How are energy investors positioned?
GN Store Nord’s second-quarter 2025 earnings call revealed significant financial achievements, highlighted by a 46% increase in reported EBITA and a 17.79% surge in stock price. Despite challenges in some divisions, the company demonstrated robust performance in its Hearing segment and maintained its leadership in the Enterprise market. According to InvestingPro data, the company maintains a FAIR overall financial health score of 2.49, with particularly strong profitability metrics. The market reacted positively to these results, reflected in the substantial stock price increase, though the stock remains slightly undervalued based on InvestingPro’s Fair Value analysis.
Key Takeaways
- GN Store Nord reported a 46% increase in EBITA, with a margin of 13%.
- The Hearing division achieved 8% organic revenue growth.
- The company’s stock price rose by 17.79%, closing at 120.5.
- GN launched innovative products, including the AI-powered Vivea hearing aid.
- The company narrowed its organic revenue growth guidance to between -2% and +2%.
Company Performance
GN Store Nord showcased a mixed performance across its divisions. The Hearing division led with an 8% organic growth rate, while the Enterprise division faced a 7% decline. The Gaming division remained flat. The company successfully improved its gross margin to 53.7% according to InvestingPro data, reflecting effective cost management and strategic pricing initiatives, particularly in the U.S. market. With a PEG ratio of 0.38 and trading at an EV/EBITDA multiple of 12.16, the company shows promising value metrics despite recent challenges.
Want deeper insights? InvestingPro offers 8 additional key tips about GN Store Nord’s financial position and market outlook.
Financial Highlights
- Revenue: 4.2 billion (forecast), actual figures not disclosed in the call.
- Earnings per share: Not provided in the call.
- EBITA: DKK 546 million, a 46% increase year-over-year.
- Cash flow: DKK 353 million, excluding mergers and acquisitions.
Market Reaction
GN Store Nord’s stock experienced a significant rise of 17.79%, closing at 120.5, following the earnings announcement. This surge reflects investor confidence in the company’s ability to navigate challenging market conditions and capitalize on growth opportunities in its core segments. InvestingPro data shows the stock has been quite volatile, with a beta of 1.55, and has experienced a challenging period with a -25.65% return over the past six months. Despite recent gains, the stock trades at 56% below its 52-week high of $28.66, suggesting potential recovery room.
Discover comprehensive valuation analysis and more with InvestingPro’s detailed research reports, available for over 1,400 stocks.
Outlook & Guidance
Looking ahead, GN Store Nord expects organic revenue growth to range from -2% to +2%, with a softer EBITA margin anticipated in Q3 due to tariff impacts. The company remains optimistic about a strong performance in Q4, driven by continued investments in product launches and margin improvement strategies.
Executive Commentary
Peter Carlstremer, Group CEO, stated, "In Q2, we executed well and successfully navigated a challenged market environment with uncertain trade policies." He further expressed confidence in the company’s future, highlighting ongoing efforts to build a strong future with customers, partners, and employees. Sjordj, Group CFO, emphasized the effectiveness of the tariff mitigation plan, ensuring continued strong performance and margin protection.
Risks and Challenges
- Supply Chain Issues: Ongoing changes and diversifications in production may pose operational risks.
- Market Saturation: Slower growth in the hearing aid market could limit expansion opportunities.
- Macroeconomic Pressures: European market uncertainties could impact demand.
- Tariff Impacts: Potential cost increases in Q3 may affect profitability.
- Consumer Sentiment: Low sentiment in the gaming market presents challenges.
Q&A
During the earnings call, analysts inquired about the potential of the Falcon business, the impact of tariffs, and the company’s market conditions. Discussions focused on the European enterprise market’s challenges and the performance of the newly launched Vivea hearing aid. Executives provided insights into the company’s strategic initiatives and mitigation strategies to address these issues.
Full transcript - GN Store Nord (GN) Q2 2025:
Rune Senne, Head of Investor Relations, GN Store Nord A/S: Hello, everyone, and welcome to GN’s conference call in relation to our Q2 report announced this morning. Participating in today’s call is Group CEO, Peter Carlstremer Group CFO, Sjordj and myself, Rune Senne, Head of Investor Relations. Session. The presentation is already uploaded on gn.com. And with that, I’m happy to hand over to Peter for some opening remarks.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Thank you, Rune, and thank you all for joining us today. In Q2, we executed well and successfully navigated a challenged market environment with uncertain trade policies. We controlled our revenue and margin and have set us up for successfully for delivering on our year in line with our guidance. Importantly, we also executed significant changes in our supply chain that will support the margin expansion towards our strategic ambitions. In hearing, the launch of recent Vivea is progressing well.
With the help of Vivea’s strong value proposition and our strong market execution, we gained market share and grew 8% organically. We are very pleased with this performance in markets that are growing below the structural trends. We’re also excited by our recently announced new superpower hearing aid, ReSound Enso IA, which will help us to build on the strong launch momentum from Vivea. In Enterprise, we continue to see positive sellout growth across North America and the rest of the world, in line with what we also saw in Q4 twenty twenty four and Q1. In Europe, the market continues to be challenged by a weak macro environment and the indirect effects of the global trade uncertainty.
Despite the challenges, Enterprise has successfully maintained a strong market leading position, making us prepared to benefit when the market turns. Furthermore, Falcon is continuing to build its pipeline, setting them up for a good year. And in Q2 alone, they contributed positively to the Enterprise division with almost DKK 100,000,000. In Gaming, we continue to take market share and deliver 0% organic growth in a Game and Gear market challenged by tariffs and lower consumer sentiments. In summary, this was a quarter with strong execution, navigating an uncertain environment and a quarter where we will further have increased flexibility and agility in our supply chain, enabling us to respond more quickly to future uncertainties.
While we are not fully there, we are gradually leaving the difficulties behind us and look forward to working with our customers, partners and employees to build a strong future together. And with that, I’m handing it over to for group numbers in the quarter.
Sjordj, Group CFO, GN Store Nord A/S: Thank you, Peter, and thank you all for being here with us today. As Peter mentioned, Q2 was challenged by the direct and indirect effects of the global trade situation. However, by concentrating on the business factors within our control, GN executed well under these circumstances. Our tariff mitigation plan is well underway, and we are confident that it will enable us to ensure a continued strong performance while protecting our margins. In summary, our organic revenue growth ended at 0% excluding the wind down, driven by the very strong performance in Hearing leading to 8% growth, offset by a negative 7% in Enterprise due to the global trade uncertainty.
