GN Store Nord (GN) Q2 2025 earnings summary

Executive summary

• Achieved strong execution in Q2 2025 despite global trade uncertainties and weak macro conditions, with market share gains in Hearing and Gaming and solid margin progression.

• EBITA rose 46% year-over-year to DKK 546 million (13.1% margin), driven by gross margin improvements and cost discipline, with no extraordinary costs.

• Free cash flow (excluding M&A) reached DKK 353 million, and leverage was reduced to 4.0x from 4.9x.

• Gained market share in Hearing with 8% organic growth, driven by the launch of ReSound Vivia and Enzo IA.

• Gaming achieved 0% organic growth in a declining market, taking share despite tariff and sentiment headwinds.

Financial highlights

• Group revenue was DKK 4,160 million, with organic revenue growth at 0% (excluding wind-down effect); reported organic growth was -5%.

• Gross margin improved by 3.7 percentage points to 55.6%, driven by pricing discipline and favorable business mix.

• EBITA margin increased to 13.1%, supported by cost management and no extraordinary costs.

• Free cash flow (excl. M&A) was DKK 353 million.

• Profit before tax reached DKK 232 million, with a net profit of DKK 180 million and EPS of DKK 1.13.

Outlook and guidance

• 2025 organic revenue growth guidance (excl. wind-down) narrowed to -2% to +2%; EBITA margin guidance remains at 11–13%.

• Hearing expected at the lower end of its range due to softer North America and market growth; Gaming trending mid-range.

• Tariffs expected to impact EBITA margin by around -1% for the year.

• Free cash flow (excl. M&A) guidance at DKK 800 million.

• Wind-down effect expected to reduce reported organic revenue growth by about 3 percentage points.