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Interim Report Q3 2019: 13% organic revenue growth in Q3 driven by strong performance across the group

  • GN delivered 13% organic revenue growth in Q3 2019. Revenue growth was 17% including about 3% impact from the development in foreign exchange rates and about 1% impact from M&A
  • EBITA increased 16% compared to Q3 2018 driven by strong operational leverage on top of continued investments in future growth opportunities and ongoing infrastructure investments
  • EPS increased 16% compared to Q3 2018 and reached DKK 2.60
  • Strong cash conversion of 105% in Q3 2019
  • The financial guidance for 2019 is confirmed
  • GN Hearing delivered a strong 8% organic revenue growth in Q3 2019 driven by the continued strong performance of ReSound LiNX Quattro. Revenue growth was 10% including about 2% impact from the development in foreign exchange rates
  • EBITA increased 5% to DKK 283 million in Q3 2019. The EBITA margin reached 18.4%, lower than Q3 2018 as a result of a lower gross margin, increased R&D activity and ongoing infrastructure investments
  • Free cash flow excl. M&A was DKK 289 million in Q3 2019 translating into a cash conversion of 102%. YTD cash conversion of 63%
  • GN Audio delivered another quarter of outstanding performance with 20% organic revenue growth in Q3 2019 driven by very strong performance across the business. Revenue growth was 25%, including about 3% impact from the development in foreign exchange rates and about 2% impact from M&A
  • EBITA increased 29% to DKK 290 million in Q3 2019. The EBITA margin of 19.8% reflects continuous leverage in the business off-set by investments in future growth opportunities and an adverse development in foreign exchange rates
  • Free cash flow excl. M&A was DKK 329 million in Q3 2019, translating into a cash conversion of 113%. YTD cash conversion of 85%

Quotes from the executive management

Gitte Aabo, CEO of GN Hearing: “Q3 was an important quarter that delivered strong commercial execution with 8% organic growth and continued relentless focus on innovation as illustrated with the ReSound LiNX Quattro customs launch. I am very impressed and truly excited about our current products and our pipeline, which bodes well for the coming years.”

René Svendsen-Tune, CEO of GN Audio: “With 20% organic revenue growth in Q3, GN Audio continued to take market share across regions and channels. I am very happy to see the strong focus on product innovation and commercialization paving the way for the strong quarter. We will continue to focus on areas, where we can do more in order to offer an even better value proposition to our customers around the world.”

Teleconference
GN will host a teleconference at 11.00 am CET 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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