Innovation continues to drive strong growth


Copenhagen, 2014-11-14 07:29 CET (GLOBE NEWSWIRE) --

  • In Q3 2014, the operating businesses delivered 8% organic revenue growth and a 14% increase in EBITA (excluding foreign exchange impact) – all driven by execution of the Strategy 2014 – 2016: INNOVATION & GROWTH
  • In the constant pursuit to deliver shareholder value, GN has – as announced on November 5, 2014 – evaluated and discontinued a significant M&A opportunity. Following extensive due diligence and analysis with the help of outside consultants, one-off costs amounting to DKK 95 million are booked in Other
  • GN ReSound delivered another quarter with strong organic growth of 8%. The innovative products, ReSound LiNX™ and Beltone First™, continue to strengthen GN ReSound’s market position in key channels in the US and on the main European markets. EBITA increased by 18% when excluding the impact from the foreign exchange development and increased by 9% in reported figures
  • GN ReSound’s technological advantage was further advanced in September 2014 as the Smart hearing portfolio was expanded into new market segments, form factors and price points
  • In the quarter, GN Netcom delivered 7% organic growth. UC-headsets grew 11% organically on top of a challenging comparison base in Q3 2013, where UC-headsets grew 49% organically. The gross margin improved strongly by 1.8 percentage points, and EBITA increased by 8% to DKK 109 million
  • GN Netcom is exiting Q3 2014 with strong momentum positioned for significant growth in Q4 2014. The significant growth will be driven by a backlog of orders from Q3 2014 as well as by the launch of innovative products in both the CC&O and Mobile divisions
  • On November 5, 2014, GN announced a new DKK 500 million share buyback program reflecting the continued solid business performance and GN’s capital structure policy
  • GN ReSound’s organic growth for 2014 is now expected to be slightly “more than 7%”, and EBITA for 2014 is expected to be slightly “more than DKK 880 million”. GN Netcom’s full-year expectations are now “11% organic growth” and EBITA of slightly “more than DKK 515 million”

 

Quotes from the executive management

Anders Hedegaard, CEO of GN ReSound: “My first 100 days in GN ReSound have been both hectic and exciting. I am encouraged about the continued strong performance of ReSound LiNX and our product pipeline for the coming years. The foundation of the company is sound, the underlying business is going very well and I have firmly been re-assured that the current strategic direction is the right one for this company”.

Niels Svenningsen, CEO of GN Netcom: “In the third quarter of 2014, we positioned ourselves for accelerating growth in Q4. I am pleased with the progress so far in 2014, and the innovations that we are bringing to the market, including Jabra Evolve and the Jabra Sport Pulse. These products will be key to achieve double-digit growth in the fourth quarter and strong growth in 2015”.

 

Teleconference

GN will host a teleconference at 2.00 pm 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
VP – IR, Communications, CSR & Treasury
GN Store Nord A/S
Tel: +45 45 75 02 92

or

Anders Hjort
Manager – IR & Competitive Intelligence
GN Store Nord A/S
Tel: +45 45 75 92 56


Attachments

GNSN_Interim_Report_Q3_2014.pdf