GN Store Nord A/S
Interim Report
Q1 2025
Interim Report Q1 2025
2/21
Growth challenged by market uncertainty – proactive
cost mitigation initiated to support long-term margins
Financial overview Q1 2025
GN Store Nord
Hearing division
Enterprise division
Gaming division
Gaming
Consumer
DKK million
Q1 2025
Q1 2024
Growth
Q1 2025
Q1 2024
Growth
Q1 2025
Q1 2024
Growth
Q1 2025
Q1 2024
Growth
Q1 2025
Q1 2024
Growth
Revenue
3,986
4,303
-7%
1,703
1,737
-2%
1,666
1,811
-8%
620
551
13%
-3
204
-101%
Organic growth
-3%*
5%
-1%
14%
-9%
-1%
11%
3%
-101%
-3%
Gross profit
2,190
2,275
-4%
1,032
1,089
-5%
931
992
-6%
222
137
62%
5
57
NA
Gross profit margin
54.9%
52.9%
2.0%p
60.6%
62.7%
-2.1%p
55.9%
54.8%
1.1%p
35.8%
24.9%
10.9%p
NA
27.9%
NA
Divisional profit
1,096
1,249
-12%
484
599
-19%
548
638
-14%
80
-16
Divisional profit margin
27.5%
29.0%
-1.5%p
28.4%
34.5%
-6.1%p
32.9%
35.2%
-2.3%p
12.9%
NA
EBITA
300
538
-44%
EBITA margin
7.5%
12.5%
-5.0%p
Free cash flow excl. M&A
-395
46
-441
Interim Report Q1 2025
Group reported EBITA ended at DKK 300 million (EBITA margin of 8%), reflecting
the negative operating leverage.
Free cash flow excl. M&A ended at DKK -395 million driven by strong cost focus, but
off-set by traditional seasonality on working capital, higher interest payments and
timing of corporate tax payment. Net interest-bearing debt ended at DKK 10.1 bil-
lion, equal an adj. leverage of 4.1x.
The direct impact from the recent escalation of tariffs was limited in the quarter.
However, in order to protect future profits, significant actions are being executed: 1)
Acceleration of diversification of manufacturing footprint, 2) U.S. price increases for
Enterprise and Gaming and 3) Group-wide cost and cash initiatives.
As a consequence of the direct and indirect tariff impact, group financial guidance is
adjusted. GN now expects group organic revenue growth of -3% to +3%, an EBITA
margin of 11% to 13%, and an unchanged free cash flow excl. M&A guidance of DKK
~800 million.
The Hearing division delivered -1% organic revenue growth driven by a strong ini-
tial uptake of ReSound Vivia, but off-set by a challenged U.S. market as well as some
slowdown of existing products in anticipation of ReSound Vivia. The strong uptake
of ReSound Vivia has continued into April, lending support for expected market
share gains. As a consequence of the launch initiatives and the challenged U.S. mar-
ket, the divisional profit margin ended at 28.4%.
The Enterprise division was challenged in the quarter with -9% organic revenue
growth due to a demanding comparison base from several large deals in Q1 2024
and the current global macroeconomic uncertainty. The sell-out growth was
stronger at -5%. As a result of strong pricing discipline and cost focus, the divisional
profit margin ended at 32.9%.
The Gaming division experienced 11% organic revenue growth excluding the wind-
down of the Talk and Elite product lines in a challenged gaming gear market – espe-
cially in the U.S. due to the sharp decline in consumer sentiment in the second half of
the quarter. The divisional profit margin (excluding wind-down effects) ended at
12.9% supported by strong pricing discipline as well as one-company supply chain
benefits.
2/21
* Excluding wind-down effect. Reported organic revenue growth of -8%
Free cash flow
excl. M&A (DKKm)
-395
Reported EBITA mar-
gin
8%
Organic growth
excl. wind-down
(-8% reported)
-3%
%
Interim Report Q1 2025
3/21
Q1
Q1
Full year
2025
2024
2024
DKK million
(unaud.)
(unaud.)
(aud.)
