Demant (DEMANT) Q4 2024 earnings summary

Executive summary

• Reported revenue grew 4% in 2024, with 2% organic growth and 2% from acquisitions, reaching DKK 22.4 billion.

• Gross profit improved by 5%, but EBIT declined by DKK 100 million (2%) year-over-year, mainly due to exchange rates and lower operating leverage.

• Strong cash flow generation, with cash flow from operations at DKK 4 billion and free cash flow at DKK 3.5 billion for the year.

• Divestment of CI and communication businesses to focus on core hearing healthcare, with both delivering positive profit in Q4.

• Sustainability progress includes reduced emissions and increased gender diversity in leadership, with new and updated targets launched.

Financial highlights

• FY 2024 revenue reached DKK 22,419 million, up 4% year-over-year; gross profit rose 5% to DKK 17,090 million.

• Gross margin improved by 0.6 percentage points to 76.2%, driven by favorable business mix and strong ASP in hearing aids.

• EBIT before special items was DKK 4,404 million (down 2% year-over-year), with EBIT margin at 19.6%.

• Share buybacks totaled DKK 2.3 billion for the year.

• Net interest-bearing debt ended at DKK 13.5 billion, with a gearing multiple of 2.3x.

Outlook and guidance

• 2025 organic revenue growth expected at 3%-7%, with EBIT before special items of DKK 4.5-4.9 billion.

• Share buyback planned above DKK 1.5 billion.

• Acquisitive growth expected at 2%, and currency impact to add 1% to top line.

• Effective tax rate expected around 23%.

• Market unit growth for hearing aids anticipated at 4-6% with flat ASP; French market expected to grow high single digits.