7.2.2023 07:23:40 CET | Demant A/S |
Årsrapport
Selskabsmeddelelse nr. 2023-02 7. februar 2023
Årsrapport 2022
Koncernomsætningsvækst på 10 % (4 % organisk) i 2022 trods makroøkonomisk og geopolitisk modvind
Vundne markedsandele i Hearing Aids og Diagnostics bidrog til at afbøde effekten af svagere end ventede markeder
EBIT på DKK 3.207 mio. i 2022 svarende til en EBIT-margin på 16,3 %
Forventninger til 2023: Organisk vækst på 3-7 % og EBIT på DKK 3.600-4.000 mio.
“Demant gik ind i 2022 med optimisme og ambitiøse planer, men i løbet af året mistede vi momentum, da både høresundhedsmarkedet og markedet for audioteknologi i varierende omfang blev påvirket af ustabile makroøkonomiske forhold. Desværre havde dette en negativ effekt på vores samlede resultater, men vi leverede ikke desto mindre en toplinjevækst på 10 %, hvilket vi anser som et solidt resultat under svære betingelser og som et bevis på styrken i vores organisation, kultur og medarbejdere,” siger Søren Nielsen, koncernchef og adm. direktør i Demant.
“I vores Hearing Healthcare-segment så vi en betydelig sekventiel stigning i den organiske vækst fra 1 % i tredje kvartal til 8 % i fjerde kvartal, og for hele 2022 voksede Hearing Healthcare takket være Diagnostics- og Hearing Aids-forretningsområderne, som begge vandt markedsandele og leverede flotte resultater. Således nåede vores høresundhedsløsninger endnu flere mennesker og skabte livforandrende værdi for dem. Vores Hearing Care-forretning voksede mindre end oprindeligt forventet, og headset-forretningen realiserede betydelig negativ vækst på grund af et meget svagt marked for gaming-produkter. Vi forventer dog, at begge forretningsområder vil vokse i 2023. Alt i alt ser vi ind i et nyt år med lanceringer af mange nye produkter, deriblandt nye premium-høreapparater i alle vores brands. Vores nye flagskibsprodukt, Oticon Real, der lanceres meget snart, kommer til at tilbyde forbedret taleforståelse og en mere behagelig og fokuseret høreoplevelse ved at eliminere pludselige lyde til gavn for vores mange brugere,” siger Søren Nielsen, koncernchef og adm. direktør i Demant.
Omsætning (DKK mio.)
Vækst
Forretningsområde
Q4 2022
Q4 2021
Organisk
Akkvisitiv
LCY
FX
Rapporteret
Hearing Aids, samlet salg
2.703
2.338
11 %
0 %
11 %
5 %
16 %
Hearing Aids, internt salg
-395
-381
-6 %
7 %
1 %
3 %
4 %
Hearing Aids, eksternt salg
2.308
1.957
14 %
-2 %
13 %
5 %
18 %
Hearing Care
2.173
1.969
1 %
6 %
7 %
3 %
10 %
Diagnostics
612
511
7 %
5 %
13 %
7 %
20 %
Hearing Healthcare
5.093
4.437
8 %
3 %
10 %
5 %
15 %
Communications
252
320
-23 %
0 %
-23 %
2 %
-21 %
Koncern
5.345
4.757
6 %
2 %
8 %
4 %
12 %
Omsætning (DKK mio.)
Vækst
Forretningsområde
H2 2022
H2 2021
Organisk
Akkvisitiv
LCY
FX
Rapporteret
Hearing Aids, samlet salg
5.149
4.562
9 %
-1 %
8 %
5 %
13 %
Hearing Aids, internt salg
-865
-761
2 %
7 %
9 %
5 %
14 %
Hearing Aids, eksternt salg
4.284
3.801
10 %
-3 %
7 %
6 %
13 %
Hearing Care
4.191
3.816
-2 %
7 %
5 %
5 %
10 %
Diagnostics
1.225
980
10 %
5 %
15 %
10 %
25 %
Hearing Healthcare
9.700
8.597
5 %
3 %
7 %
6 %
13 %
Communications
508
562
-13 %
0 %
-13 %
3 %
-10 %
Koncern
10.208
9.159
3 %
2 %
6 %
6 %
12 %
Medmindre andet er angivet, omhandler nedenstående kommentarer H2 2022.
Koncernen leverede organisk vækst på 3 % (Q4: 6 %) udelukkende drevet af Hearing Healthcare. Akkvisitiv vækst bidrog med 2 % (Q4: 2 %) og valutakurseffekter med 6 % (Q4: 4 %), og den samlede rapporterede vækst var 12 % (Q4: 12 %). For hele året var den organiske vækst 4 %, hvortil akkvisitiv vækst bidrog med 2 % og valutakurseffekter med 5 %. Den samlede rapporterede vækst for koncernen var således 10 % i 2022.
