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Investing.com -- GN Store Nord (CSE:GN) shares jumped 15% on Thursday after reporting a 46% rise in Q2 EBITA to DKK 546 million, as margin gains and cost controls outweighed an 8% revenue drop.
The EBITA margin rose to 13.1% from 8.3% a year earlier, driven by pricing discipline, a group-wide cost program and the absence of extraordinary costs, according to the company’s interim report.
Revenue fell to DKK 4.16 billion from DKK 4.50 billion in the same quarter last year. Reported organic revenue growth declined 5%, driven by a 3% negative currency impact and the completed wind-down of the Elite and Talk product lines.
Gross profit ended at DKK 2.31 billion compared with DKK 2.33 billion in the prior-year quarter, equal to a gross margin of 55.6%, up from 51.9%.
Net profit rose to DKK 180 million from DKK 112 million a year earlier. Profit before tax was DKK 232 million, compared with DKK 144 million in the prior-year quarter.
The effective tax rate was 22.4%. Earnings per share increased to DKK 1.13 from DKK 0.66.
Free cash flow excluding M&A nearly doubled to DKK 353 million from DKK 155 million, supported by a positive change in working capital and earnings development.
Net interest-bearing debt fell to DKK 9.85 billion from DKK 10.55 billion in the year-earlier quarter, equal to a leverage ratio of 4x, down from 4.9x.
The Hearing division posted 8% organic revenue growth, with revenue rising to DKK 1.86 billion from DKK 1.79 billion.
Divisional profit increased 12% to DKK 668 million, equal to a margin of 36%. The growth was attributed to broad-based market share gains of ReSound Vivia across several markets.
The Enterprise division reported an organic revenue growth decline of 7%. Revenue declined 9% to DKK 1.71 billion, while divisional profit fell to DKK 583 million from DKK 651 million.
The profit margin ended at 34%, compared with 34.8% last year. The company cited continued market uncertainty tied to the global trade environment, though gross margin improved to 56.1% from 54.2%.
The Gaming division recorded revenue of DKK 589 million, down 29% from DKK 834 million a year earlier, reflecting a 27% decline in organic growth rate and the wind-down of product lines.
Despite lower sales, the division returned to profitability with a profit of DKK 72 million, compared with a loss of DKK 10 million in the prior-year quarter, resulting in a margin of 12.2%. The company said SteelSeries achieved market share gains globally.
GN confirmed its 2025 financial guidance, narrowing its full-year organic revenue growth range to -2% to +2%, excluding the impact of the wind-down.
The EBITA margin is expected to remain between 11% and 13%, while free cash flow excluding M&A is guided at around DKK 800 million.
The company also said it had agreed terms for a new EUR 1 billion facility with its core banking group to refinance existing loans and a new EUR 500 million revolving credit facility. The facilities mature in 2028, with an option to extend to 2030.