Copenhagen, 2015-02-18 07:30 CET (GLOBE NEWSWIRE) --
- GN Store Nord delivered on all parameters for its first year of the Strategy 2014 – 2016: INNOVATION & GROWTH
- GN ReSound now launches ReSound LiNX2™ – the fourth generation 2.4 GHz technology hearing aid
- GN confirms and upgrades its financial targets for 2016
In 2014, GN ReSound revolutionized the hearing aid industry with the launch of the world’s first Made for iPhone hearing aids, ReSound LiNX™ and Beltone First™. The products drove significant financial results making GN ReSound the fastest growing hearing aid manufacturer in 2014. Additionally, the products helped creating a more positive perception of hearing aids, not least through significant media exposure.
Today, GN ReSound is announcing the next generation of hearing aids; the fourth generation of 2.4 GHz technology, ReSound LiNX2™ and Beltone Legend™. As a result of GN’s outstanding R&D productivity, the products will be launched in a full family of form factors already from March 2015 in all primary markets. The fourth generation of 2.4 GHz technology combines all the best connectivity opportunities with new features added to empower the hearing impaired. Surround Sound by ReSound™ is enhanced by a new innovative feature, Spatial Sense™, which takes the localization ability of the user to an unprecedented level. Spatial Sense utilizes the 2.4 GHz technology based ear-to-ear connectivity to effectively preserve the natural volume and timing of the signals that make it possible for the brain to localize the direction of the sound.
GN Netcom delivered its strongest financial results ever driven by 39% organic growth in Unified Communications (UC) headsets in 2014. With the significant growth, GN Netcom also established itself as the world’s number one in the fast growing market for UC headsets. The initial results of the launch of the two new innovative key products, Jabra Evolve™ for UC and Jabra Sport Pulse™ Wireless in the Sports Audio segment, have been very strong and highly encouraging for the development in 2015.
The board of directors will propose to pay out a dividend of DKK 151 million for 2014 equivalent to DKK 0.90 per share. Based on the solid financial development in GN as well as the favorable capital markets, GN now intends to take the net interest-bearing debt to between 1.5 and 2.0 times EBITDA by the end of 2016.
Financial highlights Q4 2014
- GN delivered a very strong finish to the year generating 13% organic growth and EBITA of DKK 477 million in Q4 2014
- GN ReSound delivered 8% organic growth and EBITA of DKK 291 million in Q4. The full-year 2014 results was thus taken above the guidance with organic growth of 8% and EBITA of DKK 897 million
- GN Netcom achieved its strongest quarter ever with 20% organic growth and EBITA of DKK 201 million. Full-year organic growth ended at 11% and EBITA was DKK 521 million
Guidance 2015
GN’s financial guidance for 2015 reflects the continued strong underlying development of the company. The foreign exchange development will have a significant positive impact on the revenue. EBITA will not be impacted in 2015 implying that the EBITA margin in the businesses will be diluted due to the hedging practice.
Organic growth
- GN ReSound: More than 6%
- GN Netcom: More than 10%
- GN Store Nord: More than 8%
EBITA
- GN ReSound: More than DKK 975 million
- GN Netcom: More than DKK 565 million
- GN Store Nord: More than DKK 1,480 million
Updated 2016 targets
Today, GN confirms the organic revenue targets announced in November 2013 as part of the strategy plan for 2014 – 2016: more than 3 percentage points on average above the market growth in GN ReSound and more than 10% organic revenue growth p.a. on average in GN Netcom. At the same time, GN increases the EBITA margin targets for 2016:
- GN ReSound now expects an underlying EBITA margin improvement of more than 1 percentage point compared to 2014 equivalent to an EBITA margin of more than 21.5% in 2016 (measured in foreign exchange rates as of February 1, 2015)
- GN Netcom expects an underlying EBITA margin improvement of around 1 percentage point compared to 2014 equivalent to an EBITA margin target of “around 19%” measured in foreign exchange rates as of February 1, 2014 – up from “18 – 19%”. In current foreign exchange rates (February 1, 2015), the upgraded 2016 EBITA margin target is equivalent to 16.5 – 17.0%