Hearing Healthcare realiserede organisk vækst på 5 % (Q4: 8 %) drevet af flotte resultater i Hearing Aids og Diagnostics, hvorimod Hearing Care bidrog negativt til væksten i H2. Den organiske vækst steg betydeligt fra 1 % i Q3 til 8 % i Q4 drevet af Hearing Aids.
Hearing Aids vandt markedsandele takket være et stærkt kommercielt momentum og en succesfuld udvidelse af produktporteføljen, blandt andet med nye i øret-apparater. I et marked, der forblev afdæmpet – ikke mindst i USA – steg den organiske vækst i vores samlede salg fra 6 % i Q3 til 11 % i Q4 som følge af positivt kommercielt momentum i USA. I H2 som helhed var væksten drevet af stærk stykvækst på 10 %, mens væksten i den gennemsnitlige salgspris (ASP) var -2 %, da de prisstigninger, vi gennemførte i begyndelsen af perioden, blev opvejet af geografi- og kanalmiksforskydninger. I de kommende uger vil vi påbegynde udrulningen af nye industriførende premium-høreapparater i alle vores brands, deriblandt vores nye flagskibsprodukt, Oticon Real, som vil understøtte vores vækst i 2023.
Hearing Care realiserede svagt negativ organisk vækst, hvilket hovedsageligt kan henføres til USA, hvor den negative markedsudvikling sammen med vores beslutning om at træde ud af udvalgte managed care-kontrakter fortsatte med at trække væksten nedad. Som forventet var væksten også påvirket af høje sammenligningstal i Frankrig. Efter at have realiseret organisk vækst på -5 % i Q3 realiserede vi organisk vækst på 1 % i Q4 drevet af USA, hvilket til dels kan henføres til lavere sammenligningstal. Akkvisitioner bidrog betydeligt til væksten, men omsætningen fra Sheng Wang var stærkt påvirket af de hurtigt voksende coronasmittetal i Kina i Q4.
Diagnostics fortsatte med at levere meget flotte resultater og realiserede en organisk vækst på 10 %. Den organiske vækst overgik dermed markedsvæksten, til trods for at den faldt fra 12 % i Q3 til 7 % i Q4, hvilket til dels kan henføres til den negative påvirkning fra coronavirus i Kina. Den akkvisitive vækst kan hovedsageligt henføres til opkøbet i juni 2022 af italienske Inventis Srl.
Communications realiserede en organisk vækst på -13 % (Q4: -23 %), hvilket primært skyldes Gaming, da markedet for gaming-produkter forblev meget svagt, men væksten gik også langsommere i Enterprise Solutions i Q4. Samlet set faldt den organiske vækst betydeligt fra 0 % i Q3 til -23 % i Q4, da de sædvanlige positive sæsonudsving udeblev.
Koncernens bruttomargin nåede 74,3 %, hvilket er en væsentlig nedgang på 1,5 procentpoint sammenlignet med H2 2021, idet bruttomarginen faldt i både Hearing Healthcare og Communications som følge af miksforskydninger og en negativ valutakurseffekt. Påvirkningen fra den dynamiske forsyningssituation blev mindre, men til gengæld så vi en vis negativ effekt af den højere end normale løninflation.
Sammenlignet med H2 2021 voksede OPEX organisk med 6 % med yderligere vækst på 6 % fra opkøb og 5 % fra valutakurseffekter. Stigningen i OPEX afspejler investeringer i F&U for at sikre vores fortsatte teknologiske førerposition, distributionsomkostninger i opkøbte virksomheder samt en vis effekt af inflation. Som udmeldt den 1. november 2022 gennemførte vi en række omkostningsbesparende aktiviteter i Q4 for at tilpasse vores forretning markedsudviklingen. Disse aktiviteter medførte omkring 150 afskedigelser globalt samt skønnede årlige besparelser på ca. DKK 100 mio., som havde minimal effekt i 2022, men vil få fuld effekt i 2023.
Koncernens EBIT var DKK 1.619 mio. svarende til en EBIT-margin på 15,9 %. Faldet på 4,1 procentpoint i forhold til H2 2021 kan primært tilskrives den svagere end forventede vækst i Hearing Care, hvilket resulterede i en ubalance mellem omsætningen og OPEX i perioden, samt faldet i bruttomarginen. For helåret var EBIT DKK 3.207 mio. svarende til en EBIT-margin på 16,3 %. Dette er i den lave ende af vores senest udmeldte forventninger, hvilket skyldes effekten af coronavirus på vores salg i Kina samt svagere end forventet salg i Communications.
