GN Store Nord’s Audio division revises financial guidance

The financial guidance for 2022 is revised to replicate the impression of the worsened macroeconomic setting, decrease client sentiment and common larger uncertainty which impacts the markets during which GN operates:

• A worsening of the buyer markets throughout GN Audio with an up to date expectation that these markets will decline ~30% for 2022
• Although we’re observing strong demand within the Enterprise market, we now count on decrease than beforehand anticipated market progress in This fall

Guidance revision

• GN Audio natural income progress guidance is revised from “0-5%” to now “-7% to -5%”
• Reflecting the lower-than-expected income improvement and the additional appreciating USD, GN Audio’s adj. EBITA margin guidance is revised from “17-18%” to now “14-15%”
• As a consequence of the revised financial guidance for GN Audio, GN Store Nord revises the financial guidance on progress in adj. EPS from between -10% to 0% to now “around -30%”
• Acknowledging the present sentiment associated to a possible recession, GN Audio is taking proactive and vital actions to cut back the price base and defend the agility of the corporate. For this goal, guidance for non-recurring objects is elevated by DKK -100 million referring to This fall initiatives taking the 2022 non-recurring objects from round DKK -400 million to round DKK -500 million
• All different guidance parameters are confirmed

Updated financial guidance 2022

Note 1) Emerging Business primarily contains the Lively acquisition
Note 2) The SteelSeries natural income progress might be reported as M&A progress for GN Audio
Note 3) Excluding non-recurring objects
Note 4) Non-recurring objects in GN Hearing primarily associated to produce chain investments (DKK ~ -150m) and in GN Audio associated to transaction and integration prices (DKK ~ -200m) in addition to non-cash PPAs (DKK ~ -200m), related to SteelSeries and value discount measures (DKK ~ -100m)
Note 5) Compared to 2021 adjusted EPS (excluding non-recurring objects and amortization and impairment of acquired intangible property) of DKK 15.29
Note 6) Reflecting up to date FX assumptions for 2022 following the numerous appreciation of the USD since August 2022
Financial guidance based mostly on international trade charges as of November 2, 2022

Pre-release of preliminary key figures for Q3 2022:

• 0% natural income progress in GN Hearing in gentle market circumstances. Strong preliminary gross sales knowledge from the launch of ReSound OMNIA boding nicely for sturdy efficiency and vital market share good points in This fall 2022
• GN Hearing adj. EBITA margin of 10.6% within the Core business impacted by larger freight and materials prices and investments in launch actions
• -2% natural progress in GN Audio Organic pushed by strong natural income progress in Enterprise of seven%, however offset by -34% natural income progress within the Consumer business
• Strong sequential enchancment in SteelSeries resulting in -13% natural income progress
• GN Audio adj. EBITA margin of 14.6%, reflecting investments in progress alternatives, larger freight and materials prices, the event in FX and the consolidation of SteelSeries

* +7% natural income progress in Enterprise and -34% natural income progress in Consumer

GN Store Nord will, as beforehand communicated, launch its interim Q3 2022 report on November 11, 2022, with additional particulars on the efficiency in Q3 2022 and can host a teleconference for traders and analysts on the identical day.

Primary danger elements in relation to the financial guidance
Due to the COVID-19 pandemic, the worldwide provide state of affairs and the macro-economic setting – which impacts GN in some ways – it have to be harassed that the essential assumptions behind the guidance stay extra unsure than regular. The state of affairs is impacting GN’s operational efficiency, predictability and visibility throughout markets, channels and provide chain.

For additional data, please contact:

Investors and analysts
Anne Sofie Staunsbæk Veyhe
Vice President – Investor Relations, Treasury and M&A
Tel: +45 45 75 85 06

or

Rune Sandager
Senior Director – Investor Relations
Tel: +45 45 75 92 57

Press and the media
Steen Frentz Laursen
Vice President – Corporate Communications
Tel: +45 20 65 34 20

About GN 
GN facilitates communication between individuals via clever listening to, audio, video, and gaming know-how. Inspired by individuals and pushed by our ardour for innovation, we leverage applied sciences to ship distinctive person experiences that carry individuals nearer via the ability of sound and imaginative and prescient.

GN was based greater than 150 years in the past with a imaginative and prescient to attach the world. Today, we proudly honor that legacy with our world-leading experience within the human ear, audio, video and speech, wi-fi applied sciences, software program, miniaturization, and collaboration with main know-how companions. GN’s options are marketed by the manufacturers ReSound, SteelSeries, Jabra, Beltone, Interton, BlueParrott, Danavox and FalCom in 100 nations. Founded in 1869, the GN Group employs greater than 7,000 individuals and is listed on Nasdaq Copenhagen (GN.CO).

Visit our homepage GN.com – and join with us on LinkedIn, Facebook and Twitter.

• Announcement 16 – GN Store Nord’s Audio division revises financial guidance for 2022