Demant (DEMANT) Q1 2026 earnings summary

Executive summary

• Achieved 6% organic growth for the Group in Q1 2026, at the high end of expectations, with 10% additional growth from acquisitions, notably from KIND integration.

• Hearing Aids segment delivered 9% organic growth, driven by the successful launch of Oticon Zeal and robust existing portfolio performance.

• Integration of KIND progressing as planned, significantly contributing to acquisitive growth.

• Structural and cost-reduction initiatives executed to enhance growth and profitability, with positive early results.

• Outlook for 2026 maintained, with strong Q1 performance making results at the lower end of guidance less likely.

Financial highlights

• Group revenue reached DKK 6,246 million, up from DKK 5,620 million year-over-year.

• Organic growth reached 6% year-over-year in Q1 2026, supported by high ASP and positive product mix.

• EBIT before special items improved versus Q1 2025, supported by Hearing Aids and KIND consolidation, despite negative FX impacts.

• Gross margin increased due to higher ASP in hearing aids and favorable mix effects.

• Solid operational and free cash flow remained positive in the quarter, with proceeds from divestments offsetting acquisition outflows.

Outlook and guidance

• Maintained full-year outlook: organic growth of 3%-6% and EBIT before special items of DKK 4,100–4,500 million.

• Strong Oticon Zeal performance makes lower end of guidance less likely.

• Market growth for the year expected at 2%-4%, with Q1 at the high end (4%).

• Special items of DKK 325 million expected, mainly from KIND integration and organizational changes.

• Cost reduction initiatives to improve EBIT by DKK 250 million in 2026, with full DKK 500 million impact by 2028.