Koncernen leverede et stærkt cashflow i H2 med et CFFO på DKK 1.707 mio. drevet af en forbedring i nettoarbejdskapitalen. Frie pengestrømme før akkvisitioner beløb sig til DKK 1.219 mio.
Akkvisitioner beløb sig til DKK 1.810 mio., primært relateret til købet af Sheng Wang i Kina, og aktietilbagekøb beløb sig til DKK 533 mio., inden de blev sat på pause i november 2022. I tråd med vores seneste forventninger var koncernens gearing-multipel (NIBD/EBITDA) 2,9 pr. 31. december 2022 og oversteg således vores mellem- til langsigtede mål på 2,0-2,5 drevet af akkvisitionen af Sheng Wang.
Resultatet efter skat i ophørende aktiviteter, som omfatter vores Hearing Implants-forretning, var DKK -85 mio. Betinget af regulatoriske godkendelser og opfyldelsen af andre sædvanlige vilkår forventes frasalget af forretningsområdet til Cochlear Limited fortsat gennemført i Q2 2023.
I 2022 introducerede vi mål for kønsdiversitet samt en opdateret politik for området, og for helåret så vi en lille forbedring i kønsdiversitet blandt vores topledere på 1 procentpoint til 23 %.
I H2 lå koncernens Scope 1 & 2 CO2e-emissioner på 14.938 tons. I november indsendte vi til Science Based Targets initiative både vores mål om at nå ”net zero” i 2050 og vores kortsigtede reduktionsmål, herunder ambitionen om at nå 100 % vedvarende elektricitet senest i 2030. Vi afventer p.t. validering af vores mål.
Forventninger til 2023
Vores forventninger til 2023 er opsummeret i tabellen nedenfor:
Parameter
Forventninger til 2023
Organisk vækst
3-7 %
Akkvisitiv vækst
3 % baseret på omsætning fra akkvisitioner gennemført pr. 6. februar 2023
Valutakursvækst
-1 % baseret på valutakurser pr. 6. februar 2023 og inkl. effekten af valutakurssikring
EBIT
DKK 3.600-4.000 mio.
Finansielle poster, netto
Negative med ca. DKK 600 mio.
Effektiv skattesats
25-26 %
Gearing-multipel
Gearing-multipel (NIBD/EBITDA) ved udgangen af 2023 i den høje ende af vores mellem- til langsigtede mål på 2,0-2,5
Aktietilbagekøb
Ingen
Resultat efter skat fra ophørende aktiviteter
Negativt med ca. DKK 100 mio.
Forventningerne er baseret på en række nøgleantagelser som beskrevet nedenfor:
Som følge af fortsatte makroøkonomiske udfordringer forventer vi, at stykvæksten på det globale høreapparatmarked i 2023 vil ligge lidt under den strukturelle vækstrate på 4-6 % med et negativt bidrag fra et fald i ASP’en omkring det normale niveau på 1-2 % som følge af miksforskydninger.
Vi ser betydelig usikkerhed om, hvordan væksten på markederne for enterprise- og gaming-headset og videoløsninger vil udvikle sig i 2023 som følge af lav forbrugertillid og forsigtighed blandt virksomheder, når det gælder investeringsbeslutninger. I vores Communications-segment forventer vi moderat positiv organisk vækst i 2023, men dog negativ vækst i Q1. Med hjælp fra omkostningsbesparelser forventer vi et mindre negativt EBIT end i 2022.
Som følge af et højt niveau af attraktive opkøbsmuligheder forventer vi, at niveauet for mindre akkvisitioner i 2023 vil være højere end normalt, og vores gearing-multipel i slutningen af året forventes derfor at ligge i den høje ende af vores mellem- til langsigtede mål.
Trods højere end normal omkostningsinflation planlægger vi gennem fokuseret omkostningskontrol at øge OPEX mindre end omsætningen for at forbedre lønsomheden.
Vi forventer, at frasalget af Hearing Implants bliver afsluttet i Q2 2023, hvorefter DKK 700 mio. af den samlede salgssum på DKK 850 mio. vil blive betalt.
Demant afholder en telekonference den 7. februar 2023 kl. 14.00. For deltagelse i konferencen anvendes et af følgende telefonnumre: +45 7877 4197 (DK), +44 808 101 1183 (UK) eller +1 785 424 1226 (USA). Pinkoden er 70355#. En præsentation til telekonferencen vil blive uploadet på www.demant.com kort før konferencen starter.
