GN Store Nord (GN) Q1 2025 earnings summary

Executive summary

• Q1 2025 organic revenue declined by 3% year-over-year excluding wind-down, with total revenue at DKK 3,986 million, impacted by market uncertainty and U.S. tariffs.

• EBITA dropped to DKK 300 million (margin 7.5%), reflecting negative operating leverage and launch costs.

• Proactive mitigation actions include supply chain diversification, price increases, and cost containment to support margins and cash flow.

• Strong product launches, notably ReSound Vivia, partially offset declines and drove market share gains.

Financial highlights

• Revenue was DKK 3,986 million, with organic growth -8% (excluding wind-down: -3%).

• Gross margin improved to 54.9% (up 2.0 p.p. year-over-year), despite negative business mix and tariffs.

• EBITA was DKK 300 million (margin 7.5%, down 5.0 p.p. year-over-year).

• Free cash flow excluding M&A was DKK -395 million, impacted by seasonality and higher interest and tax payments.

• Adjusted leverage ended at 4.1x.

Outlook and guidance

• 2025 group organic revenue growth is guided at -3% to +3% (excluding wind-down).

• EBITA/EBITDA margin guidance for 2025 is 11%-13%, assuming current tariff levels persist.

• Free cash flow (excluding M&A) expected to be around DKK -800 million for the year.

• Hearing division expected to deliver 5%-9% organic growth; Enterprise -8% to 0%; Gaming -6% to 2%.

• Guidance reflects cautious optimism amid ongoing market and tariff uncertainty.