Financial highlights 2019
- GN delivered
DKK 12.6 billion revenue with organic growth of 15% - EBITA increased 19% to
DKK 2.3 billion - EPS was
DKK 11.12 , an increase of 20% compared to 2018 DKK 1.4 billion was returned to shareholders via dividends and share buybacks during the year
By winning in the market through innovation, GN has successfully completed its 2017 – 2019 strategy. GN’s ability to commercialize innovation is considerably strengthened during the past strategy period. The financial and strategic goals set in 2016 have been more than achieved. This provides GN with a solid foundation for continued innovation and growth in the years to come, making GN better positioned than ever before.
GN Hearing continued to execute on the global rollout of the ReSound
GN Audio continued the exceptional performance based on a leading product portfolio and best-in-class commercial execution during 2019. In the enterprise business targeting the Call Center & Office (CC&O) market, GN Audio achieved exceptional organic revenue growth throughout 2019. This was particularly driven by the
Financial highlights 2019:
GN Hearing | GN Audio | ||||||||
DKK million | 2019 | 2018 | Growth | 2019 | 2018 | Growth | 2019 | 2018 | Growth |
Revenue | 6,351 | 5,833 | 9% | 6,233 | 4,774 | 30% | 12,574 | 10,607 | 19% |
Organic growth | 7% | 7% | 26% | 21% | 15% | 13% | |||
Gross profit | 4,380 | 4,034 | 9% | 3,202 | 2,540 | 26% | 7,582 | 6,574 | 15% |
Gross margin | 69.0% | 69.2% | 51.5% | 53.2% | 60.3% | 62.0% | |||
EBITA | 1,284 | 1,194 | 8% | 1,192 | 905 | 32% | 2,321 | 1,956 | 19% |
EBITA margin | 20.2% | 20.5% | 19.2%* | 19.0% | 18.5% | 18.4% | |||
Earnings per share (EPS) - DKK | 11.12 | 9.25 | 20% | ||||||
Free cash flow excl. M&A | 672 | 574 | 17% | 849 | 798 | 6% | 1,296 | 1,110 | 17% |
*20.0% excluding transaction related costs associated with the Altia Systems acquisition
Shareholder returns – Dividend and share buyback proposal
GN continued to deliver attractive shareholder returns enabled by solid cash flow generation during 2019. GN has distributed around
At the Annual General Meeting on
The current one-year
GN strategy 2020 and beyond
GN will in the years ahead drive growth by delivering uniquely individualized customer experiences. We will continue enabling people to Hear More, Do More and Be More. Specifically, in the years ahead we will grow by offering increasingly individualized products and solutions.
Utilizing the synergies derived from GN’s audio and hearing technologies and expertise, the group is now able to significantly improve and personalize customers’ hearing and listening experiences. Enabling a whole new level of individualization, GN will continue to deliver industry-leading innovation that addresses real life challenges for people with hearing loss, for businesses seeking productivity gains and for audio consumers looking for experiences beyond what can be delivered today.
GN’s strategy for 2020 and beyond is to take individualized customer experience to a whole new level, and:
- to further broaden the reach and appeal of GN’s hearing and audio product portfolios, where management sees ample opportunities for continued growth
- and, as new market segments open up, to leverage GN’s technological expertise and commercial platform, where these provide a particular competitive advantage
Mid-term financial targets
Based on the updated strategy, GN expects continued market share gains in the mid-term with the following financial targets:
- -
In the mid-term, GN will continue to invest in growth through innovation to deliver double-digit organic growth rates. We expect to continue delivering a strong EBITA margin in line with existing levels and competition, and to deliver double-digit growth in earnings per share.
GN expects to maintain a conservative capital structure policy of net interest-bearing debt to EBITDA of 1.0 - 2.0x, where excess liquidity will be distributed to shareholders through share buybacks and dividends.
- - GN Hearing
In the mid-term, GN Hearing expects the global hearing aid market to continue to grow at around 4 - 6% in volumes with an ASP decline of around 1 - 2% annually. GN Hearing expects to continue to grow faster than the market and to achieve organic revenue growth above this level. Assuming a stable environment and stable currency exchange rates, the expected organic revenue growth and operational leverage should lead to an EBITA margin of >20%, on top of investments in growth opportunities, as we operate in attractive markets.
- - GN Audio
In the mid-term, GN Audio expects its markets to continue to grow at around 10% in value when assuming a stable macro environment. GN Audio expects to continue to grow faster than the market and to achieve organic revenue growth above this level. Assuming a stable environment and stable currency exchange rates, the expected organic revenue growth and operational leverage should lead to an EBITA margin of >20%, on top of investments in growth opportunities, as we operate in attractive markets.
Financial guidance for 2020
The financial guidance for 2020 assumes continued strong profitable growth:
Financial guidance for 2020* | GN Hearing | GN Audio | |
Organic revenue growth | >6% | >14% | |
EBITA margin | >20% | >20% | |
Growth in earnings per share | ~15% |
* Based on foreign exchange rates as of
EBITA in “Other” is expected to be around
The financial guidance does not include any impact from the Coronavirus outbreak. Based on our current knowledge we expect to see an impact on Q1 financials. Provided that the situation resolves during February, we assume to follow guidance for the rest of the year.
Quotes from executive management
Teleconference
For further information, please contact:
Investors and analysts
Vice President – Investor Relations &
Tel: +45 45 75 46 07
Or
Senior Manager – Investor Relations
Tel: +45 45 75 92 57
Press and the media
Head of Media Relations & Corporate Public Affairs
Tel: +45 45 75 02 55
About
GN was founded with a truly innovative and global mindset. Today, we honor that legacy with world-leading expertise in the human ear, sound, wireless technology, miniaturization and collaborations with leading technology partners. GN's solutions are marketed by the brands ReSound, Beltone, Interton, Jabra, FalCom and BlueParrott in 100 countries. Founded in 1869, the
Visit our homepage GN.com, get to know our innovation and leadership, and connect with us on LinkedIn, Facebook and Twitter.
Attachments
- Annual Report 2019 cover note
- GN Annual Report 2019
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