Yderligere information:
Søren Nielsen, koncernchef og adm. direktør
Telefon +45 3917 7300
www.demant.com
Øvrige kontaktpersoner:
René Schneider, CFO
Mathias Holten Møller, Head of Investor Relations
Peter Pudselykke, Investor Relations Officer
Trine Kromann-Mikkelsen, VP Corporate Communications and Sustainability
Hoved- og nøgletal (1/2)
(DKK mio.)
H2 2022
H2 2021
Ændring
FY 2022
FY 2021
Ændring
Hearing Healthcare
Omsætning
9.700
8.597
13 %
18.645
16.722
11 %
Organisk vækst
5 %
14 %
5 %
31 %
Bruttomargin
75,9 %
77,6 %
76,1 %
77,1 %
EBIT
1.748
1.908
-8 %
3.443
3.626
-5 %
EBIT-margin
18,0 %
22,2 %
18,5 %
21,7 %
Communications
Omsætning
508
562
-10 %
1.060
1.183
-10 %
Organisk vækst
-13 %
-27 %
-13 %
-9 %
Bruttomargin
43,9 %
48,2 %
45,0 %
48,3 %
EBIT
-129
-78
65 %
-236
-122
93 %
EBIT-margin
-25,4 %
-13,9 %
-22,3 %
-10,3 %
Koncern
Resultatopgørelse
Omsætning
10.208
9.159
11 %
19.705
17.905
10 %
Organisk vækst
3 %
10 %
4 %
27 %
Bruttomargin
74.3 %
75,8 %
74,4 %
75,2 %
EBITDA
2.255
2.543
-11 %
4.383
4.730
-7 %
EBITDA-margin
22,1 %
27,8 %
22,2 %
26,4 %
Justeret EBIT*
1.619
1.830
-12 %
3.207
3.504
-8 %
Justeret EBIT-margin*
15,9 %
20,0 %
16,3 %
19,6 %
EBIT
1.619
1.989
-19 %
3.207
3.663
-12 %
EBIT-margin
15,9 %
21,7 %
16,3 %
20,5 %
Finansielle poster, netto
-185
-101
83 %
-280
-202
39 %
Resultat efter skat – fortsættende aktiviteter
1.118
1.495
-25 %
2.276
2.711
-16 %
Resultat efter skat – ophørende aktiviteter
-84
-150
-44 %
-192
-183
5 %
Periodens resultat
1.035
1.345
-23 %
2.084
2.528
-18 %
Balance
Aktiver
29.857
24.860
20 %
29.857
24.860
20 %
Nettorentebærende gæld (NIBD)
12.711
9.150
39 %
12.711
9.150
39 %
Egenkapital
8.562
7.981
7 %
8.562
7.981
7 %
Pengestrømsopgørelse
Pengestrømme fra driftsaktiviteter (CFFO)
1.707
2.000
-15 %
2.622
3.593
-27 %
Investeringer i materielle anlægsaktiver, netto
329
340
-3 %
630
547
15 %
Frie pengestrømme (FCF)
1.219
1.522
-20 %
1.617
2.838
-43 %
Aktietilbagekøb
533
1.387
-62 %
1.840
3.200
-43 %
*Justeret for engangseffekter i 2021.
Som følge af det planlagte frasalg af Hearing Implants-forretningen er sammenligningstallene for 2021 i resultatopgørelsen og pengestrømsopgørelsen samt relaterede hoved- og nøgletal, dog ekskl. organiske vækstrater, blevet justeret.
Vi henviser til Note 9.1 i Annual Report 2022 for en beskrivelse af den anvendte regnskabspraksis for rapportering af hoved- og nøgletal.
Hoved- og nøgletal (2/2)
H2 2022
H2 2021
Ændring
FY 2022
FY 2021
Ændring
Øvrige nøgletal
Gearing-multipel (NIBD/EBITDA)
2,9
1,9
2,9
1,9
Indtjening pr. aktie (EPS) – fortsættende aktiviteter, DKK
4,99
6,40
-22 %
10,06
11,48
-12 %
Indtjening pr. aktie (EPS), DKK
4,61
5,76
-20 %
9,21
10,70
-14 %
Frie pengestrømme pr. aktie (FCFPS), DKK
5,40
6,55
-18 %
7,15
12,09
-41 %
Aktiekurs, ultimo, DKK
192,55
335,10
-43 %
192,55
335,10
-43 %
Gennemsnitligt antal aktier i omløb, mio.