Gaming performed well in a challenged market, achieving a 0% organic growth and taking share. Including the wind down, our organic growth rate was negative 5%. Driven by a combination of broad based growth, margin improvements and prudent cost management, the EBITA margin came in strongly at 13%. Our cash flow was solid, coming in at DKK $353,000,000, excluding M and A, reflecting our earnings profile as well as our favorable development in inventories. Now, let’s move to the P and L and cash flow details on Slide six.
Despite a flat top line, our gross margin continues to improve, which in second quarter amounted to an improvement of 3.7 percentage points compared to quarter two of last year. The positive result was achieved despite direct tariff costs in two out of our three divisions and can be attributed to our strong pricing disciplined favorable business mix and group wide synergies from the One GN integration. Reported EBITA reached $546,000,000 equivalent to a 46% increase over Q2 of last year, reflecting our strong gross margins, prudent cost management and no extraordinary costs. Moving to the cash flow. Our strong earnings profile, combined with our favorable development in working capital, resulted in a positive cash flow of DKK $353,000,000 in the quarter.
Driven by positive cash flow and our solid earnings level, our leverage decreased from four point zero compared to 4.9 in 2024. Moving to the next slide and our refinancing process. Driven by our strong fundamental operational improvements in recent years, we started to discuss the next refinancing opportunity with our core banking group earlier this year. Following these discussions, we are happy to announce that we have agreed on key terms for a new facility agreement. The agreement is still subject to customary long form documentation, which is expected to be concluded during 2025.
This new agreement effectively allows us to refinance up to 1,000,000,000 Euro and push relevant materials to 2028 with optionality for further two years. On top of this, we have also been able to push maturity of our current undrawn revolving credit facility. The new agreement will provide DN with improved terms and conditions as well as lower interest compared to existing loans. As a consequence of the refinancing and the lower General Urrival level, this would lead to a significant reduction in net financial items already by ’26. Assuming constant FX and interest rates, we are currently assuming net financials for 2026 in the region of DKK $450,000,000.
With that recap of our group performance, I’m pleased to hand you back to Peter for additional insights across the three divisions.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Thank you, Let me start with our Hearing division. In Q2, we executed strongly in a market which grew below structural trends, where we gained market shares across geographies and channels driven by recent Vibya. In total, we grew organically 8% in the quarter. This was on top of the 10% growth we had a year ago in the same quarter. Our gross margin came in slightly lower than last year, primarily reflecting our disposal of Danskhoer Center and the regional sales mix.
Sales and marketing costs decreased by 9% compared to last year, driven by prudent cost management and our general group wide cost program. As a result of the strong top line development and solid operating leverage, our divisional profit margin ended at 36%. Let’s move to the next slide. As mentioned, Vivea is the main reason behind our ability to drive market share gains in the quarter. Around four months into the launch, we are pleased to share that recent Vivya continues to outperform previous major product launches such as NexGen Omnia in terms of its launch metrics.
Our launch schedule is progressing as planned and by the end of Q2, Vivea was available in most leading hearing aid markets. From a regional perspective, we did see solid organic growth in North America, especially driven by very strong growth in the independent market and VA, while our comparison base at a large U. S. Retailer was challenged in the quarter. In Europe, the launch of VIVID had a significant impact on our performance.
In total, we delivered double digit organic revenue growth in Europe with particularly strong growth and market share gains in Germany and UK. In the rest of the world, we continued to do well despite several markets that were performing quite weakly, including China, Japan and Australia, and they all grew below the structural trends. In addition to Vibia, we are pleased to announce the launch of ReSound Enso IA, our newest superpower hearing aid. ReSound Enso is our most powerful and most compact superpower hearing aid, which delivers clear sound even in the most noisy environments. This is the industry’s smallest rechargeable superpower product and Enso is our first product introduction in this segment for more than five years.
This will help us to strengthen our value proposition to hearing care professionals and further support our growth ambitions going forward. With this, let’s move to the Enterprise division. In the quarter, the Enterprise division was, as we anticipated, challenged by the direct and indirect effects of the global trade environment. As a result, Enterprise delivered 7% negatively organic revenue growth. As I mentioned in the introduction, Falcon continues to build momentum and contributed almost DKK 100,000,000 in the quarter.
Despite the challenged top line development, the gross margins in Enterprise improved by almost two percentage points to 56%, reflecting pricing discipline as well as impact from group wide synergies. Sales and distribution costs in the division grew by 4% in the quarter, reflecting good cost control and targeted product launch and market investments. Divisional profit margin ended at 34%, positively impacted by gross margin improvement, but offset by the development in the top line and sales and distribution costs. Moving to the next slide. To provide some additional insights into the enterprise revenue development in Q2, let’s look on the regional performance.
Our sellout growth continues to be better than our sell in growth across the three regions. In the quarter, sellout was positive across North America and the rest of the world for the third consecutive quarter, supporting a gradual return to growth for the enterprise market. In Europe, sellout continues to be challenged due to the weak macro environment and uncertainty of the trade environment, making several companies hold back investments. In North America, sell in was impacted by a deliberate decision to limit certain product variants in The U. S.
In the first part of Q2. In the rest of the world, we saw healthy sell out growth as well as sell in growth. Despite the market being under pressure for a longer time, we continue to believe in the long term attractiveness of the enterprise market, driven by hybrid working and the ongoing upgrade of collaboration tools to create a seamless and high quality experience, allowing hundreds of millions of people to communicate in a natural, undisrupted and clear way. Let’s move to the next slide and our Gaming division. In Q2, the Gaming division was challenged by low consumer sentiment and an uncertain trade environment, which led to a declining gaming equipment market.
Despite these headwinds, steel sales performed well and continued to gain market share, leading to organic growth rate of 0% on top of last year when steel sales grew with 12%. When including the successful wind down of our Elite and TORQ product lines, overall revenue growth for the division was negative 29%. In The U. S. Market, gaming was negatively affected by a deliberate decision to limit certain product variants due to elevated tariffs in the quarter.
This was, however, to some extent offset by our implementation of targeted price increases, which supported the revenue of SteelSeries. In Europe, revenue was challenged by low consumer sentiments and a high comparison base, while we grew strongly in the rest of the world. Our gross margins ended at 32% in the quarter, supported by pricing discipline and effects of the group wide synergies, but offset by some incurred tariff cost. Sales and distribution costs decreased 36% in the quarter, driven by consumer wind down and prudent cost management under our group wide cost program. All in all, divisional profit came out at 12%, excluding the consumer wind down, reflecting the positive development in our gross margin and our operating leverage.
