Demant announced a strong financial performance in Q1 of 2023 with reported growth of 20% overall for the group.
Demant released an interim report for the first quarter of 2023, seeing strong growth in the hearing aid segment, driven by a strong performance in the US.
Organic growth in the hearing aids segment was reported as 26% due to broad-based momentum fueled by product launches.
Growth in hearing aids was exceptional and was also driven by very successful launches of new premium hearing aids, including the company’s new flagship product, Oticon Real.
Overall, growth was primarily driven by unit growth but also by positive ASP development due to geography and product mix changes and price increases implemented last year.
“Demant started the year in a strong way, and we are pleased with our success in gaining market share in our hearing healthcare segment, particularly in hearing aids that delivered exceptional organic growth of 26% in the first quarter, fuelled by the highly successful launch of Oticon’s new flagship product, Oticon Real,” said Søren Nielsen, president, and CEO of Demant. “Despite negative growth in communications, we recently increased the group’s outlook for 2023, and we remain focused on keeping our commercial momentum and on continuing to deliver life-changing hearing health for the benefit of the individual with a hearing loss and society at large.”
Hearing Care also delivered a strong performance in Q1 thanks to solid organic growth in most major markets outside the US and France, which both saw lower – but still positive – growth.
Organic growth was supported by slightly positive ASP growth. In China, growth from Sheng Wang was higher than expected due to a strong recovery following the significant negative impacts of coronavirus at the beginning of the year.
In Diagnostics, organic growth in Q1 was negatively impacted by some shipment delays in connection with the ramp-up of a new production site in Poland. However, the order book remained strong, and the production run rate normalized at the end of Q1.
As announced in April, the company no longer expects the contemplated divestment of Hearing Implants to close in Q2 2023; however, Demant is currently unable to provide an updated timeline.
Hearing Implants continues to be recognized separately as a discontinued operation, and in Q1, profit after tax from discontinued operations was slightly less negative than initially expected.
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