224,06
232,59
-4 %
226,01
234,82
-4 %
Gennemsnitligt antal medarbejdere
20.349
17.161
19 %
19.239
16.866
14 %
Scope 1 & 2 CO2e-emissioner (ton)****
14.938
**
31.349
30.813
2 %
Kønsdiversitet, bestyrelse (kvinder/mænd)***
40/60 %
**
40/60 %
40/60 %
Kønsdiversitet, alle ledere (kvinder/mænd)
45/55 %
**
44/56 %
43/57 %
**Ingen tilgængelige data for perioden.
***Generalforsamlingsvalgte bestyrelsesmedlemmer.
****Den nyligt tilkøbte høreklinikkæde Sheng Wang er ikke omfattet af vores rapportering af CO2e-udledning i 2022.
Årlige vækstrater pr. forretningsområde
Omsætning (DKK mio.)
Vækst
Forretningsområde
FY 2022
FY 2021
Organisk
Akkvisitiv
LCY
FX
Rapporteret
Hearing Aids, samlet salg
9.991
8.979
9 %
-1 %
7 %
4 %
11 %
Hearing Aids, internt salg
-1.760
-1.633
-2 %
6 %
4 %
4 %
8 %
Hearing Aids, eksternt salg
8.231
7.346
11 %
-3 %
8 %
4 %
12 %
Hearing Care
8.123
7.553
-3 %
6 %
3 %
4 %
8 %
Diagnostics
2.291
1.823
13 %
4 %
17 %
9 %
26 %
Hearing Healthcare
18.645
16.722
5 %
2 %
7 %
5 %
12 %
Communications
1.060
1.183
-13 %
0 %
-13 %
3 %
-10 %
Koncern
19.705
17.905
4 %
2 %
5 %
5 %
10 %
Om Demant A/S
Demant is a world-leading hearing healthcare group that offers solutions and services to help people with hearing loss connect with the world around them. In every aspect, from hearing devices, hearing implants, diagnostics to audio and video solutions and hearing care all over the world, Demant is active and engaged. Our innovative technologies and know-how help improve people’s health and hear-ing. We create life-changing differences through hearing health.
Vedhæftninger
2023-02 Årsrapport 2022.pdf
DEMANT-2022-12-31-en.zip
Demant Annual Report 2022.pdf
7.2.2023 07:23:40 CET | Demant A/S |
Annual Financial Report
Company announcement no 2023-02 7 February 2023
Annual Report 2022
Group revenue growth of 10% (4% organic) in 2022 despite macroeconomic and geopolitical headwinds
Market share gains in Hearing Aids and Diagnostics helped offset impact of weaker-than-expected markets
EBIT of DKK 3,207 million in 2022, corresponding to an EBIT margin of 16.3%
Outlook for 2023: Organic growth of 3-7% and EBIT of DKK 3,600-4,000 million
“Demant entered 2022 with optimism and an ambitious plan, but during the year, the good momentum lost pace as both the hearing healthcare and the audio technology markets – to varying degrees – faced an unstable macroeconomic environment. Unfortunately, this had an adverse impact on our overall results, but despite this headwind, we delivered top-line growth of 10%, which we consider a solid performance in tough circumstances and a testament to our strong organisation, culture and people,” says Søren Nielsen, President & CEO of Demant.
“We saw a significant sequential improvement in organic growth from 1% in the third quarter to 8% in the fourth quarter in Hearing Healthcare. For 2022 as a whole, our Hearing Healthcare segment grew thanks to our Diagnostics and Hearing Aids business areas, which both gained market shares and performed very well, enabling us to reach more people with our life-changing hearing healthcare solutions. Our Hearing Care business grew less than originally expected, and Communications saw significant negative growth due to a very weak gaming market. However, we expect both businesses to grow in 2023. Overall, we look into a new year with many new product launches, including new families of premium hearing aids in all our brands. The soon-to-be launched Oticon Real flagship hearing aids will offer improved speech understanding and a more comfortable and focused hearing experience by removing disruptive sounds for the benefit of our many users,” says Søren Nielsen, President & CEO of Demant.
