GN Store Nord announced in its year-end fiscal report that the company experienced a revenue increase of 12% to $1.24 billion (DKK 8,651 million) in 2016, with 6% organic growth. The Copenhagen-based hearing instruments company (GN Hearing) and headset manufacturer Netcom (GN Audio) is the parent group of ReSound, Beltone, Interton, and the recently acquired Audigy Group, as well as Jabra headsets. GN Hearing further strengthened its focus and strategic direction as a dedicated hearing instrument company when the company divested itself of its diagnostic equipment division, announcing the sale of Otometrics to Natus Medical in September and at the same time forming a strategic partnership with Natus.
GN Hearing reports that it gained market share in 2016 for the 6th consecutive year, underlining the company’s momentum. Commercial execution is said to be responsible for driving revenue growth by the flagship product ReSound LiNX2. In a press statement, it said the launch of the company’s new strategy for 2017-2019, “Hear More, Do More, Be More,” has delivered strong earnings, with EBITA reaching $226.9 million (DKK 1,583 million)—equivalent to a 14% increase. GN Hearing widened its footprint in North America with the acquisition of Audigy Group, a provider of business and performance management solutions to independent hearing care professionals and leading university programs.
“For the 6th consecutive year, GN Hearing gained market share in a hearing aid market that in 2016 was very competitive,” said GN Hearing CEO Anders Hedegaard in a press statement. “This achievement was driven by our ability to drive commercial excellence through our market leading innovative product portfolio. In 2016, we also laid the foundation for an even more focused hearing instrument company with the strategic acquisition of Audigy and the divestment of Otometrics.”
The company says GN Audio achieved significant market share gains in the important CC&O market with strong growth across geographies and channels. GN Audio is said to have improved its presence in North America in 2016 with the acquisition of VXi Corporation, a leading US based manufacturer of professional headset solutions.
GN’s overall results were in line with its 2016 guidance and slightly exceeded expectations for the fourth quarter. Along with the divestiture of Otometrics and purchase of Audigy, the positive financial report also follows a very successful but tumultuous year in 2015 and the recent loss of the Costco Kirkland brand contract in 2016.
In 2017, GN Hearing expects annual organic revenue growth of 6-8% with an EBITA margin of 20- 22%, and GN Audio expects annual organic revenue growth of 6-9% with an EBITA margin of 17-19%.