GN Store Nord
Revenue
3,986
4,303
17,985
Revenue growth
-7%
2%
-1%
Organic growth
-8%
5%
1%
Gross profit margin
54.9%
52.9%
53.2%
EBITA*
300
538
2,153
EBITA margin*
7.5%
12.5%
12.0%
Profit (loss) before tax
114
343
1,361
Effective tax rate
22.2%
22.4%
22.2%
EBITDA
395
639
2,541
ROIC (EBITA*/Average invested capital)
9%
7%
10%
Earnings per share, basic (EPS)
0.49
1.74
6.79
Earnings per share, fully diluted (EPS diluted)
0.49
1.74
6.78
Free cash flow excl. M&A
-395
46
1,081
Cash conversion (Free cash flow excl. M&A/EBITA*)
-132%
9%
50%
Equity ratio
35.9%
33.9%
35.4%
Net interest-bearing debt**
10,145
10,584
9,699
Net interest-bearing debt (period-end)/EBITDA**
4.4
5.2
3.8
Outstanding shares, end of period (thousand)
145,613
145,613
145,613
Average number of outstanding shares (thousand)
145,613
145,613
145,613
Average number of outstanding shares, fully diluted (thousand)
145,613
145,660
145,712
Treasury shares, end of period (thousand)
5,300
5,300
5,300
Share price at the end of the period
107.1
182.6
133.8
Market capitalization
15,588
26,589
19,476
Number of employees, end of period
7,304
7,047
7,347
ROIC and NIBD/EBITDA are calculated based on EBITA and EBITDA for the latest four quarters
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amortization of
development projects and software developed in-house.
** NIBD including Loans to dispensers
Q1
Q1
Full year
2025
2024
2024
DKK million
(unaud.)
(unaud.)
(aud.)
Hearing division
Revenue
1,703
1,737
7,104
Revenue growth
-2%
7%
4%
Organic growth
-1%
14%
10%
Gross profit margin
60.6%
62.7%
62.8%
Divisional profit
484
599
2,464
Divisional margin
28.4%
34.5%
34.7%
Enterprise division
Revenue
1,666
1,811
7,474
Revenue growth
-8%
-1%
-3%
Organic growth
-9%
-1%
-3%
Gross profit margin
55.9%
54.8%
55.5%
Divisional profit
548
638
2,662
Divisional margin
32.9%
35.2%
35.6%
Gaming division
Revenue
617
755
3,407
Revenue growth
-18%
0%
-5%
Organic growth
-20%
1%
-5%
Gross profit margin
36.8%
25.7%
28.2%
Divisional profit
64
12
81
Divisional margin
10.4%
1.6%
2.4%
Financial highlights
Interim Report Q1 2025
4/21
Growth challenged by market uncertainty.
Significant actions initiated to mitigate the
impact from the global trade environment
Revenue
In Q1 2025, GN’s organic revenue growth ended at -3% excluding the wind-
down effect (reported organic revenue growth was -8%). This led to group
revenue of DKK 3,986 million, equal to revenue growth of -7%, with 1% im-
pact from the development in foreign exchange rates and an insignificant
impact from M&A.
Gross profit
Gross profit ended at DKK 2,190 million in Q1 2025 compared to DKK 2,275
million in Q1 2024, equal to a gross margin of 54.9%. The development re-
flects further group-wide synergies, but offset by business mix, some ser-
vice and warranty commitments in relation to the wind-down as well as
some limited tariff impact (DKK -20 million).
Divisional profit
Driven by the topline development, divisional profit ended at DKK 1,096
million in Q1 2025 compared to DKK 1,249 million in Q1 2024. The devel-
opment translated into a divisional profit margin of 27.5%, reflecting the
gross margin development and launch costs associated with the ReSound
Vivia and ReSound Savi hearing aids.
Development costs
Development costs ended at DKK -373 million compared to DKK -351 mil-
lion in Q1 2024, reflecting an increase of 6%. The development reflects a
slight decline in incurred development costs due to focused cost manage-
ment, while the capitalization ratio was 50%, somewhat lower than the
overall 2024 level. Amortization of development costs ended at DKK -167
million compared to DKK -138 million, reflecting a higher level of amortiza-
tions following project completion of several prior product introductions.
Management and administration costs
Management and administration costs ended at DKK -425 million, reflecting
focused cost control across the group, but increased compared to Q1 2024,
primarily as a result of timing effects of certain costs in Q1 2024 as well as a
higher investment level across IT.
EBITA
Group EBITA ended at DKK 300 million compared to DKK 538 million in Q1
2024, driven by the negative operating leverage on top of some launch-
driven activities. The EBITA margin ended at 7.5% compared to 12.5% in
Q1 2024. Direct tariffs costs were limited in the quarter, amounting to DKK
-20 million.
Other financial highlights
Amortization of acquired intangible assets amounted to DKK -85 million
compared to DKK -91 million in Q1 2024. Financial items were DKK -107
million in the quarter compared to DKK -110 million in Q1 2024, reflecting
the higher financing costs as a consequence of the debt refinancing during
2024, but offset by a positive non-cash revaluation of balance sheet items
due to changes in FX. Gain (loss) on disposals were DKK 0 million compared
to DKK 12 million in Q1 2024, while share of profits in associates ended at
DKK 6 million in Q1 2025.
