Demant (DEMANT) investor relations material

Executive summary

• Strong momentum across all business areas in H1 2026, with growth accelerating from Q1 to Q2, driven by hearing aids and the success of Oticon Zeal.

• Completion of the divestment of implant and communication businesses, now fully focused on hearing healthcare.

• Launch of new premium hearing aid, Oticon Reveal, featuring dual AI technology for enhanced speech clarity and noise management.

• Cost-saving initiatives announced in February 2026 are ahead of plan, supporting margin improvements.

• Profit after tax from continuing operations increased 6% to DKK 1,185 million.

Financial highlights

• Group revenue grew 15% year-over-year to DKK 12,913 million in H1 2026, with 7% organic and 10% acquisitive growth, mainly from KIND.

• Gross margin improved to 77.1%, up 1.1 percentage points, driven by favorable product and geography mix and KIND acquisition.

• EBIT before special items reached DKK 2,134 million (16.5% margin), up 19% in local currencies and 15% year-over-year.

• Cash flow from operations was DKK 1,603 million, up 6% from H1 2025; free cash flow before acquisitions/divestments increased 14% to DKK 1,284 million.

• Net interest-bearing debt decreased to DKK 17,950 million, reducing the gearing multiple to 3.0.

Outlook and guidance

• Upgraded 2026 outlook: organic revenue growth of 6%-7% (previously 3%-6%) and EBIT before special items of DKK 4,400-4,800 million (previously DKK 4,100-4,500 million).

• Market growth assumption for hearing aids revised to 3%-4% for the year, reflecting a conservative stance.

• Special items for 2026 expected at DKK 400 million, mainly due to KIND integration and cost-saving initiatives.

• No share buy-backs planned for 2026; focus remains on reducing net debt.

• Effective tax rate expected around 23%.