Revenue (DKK million)
Growth
Business area
Q4 2022
Q4 2021
Organic
Acquisitive
LCY
FX
Reported
Hearing Aids, total sales
2,703
2,338
11%
0%
11%
5%
16%
Hearing Aids, internal sales
-395
-381
-6%
7%
1%
3%
4%
Hearing Aids, external sales
2,308
1,957
14%
-2%
13%
5%
18%
Hearing Care
2,173
1,969
1%
6%
7%
3%
10%
Diagnostics
612
511
7%
5%
13%
7%
20%
Hearing Healthcare
5,093
4,437
8%
3%
10%
5%
15%
Communications
252
320
-23%
0%
-23%
2%
-21%
Group
5,345
4,757
6%
2%
8%
4%
12%
Revenue (DKK million)
Growth
Business area
H2 2022
H2 2021
Organic
Acquisitive
LCY
FX
Reported
Hearing Aids, total sales
5,149
4,562
9%
-1%
8%
5%
13%
Hearing Aids, internal sales
-865
-761
2%
7%
9%
5%
14%
Hearing Aids, external sales
4,284
3,801
10%
-3%
7%
6%
13%
Hearing Care
4,191
3,816
-2%
7%
5%
5%
10%
Diagnostics
1,225
980
10%
5%
15%
10%
25%
Hearing Healthcare
9,700
8,597
5%
3%
7%
6%
13%
Communications
508
562
-13%
0%
-13%
3%
-10%
Group
10,208
9,159
3%
2%
6%
6%
12%
Unless otherwise indicated, the commentary below relates to H2 2022.
The Group generated organic growth of 3% (Q4: 6%) driven entirely by Hearing Healthcare. Growth from acquisitions added 2% (Q4: 2%) and exchange rate effects 6% (Q4: 4%), and total reported growth was 12% (Q4: 12%). For the full year, organic growth was 4%, with growth from acquisitions adding 2% and exchange rate effects 5%. Total reported growth for the Group thus amounted to 10% in 2022.
Hearing Healthcare saw organic growth of 5% (Q4: 8%) driven by strong performances in Hearing Aids and Diagnostics, whereas Hearing Care contributed negatively to growth in H2. Organic growth increased significantly from 1% in Q3 to 8% in Q4 driven by Hearing Aids.
Hearing Aids delivered significant market share gains thanks to strong commercial traction and a successful expansion of the product portfolio, including new custom form factors. In a market that remained soft, not least in the US, organic growth in our total sales accelerated from 6% in Q3 to 11% in Q4 fuelled by positive commercial momentum in the US. For H2 as a whole, growth was driven by strong unit growth of 10%, whereas ASP growth was -2%, as price increases implemented at the beginning of the period were offset by geography and channel mix changes. In the coming weeks, we will begin the roll-out of new, premium, industry-leading hearing aids in all our brands, including our new flagship product, Oticon Real, which will support our growth in 2023.
Hearing Care saw slightly negative organic growth, which is mainly attributable to the US where negative market developments combined with our decision to exit selected managed care plans continued to weigh on growth. In line with our expectations, growth was also impacted by high comparative figures in France. After seeing organic growth of -5% in Q3, we realised organic growth of 1% in Q4 driven by the US, which is partly due to lower comparative figures. Acquisitions contributed considerably to growth, but revenue from Sheng Wang was severely impacted by the rapidly rising coronavirus infection rates in China in Q4.
Diagnostics continued to deliver very strong performance with organic growth of 10%. The organic growth rate thus exceeded the market growth rate, despite decelerating from 12% in Q3 to 7% in Q4, which is partly due to negative impacts of coronavirus in China. Acquisitive growth is mainly attributable to the acquisition of Italy-based Inventis Srl. in June 2022.
Communications saw organic growth of -13% (Q4: -23%), which is primarily attributable to Gaming, as the market for gaming products remained very weak, but growth also slowed down in Enterprise Solutions in Q4. Overall, organic growth decelerated significantly from 0% in Q3 to -23% in Q4, as the normal positive seasonal effects did not materialise.
The Group’s gross margin was 74.3%, a material decrease of 1.5 percentage points compared to H2 2021, as the gross margin declined in both Hearing Healthcare and Communications due to mix changes and a negative impact of foreign exchange rates. While we saw some easing of the impact of the dynamic supply chain situation, we also saw some negative effect of higher-than-normal wage inflation.
OPEX grew organically by 6% with additional growth of 6% from acquisitions and 5% from exchange rate effects compared to H2 2021. The increased OPEX reflects investments in R&D to ensure continued technological leadership, and also distribution costs in acquired businesses as well as some impact of inflation. As announced on 1 November 2022, we implemented certain cost reduction initiatives in Q4 to align our business with market developments. These resulted in around 150 redundancies globally and estimated annual cost savings of approx. DKK 100 million, which had minimal effect in 2022 but will have full effect in 2023.
The Group’s EBIT amounted to DKK 1,619 million, corresponding to an EBIT margin of 15.9%. The decrease of 4.1 percentage points compared to H2 2021 is mainly attributable to weaker-than-expected growth in Hearing Care, resulting in an imbalance between sales and OPEX in the period, and to the gross margin decrease. For the full year, EBIT amounted to DKK 3,207 million, corresponding to an EBIT margin of 16.3%. This is at the low end of our most recent guidance range due to the impact of coronavirus on our sales in China and weaker-than-expected sales in Communications.