It should be noted that the direct impact from tariffs was limited in Q2 for gaming as we took advantage of the existing already declared inventory. In In the quarters to come, we will start to see a more negative impact from the direct tariff cost. We will mitigate this with price increases and operations improvements related to our one g and strategy. With that overview of Q2 performance, let’s move to the next slide, where we’ll give an update on our tariff mitigation plan. In Q1, we presented a comprehensive tariff mitigation plan to protect our margins in response to fast evolving and highly uncertain trade environment.
The plan involved a combination of acceleration of our existing supply chain diversification, commercial initiatives and a group wide cost program to control the cost base and protect the GM business. A few months into this work, we can confirm that we’re executing these initiatives well and that the plan is working as intended. In enterprise, we have already diversified production significantly and on our way to a setup where close to 90% of our volumes shipped to The U. S. Can be produced in more than one location and outside of China by the 2025.
In gaming, we’re also making good progress and will reach a position where close to 90% of The U. S. Volumes can be produced in countries outside of China by the end of the year. Related to this, we are pleased to share that these production moves have worked very well without any meaningful production disruption or quality issues. On our commercial actions, our price increases for gaming and enterprise in The U.
S. Market are well underway and have generally been well understood and accepted by our retailers and partners. As for the impact of the tariffs and our mitigating actions, we estimate that we’re having a 1% negative EBITDA margin impact this year, while around 0.5% of this are more of one off nature. We will continue to work across our full set of levers to mitigate this in the coming years. And with that, I will hand the word back to to conclude our presentation with an update on our guidance.
Sjordj, Group CFO, GN Store Nord A/S: It
Rune Senne, Head of Investor Relations, GN Store Nord A/S: seems like sorry if anybody can hear us. It seems like somebody can hear us. At least that’s what I’m told right now, but there seems to be some issues with at least the telephone line where we are sitting. And it’s maybe we should just continue because I get a lot of messages now that active people can hear us speak right now. So I guess let’s just continue for now.
Please text me if that’s not right. But with that, let’s continue with Sean and then let’s see whether we can get our sound working in the studio as we speak. But, Sean, please continue with the financial guidance.
Sjordj, Group CFO, GN Store Nord A/S: Thank you so much, Rone. And thank you, Peter. We are today reconfirming our guidance for the year. With the divisional performance we have seen in the first half of the year and with our expectations for the second half of the year, we are narrowing the Group organic revenue growth guidance from minus three to plus three to now minus two to plus two. The underlying assumptions include a Hearing business which is likely to end in the lower half of the original assumptions due to the lower than expected market growth.
In Enterprise, we are currently trending in the middle of the growth assumptions provided back in April. For Gaming, we are currently trading in the upper half of the range we provided in April. For our EBITA margin and cash flow guidance, we are confirming these. To provide you with some direction in the second half of the year, we do expect the group EBITA margin to be a bit soft in the going into quarter three as we expect to see the full amount of tariff costs impacting margins in Gaming while we also do certain commercial investments across our divisions in third quarter that will support our businesses in the important fourth quarter. This should also then lead to a strong EBITDA margin in quarter four, reflecting higher volumes in fourth quarter as we have normally seen it.
That concludes our update on the business. And I’m happy to hand you back to Rune.
Rune Senne, Head of Investor Relations, GN Store Nord A/S: Thank you, Saron, and thank you, Peter, for the updates. A quick practical remarks before hopefully we get the Q and A up and running. We will invite you for the Oje presentation again this year. This will take place in Nuremberg on October 23 at nine a. M.
Official invites will be sent out in due course. So with that, I’m hoping at least that we will be able to hear the operator and the Q and A. So fingers crossed from my point.
Operator: If you can hear me, please
Rune Senne, Head of Investor Relations, GN Store Nord A/S: We can hear you. We seem to having this day. We’re waiting for the operator.
Peter Carlstremer, Group CEO, GN Store Nord A/S: They just behind me, Hello, Jean here.
Operator: Yes, hi. Yes, thank you. Thank you.
Rune Senne, Head of Investor Relations, GN Store Nord A/S: Alright, operator, I think we can hear you now. Operator, are you online?
Operator: Ladies and gentlemen, we established a connection back with the speakers. You may proceed with the presentation. Thank you.
Rune Senne, Head of Investor Relations, GN Store Nord A/S: We have concluded the presentation. Let’s just move to Q and A, please.
Operator: Hello, can you hear me in the main line because we cannot hear you?
Rune Senne, Head of Investor Relations, GN Store Nord A/S: Can you hear me now?
Operator: Hello, can you hear me?
Rune Senne, Head of Investor Relations, GN Store Nord A/S: We can hear you. Can we start with the Q and A?
Operator: Can you hear me?
Rune Senne, Head of Investor Relations, GN Store Nord A/S: Yes, we can hear you.
Operator: Okay. Ladies and gentlemen, we established the connection. Let’s try again, please. From the speakers’ line, can you hear us?
Rune Senne, Head of Investor Relations, GN Store Nord A/S: Q and A, please.
Operator: Apologies, ladies and gentlemen. We have an issue yes. Hello there?
Peter Carlstremer, Group CEO, GN Store Nord A/S: Can you hear this? We are ready for the questions.
Operator: Yes, we can hear you.
Rune Senne, Head of Investor Relations, GN Store Nord A/S: Then let’s get ready for the Q and A, please.
Operator: Our first question comes from Karsten Lundberg Madsen with Danske Bank.
Karsten Lundberg Madsen, Analyst, Danske Bank: All right. I don’t think we got the entire presentation, but let’s start with Q and A. I was wondering about the Falcon and the pretty large impact you have here in Q2 from Falcon of 100,000,000. So if we look to our sources and our internal vendor, hasn’t really been any tenders of this size in 2025 or Q2, etcetera. So I guess my question is what is this?
What will be the run rate for Falcon going forward? And will you say that Falcon now finally has sort of made the breakthrough we have been waiting for many, many years? Thank
Peter Carlstremer, Group CEO, GN Store Nord A/S: you, Carsten. Let me soon come to your question. Can I just ask kindly, explain to us how much of the presentation did come through? Can you just clarify that, Carsten?
Karsten Lundberg Madsen, Analyst, Danske Bank: I think it ended something like 16 maybe.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Okay. So yes, just before the guidance section, I assume then. I we take I this question
Karsten Lundberg Madsen, Analyst, Danske Bank: didn’t hear anything about guidance.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Yes. So maybe what we will do is if we can come back to your question, Carsten, maybe we’ll let just to conclude briefly on the guidance and then come back to your question.