Profit before tax ended at DKK 114 million, while the effective tax rate was
22.2%, leading to a net profit of DKK 89 million.
Cash flow development
GN Store Nord’s operational free cash flow ended at DKK 647 million in Q1
2025 compared to DKK 783 million in Q1 2024. The change in net working
capital was DKK -482 million reflecting traditional seasonality. Investment
GN Store Nord
Interim Report Q1 2025
Revenue (DKKm)
Gross profit (DKKm) and gross margin (%)
Divisional profit (DKKm) and divisional profit margin (%)
4/21
Interim Report Q1 2025
5/21
activities excl. M&A ended at DKK -352 million, which was somewhat lower
than in Q1 2024 driven by the timing of some investments in Q1 2024. Fi-
nancial items, net paid were DKK -165 million, which were somewhat
higher than Q1 2024 due to the debt refinancing. Consequently, free cash
flow excl. M&A ended at DKK -395 million in Q1 2025.
Capital structure
The net interest-bearing debt ended at DKK 10,145 million, reflecting the
traditional seasonality in cash flow generation, corresponding to an adj. lev-
erage of 4.1x (reported leverage of 4.4x). By Q1 2025, GN had cash and cash
equivalents of DKK 787 million. Moreover, GN has access to an undrawn re-
volving credit facility of DKK 3.9 billion (EUR 520 million) with maturity in
Q2 2027.
GN has – as planned - started the refinancing process for the Q3 2026 term
loan maturity with its core banking group with the aim to extend the ma-
turity profile by taking advantage of the strong fundamental operational im-
provements executed in the past few years. It is currently expected that the
process will be finalized towards the end of 2025.
Mitigating actions in response to impact of global trade war
In order to defend and expand GN’s market positions and to protect Group
profitability in light of the evolving changes in the global trade environ-
ment, GN has launched significant mitigating actions building on recent
year’s activities that expanded operational agility, diversification, and utili-
zation of our one-company setup. These significant actions include but are
not limited to 1) Acceleration of diversification of manufacturing footprint;
2) U.S. price increases for Enterprise and Gaming; 3) Group-wide cost and
cash initiatives.
We are continuously assessing the developments and additional prudent
and diligent actions will be taken as needed going forward. Due to the
strong actions executed in the past few years, GN is much stronger pre-
pared to tackle the macroeconomic challenges ahead.
Management quote
”While we are not pleased with our Q1 financial results that are impacted by a
variety of short-term effects, we are confident in the underlying strength of
our business and the actions we are taking to navigate the uncertain global
trade environment.
Positively and promising for the future, the launch of ReSound Vivia is pro-
gressing very well and is even exceeding the launch metrices from prior suc-
cessful product introductions. We are also encouraged by the sell-out growth
in the U.S. and Rest of World in the enterprise business, and we are excited to
see that our gaming business is delivering profitable growth despite a chal-
lenged market.
During the past 18 months, we have proactively diversified our manufactur-
ing footprint. We now accelerate these initiatives to further mitigate the neg-
ative impact from the increased tariffs. We also implement targeted price in-
creases in the U.S. across Enterprise and Gaming as well as cost saving initia-
tives to protect and expand our margins over time. While the short-term mar-
ket and business outlook is uncertain, we remain confident in the attractive-
ness of our markets and our ability to drive profitable growth over time.“
Peter Karlstromer, CEO of GN Store Nord
Interim Report Q1 2025
EBITA (DKKm)
Net interest-bearing debt (DKKm)
Free cash flow (DKKm)
5/21
Interim Report Q1 2025
6/21
The development in tariffs and its impact on our markets makes our environ-
ment more uncertain than normal. As a base assumption for our revised fi-
nancial guidance we assume that tariff rates and exemptions as of today are
constant throughout the remainder of the year and that we will see some
slowdown in the Enterprise and Gaming markets, reflecting the elevated un-
certainty.
Key revenue assumptions for the financial
guidance of 2025
Hearing division
In 2025, GN expects the hearing aid markets to grow in line with the histori-
cal growth rates supported by ongoing favorable demographic trends. As
such, GN projects 4-6% market volume growth and -1% market ASP de-
cline, equaling a market value growth of 3-5%.
Based on the attractive market fundamentals, the current sales momentum,
as well as the launch of ReSound Vivia and ReSound Savi, GN in 2025 ex-
pects to continue to gain market share. Consequently, the Hearing division
assumes to contribute with organic revenue growth of 5% to 9%.
