GN GN Store Nord A/S

GN Store Nord’s Audio division revises financial guidance for 2022

GN Store Nord’s Audio division revises financial guidance for 2022

The financial guidance for 2022 is revised to reflect the impact of the worsened macroeconomic environment, lower consumer sentiment and general higher uncertainty which impacts the markets in which GN operates:

  • A worsening of the consumer markets across GN Audio with an updated expectation that these markets will decline ~30% for 2022
  • Although we are observing solid demand in the Enterprise market, we now expect lower than previously anticipated market growth in Q4

Guidance revision

  • GN Audio organic revenue growth guidance is revised from “0-5%” to now “-7% to -5%”
  • Reflecting the lower-than-expected revenue development and the further appreciating USD, GN Audio’s adj. EBITA margin guidance is revised from “17-18%” to now “14-15%”
  • As a consequence of the revised financial guidance for GN Audio, GN Store Nord revises the financial guidance on growth in adj. EPS from between -10% to 0% to now “around -30%”
  • Acknowledging the current sentiment related to a potential recession, GN Audio is taking proactive and significant actions to reduce the cost base and defend the agility of the company. For this purpose, guidance for non-recurring items is increased by DKK -100 million relating to Q4 initiatives taking the 2022 non-recurring items from around DKK -400 million to around DKK -500 million
  • All other guidance parameters are confirmed

Updated financial guidance 2022

 Organic revenue growthAdjusted EBITA margin3)Non-recurring items (DKK million) 4)Growth in

adjusted EPS5)
GN Hearing    
- Core business organic5-8%~14%~ -150 
- Emerging Business1) (DKK million) ~ -200  
GN Audio2) 6) 14-15%~ -500 
- GN Audio organic-7% to -5%   
- SteelSeries>-25%   
Other (DKK million) ~ -190  
GN Store Nord   ~ -30%

Note 1) Emerging Business mainly includes the Lively acquisition

Note 2) The SteelSeries organic revenue growth will be reported as M&A growth for GN Audio

Note 3) Excluding non-recurring items

Note 4) Non-recurring items in GN Hearing primarily related to supply chain investments (DKK ~ -150m) and in GN Audio related to transaction and integration costs (DKK ~ -200m) as well as non-cash PPAs (DKK ~ -200m), associated with SteelSeries and cost reduction measures (DKK ~ -100m)

Note 5) Compared to 2021 adjusted EPS (excluding non-recurring items and amortization and impairment of acquired intangible assets) of DKK 15.29

Note 6) Reflecting updated FX assumptions for 2022 following the significant appreciation of the USD since August 2022

Financial guidance based on foreign exchange rates as of November 2, 2022

Pre-release of preliminary key figures for Q3 2022:

  • 0% organic revenue growth in GN Hearing in soft market conditions. Strong initial sales data from the launch of ReSound OMNIA boding well for strong performance and significant market share gains in Q4 2022
  • GN Hearing adj. EBITA margin of 10.6% in the Core business impacted by higher freight and material costs and investments in launch activities
  • -2% organic growth in GN Audio Organic driven by solid organic revenue growth in Enterprise of 7%, but offset by -34% organic revenue growth in the Consumer business
  • Strong sequential improvement in SteelSeries leading to -13% organic revenue growth
  • GN Audio adj. EBITA margin of 14.6%, reflecting investments in growth opportunities, higher freight and material costs, the development in FX and the consolidation of SteelSeries
DKKmGN HearingGN Audio
 Core businessEmerging businessGN Audio OrganicSteelSeries
Revenue1,495592,551596
Organic revenue growth0%64%-2%*-13%
Adj. EBITA159-40461
Adj. EBITA margin10.6% 14.6%

* +7% organic revenue growth in Enterprise and -34% organic revenue growth in Consumer

DKKmGN HearingGN AudioOtherGN Store Nord
Revenue1,5543,147 4,701
Organic revenue growth0%-2% -1%
Adj. EBITA119461-32548
Adj. EBITA margin7.7%14.6% 11.7%

GN Store Nord will, as previously communicated, release its interim Q3 2022 report on November 11, 2022, with further details on the performance in Q3 2022 and will host a teleconference for investors and analysts on the same day.

