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Investing.com -- Demant A/S (CSE:DEMANT) shares fell more than 2% on Wednesday after the hearing aid maker reported second-quarter and first-half 2025 results that missed analyst expectations and lowered its full-year outlook, citing weaker global demand and competitive pressures.
In Q2, sales were DKK 5.63 billion, 3% below consensus, with organic growth flat versus the expected 2.5%.
For H1, sales totaled DKK 11.25 billion, a 1% miss, while adjusted EBIT fell 7% short at DKK 1.85 billion. The H1 adjusted EBIT margin was 16.4%, under the 17.4% consensus.
Analysts attributed the shortfall to a softer global hearing aid market, heightened competition, and Sonova’s entry into the Costco (NASDAQ:COST) channel, which significantly impacted EBIT.
Demant also flagged weak U.S. and European performance, with a U.S. slowdown in Q1 leading to fewer leads in Q2.
The company cut FY25 organic growth guidance to 1%-3% from 1%-5% and trimmed adjusted EBIT expectations to DKK 3,900-4,300 million, down from DKK 4,100-4,500 million, about 4% below consensus at the midpoint.
It also suspended its share buyback program effective June 11.