Sjordj, Group CFO, GN Store Nord A/S: Okay. We’ll go back to Slide 16 where we on the financial guidance. We are here today confirming our guidance for the year. With the divisional performance we have seen in the first half of the year and with our expectations for the second half of the year, we are now narrowing the group organic revenue growth guidance from minus 3% to plus 3%, now changed to from minus 2% to plus 2%. The underlying assumptions include a hearing business, which is likely to end in the lower half of the original assumptions due to the lower than expected market growth.
In Enterprise, we are currently trending in the middle of the growth assumption provided back in April. For Gaming, we are currently trending in the upper half of the range we provided in April. For our EBITA margin and cash flow guidance, we are confirming these. To provide with you with some direction in the second half of the year, we do expect the group EBITA margin to be a bit more soft going into third quarter as we expect to see the full amount of tariff costs impacting margins in Gaming, while we will also do certain commercial investments across our divisions in third quarter that will support our business for the important fourth quarter. This should also then lead to a strong EBITA margin in fourth quarter, reflecting higher volumes in Q4 as we have normally seen historically.
That concludes our update on the business. And now we can move back to the Q and A.
Peter Carlstremer, Group CEO, GN Store Nord A/S: So Karsten, thank you for helping us here. And sorry, everyone here, for a bit of disruption on the technical side. Hopefully, we have come across clear and can move now to the questions. So as for your questions on Falcon, as you know, we have been building this business for a longer period of time, everything from a product portfolio to I mean the way we approach the market to engaging in many, many conversations on franchises and tenders. I mean it started already last year.
We started to make good progress on securing more franchises, participating in tenders. Last year though, the orders were relatively small. This year, the order volume has been building up a bit. And in this quarter, are communicating now it’s little bit less than EUR 100,000,000 just to help you also to get the right understanding of the business. It’s not only one customer.
I think we have a couple of larger things happening here in the quarter. And we are not normally disclosing customers for any of our divisions and we’ll not do it here either But I can just say that we continue to build pipeline, continue to build progress and hopefully we can continue to have a second half quarter, I mean of this year also with some good momentum on Falcom. And when this business has become stable enough and large enough, we can of course more share the numbers on a regular update. They still do fluctuate quite a bit, but we’re trying to call it out here to both talk about the good progress, but also help you all to understand our business in the right way.
Karsten Lundberg Madsen, Analyst, Danske Bank: And just to confirm, you are expecting sort of a of course, this will be lumpy, but you’re not expecting, for example, zero in revenue for Q3 and Q4. You are expecting sort of a meaningful or a sustainable contribution from Falcon for the rest of the year.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Yes, we are. I think that as we see into the pipeline and orders, Q3 probably going to be a little bit smaller. And if things go well, Q4, a very nice quarter again for Falcon.
Operator: Our next question comes from Hassan Al Weyker with Barclays.
Hassan Al Weyker, Analyst, Barclays: I have two, please. Firstly, on Hearing, it is clear from the results that there are some strong share gains, which at least to us are not obviously explained by the VA data that we track. So can you talk about the split of Hearing organic growth price versus volume, please? And how the other channels and regions are performing and where you see the most share gains from? And then secondly, on margin guidance, a much stronger result in the bag for the first half than expected.
And appreciate there is still a second half ramp, but you typically have a stronger second half versus the first. So what are the drivers for not raising guidance? And what are the key risks to your mind? And if you can quantify the uptick in commercial investments year over year? Thank you.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Thank you so much. Let me start and then I hand it to for your second question here. If we look on first on the broader kind of both growth momentum and likely share gains, I would say in U. S, we did perform well particularly strong in the independent market, which we saw very healthy growth in thanks to the strong appreciation of VIVIA. We also did fairly well in some other channels, but this was probably the channel that stood out.
And also then geographically wise, it was really Europe and the rest of the world supporting the growth in the quarter where we launched VIVIA. And I called it out here in my opening, in particular, grew very strongly in Germany and as well as in The U. K. But there were actually several other international markets where we also did very well. I think that if we look back also last year is a good example where we grew very strong in The U.
S. In the first half and then very strong in the rest of the world in the second half. So I think we have seen this over periods. One region is being a little bit more the growth driver and then another quarter it can be handed over to another region. But overall, we do expect this year to be a year of healthy growth and good market share gains essentially across geographies.
Then the question you have on price and volume. More general terms I can say that in the quarter the volume growth was slightly higher than the value growth, I mean, indicating some level of ASP pressure. I think that’s predominantly driven by channel mix and geographic mix.
Sjordj, Group CFO, GN Store Nord A/S: And thank you for the question on the margins. It’s clear that we’re also pleased with the second quarter here. But also, if you look at it in sort of in half term years, right, we are sort of just above 10% after the first half of the year. And we’ve set out and reconfirmed the guidance here for 11% to 13% on the full year. And of course, the midpoint would lead you to the conclusion that in the second half of the year, we need to be stronger than evidently we’ve been in the first half and even on average, stronger than what we’ve been in the second quarter.
What we’re just paying your attention to is that what we do expect is a third quarter that will, a, have some headwinds on the tariff, especially in gaming, but actually also that we do invest in our business, and part of that investment actually comes in the third quarter in due course for the fourth quarter where we are also expecting to launch new products. So in many ways, this is how we see the world. And we do expect also, as we normally see, as I said, that the fourth quarter on top line is higher in the fourth quarter. And as such, you will have some leverage due to that. So think of it as there is a clear bias towards the fourth quarter when it comes to the earnings profile.
Then you asked on more the commercial investments. I think here and of course, it is a little difficult for you guys, right, because we have actually also been winding down the consumer last year, which actually also had a meaningful commercial full year impact. Of course, you need to deduct that. So trust me that in our minds, we are still investing in sales and marketing to support our business. So you cannot just take it one year over the other, at least without adjusting for the consumer in terms of sales and marketing costs.
I hope that answers your question.
Martin Brindle, Analyst, Nordea: That’s very helpful. Thank you.
Operator: Our next question comes from Martin Brindle with Nordea. Please go ahead.
Martin Brindle, Analyst, Nordea: Hi, Sajn and Peter. Thank you for taking my questions. I have two, if I may. First of all, on Enterprise. If we take out the Falcon impact, I guess that you saw a double digit decline in Enterprise underlying.
