DGAP-Ad-hoc: GN Store Nord A/S / Key word(s): Quarterly / Interim
Statement/Change in Forecast
GN Store Nord A/S: GN Store Nord announces preliminary Q1 2020 revenue and
updates 2020 financial guidance due to COVID-19
03-Apr-2020 / 08:04 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
GN Store Nord issued its mid-term financial guidance and financial guidance
for 2020 with its annual report on February 5, 2020. As stated in the annual
report in regard to the guidance for 2020:
_"The financial guidance does not include any impact from the Coronavirus
outbreak. Based on our current knowledge we expect to see an impact on Q1
financials. Provided that the situation resolves during February, we assume
to follow guidance for the rest of the year."_
At the Annual General Meeting on March 11, 2020, GN's Chairman of the Board
outlined that we were seeing an accelerating impact on our businesses from
COVID-19:
_"Now we are approaching the middle of March, and nothing has been resolved
yet concerning this virus. Rather, it is clear that the impact on global
economic activity will be far greater than previously assumed, and GN as a
company is affected at three levels: (i) our production in China; (ii)
supply of components from our subcontractors in the same way as the entire
technology sector; and (iii) now also a negative impact on demand as
consumers grow concerned and stay at home. _
_As a result - as we view the situation today - GN overall will experience
minimal or no organic revenue growth in the first quarter. And if the
coronavirus situation continues as now, we will see an impact in the second
quarter as well." _
Our preliminary revenue numbers for Q1 2020 indicate total GN revenue of DKK
2,950 million compared to DKK 2,840 million in Q1 2019, with GN Hearing
showing organic growth of (15)% and GN Audio showing organic growth of
22%.
In GN Hearing, we have seen accelerating impact from COVID-19 on the sale of
hearing aids, particularly towards the end of the quarter, and in Q2 2020 we
expect continued severe business impact on revenue as the virus spread in
Europe and, especially, in the U.S.
GN Audio, on the other hand, is uniquely positioned to support the world in
getting through this crisis, and thereby to continue delivering strong
performance. In Q1 2020, we have seen very strong demand for home office
products as enterprises of all sizes, and across various industries, prepare
their employees for working from home.
The fundamentals of GN Store Nord's operating model continue to be very much
intact, and we expect the fundamentals of the markets to return when the
virus is behind us.
The COVID-19 situation has and will not only strongly impact our operational
performance this year, but it will also impact predictability and visibility
across markets, partners and channels as we continue the year. Therefore, we
find it appropriate that we withdraw our financial guidance for 2020.
Appropriate operational and expense related actions have been taken. We are
continuously assessing the developments, and additional prudent and diligent
actions will be taken as needed going forward.
To preserve a strong balance sheet, GN Store Nord will postpone share
buybacks (program intended to be initiated following the approvals by the
Annual General Meeting on March 11, 2020), until we have better visibility
to the consequences of the COVID-19.
The interim reporting for Q1 2020 will be announced on April 29, 2020, as
planned, where we will give further updates on the impact of COVID-19 on our
businesses.
*Quotes from executive management*
Gitte Aabo, CEO of GN Hearing, comments: "The year initially was off to a
good start, but recent developments related to the COVID-19 pose challenges
on demand as people are restricted to stay at home, which significantly
impacted our Q1 performance, and we now expect Q2 to be even more severely
impacted by COVID-19. On this background, we have accelerated the launch of
ReSound Assist Live, which yesterday was made available in key markets. This
technology enables a new, groundbreaking way to access hearing care by
reducing the need for in-office visits at a time when older, more vulnerable
populations are advised to stay at home."
René Svendsen-Tune, CEO of GN Audio, comments: _"GN Audio has experienced
strong demand in the second half of Q1 2020 as companies prepare for
employees working from home. At the same time, the production output has
gradually recovered. GN Audio expects the current high demand to continue
into Q2 2020, as companies establish new ways of working. Beyond this
current exceptional demand, the global uncertainties allow GN Audio very
limited visibility beyond Q2 on both the supply and demand side." _
Marcus Desimoni, CFO of GN Store Nord, comments: _"We face the current
adverse market conditions with a very sound balance sheet and ample sources
of liquidity. As such, we have a solid foundation to face the financial
challenges ahead of us."_
For further information, please contact:
*Investors and analysts*
Morten P. Toft
Vice President - Investor Relations & Treasury
Tel: +45 45 75 46 07
Or
Rune Sandager
Senior Manager - Investor Relations
Tel: +45 45 75 92 57
*Press and the media*
Steen Frentz Laursen
Vice President - Group Communication
Tel: +45 20 65 34 20
*About GN Group*
The GN Group is a global leader in intelligent audio solutions that let you
hear more, do more and be more than you ever thought possible. Our ambitious
150-year journey has taken us from telegraph cables to radio waves and
intelligent audio engineering. To celebrate our anniversary, we look to our
unique competences within medical, professional and consumer audio solutions
to help us continue to transform lives through the power of sound.
GN was founded with a truly innovative and global mindset. Today, we honor
that legacy with world-leading expertise in the human ear, sound, wireless
technology, miniaturization and collaborations with leading technology
partners. GN's solutions are marketed by the brands ReSound, Beltone,
Interton, Jabra and BlueParrott in 100 countries. Founded in 1869, the GN
Group employs 6,000 people and is listed on Nasdaq Copenhagen (GN.CO).
Visit our homepage GN.com, get to know our innovation and leadership [1],
and connect with us on LinkedIn [2], Facebook [3] and Twitter [4].
03-Apr-2020 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: GN Store Nord A/S
Lautrupbjerg 7
2750 Ballerup
Denmark
Phone: +45 457 50000
E-mail: investor@gn.com
Internet: www.gn.com
ISIN: DK0010272632
WKN: 854734
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1014701
End of Announcement DGAP News Service
1014701 03-Apr-2020 CET/CEST
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(END) Dow Jones Newswires
April 03, 2020 02:04 ET (06:04 GMT)
