GN Store Nord (GN) Q4 2024 earnings summary

Executive summary

• Achieved strong, profitable growth in 2024, with 10% organic growth in hearing, 7% in gaming, and -3% in enterprise; overall group organic growth was 1%, or 4% excluding the consumer wind-down.

• Successfully executed the One-GN transformation, delivering DKK 430 million in synergies and improving margins across divisions.

• Completed wind-down of Elite and Talk consumer product lines, allowing focus on core gaming and hearing businesses.

• Launched innovative products, including ReSound Vivia and Savi hearing aids, and new enterprise and gaming solutions.

• Enhanced ESG performance, reducing Scope 3 carbon emissions by over 25% since 2021 and helping 11 million people with hearing loss.

Financial highlights

• Group reported EBITDA grew 79% year-over-year, reaching an EBITDA margin of 12%, up from 6.6% in 2023.

• Gross margin increased to 53.2% from 49.4% in 2023, driven by pricing discipline, synergies, and positive business mix.

• Free cash flow (excluding M&A) was DKK 1.1 billion, supporting further deleveraging.

• Adjusted leverage reduced to 3.5x from 4.5x last year.

• Net profit for 2024 was DKK 1,059 million, up from DKK 266 million in 2023.

Outlook and guidance

• 2025 guidance: organic revenue growth (excluding wind-down) of 3% to 7%; reported EBITDA/EBITA margin of 12% to 14%.

• Free cash flow (excluding M&A) expected around DKK 800 million.

• Hearing division: organic revenue growth of 5% to 9% expected, with continued market share gains.

• Enterprise: modest market growth anticipated, with organic revenue growth of 0% to 4%.

• Gaming: organic revenue growth of 7% to 12% (excluding wind-down impact); reported growth will be lower due to wind-down.

• Margin expansion expected to continue, supported by further synergies and lower extraordinary costs.

• Wind-down expected to negatively impact reported organic revenue growth by 3–4 percentage points in 2025.