So we’d just like to hear whether this is also including you also think that you have taken market shares in here. And maybe a little bit why that is happening when you have easier comps with the speakerphones not being such a big headwind as it has been in the past? And then the second question on that would be heading into H2, how confident are you speaking strictly about enterprise demand, not about the Falcon part? How confident are you that demand is going to hold up given that a lot of companies are speaking about delayed impacts from tariffs, holding them a little bit on investments, etcetera. So would be super helpful to hear your where you get your confidence from.
Thank you.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Thanks a lot for your questions here. So maybe I repeat a bit on what I said in the introduction and provide some further context on it. I mean, what is encouraging with enterprise business is that we are seeing sellout growth in North America as well as APAC rest of the world in the quarter, but it’s actually for both regions the third quarter in a row where we see this. Then when it comes to Europe, here we have not seen the market turn into growth from a sellout perspective. And the reason we’re talking a lot about sellout, it’s really the leading indicator.
It’s essentially end customers buying. And in between there, of course, we have the channel. I think that the explanation for Europe, EMEA, I think, is largely what you said in your question. The macro environment is uncertain. There are many companies that are having quite strict cost control and investing a bit less, which is impacting how much they spend on enterprise equipment.
We do believe that over time, this will, of course, stabilize. And so over time, we will, of course, see Europe in growth as well also. When it comes to our own numbers, I also indicated that our sell in has been weaker than the sell out. And it’s a difference with around 5% in the quarter. So that means actually that the underlying demand for our products is a bit higher than the revenue which we have here around the negative 10% as you highlight.
And then for the second half, I think that the way we see enterprise is that normally Q3 is about the same absolute size as Q2. And we believe it will be this year also. You don’t need to factor in the Falcon order I mentioned here in the opening, which then of course need to be compensated for. But that is how we seeing the business building. Towards the end of the year, Q4 is always a bit of a stronger quarter in enterprise.
Also comps are becoming a little bit easier towards the end of the year. And here also we are now gradually launching product into the enterprise segments. We are shipping now a video product P40. And as we have talked about before, we are planning to gradually launch new headsets also towards the end of the year. So we are planning the year for a bit of a stronger finish and Q3 that is a bit more in absolute terms the same as Q2 with adjustment for Falcon essentially.
Hopefully that’s helpful and giving you a little bit further insight into it. I will just round off with recognizing is that it’s of course been a longer period of time where we’ve been seeing pressure in enterprise. But again, think it is encouraging that the two regions with a bit of stronger macro data, I mean, The U. S. And APAC, here we’re starting to see the growth come and hopefully we can soon see that on a global basis.
So thanks a lot.
Martin Brindle, Analyst, Nordea: Thank you very much for taking my questions.
Operator: Our next question comes from Martin Parquhar with SAB. Please go ahead.
Martin Parquhar, Analyst, SAB: Yes. Martin Parquhar from SAB.
Operator: A couple
Martin Parquhar, Analyst, SAB: of questions. Just back to hearing. Peter, maybe you can elaborate a little bit more on Germany because, as I recall, it has not been a very strong historically,
Karsten Lundberg Madsen, Analyst, Danske Bank: it’s
Martin Parquhar, Analyst, SAB: not been a strong GE market. So what kind of position do we have there in the market? I don’t expect you to be market shares at least with a digit. But in round numbers, how big are you in Germany now? And what kind of opportunities do you see?
Do you also to see any positive spillover from you that the other larger manufacturers, of course, latest with Diemen are quite active in forward integration in the German market? And then maybe for Sjurren, just if we look at the to give some building blocks for the margins in going into 2026, not that I expect to get real margins, of course, we are seeing movements in the U. S. Dollar, Given at the certain level current level, what kind of positive margin impact will that be in 2026, given your exposure to components in U.
Operator: S. Dollar? And then, of
Martin Parquhar, Analyst, SAB: course, also with respect to tariffs. And then lastly, just Peter, on Enterprise side, you mentioned the product launch, new headset platform. Do you think that it will be a meaningful contribution in the fourth quarter in Enterprise?
Peter Carlstremer, Group CEO, GN Store Nord A/S: Martin, thanks a lot for your questions. And maybe I do one and three first and then hand over the second question to here. Yes, I mean, we have seen a very healthy growth in Germany that as you know is a large and meaningful hearing aid market. Our market share as you indicated in your question is a starting point relatively low. So we do believe we have some room to grow there and see this as very positively.
We’re holding ourselves a little bit back to give exact volume data per market, but can say we’re encouraged by this. We have taken quite a lot of initiatives on how we work in the German market. And I think now also with the help of Vivya, I think it’s really helped us to have new conversations, more conversations and essentially opening up new possibilities for us. It’s not happening overnight. So I see it’s a team making gradual, very good progress and hopefully can continue in the year with a good Q3 and Q4 also.
And then if I comment on the enterprise side and the launches, I think that the products which we will launch hopefully will be very meaningful. We are very excited about the products and it will be some launches this year and you should see us making more enterprise headset launches next year. It’s essentially a range we’re building up where launches will come over time. In Q4 alone, it will positively contribute. It will not be very significant.
It takes some time before you’re building up the full volumes around the launch. So I think you will see more of the impact coming into next year, but some impact in Q4.
Sjordj, Group CFO, GN Store Nord A/S: Yes, Martin. Then I think you’re asking me for a little bit of a crystal ball on The U. S. Dollar, maybe not directly. But I think it’s important to sort of it’s correct that, of course, the dollar has come down.
And normally, that, of course, also assists us. That’s actually true. But there are also other currencies where we actually do sell meaningfully, whether it’s in The U. K, in Japan or in Australia, that probably has a headwind to us also. So I think it’s a little early to speculate in whether or not the U.
S. Dollar will help us in a meaningful way. Let’s see where we end the year. I think most of us will remember when we reported out in February for last year, Q for ’24, right, suddenly, the dollar was really high, and now it’s really low. So I would suggest at least that we currently do not speculate much.
But of course, normally, it is a little tailwind for us with the dollar, but you need to bear in mind that other currencies actually going in the opposite direction. So I’ll not log it in yet. That’s probably also what you will hear me say.
Operator: Our next question comes from Veronika Dubajova with Citi.
Veronika Dubajova, Analyst, Citi: Hi, guys, and thank you
Maja Stefani Pataki, Analyst, Kepler Cheuvreux: for taking my questions.
