“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.”
At the Annual General Meeting on
“Now we are approaching the middle of March, and nothing has been resolved yet concerning this virus. Rather, it is clear that the impact on global economic activity will be far greater than previously assumed, and GN as a company is affected at three levels: (i) our production in
As a result – as we view the situation today – GN overall will experience minimal or no organic revenue growth in the first quarter. And if the coronavirus situation continues as now, we will see an impact in the second quarter as well.”
Our preliminary revenue numbers for Q1 2020 indicate total GN revenue of DKK ~2,950 million compared to
In GN Hearing, we have seen accelerating impact from COVID-19 on the sale of hearing aids, particularly towards the end of the quarter, and in Q2 2020 we expect continued severe business impact on revenue as the virus spread in
GN Audio, on the other hand, is uniquely positioned to support the world in getting through this crisis, and thereby to continue delivering strong performance. In Q1 2020, we have seen very strong demand for home office products as enterprises of all sizes, and across various industries, prepare their employees for working from home.
The fundamentals of GN Store Nord’s operating model continue to be very much intact, and we expect the fundamentals of the markets to return when the virus is behind us.
The COVID-19 situation has and will not only strongly impact our operational performance this year, but it will also impact predictability and visibility across markets, partners and channels as we continue the year. Therefore, we find it appropriate that we withdraw our financial guidance for 2020.
Appropriate operational and expense related actions have been taken. We are continuously assessing the developments, and additional prudent and diligent actions will be taken as needed going forward.
To preserve a strong balance sheet,
The interim reporting for Q1 2020 will be announced on
Quotes from executive management
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
Vice President – Group Communication
Tel: +45 20 65 34 20
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 and BlueParrott in 100 countries. Founded in 1869, the
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Attachment
- Announcement no 24 - Prelim Q1 2020 revenue and updates 2020 guidance due to COVID-19
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