GN Store Nord (GN) investor relations material

Executive summary

• Q1 2026 marked by the announced sale of the Hearing division, now treated as discontinued operations, with closing expected by year-end.

• Continuing operations saw strong growth in North America and APAC, but EMEA faced weak demand and inventory reductions.

• Premium headset segment grew over 50% year-over-year, driven by Evolve3 launches.

• Gaming division maintained market share despite weak consumer sentiment, with new product launches supporting future growth.

• Group adjusted EBITA (continuing) was DKK 6 million (0–0.3% margin), down from 6% in Q1 2025, impacted by one-off costs.

Financial highlights

• Revenue from continuing operations was DKK 2,096 million, down 8% year-over-year; organic growth at -4%.

• Gross margin for continuing operations was 48.2% in Q1 2026, down from 50.7% in Q1 2025, mainly due to Enterprise segment pressures.

• Adjusted EBITA margin for continuing operations dropped to 0–0.3% from 5.7–6% year-over-year.

• Free cash flow (excluding M&A) was -DKK 45 million in Q1 2026, reflecting improved working capital management.

• Net interest-bearing debt stood at DKK 8.9 billion, with leverage at 3.8x, down from 4.4x a year ago.

Outlook and guidance

• 2026 guidance for continuing operations: organic revenue growth of 0–6% and adjusted EBITA margin of 8–9%.

• Enterprise division expected to deliver -3% to +3% organic growth; Gaming division 7–13%.

• Structural cost savings of DKK 200 million targeted, with positive margin impact from 2027 and underlying EBITA margin of 10–11% post-hearing divestment.

• One-off cash costs of DKK 750 million expected for carve-out and restructuring, with 75% in 2026.