DGAP-Ad-hoc: GN Store Nord A/S / Key word(s): Half Year Results
GN Store Nord A/S: Interim Report Q2 2020: GN Audio +32%, GN Hearing -54%,
GN at -13% organic growth, and EBITA of DKK +25 million
19-Aug-2020 / 07:32 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 was affected in two ways by COVID-19 during Q2 2020: (i) ripple
effects of production shutdown in Q1 2020, and (ii) various demand
implications as consumers stayed at home, and as enterprises continued to
invest in employees working from home_
· _Leverage of 2.7 times net interest-bearing debt to EBITDA (2.3 times on
June 30, 2019)_
· _Operating in both the hearing aid and audio space, and with no forward
integration, is beneficial for the company during these challenging times.
GN delivered positive EPS in Q2 2020_
*- - GN Store Nord*
· GN delivered -13% organic revenue growth in Q2 2020
· Free cash flow excl. M&A was DKK 517 million in Q2 2020 compared to DKK
472 million in Q2 2019, reflecting a positive development from working
capital and prudent cost control. By the end of Q2 2020, GN had cash and
cash equivalents of DKK 967 million
· On April 3, 2020, GN withdrew its the financial guidance for 2020 due to
COVID-19 impacting predictability and visibility of the business. Today,
GN gives an update on financial guidance for H2 2020, which comes with
much greater uncertainty than usual due to the continued COVID-19 pandemic
*- - GN Hearing*
· GN Hearing experienced a severe impact from COVID-19 with an organic
revenue growth of -54% in the quarter
· EBITA was DKK -336 million in Q2 2020 due to the decline in revenue more
than offsetting OPEX reductions
· Free cash flow excl. M&A was DKK -117 million in Q2 2020 compared to DKK
290 million in Q2 2019, reflecting the lower revenue level
· ReSound ONE announced to be launched as an entirely new class of hearing
aids offering a truly individualized hearing experience and the best sound
quality for every user
*- - GN Audio*
· GN Audio experienced a continued very strong Enterprise demand, partly
for home office products as enterprises of all sizes, and across various
industries, continued to invest in employees working from home due to
COVID-19. GN Audio delivered an organic revenue growth of 32% in Q2 2020
· EBITA increased by 52% to DKK 408 million in Q2 2020 driven by the
strong revenue growth. EBITA margin was 21.0% reflecting continuous
leverage in the business and positive mix effects offset by increased
freight and production costs as a result of COVID-19, and investments in
future growth opportunities
· Free cash flow excl. M&A was DKK 579 million in Q2 2020 compared to DKK
232 million in Q2 2019, reflecting the strong growth in earnings and a
positive development in working capital
*Quotes from executive management*
Gitte Aabo, CEO of GN Hearing, comments: _"Needless to say our Q2 financial
results are not a pretty story. However, amidst the COVID-19 situation our
employees have done a great job in ensuring our company gets through
COVID-19 stronger than ever focusing on fundamentals and on bringing ReSound
ONE to market as an entirely new class of hearing aids. With this exciting
launch we deliver on our strategy of bringing individualized customer
experience to market - something I am excited and optimistic about."_
René Svendsen-Tune, CEO of GN Audio, comments: _"Albeit partly on the somber
background of the COVID-19 pandemic, our global team and leading product
portfolio have performed outstandingly in helping both existing and many new
customers preserving their employees' productivity when working from home.
We see this very strong current demand continue into Q3, and in the mid-term
we expect a more normalized - but still strong - demand in line with our
mid-term financial targets."_
Marcus Desimoni, CFO of GN Store Nord, comments: _"In an extremely
challenging COVID-19 market situation for GN Hearing, we are very pleased to
be able to deliver a positive EPS for the quarter. With our continued sound
balance sheet and access to ample sources of liquidity this is a testimony
to the resilience of the company."_
*Financial overview Q2 2020*
*GN Hearing* *GN Audio* *GN Store Nord*
DKK Q2 Q2 Growth Q2 Q2 Growth Q2 Q2 Growth
million 2020 2019 2020 2019 2020 2019
*Revenue* *715* *1,58 *-55%* *1,94 *1,46 *33%* *2,659 *3,051 *-13%*
5* 4* 6* * *
Organic -54% 8% 32% 26% -13% 16%
growth
*Gross *332* *1,09 *-70%* *1,00 *745* *35%* *1,341 *1,835 *-27%*
profit* 0* 9* * *
Gross 46.4% 68.8% -22.4%p 51.9% 50.8% +1.1%p 50.4% 60.1% -9.7%p
margin
*EBITA* *-336* *299* *-212%* *408* *268* *52%* *25* *523* *-95%*
EBITA -47.0% 18.9% -65.9%p 21.0% 18.3% +2.7%p 0.9% 17.1% -16.2%p
margin
*Earnings *0.06* *2.29* *-97%*
per share
(EPS) -
DKK*
Free cash -117 290 -407 579 232 347 517 472 45
flow
excl. M&A
*Teleconference*
GN Store Nord will host a teleconference at 11.00 a.m. CEST today. Please
visit www.gn.com/investor to access the teleconference. Presentation
material will be available on the website prior to the start of the
teleconference.
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*
Lars Otto Andersen-Lange
Head of Media Relations & Corporate Public Affairs
Tel: +45 45 75 02 55
*About GN Group*
The GN Group enables people to Hear More, Do More and Be More through its
intelligent hearing, audio and video collaboration solutions. Inspired by
people and driven by our innovation leadership, we leverage technological
synergies between our hearing and audio divisions to deliver unique and
increasingly individualized user experiences in our products and solutions.
150 years ago, GN was founded with a truly innovative and global mindset.
Today, we honor that legacy with world-leading expertise in the human ear,
sound and video processing, wireless technology, miniaturization and
collaborations with leading technology partners. GN's solutions are marketed
by the brands ReSound, Beltone, Interton, Jabra, BlueParrott and FalCom in
100 countries. Founded in 1869, the GN Group employs 6,500 people and is
listed on Nasdaq Copenhagen (GN.CO).
Visit our homepage GN.com - and connect with us on LinkedIn [1], Facebook
[2] and Twitter [3].
19-Aug-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: 1120361
End of Announcement DGAP News Service
1120361 19-Aug-2020 CET/CEST
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(END) Dow Jones Newswires
August 19, 2020 01:32 ET (05:32 GMT)