Veronika Dubajova, Analyst, Citi: I have three, please, if that’s okay. Hopefully, they’re pretty short. But the first one is just would love to get your thoughts, Peter, on the current market conditions in the hearing aid market, especially what you’re seeing when you look at July and August. And I guess, in particular, sort of your assumption that the market improves in the back half of the year a little bit. Is that driven by what you’re seeing on the ground?
Is that driven by kind of just speculation? And maybe as you talk about it, you can also comment on some of the comments we’ve heard around Southern Europe and whether that’s a region that matters for you and if it’s getting any better. So that’s my first question. My second question, as I was hoping you could quantify the hearing aid growth in The U. S, excluding the large customer where you’ve lost some market market share or at least give us a flavor for the sort of impact for that?
And then the final one, probably better for Soren, is just can you break out the contribution from price to the growth in enterprise and gaming and whether that improves further as we move into the half of the year? Thanks
Peter Carlstremer, Group CEO, GN Store Nord A/S: a lot. Thank you for your questions here. I believe that we have talked about the market being below its structural growth and several of our peers I think are indicating the same things. To our understanding, we probably observed the same markets and talk about them in similar ways. Our assessment is that with the current momentum we have, I mean we are mean 1%, 2% below what we normally see in market growth.
If we look for the second half, we have taken planning assumptions to see similar kind of patterns in the second half. And as we indicated here in our guidance section in the written part, I mean we are saying we’re trending towards the lower half of the planning assumptions for Hearing and that is I mean only due to the market assumptions have slightly changed. If there would be a more normal market, we would likely been able to grow slightly stronger this year thanks to the good launch we have with Vivya. And then if I comment a bit on The U. S.
Retailer and I should first say the launch we have with Vivya or its solar, the Jabra brand there of course is going very well. So we’re very pleased with the continued collaboration. We feel very good about the partnership. I think that it is of course now a situation with four players instead of three players and that is naturally putting some level of pressure on our business. So we did see some level of pressure in the quarter.
For our hearing business in total, that probably is around 1% organic growth, what should we say, headwind in the quarter. But I will say that the other channels have performed very well and we also feel good about the way we’re working in this retailer.
Sjordj, Group CFO, GN Store Nord A/S: And then on your third
Maja Stefani Pataki, Analyst, Kepler Cheuvreux: question Sorry, Peter.
Veronika Dubajova, Analyst, Citi: Is that
Peter Carlstremer, Group CEO, GN Store Nord A/S: Please.
Maja Stefani Pataki, Analyst, Kepler Cheuvreux: Can I
Peter Carlstremer, Group CEO, GN Store Nord A/S: just clarify
Veronika Dubajova, Analyst, Citi: that’s one point for The U? S. Growth or one point for the group growth?
Peter Carlstremer, Group CEO, GN Store Nord A/S: No, for the Hearing division growth.
Veronika Dubajova, Analyst, Citi: Hearing in total. And Perfect. Thank
Sjordj, Group CFO, GN Store Nord A/S: then with the final question on pricing, we also spoke to it a little bit in the opening, right, that we have actually taken price improvements in both enterprise and gaming. And they were also positively contributing in the second quarter. But bear in mind that when you look into the rest of the year, then in Gaming, we took advantage, as we said, on the inventory we did have that was declared already. So there, you don’t see the same impact in quarter two of the negative side of the tariffs. And that’s one thing.
The other part is that it was not during the full quarter necessarily. We took the price improvements in the second quarter. So I think you should think of it as in gaming, it’s probably a little better coming out of quarter two because of the inventory. And when it comes to enterprise, it’s probably more balanced in terms of the price improvements. But of course, we still remain open to continuously seeing this as a lever, as a mitigating plan to the tariffs, as we also said, coming out of first quarter.
So that would be my guiding points for the second half.
Veronika Dubajova, Analyst, Citi: The
Operator: next question comes from Niels Prasomovlev with D. N. B. Cardenas. Mr.
Kraunhofer, your line is open. Maybe your line is on mute. All right. So we continue with our next question from Maja Stefani Pataki with Kepler Cheuvreux.
Maja Stefani Pataki, Analyst, Kepler Cheuvreux: Three, if I may, from my side. First of all, you’ve talked about the challenging macro conditions in Europe that were a challenge for the enterprise growth. I was wondering what is it from your perspective that needs to happen? Is it calming waters when it comes to tariff talks? Or is it really GDP growth that needs to pick up for you to see enterprise growth returning in that segment?
The second question, when we talk when we look at gaming, have you seen any change in order behavior from an inventory perspective in Q2 from your customers? And then lastly, maybe that’s a very general question, I’m not sure you can answer. The hearing aid market has been very volatile over the last few years. 2025 seems to be another challenging year. What do you see as the main reasons for the subdued growth or also for the volatility because it has been seen as a very defensive market?
And I see that there is still growth, still the kind of volatility is unprecedented.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Thanks a lot for your questions. For the European enterprise business and the comments on the return to growth, I think it’s a combination of the two factors you laid out in your question. A bit stronger general macro environment, getting some macro growth in Europe. What we also hear is that several larger companies are of course also trying to adjust to the environment of tariffs and uncertainty over that. And several larger companies have been having a different type of cost programs in place restricting investments and CapEx spend basically.
So we believe it’s a combination of those two. And hopefully here in the coming periods, we will see some level of turning here driven by these two. Then the second question on gaming. No, I don’t think we have seen any real difference in order behavior or inventory management practices. I think it’s actually been a period of I mean very close collaboration in The U.
S. Between our teams and the larger retailers. There was a period where we were a little bit unsure on how much supply we could support given the whole difficult and uncertain trade environment. I think there’s been a strong collaboration to prioritize what products to promote, what products to sell and how to do this. I think that’s probably has been what’s been a bit unusual in the period in terms of inventory management ordering behavior, it’s been fairly normal I would say.
Then the last question on the hearing market volatility. I think we recognize this also. I don’t think we can pretend we have the answer to it. But I mean our humble observations is that we saw that particularly early this year is that the consumer sentiment, in particular in The U. S, really affected the way that hearing aids were purchased.
It’s essentially, in many cases, elderly consumers hesitating a bit on what is a fairly big purchase. At the same time, we still believe it’s very resilient over time, the hearing aid industry. It’s of course supported still by an aging population and a population that like to live a full life until later in their lives. So we do not downgrade in any way the kind of belief on the growth on the hearing aid industry over time, but we recognize it’s been a little bit more volatile than normal. But still, we believe the structural growth over time is certainly there.