Primary risk factors in relation to the financial guidance

Due to the COVID-19 pandemic, the global supply situation and the macro-economic environment – which impacts GN in many ways – it must be stressed that the basic assumptions behind the guidance remain more uncertain than normal. The situation is impacting GN’s operational performance, predictability and visibility across markets, channels and supply chain.

For further information, please contact:

Investors and analysts

Anne Sofie Staunsbæk Veyhe

Vice President – Investor Relations, Treasury and M&A

Tel:

or

Rune Sandager

Senior Director – Investor Relations

Tel:





Press and the media

Steen Frentz Laursen

Vice President – Corporate Communications

Tel:







About GN 

GN facilitates communication between people through intelligent hearing, audio, video, and gaming technology. Inspired by people and driven by our passion for innovation, we leverage technologies to deliver unique user experiences that bring people closer through the power of sound and vision.

GN was founded more than 150 years ago with a vision to connect the world. Today, we proudly honor that legacy with our world-leading expertise in the human ear, audio, video and speech, wireless technologies, software, miniaturization, and collaboration with leading technology partners. GN's solutions are marketed by the brands ReSound, SteelSeries, Jabra, Beltone, Interton, BlueParrott, Danavox and FalCom in 100 countries. Founded in 1869, the 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 , and .

Attachment



EN
02/11/2022

Underlying

To request access to management, click here to engage with our
partner Phoenix-IR's CorporateAccessNetwork.com

Reports on GN Store Nord A/S

GN Store Nord: 1 director

A director at GN Store Nord bought 25,000 shares at 94.840DKK and the significance rating of the trade was 73/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly...

 PRESS RELEASE

Trading in GN Store Nord shares by board members, executives and assoc...

Trading in GN Store Nord shares by board members, executives and associated persons GN Store Nord has received notification pursuant to article 19 of regulation (EU) no. 596/2014 of the below transactions related to shares in GN Store Nord made by persons discharging managerial responsibilities in GN Store Nord and/or persons closely associated with them. 1.Details of the person discharging managerial responsibilities/person closely associated NamePeter Karlstromer2.Reason for the notification Position/statusChief Executive Officer Initial notification/AmendmentInitial notification3.Det...

 PRESS RELEASE

Major shareholder notification – BlackRock, Inc.

Major shareholder notification – BlackRock, Inc. GN Store Nord A/S hereby announces that on May 22, 2025, pursuant to Section 38(1) and Section 39(1) of the Danish Capital Markets Act, it received a notification from BlackRock, Inc. stating that on May 21, 2025, BlackRock, Inc. increased its aggregate direct and indirect holding of shares and financial instruments, cf. Section 38 and Sections 39(2)(1) and (2) of the Danish Capital Markets Act, to above 5% of the share capital and voting rights in GN Store Nord A/S. For further information, please contact: Investor RelationsRune Sandager ...

 PRESS RELEASE

Trading in GN Store Nord shares by board members, executives and assoc...

Trading in GN Store Nord shares by board members, executives and associated persons GN Store Nord has received notification pursuant to article 19 of regulation (EU) no. 596/2014 of the below transactions related to shares in GN Store Nord made by persons discharging managerial responsibilities in GN Store Nord and/or persons closely associated with them. 1.Details of the person discharging managerial responsibilities/person closely associated NameJukka Pekka Pertola2.Reason for the notification Position/statusChair of the Board of Directors Initial notification/AmendmentInitial notif...

 PRESS RELEASE

Trading in GN Store Nord shares by board members, executives and assoc...

Trading in GN Store Nord shares by board members, executives and associated persons GN Store Nord has received notification pursuant to article 19 of regulation (EU) no. 596/2014 of the below transactions related to shares in GN Store Nord made by persons discharging managerial responsibilities in GN Store Nord and/or persons closely associated with them. 1.Details of the person discharging managerial responsibilities/person closely associated NameJørgen Bundgaard Hansen2.Reason for the notification Position/statusMember of the Board of Directors Initial notification/AmendmentInitial ...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch