Investor news
On Monday 27 September at
Background
In 2021, Demant has seen very strong business momentum driven by
The strong performance comes after a couple of years where the Group has gone through significant changes with the IT incident in
We thus emerge from recent years’ significant changes as a stronger company, and we are set for strong financial results in 2021. Assuming that revenue will be at the midpoint of our current guidance range, this represents a compound annual growth rate of 10% in local currencies in the ten years since 2012, with 6% organic growth and 4% acquisitive growth. This successful track record over a long time period is a strong testament to our ability to deliver sustained growth, which we also aim to do in the coming years.
Key messages from today’s Capital Markets Day
Under the heading of “Delivering sustained growth post coronavirus”, the key messages of today’s Capital Markets Day will be:
- In line with historical levels, we aim to generate revenue growth for the Group of 7-10% p.a. in local currencies in the medium to long term. This comprises organic growth of 6-8% p.a. supplemented by acquisitive growth from bolt-on acquisitions of 1-2% p.a. We thus aim for both
Hearing Healthcare and Communications to deliver organic growth above the estimated structural market growth rates of approx. 4% (unchanged) and approx. 12% (previously 8-10%) p.a., respectively. - In the coming years, we expect pent-up demand to support volumes in the hearing aid market. Relative to normal expectations, we estimate that the total shortfall in units sold during the pandemic amounts to around 3.7 million, and we consider it probable that a significant share of these units will come back as pent-up demand in the coming years.
-
We continue to see potential for margin expansion in all business areas with scope for incremental improvements in Hearing Aids, Hearing Care and Diagnostics and scope for transformative improvements in
Hearing Implants and Communications , as we expand these businesses in the coming years. - We remain deeply focused on innovation and consider scale key for ensuring long-term success. In particular, we focus on remaining leaders in audiological performance across our business areas as we believe that such leadership will also prove to be a competitive advantage in the future.
- We still believe strongly in the value of professional, in-person counselling in hearing healthcare, and the coronavirus pandemic has only confirmed that such counselling remains the preferred choice for the vast majority of users.
- With strong focus on user-centred care, we have made substantial progress in Hearing Care in recent years and successfully established market-leading positions in several important markets. Along with the consolidation of brands and investments in digital capabilities, this has supported growth and significantly improved our profitability.
- Up until now, our Communications business has in 2021 seen a significant revenue slowdown and is currently in a transition phase. Combined with significant investments in future growth, this has led to negative profitability, but we see a clear path back to profitability in 2023 with steadily improving profitability in subsequent years, driven by revenue growth above the market growth rate from 2022 and onwards.
- We expect continued strong cash flow generation in the coming years and are committed to efficient capital allocation focused on value-adding acquisitions and return of cash to shareholders in the form of share buy-backs.
- We are a positive impact business, and we act sustainably to contribute positively to society, while ensuring long-term success for the company. In recognition of the importance of sustainability in all areas of our business, we are committed to continuously improving on ESG parameters (Environmental, Social and Governance), and in the area of “Environmental”, we are pleased to announce today our official commitment to the Science Based Targets initiative.
“We are seeing very positive developments for the
Agenda
11:00 | Welcome |
|
11:10 | Delivering sustained growth post coronavirus | Søren Nielsen |
12:15 | Audiological leadership through BrainHearing |
|
12:45 | Lunch break |
|
13:45 | A transformational journey in Hearing Care |
|
14:45 | EPOS: Becoming the preferred premium audio brand |
|
15:45 | Break |
|
16:15 | Sustained growth with potential for margin expansion |
|
17:00 | Final Q&A and concluding remarks |
|
17:30 | End of event |
|
Outlook for 2021 is reiterated
We continue to be on track towards strong financial performance in 2021 and reiterate our guidance for the year, which includes organic growth of 26-30% and an EBIT of
With registration opening at
Further information: Søren Nielsen, President & CEO Phone +45 3917 7300 www.demant.com | Other contacts: |
About Demant A/S
Demant is a world-leading hearing healthcare group that offers solutions and services to help people with hearing loss connect with the world around them. In every aspect, from hearing devices, hearing implants, diagnostics to audio and video solutions and hearing care all over the world, Demant is active and engaged. Our innovative technologies and know-how help improve people’s health and hear-ing. We create life-changing differences through hearing health.
Attachments
- 210927 Investor news - Capital Markets Day 2021.pdf
© Ritzau Denmark, source