Q2 2024 GN Store Nord A/S Earnings Call Transcript
Key Points
- GN Store Nord AS (GGNDF) reported strong double-digit organic revenue growth in its hearing division, with improved profit margins.
- The company successfully launched new products and software updates, enhancing its offerings in both the hearing and enterprise segments.
- GN Store Nord AS (GGNDF) achieved a 5% organic growth at the group level, with an underlying EBITA margin improvement of 2 percentage points compared to last year.
- The gaming and consumer division saw a 12% organic growth, driven by strong market reception of new products like the Arctis Nova 5 headset.
- The company is on track with its One-GN transformation, realizing significant cost synergies and reducing adjusted leverage to below 4 times for the first time since 2021.
- The enterprise division experienced a negative 3% organic revenue growth, with market stabilization taking longer than expected.
- GN Store Nord AS (GGNDF) incurred extraordinary costs related to the wind down of its Elite and Talk product lines, impacting financial results.
- The company faces challenges in the enterprise segment, with a delayed recovery now expected towards the end of 2024.
- There is a potential risk of not reaching the high end of the EBITDA margin guidance due to tougher comparisons in the hearing division and delayed enterprise recovery.
- The consumer segment is expected to face a negative revenue impact of around DKK450 million compared to 2023, due to the wind down of certain product lines.
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Hello, everyone, and welcome to GN's conference call in relation to our Q2 results announced this morning. Participating in today's call is Group CEO, Peter Karlstromer; Group CFO, Soren Jelert; and myself, Rune Sandager, Head of Investor Relations. The presentation is expected to last about 15 minutes, after which we'll turn to the Q&A session. The presentation is already uploaded on gn.com.
And with that, I'm happy to hand over to Peter for some opening remarks.
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Thank you, Rune, and thank you all for joining us today. In the second quarter, we have continued our strong execution across our company, and we're very pleased with the results we're reporting today. Hearing continues to deliver strong performance with continued double-digit organic revenue growth and further improved profit margins even on top of an
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