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Introduction & Market Context
GN Store Nord presented its Q2 2025 interim results on August 21, showing signs of recovery after a challenging first quarter. The Danish audio and hearing aid company reported flat organic growth (excluding wind-down effects) compared to the 3% decline seen in Q1. The market responded positively, with shares rising 14.37% to DKK 117 following the presentation, a significant turnaround from the 8.6% drop that followed Q1 results.
The company demonstrated improved profitability and cash generation despite navigating challenging market conditions, particularly in its Enterprise segment. GN’s ability to execute on strategic initiatives, including the successful launch of new hearing products and manufacturing diversification to mitigate tariff impacts, appears to be gaining investor confidence.
Quarterly Performance Highlights
GN Store Nord reported Q2 2025 revenue of DKK 4,160 million, representing 0% organic growth when excluding the wind-down effect of its consumer business (or -5% reported growth). The company achieved significant margin improvements, with gross margin expanding to 55.6%, a 3.7 percentage point increase compared to Q2 2024.
As shown in the following financial performance chart:
EBITA increased by 46% to DKK 546 million, resulting in an EBITA margin of 13.1%, up from 8.3% in the same period last year. Free cash flow excluding M&A reached DKK 353 million, a substantial improvement from the negative DKK 395 million reported in Q1 2025. The company also reduced its leverage ratio to 4.0x, down from 4.9x in Q2 2024.
The key metrics highlighting GN’s commercial and operational agility include:
Divisional Performance Analysis
Hearing Division
The Hearing division emerged as the standout performer, delivering 8% organic revenue growth and driving the company’s overall recovery. This growth was primarily attributed to the successful launch of ReSound Vivia and broad-based market share gains. The division’s gross profit increased to DKK 1,152 million with a margin of 62.0%, while divisional profit rose 12% to DKK 668 million.
The following table details the Hearing division’s financial performance:
GN’s customer-centric innovation strategy in the Hearing segment is yielding results, with the ReSound Vivia driving market share gains across regions. The company also announced the launch of ReSound Enzo IA, which offers improved understanding, smaller rechargeable form factor, and seamless connectivity features.
Enterprise Division
The Enterprise division faced more significant challenges, reporting a 7% organic revenue decline amid market uncertainty. Despite this, the division maintained a strong divisional profit margin of 34.0%. Gross margin improved to 56.1%, up 1.9 percentage points compared to Q2 2024, while divisional profit ended at DKK 583 million.
The division showed regional variations in performance, with positive sell-out growth in North America and Rest of World markets, while Europe remained challenged. The company noted that in North America, sell-in was negatively affected despite solid sell-out growth, suggesting inventory adjustments by channel partners.
Gaming Division
The Gaming division achieved 0% organic revenue growth, a stabilization following the successful wind-down of the Consumer business. Overall revenue for the division declined 29% due to this wind-down effect. The division showed improved profitability with gross margin increasing to 34% and divisional profit margin reaching 12.2%.
Strategic Initiatives
GN Store Nord is actively implementing strategies to mitigate the impact of tariffs, particularly for its Enterprise and Gaming divisions. The company has made progress on its manufacturing diversification plan, splitting production between China and the US. Commercial actions, including price increases of approximately 10% for US products, have been implemented to offset tariff impacts.
The company has also completed a significant refinancing initiative, extending key debt maturities to 2028 with the option to extend further to 2030. The refinancing package includes up to EUR 1 billion in new term loans and a EUR 0.5 billion revolving credit facility, which should provide improved terms and lower interest rates.
Financial Guidance & Outlook
GN Store Nord has updated its financial guidance for 2025, narrowing its organic revenue growth forecast to between -2% and +2% (excluding wind-down effects), compared to the previous range of -3% to +3%. The company confirmed its EBITA margin guidance of 11-13% and free cash flow excluding M&A of approximately DKK 800 million.
The updated guidance reflects improved confidence in the company’s ability to navigate market challenges, particularly through the strong performance of its Hearing division and successful execution of strategic initiatives. The company also announced its participation in the 69th International Congress of Hearing Aid Acousticians (EUHA 2025) in Nürnberg, Germany on October 23, 2025, where it will host an investor and analyst meeting.
GN Store Nord’s Q2 2025 results demonstrate the company’s resilience and ability to improve profitability despite mixed divisional performance. With the Hearing division driving growth, successful margin expansion across segments, and strategic initiatives to address market challenges, the company appears to be on a path to recovery after a difficult start to the year.
Full presentation:
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