Shares of GN Store Nord, the Danish hearing aid and headset maker, surged on Friday as the company released an earnings report that held no negative surprises. The stock climbed 7% to DKK130.45 as of 1130 GMT, earning the company the top spot on the Stoxx Europe 600 index.
GN Store Nord has faced challenges this year, with weakness in consumer and enterprise products impacting its audio business. To address these issues, the company raised equity earlier in the year to strengthen its balance sheet. As a result, its shares had fallen by approximately 24% prior to the release of Friday’s report.
The third-quarter earnings report from GN Store Nord showed in-line performance, driven by strong momentum in its hearing business and early signs of stabilization in audio. The company adjusted its guidance range for the hearing business upwards while narrowing it for audio.
Although the demand situation in audio remains challenging, there are positive indications of stabilization, including a slight sequential improvement in sales compared to the second quarter. According to Janne Vincent Kjaer, Vice President of Jyske Markets, no further deterioration is expected, providing some relief for the market.
GN Store Nord also announced that it has identified approximately 600 million Danish kroner ($85.8 million) of cost synergies over the next three years. Of this amount, DKK400 million is anticipated to be realized in 2024. These cost synergies are expected to contribute to improved earnings margins in the hearing business, creating opportunities for growth.
Overall, GN Store Nord’s earnings report brings optimism to its shareholders and demonstrates the company’s commitment to addressing challenges while driving future growth.