12.8.2021 07:29:54 CEST | Demant A/S |
Halvårsrapport
Selskabsmeddelelse nr. 2021-11 12. august 2021
Halvårsrapport 2021
Fremragende koncernresultat i H1 med 51 % organisk vækst – Hearing Healthcare tager markedsandele
Genopretningen af det globale høresundhedsmarked i H1 mindst på niveau med vores forventninger
EBIT på DKK 1.638 mio. i H1, svarende til en EBIT-margin på 18,2 %, overstiger vores forventninger
De positive tendenser forventes at fortsætte i H2 – forventet organisk vækst i 2021 øget til 26-30 % (tidl. 24-28 %)
Forventning til EBIT for 2021 opjusteret til DKK 3.150-3.450 mio. (tidl. DKK 3.000-3.300 mio.)
Omsætning (DKK mio.)
Vækst H1 2021 vs H1 2020
Vækst H1 2021 vs H1 2019
Omsætning og vækstrater
H1 2021
H1 2020
H1 2019
Org.
Akkv.
LCY
Org.
Akkv.
LCY
Hearing Aids
4.416
2.937
3.852
55 %
0 %
55 %
17 %
1 %
17 %
Heraf salg til Hearing Care
-871
-465
-607
90 %
4 %
94 %
42 %
6 %
48 %
Hearing Care
3.737
2.154
3.128
72 %
5 %
78 %
15 %
7 %
23 %
Hearing Implants
266
246
304
11 %
0 %
12 %
-9 %
1 %
-8 %
Diagnostics
843
660
673
34 %
1 %
35 %
29 %
2 %
31 %
Hearing Healthcare
8.391
5.532
7.350
55 %
2 %
57 %
14 %
3 %
17 %
Communications
621
546
–
16 %
0 %
16 %
n.a.
n.a.
n.a.
Koncern
9.012
6.078
7.350
51 %
2 %
53 %
15 %
11 %
26 %
Bemærk, at der ikke er nogen sammenligningstal for Communications i 2019, da EPOS først blev konsolideret i 2020. Medmindre andet er angivet, er tallene for 2020 justeret for engangseffekter relateret til konsolideringen af EPOS med finansiel effekt fra den 1. januar 2020.
I H1 nåede koncernomsætningen DKK 9.012 mio. i H1 svarende til en vækstrate på 53 % i lokal valuta sammenlignet med H1 2020, med 51 % organisk vækst og 2 % akkvisitiv vækst. Valutakurseffekter var -5 %. Sammenlignet med H1 2019 (før pandemien) har koncernen oplevet vækst på 26 % i lokal valuta, med 15 % organisk vækst og 11 % akkvisitiv vækst. Sidstnævnte vækstrate kan hovedsageligt henføres til konsolideringen af EPOS i 2020. Valutakurseffekter var -3 %.
Hearing Healthcare-segmentet oplevede vækst på 57 % i lokal valuta sammenlignet med H1 2020, hvilket afspejler både et flot resultat og den alvorlige negative effekt af coronavirus på sammenligningstallene. Hearing Aids og Hearing Care drog begge fordel af den stærke genopretning af markedet for høreapparater, særligt i USA, hvor vi oplevede, at noget af den ophobede efterspørgsel blev udløst i Q2. Derudover så vi en betydelig positiv effekt af høresundhedsreformen i Frankrig, som vi estimerer tegnede sig for ca. DKK 200 mio. af den realiserede omsætning i H1, hvilket vi ikke vil se i samme omfang i H2. Desuden øgede Hearing Aids sin markedsandel takket være de meget succesfulde lanceringer af nye flagskibshøreapparater, deriblandt Oticon More og Philips HearLink. Diagnostics leverede meget stærke resultater og øgede sin markedsandel og kom ud af H1 med det største antal ordrer i ordrebogen nogensinde. Hearing Implants oplevede fortsat en betydelig negativ effekt af den langsomme genopretning af en række af vores nøglemarkeder for cochlear-implantater. I forhold til H1 2019 voksede Hearing Healthcare med 17 % i lokal valuta, med 14 % organisk vækst og 3 % akkvisitiv vækst, hvilket er betydeligt over markedsvækstraten.
