GN Store Nord’s Audio division revises financial guidance for 2022
November 02 2022 - 6:45PM
GN Store Nord’s Audio division revises financial guidance for 2022
The financial guidance for 2022 is revised to reflect the impact
of the worsened macroeconomic environment, lower consumer sentiment
and general higher uncertainty which impacts the markets in which
GN operates:
- A worsening of the consumer markets across GN Audio with an
updated expectation that these markets will decline ~30% for
2022
- Although we are observing solid demand in the Enterprise
market, we now expect lower than previously anticipated market
growth in Q4
Guidance revision
- GN Audio organic revenue growth guidance is revised from “0-5%”
to now “-7% to -5%”
- Reflecting the lower-than-expected revenue development and the
further appreciating USD, GN Audio’s adj. EBITA margin guidance is
revised from “17-18%” to now “14-15%”
- As a consequence of the revised financial guidance for GN
Audio, GN Store Nord revises the financial guidance on growth in
adj. EPS from between -10% to 0% to now “around -30%”
- Acknowledging the current sentiment related to a potential
recession, GN Audio is taking proactive and significant actions to
reduce the cost base and defend the agility of the company. For
this purpose, guidance for non-recurring items is increased by DKK
-100 million relating to Q4 initiatives taking the 2022
non-recurring items from around DKK -400 million to around DKK -500
million
- All other guidance parameters are confirmed
Updated financial guidance 2022
|
Organic revenue growth |
Adjusted EBITA margin3) |
Non-recurring items (DKK million) 4) |
Growth in adjusted EPS5) |
GN Hearing |
|
|
|
|
- Core business organic |
5-8% |
~14% |
~ -150 |
|
- Emerging Business1) (DKK million) |
|
~ -200 |
|
|
GN Audio2) 6) |
|
14-15% |
~ -500 |
|
- GN Audio organic |
-7% to -5% |
|
|
|
- SteelSeries |
>-25% |
|
|
|
Other (DKK million) |
|
~ -190 |
|
|
GN Store Nord |
|
|
|
~ -30% |
Note 1) Emerging Business mainly includes the Lively
acquisitionNote 2) The SteelSeries organic revenue growth will be
reported as M&A growth for GN AudioNote 3) Excluding
non-recurring items Note 4) Non-recurring items in GN Hearing
primarily related to supply chain investments (DKK ~ -150m) and in
GN Audio related to transaction and integration costs (DKK ~ -200m)
as well as non-cash PPAs (DKK ~ -200m), associated with SteelSeries
and cost reduction measures (DKK ~ -100m)Note 5) Compared to 2021
adjusted EPS (excluding non-recurring items and amortization and
impairment of acquired intangible assets) of DKK 15.29Note 6)
Reflecting updated FX assumptions for 2022 following the
significant appreciation of the USD since August 2022Financial
guidance based on foreign exchange rates as of November 2, 2022
Pre-release of preliminary key figures for Q3 2022:
- 0% organic revenue growth in GN Hearing in soft market
conditions. Strong initial sales data from the launch of ReSound
OMNIA boding well for strong performance and significant market
share gains in Q4 2022
- GN Hearing adj. EBITA margin of 10.6% in the Core business
impacted by higher freight and material costs and investments in
launch activities
- -2% organic growth in GN Audio Organic driven by solid organic
revenue growth in Enterprise of 7%, but offset by -34% organic
revenue growth in the Consumer business
- Strong sequential improvement in SteelSeries leading to -13%
organic revenue growth
- GN Audio adj. EBITA margin of 14.6%, reflecting investments in
growth opportunities, higher freight and material costs, the
development in FX and the consolidation of SteelSeries
DKKm |
GN Hearing |
GN Audio |
|
Core business |
Emerging business |
GN Audio Organic |
SteelSeries |
Revenue |
1,495 |
59 |
2,551 |
596 |
Organic revenue growth |
0% |
64% |
-2%* |
-13% |
Adj. EBITA |
159 |
-40 |
461 |
Adj. EBITA margin |
10.6% |
|
14.6% |
* +7% organic revenue growth in Enterprise and -34% organic
revenue growth in Consumer
DKKm |
GN Hearing |
GN Audio |
Other |
GN Store Nord |
Revenue |
1,554 |
3,147 |
|
4,701 |
Organic revenue growth |
0% |
-2% |
|
-1% |
Adj. EBITA |
119 |
461 |
-32 |
548 |
Adj. EBITA margin |
7.7% |
14.6% |
|
11.7% |
GN Store Nord will, as previously communicated, release its
interim Q3 2022 report on November 11, 2022, with further details
on the performance in Q3 2022 and will host a teleconference for
investors and analysts on the same day.
Primary risk factors in relation to the financial
guidanceDue to the COVID-19 pandemic, the global supply
situation and the macro-economic environment – which impacts GN in
many ways – it must be stressed that the basic assumptions behind
the guidance remain more uncertain than normal. The situation is
impacting GN’s operational performance, predictability and
visibility across markets, channels and supply chain.
For further information, please contact:
Investors and analystsAnne Sofie Staunsbæk
VeyheVice President – Investor Relations, Treasury and M&ATel:
+45 45 75 85 06
or
Rune SandagerSenior Director – Investor Relations Tel: +45 45 75
92 57 Press and the media Steen Frentz Laursen
Vice President – Corporate Communications Tel: +45 20 65 34 20
About GN GN facilitates
communication between people through intelligent hearing, audio,
video, and gaming technology. Inspired by people and driven by our
passion for innovation, we leverage technologies to deliver unique
user experiences that bring people closer through the power of
sound and vision.
GN was founded more than 150 years ago with a vision to connect
the world. Today, we proudly honor that legacy with our
world-leading expertise in the human ear, audio, video and speech,
wireless technologies, software, miniaturization, and collaboration
with leading technology partners. GN's solutions are marketed by
the brands ReSound, SteelSeries, Jabra, Beltone, Interton,
BlueParrott, Danavox and FalCom in 100 countries. Founded in 1869,
the GN Group employs more than 7,000 people and is listed on Nasdaq
Copenhagen (GN.CO).
Visit our homepage GN.com - and connect with us on LinkedIn,
Facebook and Twitter.
- Announcement 16 - GN Store Nord's Audio division revises
financial guidance for 2022
GN Store Nord (LSE:GSN)
Historical Stock Chart
From Oct 2024 to Nov 2024
GN Store Nord (LSE:GSN)
Historical Stock Chart
From Nov 2023 to Nov 2024