Enterprise division
Following a longer period of market stabilization, the current market envi-
ronment creates uncertainty that makes companies postpone certain IT
projects - including peripherals categories. As a consequence, GN assumes
negative impact on the addressable market for the remainder of the year. In
addition, GN will make a prioritization of product variants shipped to the
U.S., until the supply chain diversification is concluded, which is expected to
temporary impact revenue negatively. The end customers are expected to
experience limited disruption due to currently available channel inventory.
Consequently, the Enterprise division assumes to contribute with organic
revenue growth of -8% to 0%.
Gaming division
Due to the recent sharp decline in consumer sentiment in the U.S. as well as
the general uncertainty in the global economy, GN expects its gaming gear
market to be negatively impacted. In addition, GN will make a prioritization
of product variants offered to its U.S. customers, until the supply chain di-
versification is concluded, which is expected to temporary impact revenue
in the short-term. Consequently, the Gaming division assumes to contribute
with organic revenue growth of -6% to +2% (excluding the impact from the
wind-down).
Wind-down impact on Group organic revenue growth
Due to the successfully executed wind-down of the Elite and Talk product
lines during 2024, the revenue contribution from these product lines in
2025 is assumed to be insignificant (in 2024, the product lines generated
revenue of DKK 597 million). As a result, the negative impact from the
wind-down on group organic revenue growth will be around 3 percentage
points, while the negative impact specifically in the Gaming division will be
16-18 percentage points. The group financial guidance on organic revenue
growth is adjusted for this impact, why the reported organic revenue
growth will be around 3 percentage points lower.
Key EBITA margin assumptions for the financial
guidance of 2025
In recent years, GN has proactively diversified its manufacturing footprint
across the Enterprise and Gaming divisions to ensure flexibility and agility
in its global supply chain. To further react to a fast-changing trade environ-
ment GN takes the following actions:
• Acceleration of the diversification of its manufacturing footprint. The
accelerated timeline will allow GN to service the vast majority of the
U.S. market with manufacturing outside of China by the end of 2025
• Implementation of price increases for U.S. customers across Enterprise
and Gaming
• Implementation of cost and cash flow initiatives to protect group finan-
cials
With the above initiatives, GN expects to mitigate a significant part of the
tariff impacts. We continuously assess the development and additional miti-
gating actions will be taken as needed.
Financial guidance 2025
Interim Report Q1 2025
7/21
Strong initial uptake from ReSound Vivia
boding well for continued market share
gains in 2025
Revenue
The Hearing division delivered organic revenue growth of -1% (on top of
14% in Q1 2024) driven by strong initial uptake of ReSound Vivia, but off-
set by a challenged U.S. market as well as some slowdown of existing prod-
ucts in anticipation of ReSound Vivia. The strong uptake of ReSound Vivia
has continued into April, lending support for expected market share gains,
while the product is now also available in the U.S. Veterans Affairs under a
new 5-year contract period.
In Q1 2025, the global hearing aid market is estimated to have experienced
flat growth due to a temporarily declining U.S. market, and a European and
Rest of World market that experienced some level of modest growth. Across
countries and channels where ReSound Vivia was launched, the division
drove strong market share gains, while the remaining countries and chan-
nels were holding up well as a result of the strong ReSound Nexia offering.
In North America, GN was challenged by the declining market, while the di-
vision executed positive organic revenue growth in both Europe and Rest of
World with particular strong performance in Germany, the U.K., and India.
The performance in the quarter led to overall revenue of DKK 1,703 million,
equal to -2% revenue growth, due to -1% impact from M&A.
Gross profit
Gross profit reached DKK 1,032 million, translating into a gross margin of
60.6%, reflecting the divestment of Dansk HøreCenter as well as different
country mix.
Sales and distribution costs
Sales and distribution costs increased to DKK -548 million in Q1 2025 com-
pared to DKK -490 million in Q1 2024, which was driven by launch activi-
ties related to ReSound Vivia and ReSound Savi.
Divisional profit
Divisional profit ended at DKK 484 million compared to DKK 599 million Q1
2024. This was driven by the topline development in combination with the
launch activities, leading to a divisional profit margin of 28.4%.
Business highlights
In February, GN launched ReSound Vivia, a new hearing aid platform built
on decades of research and development across the group. GN has pio-
neered a unique approach to AI that mimics the brain’s natural sound pro-
cessing to create a superior hearing experience in noise, while still being the
industry's smallest Receiver-in-Ear hearing aid, offering all-day battery
power and comfort without compromise. The early uptake indicates this to
be the best ever product launch in the history of the company driven by the
strong innovative product offering.
