Interim Report Q1 2016: Strong revenue growth of 15% in GN ReSound and 9% in GN Netcom CC&O
Copenhagen, 2016-05-04 06:58 CEST (GLOBE NEWSWIRE) --
- GN Store Nord delivered 11% revenue growth in Q1 2016, with organic growth constituting 8%, driven by Hearing Instruments and CC&O
- Earnings per share (EPS) reached DKK 1.38, an increase of 18% compared to Q1 2015
- Free cash flow excl. M&A increased by DKK 98 million compared to Q1 2015
- Financial outlook for 2016 is confirmed, including communicated seasonality in earnings reflecting among other investments during early parts of the year to further support the strong current growth momentum
- GN ReSound had a strong start to 2016 and delivered 15% revenue growth, with organic growth constituting 10%. Organic growth in Hearing Instruments accelerated to 11%, driven by continued focus on commercial excellence and by the industry leading hearing aid portfolio
- GN ReSound's EBITA increased to DKK 234 million. The EBITA margin increased to 17.0% compared to 16.8% in Q1 2015
- GN ReSound's free cash flow excl. M&A in Q1 2016 increased by DKK 45 million compared to Q1 2015. Cash conversion ended at 5%, compared to (16)% in Q1 2015
- GN Netcom's CC&O business delivered 9% organic growth in Q1 2016, resulting in organic growth of 4% for GN Netcom with (7)% organic growth in the Mobile division
- GN Netcom's EBITA was DKK 90 million in Q1 2016 for GN Netcom, equal to an EBITA margin of 12.5%. The decrease in the EBITA margin of 3.4 percentage points compared to Q1 2015 is primarily related to the development in foreign exchange rates
- GN Netcom's free cash flow excl. M&A in Q1 2016 increased by DKK 18 million compared to Q1 2015. Cash conversion ended at 32% compared to 10% in Q1 2015
Quotes from the executive management
Anders Hedegaard, CEO of GN ReSound: "Q1 2016 was a very strong start to the year for GN ReSound, with revenue growth accelerating to 15% and continuing to be broad based. We are on a relentless quest to improve the quality of life for our users. And we have with continued innovations documented our ability to develop unique products, which have set a new standard in the industry - both in terms of audiology and connectivity"
René Svendsen-Tune, CEO of GN Netcom: "I am pleased that the CC&O business in Q1 2016 has continued the solid development from the second half of 2015. We are strengthening our leading position in the Unified Communication market, driven by a combination of a leading product portfolio and strong commercial execution. Despite challenging market conditions in Mobile, GN Netcom delivered solid earnings and improved cash flow generation"
Teleconference
GN will host a teleconference at 11.00 am CEST today. Please visit www.gn.com/investor to access the teleconference. Presentation material will be available on the website approximately one hour prior to the teleconference.
For further information please contact:
Peter Justesen
VP - Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 87 16
or
Michael Nass Nielsen
Manager - Investor Relations
GN Store Nord A/S
Tel: +45 45 75 02 40
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