GN Store Nord A/S
Interim Report Q1 2015

DGAP-News: GN Store Nord A/S

2015-04-29 / 07:30

---------------------------------------------------------------------

Copenhagen, 2015-04-29 07:30 CEST (GLOBE NEWSWIRE) -- GN ReSound drives group
EBITA increase of 15% with 10% organic growth in Hearing Instruments 

  -- GN Store Nord delivered 4% organic growth and increased EBITA by 14% in
     constant currencies and by 15% in reported figures. The strong development
     was based on a continued fundamental business improvement leading to higher
     margins in constant currencies in both GN ReSound and GN Netcom
  -- GN ReSound's growth momentum in 2014 continued into Q1 2015 driven by
     strong commercial execution leading to 9% organic growth in GN ReSound and
     10% organic growth in Hearing Instruments
  -- The launch of the innovative ReSound LiNX2(TM) and Beltone Legend(TM) from early
     March 2015 is off to a strong start with very positive feedback from
     dispensers and users. The launch represents the fourth generation of 2.4
     GHz technology hearing aids and a further advancement of GN ReSound's
     technology lead
  -- GN ReSound's EBITA increased by 22% in constant currencies reflecting a
     strong underlying improvement in the gross margin as well as operating
     leverage. In reported figures, EBITA increased by 18% to DKK 200 million
  -- GN Netcom's performance in Q1 2015 was affected by unusual low market
     activity in the Unified Communications (UC) segment and a market decline in
     traditional mono Bluetooth-headsets. The organic growth in the CC&O
     business was 3%, and the overall organic growth for GN Netcom was (3)%
  -- GN Netcom increased both the gross margin and the EBITA margin in constant
     currencies (up by 2.3 percentage points and by 0.2 percentage points
     respectively). The reported gross margin increased by 1.3 percentage points
     to 53.9% reflecting the favorable product mix development. Reported EBITA
     of DKK 110 million was up by 6% from last year
  -- The growth outlook in UC continues to be deemed highly attractive. A solid
     pipeline of orders positions GN Netcom well for strong growth in 2015
  -- In March 2015, GN paid dividend of DKK 151 million and initiated a new DKK
     500 million share buyback program reflecting the continued solid business
     performance. As per April 29, 2015, GN has bought back shares amounting to
     DKK 416 million during 2015 through Safe Harbor programs
  -- GN's financial guidance for 2015 is confirmed for both GN ReSound, GN
     Netcom and Other activities. GN expects organic revenue growth of 'more
     than 8%' and EBITA of 'more than DKK 1,480 million'



Quotes from the executive management

Anders Hedegaard, CEO of GN ReSound: 'Q1 was a strong start to the year. We
were able to extend and strengthen our partnership with Costco and delivered
10% organic Hearing Instruments growth. I am personally highly encouraged by
the feedback we have received following our launch of ReSound LiNX2 - clearly
underlining that we have taken another significant step forward in hearing aid
technology to improve the quality of life for hearing impaired' 

René Svendsen-Tune, CEO of GN Netcom: 'The first quarter of the year was
characterized by weak market conditions, but we continued to fortify our
competitive position. From my role at the Board, I know that quarterly
fluctuations are inherent in a project-based business like Unified
Communications, and with the strong pipeline and differentiated product
portfolio I fundamentally believe we are all set for strong growth going
forward' 



Teleconference

GN will host a teleconference at 2.00 pm 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 start of the
teleconference. 



For further information please contact:

Michael Bjergby
VP - Investor Relations & Treasury
GN Store Nord A/S
Tel: +45 45 75 02 92

or

Michael Nass Nielsen
Manager - IR & Competitive Intelligence
GN Store Nord A/S
Tel: +45 45 75 02 40
News Source: NASDAQ OMX



---------------------------------------------------------------------

2015-04-29 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English            
Company:     GN Store Nord A/S  
 
 
             Denmark            
ISIN:        DK0010272632       
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
350169 2015-04-29