- GN impacted at three levels from COVID-19, therefore guidance was withdrawn on
April 3, 2020 - Leverage of 2.3 times net interest-bearing debt to EBITDA (2.3 times on
March 31, 2019 ) - Operating in both the hearing aid and audio space, and with no forward integration, is beneficial for the company during these challenging times
- -
- GN delivered 3% organic revenue growth in Q1 2020. Revenue growth was 4% including 2% impact from the development in foreign exchange rates and -1% impact from M&A
- By the end of Q1 2020, GN had cash and cash equivalents of
DKK 589 million and a net interest-bearing debt to EBITDA leverage ratio of 2.3 times. The balance sheet remains very sound with ample sources of liquidity
- - GN Hearing
- GN Hearing saw an accelerating impact from COVID-19 on the sale of hearing aids, particularly towards the end of the quarter. GN Hearing delivered an organic growth of -14% in Q1 2020. Revenue growth was -13% including 3% impact from the development in foreign exchange rates and -2% impact from M&A
- EBITA was
DKK 55 million in Q1 2020, due to the development in revenue, more than offsetting short-term OPEX reductions - Free cash flow excl. M&A was
DKK -66 million in Q1 2020 compared toDKK -37 million in Q1 2019, which reflected the lower revenue and traditional seasonality
- - GN Audio
- GN Audio saw very strong Enterprise demand for home office products as enterprises of all sizes, and across various industries, prepared their employees for working from home due to COVID-19. Towards the end of Q1, GN Audio saw reduced demand for Consumer headsets due to the impact from COVID-19. GN Audio delivered an organic growth of 22% in Q1 2020. Revenue growth was 24%, including 1% impact from the development in foreign exchange rates and 1% impact from M&A
- EBITA increased by 49% to
DKK 288 million in Q1 2020, driven by the strong revenue growth, on top of a negative gross margin impact from increased freight and production costs as a result of COVID-19 as well as tariffs - Free cash flow excl. M&A was
DKK -67 million in Q1 2020 compared toDKK 78 million in Q1 2019, which reflected the strong revenue growth impacting net working capital negatively
Quotes from executive management
Financial highlights Q1 2020:
GN Hearing | GN Audio | ||||||||
DKK million | Q1 2020 | Q1 2019 | Growth | Q1 2020 | Q1 2019 | Growth | Q1 2020 | Q1 2019 | Growth |
Revenue | 1,314 | 1,507 | -13% | 1,653 | 1,333 | 24% | 2,967 | 2,840 | 4% |
Organic growth | -14% | 8% | 22% | 36% | 3% | 19% | |||
Gross profit | 841 | 1,047 | -20% | 827 | 707 | 17% | 1,668 | 1,754 | -5% |
Gross margin | 64.0% | 69.5% | -5.5%p | 50.0% | 53.0% | -3.0%p | 56.2% | 61.8% | -5.6%p |
EBITA | 55 | 282 | -80% | 288 | 193 | 49% | 300 | 439 | -32% |
EBITA margin | 4.2% | 18.7% | -14.5%p | 17.4% | 14.5% | +2.9%p | 10.1% | 15.5% | -5.4%p |
Earnings per share (EPS) - DKK | 0.78 | 1.96 | -60% | ||||||
Free cash flow excl. M&A | -66 | -37 | -29 | -67 | 78 | -145 | -160 | -13 | -147 |
Financial guidance for 2020
The COVID-19 situation has and will not only impact GN’s operational performance in 2020, but it will also impact predictability and visibility across markets, partners and channels. Therefore, GN withdrew its financial guidance for 2020 on
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
150 years ago, GN was founded with a truly innovative and global mindset. Today, we honor that legacy with world-leading expertise in the human ear, sound and video processing, wireless technology, miniaturization and collaborations with leading technology partners. GN's solutions are marketed by the brands ReSound, Beltone, Interton, Jabra, BlueParrott and FalCom in 100 countries. Founded in 1869, the
Visit our homepage GN.com - and connect with us on LinkedIn, Facebook and Twitter.
Attachments
- GNSN - Interim Report Q1 2020
- Interim Report Q1 2020 cover note
© OMX, source