GN Store Nord A/S (GGNDF) Q1 2025 Earnings Call Transcript

2025-05-02 10:36:38 ET

GN Store Nord A/S (GGNDF)

Q1 2025 Earnings Conference Call

May 01, 2025 05:00 AM ET

Company Participants

Rune Sandager - Head, Investor Relations

Peter Karlstromer - Group Chief Executive Officer

Soren Jelert - Group Chief Financial Officer

Conference Call Participants

Martin Brenoe - Nordea

Hassan Al-Wakeel - Barclays

Martin Parkhoi - SEB

Richard Felton - Goldman Sachs

Maja Stephanie Pataki - Kepler Cheuvreux

Robert Davies - Morgan Stanley

Niels Granholm-Leth - Carnegie

Carsten Lønborg Madsen - Danske Bank

David Adlington - JPMorgan

Susannah Ludwig - Bernstein

Shubhangi Gupta - HSBC

Presentation

Rune Sandager

Hello, everyone, and welcome to GN's Conference Call in relation to our Q1 Report announced last night. Participating in today’s call is Group CEO, Peter Karlstromer; Group CFO, Soren Jelert; and myself, Rune Sandager, Head of Investor Relations. The presentation is expected to last about 25 minutes, after which we will turn to the Q&A session. The presentation is already uploaded on gn.com.

And with that, I'm happy to hand over to Peter for some opening remarks.

Peter Karlstromer

Thank you, Rune, and thank you all for joining us here today. This is a special call at a special time, given the elevated uncertainty we experience around the world. Today we will start our presentation with our Q1 highlights, and then we will spend some time at the end of the presentation on how we're approaching the challenges we're facing in the fast-evolving global trade environment. Hopefully this will provide you with an increased level of understanding and clarity as well better visibility on the actions we're taking to navigate the situation well.

Let me start with the highlights on slide 4. While we acknowledge that our Q1 financial results were influenced by various short-term factors, we are optimistic about the underlying strength of our business and we are confident in the proactive steps we are taking to navigate the uncertain global trade environment.

In Hearing, the launch of ReSound Vivia is progressing well, even surpassing the launch metrics of our previous successful product introductions. We have experienced healthy market share gains in all the markets where Vivia have been launched, which bodes well for our business in the coming quarters.

In Q1, we experienced a weak US market and also relatively weak international markets. We also had some slowdown of our business due to the ongoing Vivia launch. We see a stronger momentum in the market in April and we remain confident in our ability to have a strong year in Hearing, thanks to our promising launches and good execution.

In Enterprise, we did see positive sell-out growth across North America and Rest of the World in line with what we also saw in Q4 last year. In Europe, we experienced a slowdown in the market likely related to the global uncertainty. We experienced a somewhat weaker sell-in than sell-out and also had a challenging comparison base as we successfully executed several large deals last year.

Despite the challenges, Enterprise has successfully maintained a strong market-leading position by holding share across segments. Thanks to our strong pricing discipline, our margins also have remained robust.

In Gaming, we continued the strong momentum from Q4, achieving double-digit organic revenue growth once again and gaining market share in a competitive gaming gear market. Furthermore, our strong execution was reflected in our margins as we delivered a double-digit divisional profit margin during the quarter that typically sees lower revenue and margins. Overall, this was a very encouraging development for Gaming....

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