COPENHAGEN, DENMARK – GN Store Nord A/S recently held their Q1 2024 earnings conference call, announcing solid financial results across their three divisions. With a 5% organic growth on a group level, the reported EBITDA margin increased by 6.5% compared to the previous year. The positive earnings led to strong free cash flow in the quarter, despite seasonal challenges such as tax and bonus payments.

One of the key factors contributing to the encouraging performance in Q1 was the successful integration of One-GN, resulting in around DKK 90 million in realized synergies, slightly exceeding initial projections. The company reaffirmed its financial guidance for the year across revenue, EBITDA, and cash flow.

Within the Hearing division, GN continued to see market share gains, driven by the successful rollout of ReSound Nexia. The division reported organic growth of 14% in Q1, with a gross margin increase of over 1%, showcasing the success of the One-GN integration. The commercial success of ReSound Nexia supported the division’s strong performance and growth trajectory.

In the Enterprise division, revenues remained steady compared to the previous year, with a 5-percentage point improvement in gross margin. The positive product mix, group operations synergies, and normalization of freight rates drove the margin increase. Sales and marketing costs slightly decreased in the quarter, leading to a 6-percentage point increase in divisional profit margin.

The Gaming & Consumer division reported revenue in line with the first quarter of 2023, supported by a nearly 6-percentage point increase in gross margin. Despite deliberate investments in sales and marketing preparations for market recovery, the division saw a 4-percentage point increase in profit compared to the previous year.

The company remains focused on capitalizing on the success of ReSound Nexia in the Hearing division, anticipating further market share growth. Additionally, the gradual recovery expected in the enterprise market aligns with the company’s projections for positive year-over-year growth sometime in the second half of the year.

As GN Store Nord A/S continues to navigate market dynamics and capitalize on product successes, the company remains committed to delivering on its financial guidance for the year and maximizing operational efficiencies to drive sustainable growth and profitability. With a strong start to the year and a clear strategic focus, the company is well-positioned for future success and continued market leadership.