The Group delivered strong cash flow in H2 with CFFO of DKK 1,707 million driven by an improvement in the net working capital. FCF before acquisitions amounted to DKK 1,219 million.
Cash spent on acquisitions amounted to DKK 1,810 million, primarily reflecting the acquisition of Sheng Wang in China, and share buy-backs amounted to DKK 533 million before being paused in November 2022. In line with our most recent outlook, the Group’s gearing multiple (NIBD/EBITDA) was 2.9 at 31 December 2022 and thus exceeded our medium- to long-term target of 2.0-2.5, driven by the acquisition of Sheng Wang.
Profit after tax from discontinued operations, which comprise our Hearing Implants business, amounted to DKK -85 million. Subject to regulatory approvals and other customary closing conditions, we still expect the divestment of the business to Cochlear Limited to close in Q2 2023.
In 2022, we introduced new gender diversity targets and an updated policy, and for the full year, we saw a slight improvement in gender diversity in our top-level management by 1 percentage point to 23%.
In H2, Scope 1 & 2 CO2e emissions amounted to 14,938 tonnes. In November, we submitted to the Science Based Targets initiative both our “net zero in 2050 target” and our short-term reduction targets, including our ambition to transition to 100% renewable electricity by 2030. These are currently awaiting validation.
Outlook for 2023
Our outlook for 2023 is summarised in the table below:
Metric
Outlook for 2023
Organic growth
3-7%
Acquisitive growth
3% based on revenue from acquisitions completed as of 6 February 2023
FX growth
-1% based on exchange rates as of 6 February 2023 and including the impact of hedging
EBIT
DKK 3,600-4,000 million
Net financials
Negative by around DKK 600 million
Effective tax rate
25-26%
Gearing multiple
Gearing multiple (NIBD/EBITDA) at the end of 2023 around the high end of our medium- to long-term target of 2.0-2.5
Share buy-backs
None
Profit after tax from discontinued operations
Negative by around DKK 100 million
The outlook is based on a number of key assumptions as described below:
Due to continued macroeconomic headwinds, we expect the unit growth rate in the global hearing aid market in 2023 to be slightly below the structural growth rate of 4-6% with a negative contribution from ASP declines around the normal level of 1-2% due to mix effects.
We see material uncertainty about the growth trajectory in 2023 in the markets for enterprise and gaming headsets and for video solutions due to low consumer confidence and caution by enterprises when it comes to investment decisions. In our Communications segment, we expect modest positive organic growth in 2023, albeit negative in Q1. Supported by cost savings, we expect an EBIT that is less negative than in 2022.
Due to a high level of attractive opportunities, we expect the level of bolt-on acquisitions in 2023 to be higher than normal, and our gearing multiple at the end of the year is thus expected to be around the high end of our medium- to long-term target.
Despite higher-than-normal cost inflation, we plan to grow OPEX less than revenue through focused cost control in order to support margin improvement.
We expect the divestment of Hearing Implants to close in Q2 2023, resulting in payment of DKK 700 million of the total DKK 850 million consideration.
Demant will host a conference call on 7 February 2023 at 14:00 CEST. To attend this call, please use one of the following dial-ins: +45 7877 4197 (DK), +44 808 101 1183 (UK) or +1 785 424 1226 (US). The pin code is 70355#. A presentation for the call will be uploaded on www.demant.com shortly before the call.
