2013 targets achieved - 32% revenue growth and a doubling of the EBITA margin compared to 2010

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| Source: GN Store Nord A/S
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Copenhagen, 2014-02-14 08:00 CET (GLOBE NEWSWIRE) -- GN Store Nord Annual Report 2013: 2013 targets achieved - 32% revenue growth and a doubling of the EBITA margin compared to 2010. EBITA increase of 52% in 2013 with strong and profitable growth to continue in 2014

Highlights

  • GN Store Nord generated 9% organic growth in Q4 2013 leading to DKK 1,860 million in revenue - driven by innovation and strong market positions. For the full year, the organic growth was 13%
  • Consolidated EBITA ended at DKK 390 million in Q4, an increase of 30% compared to Q4 2012 (excluding SMART restructuring costs). For the full year, consolidated EBITA increased by 52% to DKK 1,284 million
  • GN ReSound continued its strong development by delivering organic growth of 6% in Q4 leading to 10% organic growth for 2013, exceeding the guidance from the Interim Report Q3 2013. GN ReSound’s Q4 EBITA was DKK 275 million, up from DKK 212 million in Q4 2012 (excluding SMART restructuring costs)
  • GN ReSound conducted a limited market release of the groundbreaking Made for iPhone hearing aid, ReSound LiNX™, on the North American market in December 2013. The initial feedback has been very encouraging for the official launch in the second half of Q1
  • Through its strong relationship and as a result of best-in-class service levels, GN ReSound has entered into a new agreement with Amplifon – the world’s largest hearing aid retailer. The agreement ensures that GN ReSound and Amplifon maintain their close collaboration in the coming years
  • Revenue in GN Netcom was DKK 729 million in Q4 and organic growth was 15% leading to 18% organic growth for the year 2013. GN Netcom’s EBITA was DKK 141 million in Q4 2013 compared to DKK 115 million in Q4 2012
  • Unified Communications continued to be a strong growth driver for GN Netcom in Q4 2013 and the future prospects appear highly attractive
  • On January 1, 2014, Niels Svenningsen replaced Mogens Elsberg as CEO of GN Netcom. Niels Svenningsen has extensive experience in IT and B2B sales execution and commercialization – competencies which are particularly important for the execution of the Strategy 2014 – 2016
  • Based on the continued strong development in the financial results, and in line with the capital structure policy, GN has initiated a new share buyback program of DKK 500 million to be concluded no later than September 30, 2014. As of February 14, 2014, GN has bought back shares for an amount of DKK 95 million in 2014
  • At the annual general meeting to be held in March 2014, the board of directors will propose a dividend of 18% of the net result (excluding SMART restructuring costs). This is equivalent to DKK 146 million or DKK 0.84 per share

Guidance 2014

Organic growth

  • GN ReSound: More than 6%
  • GN Netcom: More than 11%
  • GN Store Nord: More than 8%

EBITA

  • GN ReSound: More than DKK 875 million
  • GN Netcom: More than DKK 515 million
  • GN Store Nord: More than DKK 1,330 million

 

2016 targets

Organic growth

  • GN ReSound: Annual average of more than three percentage points above market growth from 2014 - 2016
  • GN Netcom: Annual average of more than 10% from 2014 - 2016

EBITA margin

  • GN ReSound: In line with top-tier competitors
  • GN Netcom: 18 – 19%

ROIC

  • GN ReSound: Improve by more than four percentage points from 14.6% in 2013
  • GN Netcom: More than 55%

 

Quotes from the executive management

Lars Viksmoen, CEO of GN ReSound: “Q4 concludes our long and exciting journey towards the achievement of our ambitious 2013 targets. The first year of our 2014 – 2016 strategy period will be all about exploiting our technology through the launch of ReSound LiNX and Beltone First. The initial feedback confirms that these are really fantastic hearing aids”.

Niels Svenningsen, CEO of GN Netcom: “I am delighted that I have been given the opportunity to join GN Netcom, and I am highly encouraged about the potential of this company. After my first months, it is clear to me that we have unique growth opportunities based on our development competencies and market position. It is also clear that we can do even more, especially on sales and marketing, to get the most out of our products – that is what 2014 and beyond will be all about”.

 

Teleconference

GN Store Nord will host a teleconference at 11.30 a.m. CET today. Please visit www.gn.com to access the teleconference. Presentation material will be available on the website approximately one hour prior to the start of the teleconference.
 

For further information please contact:

Michael Bjergby
Senior Director – IR, Communications, CSR & Treasury
GN Store Nord A/S
Tel: +45 45 75 02 92