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Interim Report Q2 2019: Strong performance across the group with 16% organic revenue growth in Q2. Guidance upgraded for GN Audio

  • GN delivered 16% organic revenue growth in Q2 2019. Revenue growth was 19% including around 3% impact from the development in foreign exchange rates
  • EBITA increased 16% compared to Q2 2018 driven by strong operational leverage on top of headwinds from the development in foreign exchange rates
  • EPS increased 9% compared to Q2 2018 and reached DKK 2.29
  • Strong cash conversion of 90% in Q2 2019
  • The financial guidance for 2019 – upgraded on August 21, 2019 – is confirmed
  • GN Hearing delivered a strong 8% organic revenue growth in Q2 2019 driven by the continued strong performance by ReSound LiNX Quattro. Revenue growth was 11% including around 2% impact from the development in foreign exchange rates
  • EBITA increased 8% to DKK 299 million in Q2 2019. The EBITA margin reached 18.9%, slightly lower than Q2 2018 as a result of an adverse development in foreign exchange rates and ongoing infrastructure investments
  • Free cash flow excl. M&A was DKK 290 million in Q2 2019 translating into a cash conversion of 97%
  • GN Audio delivered an outstanding performance with 26% organic revenue growth in Q2 2019 driven by very strong performance across the business. Revenue growth was 30%, including around 3% impact from the development in foreign exchange rates and around 1% impact from M&A
  • EBITA increased 29% to DKK 268 million in Q2 2019, including transaction related costs of DKK (7) million associated with the acquisition of Altia Systems. The reported EBITA margin of 18.3% reflects continuous leverage in the business off-set by an adverse development in foreign exchange rates and investments in future growth opportunities
  • Free cash flow excl. M&A was DKK 232 million in Q2 2019, translating into a cash conversion of 87%
  • GN Audio upgraded the full year guidance on August 21, 2019

Quotes from the executive management

Jakob Gudbrand, CEO of GN Hearing: “Our continued strong momentum in Q2 2019 demonstrates that GN Hearing delivers the kind of user-friendly and innovative solutions that meet the true needs of people with hearing loss across the globe. With 8% organic revenue growth the groundbreaking technology developed for ReSound LiNX Quattro continues to be well received in the market.”

René Svendsen-Tune, CEO of GN Audio: “With 26% organic revenue growth in Q2, GN Audio continued to take market share. Our continued focus on constantly launching highly relevant, innovative and market leading products backed by flawless marketing and sales execution has once again proven successful in both the professional and the consumer segment. We are looking forward to utilize this well-oiled engine to support businesses’ productivity further with our newly launched Jabra PanaCast for modern video collaboration.”

Teleconference
GN will host a teleconference at 11.00 am CEST today. Please visit www.gn.com/investor to access the teleconference. Presentation material will be available on the website approximately one hour prior to the teleconference.

For further information please contact:

Morten P. Toft
VP – Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 46 07

Rune Sandager
Senior Manager - Investor Relations
GN Store Nord A/S
Tel: +45 45 75 92 57

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