GN Store Nord A/S

Latest Results (02.07.2026):

Summary — GN Store Nord A/S Q1 2026: GN reported Q1 2026 results (continuing operations) with revenue DKK 2,096m (group including discontinued Hearing: DKK 3,851m), overall organic revenue -4% for continuing operations, an adjusted EBITA of DKK 6m for continuing operations (DKK 306m including discontinued Hearing), and a reported net loss of DKK -946m (continuing -437m; discontinued -509m). Free cash flow excl. M&A was DKK -45m and net interest‑bearing debt was DKK 8,914m at quarter end. The quarter was impacted by sizeable one‑off items tied to the announced Hearing carve‑out and planned transaction with Amplifon.

Revenue & organic growth

Continuing operations revenue Q1 2026: DKK 2,096m (-8% year‑on‑year; organic -4%). Enterprise: DKK 1,516m (organic -5%). Gaming: DKK 580m (organic -1%). Hearing (discontinued): DKK 1,755m (organic +9%). Total group revenue including discontinued operations: DKK 3,851m.

Adjusted EBITA and divisional profitability

Adjusted EBITA (continuing operations) was DKK 6m (margin 0.3%); including discontinued Hearing, adjusted group EBITA was DKK 306m. Divisional results (excl. one‑offs): Enterprise divisional profit DKK 435m (margin 28.7%); Gaming divisional profit DKK 64m (margin 11.0%); Hearing adjusted EBITA DKK 300m (margin 17.1%).

Net result and cash flow

Reported net loss for Q1 2026 was DKK -946m (continuing -437m; discontinued -509m). Free cash flow excl. M&A: DKK -45m (seasonal outflow partially offset by working‑capital management). Operational cash flow before investing was positive, but investing and one‑offs weighed on free cash flow.

One‑offs, impairments and carve‑out costs

Q1 included significant one‑off items tied to the Hearing divestment: total one‑off costs impacting Hearing EBITA in Q1 were reported at DKK -907m; Enterprise also recorded non‑cash impairments and total one‑off costs in the quarter were noted (examples cited ~DKK 375m in the quarter for certain impairments). GN expects ~DKK 750m of one‑off cash costs across 2026–2027 (≈75% in 2026) plus ~DKK 1,300m of non‑cash impairments executed in 2026.

Balance sheet and leverage

Net interest‑bearing debt at March 31, 2026: DKK 8,914m (down from DKK 10,145m a year earlier). Adjusted leverage (NIBD/adjusted EBITDA) reported at ~3.8x. GN states proceeds from the planned Hearing sale will be used to reduce debt (target short‑term leverage 1.0–1.5x), invest in the business and return capital to shareholders.

Hearing divestment to Amplifon

GN announced sale of Hearing to Amplifon valued at DKK 17.0bn (DKK 12.6bn cash + 56m Amplifon shares, based on EUR 10.52 per Amplifon share at Mar 13, 2026). The Hearing business is treated as discontinued operations in Q1 and the transaction is expected to close by end‑2026, subject to approvals. GN will carve out the business ahead of closing.

Guidance, cost actions and capital allocation

Following the carve‑out, GN (continuing operations: Enterprise + Gaming) updated 2026 guidance: organic revenue growth 0–6% and adjusted EBITA margin 8–9%. GN targets structural run‑rate cost savings of ~DKK 200m (to offset ~DKK 200m “stranded costs” post‑transaction) to benefit 2027 and beyond. Company intends to significantly reduce debt and pursue share buybacks and other shareholder returns after closing, subject to authorization and Safe Harbour rules.

Operational highlights by division

Enterprise: Evolve3 launch progressing; strong North America/APAC performance but weak EMEA and channel inventory reductions (Q1 organic -5%). Gaming: resilient execution despite muted consumer demand, organic -1% with margin expansion and product launches (SteelSeries new products). Hearing: continued market‑share momentum and 9% organic growth with strong adjusted EBITA prior to carve‑out.