During March, GN and Cochlear, the innovation leaders in hearing technol-
ogy, expanded their R&D partnership within the Smart Hearing Alliance,
originally established in 2015. This enhanced collaboration builds on a dec-
ade-long successful partnership. The aim is to further strengthen R&D
across the two world-class companies to deliver cutting-edge integrated
hearing solutions for users of cochlear implants and hearing aids.
Hearing division
Interim Report Q1 2025
Revenue (DKKm)
Gross profit (DKKm)
Divisional profit (DKKm)
7/21
Interim Report Q1 2025
8/21
Continued strong margin, despite sell-in
pressure due to the global economic un-
certainty
Revenue
In Q1 2025, the Enterprise division delivered -9% organic revenue growth
due to a demanding comparison base from several large deals in Q1 2024
and the current global macroeconomic uncertainty. The sell-out growth was
stronger at -5%, which reflects positive sell-out growth across North Amer-
ica and Rest of World, while the European markets continue to be chal-
lenged.
The development in the quarter led to an overall revenue of DKK 1,666 mil-
lion, equal to revenue growth of -8%, due to 1% impact from foreign ex-
change effects.
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. While the broader market
was continuing its recovery at the beginning of the year, the uncertainty in
the global economy has paused the recovery.
Gross profit
Gross profit ended at DKK 931 million, translating into a gross margin of
55.9%, reflecting a 1.1 percentage points improvement compared to Q1
2024 driven by continued strong pricing discipline, while the quarter in-
cluded a direct tariff impact of DKK -20 million.
Sales and distribution costs
Sales and distribution costs ended at DKK -383 million in Q1 2025 com-
pared to DKK -354 million in Q1 2024. The development reflects channel in-
vestments in the beginning of the quarter under the assumption of a slowly
recovering enterprise market. Due to the sell-in pressure in the second half
of the quarter certain cost savings initiatives did not have any meaningful
effect in the quarter.
Divisional profit
Divisional profit ended at DKK 548 million compared to DKK 638 million in
Q1 2024 primarily as a result of the topline development. The divisional
profit margin ended at 32.9%.
Business highlights
During the quarter, GN announced new product solutions in each of its ma-
jor categories. The Jabra PanaCast 40 VBS, announced in February, builds
on GN’s group-wide unique sound and video processing capabilities to be
the first 180° Android-powered video bar designed for small rooms and has
already garnered multiple awards including Enterprise Connect Best of
Show Award in the AV/Video category. Evolve 10, launched in March, ex-
tends the market leading Evolve line into a new segment with an entry level
corded device. The Perform 75 is a new offering in the front-line worker
line-up targeting retail & warehouse use case. In the Speak category, a new
linking experience for Speak2 75 was introduced that allow users to link
two products together to bring immersive audio to larger rooms.
Following the recent announcements by the U.S. administration regarding
tariffs, Enterprise has announced a price increase in the U.S. market as of
June.
Enterprise division
Interim Report Q1 2025
Revenue (DKKm)
Gross profit (DKKm)
Divisional profit (DKKm)
8/21
Interim Report Q1 2025
9/21
SteelSeries continued its strong momen-
tum driving 11% organic revenue growth
in the quarter and very strong margin in-
crease
Revenue
The Gaming division continued its strong momentum from Q4 2024 and de-
livered 11% organic revenue growth in Q1 2025 excluding the wind-down
(organic revenue growth was -20% including the wind-down effect). The
strong execution was a result of continued market share gains in a chal-
lenged gaming gear market – especially in the U.S. due to the sharp decline
in consumer sentiment in the second half of the quarter. Despite the chal-
lenged market conditions, SteelSeries was able to drive strong growth in
North America and Europe, while Rest of World was impacted by a difficult
market.
The development during the quarter led to an overall revenue of DKK 617
million for the division compared to DKK 755 million in Q1 2024, equal to
total revenue growth of -18%, while the impact from foreign exchange rates
was insignificant.
Gross profit
Gross profit reached DKK 222 million in Q1 2025 (DKK 227 million includ-
ing wind-down effects) corresponding to a gross margin of 35.8% com-
pared to 25.7% in Q1 2024 supported by strong pricing discipline as well as
continued benefits from the one-company integration. The quarter included
an insignificant level of tariffs.
Sales and distribution costs
Sales and distribution costs ended at DKK -142 million in Q1 2025 (DKK -
163 million including wind-down effects) compared to DKK -182 million in
Q1 2024, reflecting structural savings from the wind-down, while driving
certain channel investments to drive the current strong momentum.