Further information:
Søren Nielsen, President & CEO
Phone +45 3917 7300
www.demant.com
Other contacts:
René Schneider, CFO
Mathias Holten Møller, Head of Investor Relations
Peter Pudselykke, Investor Relations Officer
Trine Kromann-Mikkelsen, VP Corporate Communications and Sustainability
Key figures and financial ratios (1/2)
(DKK million)
H2 2022
H2 2021
Change
FY 2022
FY 2021
Change
Hearing Healthcare
Revenue
9,700
8,597
13%
18,645
16,722
11%
Organic growth
5%
14%
5%
31%
Gross margin
75.9%
77.6%
76.1%
77.1%
EBIT
1,748
1,908
-8%
3,443
3,626
-5%
EBIT margin
18.0%
22.2%
18.5%
21.7%
Communications
Revenue
508
562
-10%
1,060
1,183
-10%
Organic growth
-13%
-27%
-13%
-9%
Gross margin
43.9%
48.2%
45.0%
48.3%
EBIT
-129
-78
65%
-236
-122
93%
EBIT margin
-25.4%
-13.9%
-22.3%
-10.3%
Group
Income statement
Revenue
10,208
9,159
11%
19,705
17,905
10%
Organic growth
3%
10%
4%
27%
Gross margin
74.3%
75.8%
74.4%
75.2%
EBITDA
2,255
2,543
-11%
4,383
4,730
-7%
EBITDA margin
22.1%
27.8%
22.2%
26.4%
Adjusted EBIT*
1,619
1,830
-12%
3,207
3,504
-8%
Adjusted EBIT margin*
15.9%
20.0%
16.3%
19.6%
EBIT
1,619
1,989
-19%
3,207
3,663
-12%
EBIT margin
15.9%
21.7%
16.3%
20.5%
Net financial items
-185
-101
83%
-280
-202
39%
Profit after tax – continuing operations
1,118
1,495
-25%
2,276
2,711
-16%
Profit after tax – discontinued operations
-84
-150
-44%
-192
-183
5%
Profit for the period
1,035
1,345
-23%
2,084
2,528
-18%
Balance sheet
Total assets
29,857
24,860
20%
29,857
24,860
20%
Net interest-bearing debt (NIBD)
12,711
9,150
39%
12,711
9,150
39%
Equity
8,562
7,981
7%
8,562
7,981
7%
Cash flow statement
Cash flow from operating activities (CFFO)
1,707
2,000
-15%
2,622
3,593
-27%
Investment in property, plant and equipment, net
329
340
-3%
630
547
15%
Free cash flow (FCF)
1,219
1,522
-20%
1,617
2,838
-43%
Share buy-backs
533
1,387
-62%
1,840
3,200
-43%
*Adjusted for one-offs in 2021.
As a consequence of the planned divestment of the Hearing Implants business, comparative figures for 2021 in the income statement and cash flow statement as well as related key figures and financial ratios, however excluding organic growth rates, have been restated.
We refer to section 9.1 of Annual Report 2022 for a description of the accounting policies used for reporting key figures and financial ratios.
Key figures and financial ratios (2/2)
H2 2022
H2 2021
Change
FY 2022
FY 2021
Change
Other key figures
Gearing multiple (NIBD/EBITDA)
2.9
1.9
2.9
1.9
Earnings per share (EPS) – continuing operations, DKK
4.99
6.40
-22%
10.06
11.48
-12%
Earnings per share (EPS), DKK
4.61
5.76
-20%
9.21
10.70
-14%
Free cash flow per share (FCFPS), DKK
5.40
6.55
-18%
7.15
12.09
-41%
Share price, end of period, DKK
192.55
335.10
-43%
192.55
335.10
-43%
Average number of shares outstanding, million
224.06
232.59
-4%
226.01
234.82
-4%
Average number of employees
20,349
17,161
19%
19,239
16,866
14%
Scope 1 & 2 CO2e emissions (tonnes)****
14,938
**
31,349
30,813
2%
Gender diversity, Board of Directors (women/men)***
40/60%
**
40/60%
40/60%
Gender diversity, all managers (women/men)
45/55%
**
44/56%
43/57%
**No available data for the period.
***Shareholder-elected members.
****The newly acquired retail chain Sheng Wang has not been integrated into our emissions reporting for 2022.
Full-year growth rates by business area
Revenue (DKK million)
Growth
Business area
FY 2022
FY 2021
Organic
Acquisitive
LCY
FX
Reported
Hearing Aids, total sales
9,991
8,979
9%
-1%
7%
4%
11%
Hearing Aids, internal sales
-1,760
-1,633
-2%
6%
4%
4%
8%
Hearing Aids, external sales
8,231
7,346
11%
-3%
8%
4%
12%
Hearing Care
8,123
7,553
-3%
6%
3%
4%
8%
Diagnostics
2,291
1,823
13%
4%
17%
9%
26%
Hearing Healthcare
18,645
16,722
5%
2%
7%
5%
12%
Communications
1,060
1,183
-13%
0%
-13%
3%
-10%
Group
19,705
17,905
4%
2%
5%
5%
10%
About Demant A/S
Demant is a world-leading hearing healthcare group that offers solutions and services to help people with hearing loss connect with the world around them. In every aspect, from hearing devices, hearing implants, diagnostics to audio and video solutions and hearing care all over the world, Demant is active and engaged. Our innovative technologies and know-how help improve people’s health and hear-ing. We create life-changing differences through hearing health.
Attachments
2023-02 Annual Report 2022.pdf
DEMANT-2022-12-31-en.zip
Demant Annual Report 2022.pdf