And finally, I should say, and that was probably a bit implied also in your question, there’s also been periods of growth above normal growth trends the last few years. So it’s been slightly on and off. And but if you take an average of this, it actually looks fairly stable and in line with historical kind of trends.
Maja Stefani Pataki, Analyst, Kepler Cheuvreux: Thank you. And may I just add a follow-up here? Since you’re calling out consumer sentiment, can you give us a bit of a qualitative feedback on how your OTC division has been doing Q1 when it was really, really bad, the consumer sentiment versus Q2? Has there been a change? And how is that business performing for GN?
Peter Carlstremer, Group CEO, GN Store Nord A/S: Yes, thank you. No, I we can confirm that this part of our business has also been affected in The U. S. Largely due to the consumer sentiment here also. The quarter, we saw some level of growth in Q2, but on a relatively low level, Q1 was a little bit more difficult.
So this is a segment that is fairly sensitive to the consumer sentiment. So I can confirm that. But at the same time in other periods, we’ve seen very high growth. So it probably follows quite a lot the pattern we just spoke to here.
Maja Stefani Pataki, Analyst, Kepler Cheuvreux: Our
Operator: next question comes from Niels Krafelm with DNB. Please go ahead.
Peter Carlstremer, Group CEO, GN Store Nord A/S0: Firstly, could you talk about your distribution cost in the quarter that dropped about €100,000,000 To what extent is this driven by cost curtailment? Or is it something that we would only see for this quarter? Secondly, could you talk a little bit more about the expected market response to the price increases that you have implemented on The U. S. Market?
What are you hearing? Are you expecting end user demand to be affected by these price increases?
Sjordj, Group CFO, GN Store Nord A/S: Eels. Good that you came through here in the end. In terms of distribution, I think we have actually seen some cost savings during the quarter. And then, of course, we are still focused on ensuring that, that is a pattern we also can see going forward. It, of course, also follows the how our goods are shipped around.
And in many ways, here, the second quarter was, of course, a little bit out of the normal with the tariffs we’ve seen. But of course, we are satisfied to see that we are having improvements in distribution costs and then, of course, are aiming to a future good level also for that.
Peter Carlstremer, Group CEO, GN Store Nord A/S0: So you expect a level of below $1,000,000,000 per quarter is recurring?
Sjordj, Group CFO, GN Store Nord A/S: I would say that in terms of setting a level of when you say sales and distribution, I mean, of course, it’s sales and marketing within which we have distribution. So in that sense, it was a lower quarter. Bear in mind also that we actually deliberately said coming into coming out of first quarter that we would put in place cost containments as part of the mitigating plan, and that’s also what we have seen work. And of course, now we also are of the opinion that we have it in good control, know where things are going. And here, we also reserve the right, of course, to invest in the places where we would like to invest.
And that’s also what I said before coming into the third quarter. And actually, of course, fourth quarter is also high on sales. So it’s really a combination of the sales and marketing and distribution costs, right? So we are following the plan. We were cautious in quarter two.
We now think we have a good plan and also good idea of when we are moving the operations around in Asia. So in that sense, we are still expecting a higher sales and marketing cost to actually support the growth of the company. So I think that was probably more your underlying question that you can, of course, confirm.
Peter Carlstremer, Group CEO, GN Store Nord A/S: And Niels, if I take the second question here on price increases, we have increased prices in The U. S. With around 10% for enterprise and around 10% for gaming. The enterprise price increases have taken effect a little bit earlier than the gaming ones, mostly due to the way it works in our contracts and the mechanics to increase the prices. So on enterprise where we have a bit more, what should we say, weeks of observing how it’s been working, I can say that it’s been working well.
It’s likely driven to some kind of reduction in volume. But in total, these price increases should give some level of support to revenue growth and of course perhaps even more important to protect our margins. I would expect it to play out similarly for gaming, but we don’t have a full set of data to observe it yet.
Peter Carlstremer, Group CEO, GN Store Nord A/S0: So you would expect a volume decline due to these price increases in quarter three. Is that a fair assumption?
Peter Carlstremer, Group CEO, GN Store Nord A/S: I mean, there are many factors. So I mean, to the price price increase alone, yes, but then there are other things that are driving volume increase. There is an underlying volume growth in the market. So how the total play out, I’m not sure the total would be a volume decline so to say. The gaming market here as I said in the opening of a call has been in decline and quite significant decline in the last quarter where we certainly have seen some kind of volume decrease.
I’m not sure that this related to the price changes though. It’s probably related more to the general consumer sentiment.
Peter Carlstremer, Group CEO, GN Store Nord A/S0: Thank you.
Operator: Our next question comes from Angela Ptozinovich with BNP Exane. Just
Peter Carlstremer, Group CEO, GN Store Nord A/S1: two questions. First one on Hearing. So on VIZIYA, again, a successful quarter with market share gains. Can you share with us any feedback from the audiologists on VIZIYA versus the competition, like specifically Infiniosphere and the AI feature? And any drawbacks of the product that you’re hearing, if any exists?
Maja Stefani Pataki, Analyst, Kepler Cheuvreux: And the second one is
Peter Carlstremer, Group CEO, GN Store Nord A/S1: on Enterprise. So now that you’re seeing three quarters of positive sellout in the rest of the world and America, do you feel more confident that you will be able to successfully guide on Enterprise going forward because it has been very volatile and with the macro concerns and tariff concerns. Do you feel like now the situation is calmer and you will be able to guide more specifically? Thanks
Peter Carlstremer, Group CEO, GN Store Nord A/S: a lot. Mean starting with Vivya, and I prefer to talk more about what we hear about our hearing aid and a little bit careful on how to talk about our peers’ products. But I would say that generally what the hearing care professionals are saying about Vivya, which they really appreciate is that it’s building on the very strong performance of Nexia in terms of hearing and noisy environments and then adding the AI capability to this, which is essentially helping them even further when you turn on this program to reduce the noise level in the noise environments. So it is essentially taking a very well performing hearing at Nexeo to the next level. And still we are doing that with almost no compromises.
It’s still the same small form factor, the good battery lives and it’s easy to work with. And while the price there is a price increase, it’s still seen by many hearing care professionals as a reasonable price increase for the strong value they’re getting basically. And then continue to get good feedback on how the quality works and the whole experience of working with Vivea. So I think it’s really the totality of factors making it a very complete and appreciated hearing aid. Then of course, the alternative from our competitors that have slightly different characteristics.