Divisional profit
The divisional profit (excluding the wind-down effects) ended at DKK 80
million, translating into a divisional profit margin of 12.9% compared to
1.6% in Q1 2024 driven by the strong gross margin improvements, and the
positive operating leverage. Including the effects of the wind-down, the di-
visional profit ended at DKK 64 million, equal to a divisional profit margin
of 10.4%.
Business highlights
In March, SteelSeries launched QcK Performance Series, which is a new se-
ries of innovation-leading mousepads. Moreover, SteelSeries also expanded
its Apex Pro Gen 3 Series keyboard lineup.
Following the recent announcements by the U.S. administration regarding
tariffs, SteelSeries has executed a price increase in the U.S. market as of
June.
Wind-down effects
As a consequence of the wind-down of the Elite and Talk product lines in
2024, the Gaming division was impacted by DKK -3 million in revenue, DKK
8 million in COGS and DKK -21 million in sales and distribution costs linked
to the wind-down for general service and warranty commitments in Q1
2025.
Gaming division
Content
Page 9/21
Interim Report Q1 2025
Revenue (DKKm)
Gaming Consumer
Gross profit (DKKm) – excluding wind-down in Q1 2025
Divisional profit (DKKm) – excluding wind-down in Q1 2025
9/21
Interim Report Q1 2025
10/21
Teleconference
GN will host a teleconference at 11.00 am CEST on May 1, 2025. 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 2025
Interim Report Q2 2025: August 21, 2025
Interim Report Q3 2025: November 6, 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
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 2024.
This Interim Report should not be considered an offer to sell securities in GN.
Interim Report Q1 2025
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 2025 18
Note 3 – Incentive plans 19
Note 4 – Shareholdings 19
Content
Financial statements
11/21
Interim Report Q1 2025
Interim Report Q1 2025
12/21
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Full Year
2024
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Income statement
Revenue
Hearing
1,737
1,792
1,725
1,850
1,703
7,104
Enterprise
1,811
1,873
1,740
2,050
1,666
7,474
Gaming
755
834
699
1,119
617
3,407
Total
4,303
4,499
4,164
5,019
3,986
17,985
Organic growth
Hearing
14%
10%
10%
7%
-1%
10%
Enterprise
-1%
-1%
-7%
-3%
-9%
-3%
Gaming
1%
9%
-21%
-7%
-20%
-5%
Total
5%
5%
-4%
0%
-8%
1%
Gross profit
Hearing
1,089
1,131
1,103
1,135
1,032
4,458
Enterprise
992
1,015
961
1,178
931
4,146
Gaming
194
188
219
359
227
960
Total
2,275
2,334
2,283
2,672
2,190
9,564
Gross profit margin
Hearing
62.7%
63.1%
63.9%
61.4%
60.6%
62.8%
Enterprise
54.8%
54.2%
55.2%
57.5%
55.9%
55.5%
Gaming
25.7%
22.5%
31.3%
32.1%
36.8%
28.2%
Total
52.9%
51.9%
54.8%
53.2%
54.9%
53.2%
Divisional profit
Hearing
599
598
600
667
484
2,464
Enterprise
638
651
598
775
548
2,662
Gaming
12
-10
0
79
64
81
Total
1,249
1,239
1,198
1,521
1,096
5,207
Divisional margin
Hearing
34.5%
33.4%
34.8%
36.1%
28.4%
34.7%
Enterprise
35.2%
34.8%
34.4%
37.8%
32.9%
35.6%
Gaming
1.6%
-1.2%
0.0%
7.1%
10.4%
2.4%
Total
29.0%
27.5%
28.8%
30.3%
27.5%
29.0%
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Full Year
2024
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(aud.)
Other group information
Depreciation and software amortization
-101
-99
-96
-92
-95
-388
EBITDA
639
473
649
780
395
2,541
EBITA
538
374
553
688
300
2,153
Amortization and impairment of acquired intangible assets
-91
-89
-94
-91
-85
-365
Profit (loss)
266
112
289
392
89
1,059
Free cash flow excl. M&A
46
155
786
94
-395
1,081
Acquisitions and divestments of companies
-35
-
106
29
-27
100
Free cash flow
11
155
892
123
-422
1,181
Quarterly reporting by segment
Interim Report Q1 2025
13/21
Q1 2025
Q1 2024
Full Year
2024
DKK million
(unaud.)
(unaud.)
(aud.)
