Demant (DEMANT) Q2 2025 earnings summary

Executive summary

• Organic growth was flat at 0% in H1 2025, below expectations due to weak hearing healthcare market growth and lower U.S. retail sales; revenue grew 2% in local currencies to DKK 11,253 million.

• EBIT before special items was DKK 1,849 million, down 11% year-over-year, with margin contracting to 16.4%.

• Free cash flow was DKK 1,126 million, and cash flow from operations grew 1%.

• Profit after tax from continuing operations declined 17% year-over-year to DKK 1,130 million.

• KIND Group acquisition agreed in June, expanding retail presence in Germany; share buy-backs suspended following the agreement.

Financial highlights

• Gross profit was DKK 8,547 million, flat year-over-year; gross margin declined by 0.8 percentage points to 76.0%.

• OPEX increased 1% organically, with acquisitions adding 4%.

• Net interest-bearing debt increased 4% to DKK 14,099 million; gearing multiple at 2.5.

• Equity decreased 2% to DKK 9,475 million, mainly due to currency translation adjustments.

• EPS from continuing operations was DKK 5.34, down from DKK 6.18 in H1 2024.

Outlook and guidance

• 2025 organic growth guidance revised to 1–3% (from 1–5%); EBIT before special items now DKK 3,900–4,300 million.

• KIND Group acquisition not included in 2025 outlook; closing expected in H2 2025.

• Hearing aid market unit growth for 2025 expected at 2–4%, with value growth of 1–3%.

• Effective tax rate expected around 23%; FX impact on EBIT estimated at DKK -125 million for the year.

• No sequential OPEX growth expected in H2; year-over-year OPEX will rise due to prior cost savings in H2 2024.