Company Announcements

 Highlights

• GN executed strongly across the three divisions resulting in 5% organic revenue growth for the Group
• The Hearing division continued to gain significant market share leading to 10% organic revenue growth, resulting in 5.3 percentage point increase in the divisional profit margin supported by synergies and the successful ReSound Nexia roll-out
• The Enterprise division continued its focused execution leading to -3% organic revenue growth in a stabilizing market. The divisional profit margin increased by 1.3 percentage points driven by synergies, product mix, and strict cost control
• The Gaming & Consumer division delivered organic revenue growth of 12% following strong execution in Gaming. The decision to gradually wind-down Elite and Talk product lines resulted as planned in increased promotional activities towards the end of the quarter. Excluding the earlier announced extraordinary write-downs, the divisional profit margin was 9.0% compared to 3.1% in Q2 2023 driven by synergies, on top of channel investments
• Group reported EBITA ended at DKK 374 million (including DKK -155 million in extraordinary costs related to the gradual wind-down). Excluding these extraordinary costs, EBITA ended at DKK 529 million, equal to an EBITA margin of 11.8% driven by group-wide synergies of DKK ~100 million and business mix, partly off-set by net investments into IT and R&D
• Free cash flow excl. M&A ended at DKK 155 million in Q2 2024 as a result of the healthy earnings level and a stable development in net working capital. Consequently, the net interest-bearing debt further declined resulting in an adj. leverage of 3.9x 
• The full year guidance, which was adjusted on June 11, is confirmed

Financial guidance for 2024

	Organic revenue growth	Reported EBITA margin	Free cash flow excl. M&A (DKK million)
GN Store Nord	2% to 6%	12% to 13%	>900

Quotes from Executive Management
Peter Karlstromer, CEO of GN Store Nord, comments: “In Q2, we continued to execute well. We defended, or expanded, our market leading positions, while improving our underlying margins. In parallel, we are pursuing the One-GN transformation leading to synergies and a set-up that helps us drive further success into the future. The wind-down of the Elite and Talk product lines is progressing in accordance with our plans. Recently, we also announced our decision to divest Dansk HøreCenter, which will allow us to further focus our resources and energy to drive innovation and success for our customers world-wide.”

Financial overview Q2 2024

	GN Store Nord			Hearing division			Enterprise division			Gaming & Consumer division
DKK million	Q2 2024	Q2 2023	Growth	Q2 2024	Q2 2023	Growth	Q2 2024	Q2 2023	Growth	Q2 2024	Q2 2023	Growth
Revenue	4,499	4,394	2%	1,792	1,719	4%	1,785	1,861	-4%	922	814	13%
Organic growth	5%	-8%		10%	15%		-3%	-23%		12%	-4%
Gross profit	2,334	2,222	5%	1,131	1,039	9%	977	986	-1%	226	197	15%
Gross profit margin	51.9%	50.6%	1.3%p	63.1%	60.4%	2.7%p	54.7%	53.0%	1.7%p	24.5%	24.2%	0.3%p
Divisional profit	1,239	1,128	10%	598	483	24%	618	620	0%	23	25	-8%
Divisional profit margin	27.5%	25.7%	1.8%p	33.4%	28.1%	5.3%p	34.6%	33.3%	1.3%p	2.5%	3.1%	-0.6%p
EBITA	374	331	13%
EBITA margin	8.3%	7.5%	0.8%p
Free cash flow excl. M&A	155	622	-467

Teleconference
GN Store Nord will host a teleconference at 11.00 a.m. CET on August 22, 2024. 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:

Investor Relations
Rune Sandager +45 45 75 92 57


Media Relations
Steen Frentz Laursen +45 20 65 34 20

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 expectations 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. This Report should not be considered an offer to sell securities in GN.

About GN
GN brings people closer through our leading intelligent hearing, audio, video, and gaming solutions. Inspired by people and driven by innovation, we deliver technologies that enhance the senses of hearing and sight. We help people with hearing loss overcome real-life challenges, improve communication and collaboration for businesses, and provide great experiences for audio and gaming enthusiasts. GN was founded more than 150 years ago with a vision to connect the world. Today, inspired by our strong heritage, GN touches more lives than ever with our unique expertise and the broadest portfolio of products and services in our history – bringing people closer to what is important to them.

We market our solutions with the brands Jabra, ReSound, SteelSeries, Beltone, Interton, BlueParrott, Danavox, and FalCom in 100 countries. Founded in 1869, GN Group employs more than 7,000 people and is listed on Nasdaq Copenhagen (GN.CO).

Visit our homepage GN.com and connect with us on LinkedIn, Facebook and X.

Attachment

• GN Interim Report Q2 2024