Revenue
Production costs
-1,796
-2,028
-8,421
Gross profit
Development costs
-373
-351
-1,491
Selling and distribution costs
-1,094
-1,026
-4,357
Management and administrative expenses
-425
-352
-1,543
Other operating income and costs, net
-8
-20
EBITA*
Amortization and impairment of acquired intangible assets
-85
-91
-365
Gain (loss) on divestment of operations etc.
Operating profit (loss)
Share of profit (loss) in associates
-6
-7
Financial income
Financial expenses
-228
-278
-850
Profit (loss) before tax
Tax on profit (loss)
-25
-77
-302
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 development
projects and software developed in-house.
Q1 2025
Q1 2024
Full Year
2024
DKK million
(unaud.)
(unaud.)
(aud.)
Profit (loss) for the period
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gains (losses)
-52
Tax relating to actuarial gains (losses)
Items that may be reclassified subsequently to profit or loss
Adjustment of cash flow hedges
-14
Foreign exchange adjustments, etc.
-128
Tax relating to other comprehensive income
-5
-11
Other comprehensive income for the period
-139
Total comprehensive income for the period
-50
Attributable to:
Non-controlling interests
Shareholders in GN Store Nord A/S
-68
Consolidated income
statement
Consolidated statement of
comprehensive income
Interim Report Q1 2025
14/21
Mar. 31
2025
Dec. 31
2024
Sep. 30
2024
Jun. 30
2024
Mar. 31
2024
DKK million
(unaud.)
(aud.)
(unaud.)
(unaud.)
(unaud.)
Assets
Intangible assets
Property, plant and equipment
Investments in associates
Receivables from 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
Overdraft facilities
Lease liabilities, current
Trade payables
Tax payables
Provisions, current
Other current liabilities
Total current liabilities
Total equity and liabilities
Consolidated balance sheet
Interim Report Q1 2025
15/21
Q1 2025
Q1 2024
Full Year
2024
DKK million
(unaud.)
(unaud.)
(aud.)
Operating activities
Operating profit (loss)
Depreciation, amortization and impairment
Other non-cash adjustments
-1
-113
Cash flow from operating activities before changes in working capital
Changes in working capital
-482
-158
Cash flow from operating activities before financial items and tax
Financial items, net paid
-165
-70
-342
Tax paid, net
-43
-86
-235
Cash flow from operating activities
-43
Investing activities
Development projects
-207
-208
-1,015
Investments in other intangible assets, net
-69
-88
-269
Investments in property, plant and equipment, net
-10
-1
-120
Investments in other non-current assets, net
-72
-126
-189
Contingent consideration paid
0
-51
Company acquisitions
-27
-35
-35
Company divestments
Dividend received
Cash flow from investing activities
-379
-458
-1,544
Cash flow from operating and investing activities (free cash flow)
-422
Q1 2025
Q1 2024
Full Year
2024
DKK million
(unaud.)
(unaud.)
(aud.)
Financing activities
Proceeds from borrowings
Repayment of bank loans
-11
-957
-1,086
Repayment of issued bonds
-245
-1,406
Repayment of lease liabilities
-25
-99
Repayment of other non-current liabilities
-32
-32
Drawn/(repaid) on credit facilities
-75
Cash flow from financing activities
-957
-2,365
Net cash flow
-180
-946
-1,184
Cash and cash equivalents beginning of period
Adjustment foreign currency, cash and cash equivalents
-13
Cash and cash equivalents, end of period
Consolidated statement of cash flows
Interim Report Q1 2025
16/21
Q1 2025
Other reserves
DKK million
Share cap-
ital*
Foreign
exchange
adjust-
ments**
Hedging
reserve**
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
sharehold-
ers in GN
Store
Nord A/S
Non-con-
trolling in-
terests
Total
equity
Balance at December 31, 2024
-786
-2,725
Adjustment
-45
Balance at December 31, 2024,
adjusted
-741
-2,725
Profit (loss) for the period
-
-
Adjustment of cash flow hedges
-14
-14
-
-14
Foreign exchange adjustments, etc.
-128
-128
-128
Tax relating to other comprehen-
sive income
Other comprehensive income for
the period
-128
-11
-139
-139
Total comprehensive income for
the period
-128
-11
-68
-50
Share-based payment (forfeited)
-22
-22
-22
Reclassification of non-controlling
interests by recognizing a put op-
tion liability
-18
Paid dividends
Balance at March 31, 2025
-869
-2,725
* shares of DKK 4 each
**restatement of opening balance to reflect the reclassification from hedging reserves to retained earnings as a result of an error.
