Solid growth in GN Hearing and GN Audio. Strong cash generation. Full-year guidance confirmed

Copenhagen, 2016-11-03 07:00 CET (GLOBE NEWSWIRE) --

• GN delivered 13% revenue growth in Q3 2016, organic growth was 6%, driven by strong performance in GN Hearing and GN Audio
• Earnings per share (EPS) increased 21% compared to Q3 2015 and reached DKK 1.51 
• Free cash flow excl. M&A increased by DKK 183 million leading to a cash conversion of 105% in Q3 2016, compared to 59% in Q3 2015
• The overall financial guidance for 2016 is confirmed
• On its Capital Markets Day in September 2016, GN launched its 2017-2019 strategy, with continued attractive financial targets for the coming three years. The strategy, called "Hear more, do more, be more", focuses on Innovation, Commercial and People Excellence
• GN Hearing's revenue increased 16% in Q3 2016, fueled by the acquisition of Audigy. Organic growth was 5%, despite a tough comparison base
• EBITA increased to DKK 237 million after transaction related costs of DKK 13 million related to the divestment of Otometrics. Before transaction related costs, EBITA was DKK 250 million, compared to DKK 230 million in Q3 2015
• Free cash flow excl. M&A increased by DKK 109 million, leading to a cash conversion of 114%
• GN Audio delivered 9% organic growth in Q3 2016 driven by very strong performance especially in North America
• EBITA increased 23% and reached DKK 139 million in Q3 2016. The EBITA margin increased 1.9 percentage points compared to Q3 2015 and reached 16.7%
• Free cash flow excl. M&A increased by DKK 57 million, leading to a cash conversion of 92%
• In October 2016, GN Audio strengthened its position in North America further with the acquisition of VXi Corporation, a leading professional headset provider

Quotes from the executive management

Anders Hedegaard, CEO of GN Hearing: "In Q3 2016, I am pleased to deliver results exceeding the strong performance in the same period last year and to see the organic revenue growth translating into solid cash generation. Also, with the announcement of the divestment of Otometrics, GN Hearing further strengthens its position as a dedicated hearing instrument company"

René Svendsen-Tune, CEO of GN Audio: "In Q3 2016, we continued to improve our very strong momentum in our CC&O business. It is satisfying to see the strong focus on professional execution within the organization - the driver behind our continued market share gains and strengthened leadership in the attractive CC&O market. I am also very pleased with our ability to continuously improve our cash generation"

Teleconference
GN will host a teleconference at 11.00 am CET 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

Vedhæftede filer:

GNSN-Interim-Report-Q3-2016-US.pdf