GN Hearing finishes 2022 with significant organic growth in the fourth quarter
GN Hearing had a strong finish to the year with 14% organic revenue growth in Q4 2022 driven by significant market share gains as a result of the successful ReSound OMNIA launch. Consequently, GN Hearing delivered 5% organic revenue growth in 2022, revenue growth was 17% including around 7% impact from the development in foreign exchange rates and around 5% impact from M&A. The Emerging business, JabraEnhance.com, delivered 73% organic revenue growth.
Gitte Aabo, CEO of GN Hearing, comments: “We are very pleased with delivering 14% organic growth in Q4 and taking share in soft hearing aid markets. Our new flagship platform ReSound OMNIA has exceeded our high expectations and we are thrilled that customer reception and initial sales numbers have been very strong. GN Hearing’s new ReSound OMNIA product family is available in a full line-up of popular styles to cater to all hearing needs and preferences. In addition to the Receiver-in-Ear hardware launched in August 2022, the family now includes miniRIE, Behind-the-Ear (BTE) and custom-made styles all benefiting from 150% improvement in hearing in noisy environments, which puts us in a very strong competitive position going into 2023.”
GN Audio executed strongly in the Enterprise business in Q4 2022 with 9% organic revenue growth. By the end of 2022, the Enterprise business matched the all-time high revenue from 2021 despite significant market challenges. The strong performance resulted in market share gains due to a world-leading product portfolio and solid channel execution. In spite of supply chain challenges and soft market conditions SteelSeries increased their revenues quarter by quarter and ended with a strong finish, delivering organic revenue growth of -4% in Q4 2022, resulting in market share gains. The Consumer business was challenged by reduced consumer sentiment and significant promotions, which resulted in organic revenue growth of -37% for 2022. As a result, GN Audio delivered -7% organic revenue growth in 2022, in line with the updated financial guidance. The revenue in 2022 reached DKK 12,460 million, compared to DKK 10,443 million in 2021.
Multiple external factors presented GN with significant headwinds throughout 2022: War in Ukraine, soaring inflation, declining consumer confidence, and looming recession. This came on top of continued COVID-19 market disturbances, supply chain challenges, FX headwinds, and very high freight costs.
Peter la Cour Gormsen, CFO of GN Store Nord, comments: “2022 was a challenging year with significant external headwinds. Still, GN took market shares across business segments and delivered revenue of DKK 18.7 billion and adj. EBITA of DKK 2.2 billion.”
In accordance with GN’s announcement on November 11, 2022, GN has conducted a comprehensive review of the appropriate capital structure. In light of the macroeconomic environment and GN’s leverage, GN has announced that it intends to raise gross proceeds of DKK 7 billion in the first half of 2023 through the issuance of new shares with pre-emptive rights for GN’s shareholders.
In 2023, GN Hearing expects to continue to grow faster than the projected market growth. Due to the current macroeconomic environment, GN Hearing is projecting 1-3% market volume growth and -1% to -2% market ASP decline. It is currently expected that market growth will be higher in H2 2023 compared to H1 2023. Due to GN Hearing’s current momentum and competitive product portfolio, an organic revenue growth between 2% to 8% driven by market share gains is expected for 2023.
For a copy of GN’s full annual report, click here.