Q1 2024
Other reserves
DKK million
Share cap-
ital*
Foreign
exchange
adjust-
ments
Hedging
reserve
Treasury
shares
Proposed
dividends
for the
year
Retained
earnings
Equity,
sharehold-
ers in GN
Store
Nord A/S
Non-con-
trolling in-
terests
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
-5
-5
-5
Other comprehensive income for
the period
Total comprehensive income for
the period
Share based payment (exercised)
-6
-6
-6
Reclassification of non-controlling
interests by recognizing a put op-
tion liability
-12
Paid dividends
Balance at March 31, 2024
-963
-2,725
Consolidated statement of changes in equity
Interim Report Q1 2025
17/21
Note 1 – Accounting policies
This interim report has been prepared in accordance with IAS 34 “Interim
Financial Reporting” as adopted by the EU and Danish interim financial re-
porting requirements for listed companies.
New standards, interpretations, and amendments adopted by GN Store
Nord
As of January 1, 2025, GN Store Nord adopted all relevant new or revised
International Financial Reporting Standards and IFRIC Interpretations with
effective date January 1, 2025, or earlier. The new or revised Standards and
Interpretations did not affect recognition and measurement or result in any
material changes to disclosures. Apart from this, the accounting policies ap-
plied are unchanged from those applied in the Annual Report 2024.
Following the decision to move the BlueParrott business from ”Consumer”
to ”Enterprise” the historical divisional numbers have been restated.
Interim Report Q1 2025
18/21
Note 2 – Segment disclosures Q1 2025
Income statement
Hearing
Enterprise
Gaming
Consolidated total
Q1 2025
Q1 2024
Q1 2025
Q1 2024
Q1 2025
Q1 2024
Q1 2025
Q1 2024
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue
1,703
1,737
1,666
1,811
617
755
3,986
4,303
Production costs
-671
-648
-735
-819
-390
-561
-1,796
-2,028
Gross profit
1,032
1,089
931
992
227
194
2,190
2,275
Selling and distribution costs
-548
-490
-383
-354
-163
-182
-1,094
-1,026
Divisional profit
484
599
548
638
64
12
1,096
1,249
Development costs
-373
-351
Management and administrative expenses
-425
-352
Other operating income and costs, net
2
-8
EBITA*
300
538
Amortization and impairment of acquired intan-
gible assets
-85
-91
Gain (loss) on divestment of operations etc.
-
12
Operating profit (loss)
215
459
Share of profit (loss) in associates
6
-6
Financial items
-107
-110
Profit (loss) before tax
114
343
Tax on profit (loss)
-25
-77
Profit (loss) for the period
89
266
Additional information
Hearing
Enterprise
Gaming
Consolidated total
Q1 2025
Q1 2024
Q1 2025
Q1 2024
Q1 2025
Q1 2024
Q1 2025
Q1 2024
DKK million
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
(unaud.)
Revenue distributed geographically
Europe
481
470
896
1,036
221
289
1,598
1,795
North America
834
893
413
411
306
308
1,553
1,612
Rest of World
388
374
357
364
90
158
835
896
Revenue
1,703
1,737
1,666
1,811
617
755
3,986
4,303
Revenue growth composition
Organic growth
-1%
14%
-9%
-1%
-20%
1%
-8%
5%
FX growth
0%
-2%
1%
0%
2%
-1%
1%
-1%
M&A growth
-1%
-5%
0%
0%
0%
0%
0%
-2%
Revenue growth
-2%
7%
-8%
-1%
-18%
0%
-7%
2%
Incurred development costs
-413
-420
Capitalized development costs
207
207
Amortization, impairment and depreciation of
development projects**
-167
-138
Expensed development costs
-373
-351
EBITDA
395
639
Depreciation and software amortization
-95
-101
EBITA*
300
538
EBITA margin
7.5%
12.5%
Number of employees, end of period
7,304
7,047
* Excluding gain (loss) on divestments of operations etc. and amortization of acquired intangible assets but including amortization of development
projects and software developed in-house.
** Does not include amortization of acquired intangible assets, cf. definition of EBITA
Interim Report Q1 2025
19/21
Note 3 – Incentive plans
As of March 31, 2025, the total number of outstanding options and PSU’s in
GN Store Nord is 3,723,432 (2.5% of the shares issued in GN Store Nord).
Note 4 – Shareholdings
On March 31, 2025, members of the board of directors and the executive
management, respectively, own 74,883 and 70,004 shares in GN Store Nord.
On March 31, 2025, 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
interest in excess of 10% of GN’s share capital. Foreign ownership of GN is
estimated to be around 60%.
Interim Report Q1 2025
20/21
Executive Management
Board of Directors
Interim Report Q1 2025
21/21
Co.reg. no 24257843