But I think it’s quite clear from us that what we’re offering here with Vivya is appreciated and supporting our growth here. Then for your second question on enterprise, think it’s a great question and you highlight and it’s been a market with more volatility and uncertainty. And we’ve seen that this year of course we got an added kind of element of this with the new trade policies coming in The U. S. I’m hopeful we can get less uncertainty over time.
And if we get that, I think what you imply in your question is very fair. Then I do believe it will be easier for us to guide in a somewhat more narrow way and help you all understand how this evolves. But what we’ve seen in Q2 and the actions we have taken, I think we have left quite a lot of uncertainty gradually behind us. What remains now is one of the earlier questions we just answered is Europe and the macro uncertainty in Europe. And hopefully, that can also soon stabilize and we’re getting all to all in a more stable environment.
So we, of course, look forward to that also. In the meantime, I do like to highlight that our teams, I think they’re doing a very good job on controlling everything they can control. We’re working on the new products we mentioned before. I also think the execution in the market is good. So maintaining healthy market shares and margins making us ready to benefit at the time the market turns.
Peter Carlstremer, Group CEO, GN Store Nord A/S1: Perfect. Thank you so much. And if I can squeeze in just one short follow-up. If you can give us an indication of the Falcon profitability?
Peter Carlstremer, Group CEO, GN Store Nord A/S: Yes. Not sure. We are not giving exact numbers, but I think you should think about it as similar gross margin profile as we’re having in the Enterprise division. And that is also the ambition we have as we move forward.
Peter Carlstremer, Group CEO, GN Store Nord A/S2: Our
Operator: next question comes from Martini Rola with Jefferies.
Peter Carlstremer, Group CEO, GN Store Nord A/S3: Yes. I hope you can hear me okay. Thank you very much for taking my questions. I have two. So the first one on Hearing.
So obviously, you now expect the Hearing division to lead to the lower half of the 5% to 9% range. I know you’ve commented on softer than expected markets. But I was wondering if that was also triggered, to some extent, by the current dynamics you’re seeing at Costco and or also from the fact that one of your competitor is on the verge of introducing a new product? And I’ll let you some time to answer the question before I ask
Operator: you the second one, if that suits you.
Peter Carlstremer, Group CEO, GN Store Nord A/S: Yes. No, thank you. No, as we mentioned here in the guidance section on the planning assumption, it is due to the market growth. When we set our guidance here, mean we did factor in that we believe there will be some kind of changes from three to four suppliers in the large U. S.
Retailer as well as we did factor in that we did expect some of our competitors to launch products in the year. So I think it’s I mean, solely due to the market dynamics and growth we are indicating the lower end of that planning assumption.
Peter Carlstremer, Group CEO, GN Store Nord A/S3: Okay, perfect. And for the second question, I appreciate the comments that you’ve made on the tariff impact being roughly one percentage point and half of that being kind of a temporary nature in the sense it’s related to the relocation of production and so on. But I guess my question is, should we expect you to continue diversifying your manufacturing footprint in the future? And if so, would the cost related to that could be a meaningful drag to your midterm margin guidance?
Peter Carlstremer, Group CEO, GN Store Nord A/S: We laid out this strategy around two years ago to diversify our manufacturing footprint and essentially did it to have more resilience and flexibility for possible shocks coming. And the way we’re set up now is essentially in most cases for most product lines to have production in China and one more Asian countries. We feel good about the setup we have today. At the same time, we should not rule out that we might make further changes over time if we find locations and partners where we see that’s beneficial for our business. It’s nothing we have planned today.
The setup we have now, we think it’s a very good setup providing a lot of flexibility for us. Flexibility of course for tariffs, but flexibility for other type of scenarios as well. So the 1% impact this year on margin and we’re of 0.5% or more of one temporary in nature. I think it’s essentially what we see now. We will for sure continue to work on the full set of levers to continue to improve our margins.
That is still a very important kind of priority for us as we’re developing into the future.
Operator: Our last question for today’s call comes from Susana Ludwig with Bernstein. Please go ahead.
Peter Carlstremer, Group CEO, GN Store Nord A/S2: Great, thanks. Good morning and thanks for taking my questions. I have two, please. First, could you just provide your current expectations for the tariff impact on margins in 2026? And I guess, what are sort of the assumptions behind that expectation?
Do we stay at sort of current levels? And then second, could you explain what’s driving the sharp jump this quarter in receivables from associates, which looks like they were up around DKK 300,000,000. Are we correct to assume that those are largely receivables from your Belton network?
Peter Carlstremer, Group CEO, GN Store Nord A/S: Okay. Thank you so much. First, for the margins for next year, we are not yet guiding next year in terms of margins. So a little bit refraining from how to precise to be here. If we look on the tariffs alone, as I just talked to, it is having an impact around one percent this year, where we have for more one off natures.
But there are also quite a large set of other levers we are working on to improve our margins. So essentially, how our margin how we will guide for next year, we will come back to that a bit later. But we certainly have the ambition to increase the margins coming into 2026.
Peter Carlstremer, Group CEO, GN Store Nord A/S2: I guess, should we think about the tariff headwind goes down between 2025 and 2026? Or is the tariff headwind sort of similar? I guess, that’s sort of if you could directionally give us a sense because obviously, you’ll have sort of a full year of tariff impact in 2026 in different rates. So just trying and you won’t have these temporary costs. So just trying to think about directionally what we should be thinking of as the tariff impact sort of incrementally from 25% to ’26 Is it positive?
Veronika Dubajova, Analyst, Citi: Is it negative? Roughly the same.
Peter Carlstremer, Group CEO, GN Store Nord A/S: I will probably more think about it because the timing effects here, the tariffs were announced, of course, in April. They have been implemented and changed many times this year. So I do think it’s a it has been a quite evolving situation this year as we know. I think you should more think about the way we are leaving this year is probably with a kind of a residual tariff effect of around 05%. That doesn’t mean that we are not thinking through additional ways to manage that, but it’s probably what we see today.
But again, we will work on everything we can to see how we both can improve margins and lessen that impact.
Sjordj, Group CFO, GN Store Nord A/S: Then when it comes to your second question, let’s get back to that offline. It could be the way it’s reflected in the report. So let’s clarify that offline to make sure that you’re looking at the right numbers.
Operator: So ladies and gentlemen, this goes our last question. I hand back over to the management for any closing remarks.
Rune Senne, Head of Investor Relations, GN Store Nord A/S: Thank you very much, operator, and thank you for the call. And sorry for all the mess with the line today. Hope everything went clear in the end. See you all on the
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.