952
4,164
4,443
Production costs
-622
-634
-753
-862
-506
-723
-1,881
-2,219
Gross profit
1,103
1,019
927
976
253
229
2,283
2,224
Selling and distribution costs
-503
-542
-359
-341
-223
-208
-1,085
-1,091
Divisional profit
600
477
568
635
30
21
1,198
1,133
Development costs
-343
-335
Management and administrative expenses
-303
-368
Other operating income and costs, net
1
-
EBITA*
553
430
Amortization and impairment of acquired in-
tangible assets
-94
-99
Gain (loss) on divestment of operations etc.
57
60
Operating profit (loss)
516
391
Share of profit (loss) in associates
-
-5
Financial items
-145
-91
Profit (loss) before tax
371
295
Tax on profit (loss)
-82
-68
Profit (loss) for the period
289
227
Additional information
Hearing
Enterprise
Gaming & Consumer
Consolidated total
Q3 2024
Q3 2023
Q3 2024
Q3 2023
Q3 2024
Q3 2023
Q3 2024
Q3 2023
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Europe
425
430
812
968
281
344
1,518
1,742
North America
904
830
447
427
379
415
1,730
1,672
Rest of World
396
393
421
443
99
193
916
1,029
Revenue
1,725
1,653
1,680
1,838
759
952
4,164
4,443
Revenue growth composition
Organic growth
10%
15%
-7%
-13%
-20%
3%
-4%
0%
FX growth
-1%
-7%
-2%
-2%
0%
-5%
-1%
-4%
M&A growth
-5%
-2%
0%
0%
0%
0%
-1%
-1%
Revenue growth
4%
6%
-9%
-15%
-20%
-2%
-6%
-5%
Incurred development costs
-340
-433
Capitalized development costs
128
247
Amortization, impairment and depreciation
of development projects**
-131 -149
Expensed development costs
-343
-335
EBITDA
649
538
Depreciation and software amortization
-96
-108
EBITA*
553
430
EBITA margin
13.3%
9.7%
Number of employees, end of period
7,281
7,218
* 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.
** Does not include amortization of acquired intangible assets, cf. definition of EBITA
Interim Report Q3 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
5,254
4,994
5,216
5,466
2,496
2,591
12,966
13,051
Production costs
-1,931
-1,957
-2,349
-2,621
-1,794
-1,986
-6,074
-6,564
Gross profit
3,323
3,037
2,867
2,845
702
605
6,892
6,487
Selling and distribution costs
-1,526
-1,685
-1,068
-1,072
-612
-553
-3,206
-3,310
Divisional profit
1,797
1,352
1,799
1,773
90
52
3,686
3,177
Development costs
-1,136
-1,072
Management and administrative expenses
-1,076
-1,172
Other operating income and costs, net
-9
1
EBITA*
1,465
934
Amortization and impairment of acquired in-
tangible assets
-274
-302
Gain (loss) on divestment of operations etc.
68
60
Operating profit (loss)
1,259
692
Share of profit (loss) in associates
-6
-52
Financial items
-395
-345
Profit (loss) before tax
858
295
Tax on profit (loss)
-191
-68
Profit (loss) for the period
667
227
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
1,362
1,436
2,820
3,082
872
890
5,054
5,408
North America
2,715
2,411
1,205
1,219
1,194
1,194
5,114
4,824
Rest of World
1,177
1,147
1,191
1,165
430
507
2,798
2,819
Revenue
5,254
4,994
5,216
5,466
2,496
2,591
12,966
13,051
Revenue growth composition
Organic growth
11%
15%
-4%
-14%
-4%
4%
2%
-1%
FX growth
-1%
-2%
-1%
-1%
0%
-3%
-1%
-2%
M&A growth
-5%
0%
0%
0%
0%
0%
-2%
0%
Revenue growth
5%
13%
-5%
-15%
-4%
1%
-1%
-3%
Incurred development costs
-1,219
-1,328
Capitalized development costs
583
743
Amortization, impairment and depreciation
of development projects**
-500 -487
Expensed development costs
-1,136
-1,072
EBITDA
1,761
1,264
Depreciation and software amortization
-296
-330
EBITA*
1,465
934
EBITA margin
11.3%
7.2%
Number of employees, end of period
7,281
7,218
* 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 Q3 2024
20/22
Note 3 – Incentive plans
As of September 30, 2024, the total number of outstanding options in
GN Store Nord is 4,903,561 (3.2% of the shares issued in GN Store Nord).
Note 4 – Shareholdings
On September 30, 2024, members of the board of directors and the ex-
ecutive management, respectively, own 71,623 and 70,004 shares in GN
Store Nord.
On September 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%.
Note 5 – Divestment of companies
GN has entered into an agreement to divest Dansk HøreCenter (DHC) to
Demant. DHC was acquired by GN’s Hearing division in 2013 in connec-
tion with a generational transition and is a well-reputed hearing aid re-
tail chain operating 36 stores across Denmark. In 2023, DHC’s retail rev-
enue accounted for approximately 1% of the Hearing division’s revenue,
while the wholesale value for GN was insignificant.
The transaction was completed on September 2, 2024, and demon-
strates GN’s commitment to its successful strategy of not owning retail
and focus on being a key partner to strong independent hearing aid dis-
pensers. In line with this, GN has over the past couple of years divested
the vast majority of its retail stores to focus its investments on syner-
getic assets that are accretive to growth and margins.
DKK million
Non-current assets
-46
Current assets
-24
Current liabilities
14
Non-current liabilities
6
Disposed net assets
-50
Cash consideration received
110
Directly attributable costs
-3
Net proceeds
107
Gain on divestment (pre-tax)
57
Interim Report Q3 2024
21/22
Executive Management
Board of Directors
Interim Report Q3 2024
22/22
Co.reg. no 2425 7843