GNNDY - GN Store Nord A/S (GGNDF) Q1 2024 Earnings Call Transcript
2024-05-05 12:13:02 ET
GN Store Nord A/S (GGNDF)
Q1 2024 Results Earnings Conference Call
May 2, 2024, 05:00 AM ET
Company Participants
Rune Sandager - Head of Investor Relations
Peter Karlstromer - Chief Executive Officer
Søren Jelert - Chief Financial Officer
Conference Call Participants
Hassan Al-Wakeel - Barclays Capital
Martin Parkhøi - SEB Enskilda
Veronika Dubajova - Citigroup
Christian Sørup Ryom - Danske Markets
Maja Stephanie Pataki - Kepler Cheuvreux
Hugo Solvet - Exane BNP Paribas
David Adlington - J.P. Morgan
Oliver Metzger - Oddo BHF
Shubhangi Gupta - HSBC
Robert Davies - Morgan Stanley
Mattias Häggblom - Handelsbanken Capital Markets
Niels Granholm-Leth - Carnegie Investment Bank
Julien Ouaddour - Bank of America
Presentation
Rune Sandager
Hello, everyone. And welcome to GN's conference call in relation to our Q1 results. Participating in today's call is Group CEO, Peter Karlstromer; Group CFO, Søren Jelert; and myself, Rune Sandager, Head of Investor Relations.
The presentation is expected to last about 15 minutes, after which we will turn to the Q&A session.
And with that, I'm happy to hand over to Peter, starting the group highlights.
Peter Karlstromer
Thank you, Rune. And thank you all for joining us today. I'm pleased to say that we had a solid start to the year, thanks to focused execution across our three divisions and our functions of scale. On a group level, we delivered a 5% organic growth, leading to a reported EBITDA margin of 12.5%, which is up 6.5% at this point compared to last year.
The strong improvement in earnings led to positive free cash flow in the quarter, despite the normal seasonality headwinds, including tax and bonus payments.
The encouraging performance in the first quarter is supported by a One-GN integration, which led to around DKK 90 million of realized synergies, slightly ahead of plan. As a result, we're happy to confirm our financial guidance for the year across revenue, EBITDA and cash flow.
With this high level summary of the quarter, let's now take a look on the performance in each of the divisions. I'm starting with Hearing. In Q1, our Hearing division continued to drive market share gains, supported by the successful rollout of ReSound Nexia.
As a result of a robust market environment and our strong execution, we grew organically by 14%, which comes on top of the 15% we grew in Q1 2023. The gross margin increased slightly more than 1% at this point, despite the disposal of BelAudição. This was driven by the group operations synergies, as well as the success of ReSound Nexia. ...
GN Store Nord A/S (GGNDF) Q1 2024 Earnings Call Transcript