Demant

Earnings Release • Aug 14, 2015

-- In the first half-year, the Group realised a revenue growth rate of 11%,
corresponding to revenue of DKK 5,043 million. All business activities
contributed positively to the Group’s growth.
-- Especially in the US, the Group benefitted from the successful introduction
in late February of the Oticon Inium Sense platform, with new products
launched across all styles, at all price points and in all markets. In our
US hearing aid wholesale activities, we saw 9% organic growth. The positive
impact was particularly apparent in the independent channel in the US,
where we enjoyed significant growth and market share gains.
-- Hearing Implants grew by 16% in local currencies, fuelled by double-digit
growth rates in bone-anchored hearing systems (BAHS) and also in cochlear
implants (CI).
-- The Group’s gross profit margin was reported at 74.2% supported by a
favourable development in the average selling price in the wholesale of
hearing aids.
-- Operating profit (EBIT) was reported at DKK 880 million, corresponding to
10% growth adjusted for earn-outs of DKK 36 million in the first half of
2014. The Group continues to generate a significant cash flow and thus
generated a free cash flow of DKK 543 million, corresponding to a 21%
increase on the first half of 2014.
-- We expect our operating profit (EBIT) for the second half of 2015 to be at
the same level or exceed the EBIT realised in the first half of the year.
Consequently, we now expect EBIT of DKK 1.8-2.0 billion for the full year
against a previous range of DKK 1.7-2.0 billion. The guidance provided does
not include any impact of the ongoing process to acquire Audika.