GN Store Nord A/S: Transforming for Profitable Growth

GN Store Nord A/S, a global leader in intelligent hearing, audio, video, and gaming technology, is set to hold its Annual General Meeting on March 12, 2025. The company's transformation strategy, one-GN, is driving simplicity, efficiency, and better utilization of shared capabilities and joint innovation, contributing to its long-term growth and profitability.

In 2024, GN Store Nord delivered strong financial performance, with organic revenue growth of 1% (4% excluding the wind-down of Elite and Talk product lines) and a reported EBITA margin of 12%. The company generated free cash flow excl. M&A of DKK 1.1 billion, leading to a reduction in net interest-bearing debt of DKK 0.9 billion. The one-GN transformation strategy has been instrumental in driving these results, with significant margin expansion and debt repayments, resulting in an adjusted leverage of 3.5x by the end of 2024.

The Hearing division, a key driver of GN's success, achieved significant market share gains and margin improvements in 2024. The ReSound Nexia product family contributed to 10% organic revenue growth, supported by a 7% organic revenue growth in Q4 2024. Gross margin expansion, tightly managed sales and distribution costs, and EBITA margin improvement all contributed to the division's strong performance. The Hearing division's EBITA margin improved to 20.0% in 2024, up from 12.8% in 2023.

The wind-down of the Elite and Talk product lines had a significant impact on the Gaming & Consumer division's financial performance in 2024. However, the division still managed to deliver 7% organic revenue growth in Gaming, leading to a total organic revenue growth of -5% for the Gaming & Consumer division. GN is implementing strategies to maintain growth in this segment, including market share gains in Gaming, successful wind-down of Elite and Talk product lines, and preparing Gaming for further underlying margin improvements supported by the one-GN transformation.

In conclusion, GN Store Nord A/S' one-GN transformation strategy is driving long-term growth and profitability, with strong financial performance in 2024. The Hearing division's significant market share gains and margin improvements, along with the Gaming & Consumer division's strategies to maintain growth, position GN well for future success. Investors should closely monitor GN's progress as it continues to execute on its transformation strategy.