Sammenlignet med H1 2020 var væksten i Communications 16 % i lokal valuta, hvilket udelukkende bestod af organisk vækst. Efter at have realiseret en meget høj tocifret vækstrate i de første måneder af året – godt hjulpet på vej af ekstraordinært lave sammenligningstal – aftog væksten i Communications betydeligt. Ud over højere sammenligningstal har afmatningen været drevet af en nedgang i antallet af nye ordrer – i særdeleshed ordrer på trådede headsets til lave priser. Selvom vi betragter dette som en midlertidig afmatning, så vil udviklingen også have en negativ effekt på væksten i H2.
Koncernen realiserede en bruttomargin på 74,5 % i H1, hvilket svarer til en vækst på 4,5 procentpoint i forhold til H1 2020 og en sekventiel vækst på 2,0 procentpoint sammenlignet med H2 2020. Stigningen skyldes især øget produktionsvolumen samt stærk vækst i Hearing Healthcare, som har en strukturelt højere bruttomargin end Communications-segmentet.
Koncernens OPEX voksede med 18 % i lokal valuta sammenlignet med H1 2020, med organisk vækst på 16 % og akkvisitiv vækst på 2 %. Dette afspejler dels den betydelige stigning i salget, og dels de meget betydelige midlertidige omkostningsbesparelser, der blev realiseret i sammenligningsperioden, og som inkluderer økonomisk støtte fra offentlige coronahjælpepakker. Vi så fortsat væsentlige midlertidige besparelser i OPEX, omend disse – som forventet – gradvist blev mindre i løbet af rapporteringsperioden. Selvom vi fortsat vil få gavn af de strukturelle besparelser, der blev meldt ud i oktober 2020, så forventer vi kun en begrænset effekt af yderligere midlertidige besparelser i H2.
Koncernens EBIT var bedre end forventet og nåede DKK 1.638 mio. i H1, hvilket svarer til en EBIT-margin på 18,2 %. Drevet af en kombination af stærk omsætning og midlertidige omkostningsbesparelser leverede Hearing Healthcare meget høj lønsomhed med en EBIT-margin på 20,0 %. Lønsomheden var stærkt understøttet af den succes, som de nye flagskibshøreapparater har oplevet, og vi estimerer, at reformen i Frankrig tegnede sig for ca. DKK 100 mio. af det samlede EBIT i H1, hvilket vi ikke vil se i samme omfang i H2. Omvendt resulterede afmatningen i Communications i et EBIT på DKK -44 mio., idet vi er fortsat med at investere i F&U og distribution, hvilket vil understøtte vores vækst på mellemlang til langt sigt.
Som en afspejling af koncernens forbedrede lønsomhed har vi haft et meget stærkt cashflow, og både CFFO og FCF mere end fordobledes til henholdsvis DKK 1.511 mio. og DKK 1.234 mio. Vores M&A-aktiviteter er stort set tilbage på det normale niveau, og pengestrømme til akkvisitioner udgjorde DKK 406 mio. i H1, fortrinsvist i Hearing Care.
Aktietilbagekøb beløb sig til DKK 1.813 mio., mens koncernens gearing-multipel (NIBD/EBITDA) var 2,1 ved udgangen af H1, hvilket er på niveau med vores mellem- til langsigtede mål om en gearing-multipel på 2,0-2,5.
Forventninger til 2021
Baseret på en forventning om, at vi vil fortsætte med at se stærkt momentum og vinde markedsandele i Hearing Healthcare i H2 – på trods af at den medvind, vi har oplevet som følge af den franske reform, ikke vil fortsætte i samme omfang som i H1 – opjusterer vi vores forventninger til koncernens organiske vækst for 2021 til 26-30 % (tidligere 24-28 %). Som følge af afmatningen i Communications forventer vi nu, at dette segment vil realisere negativ organisk vækst i H2. Som et resultat af de opjusterede forventninger til omsætningsvæksten opjusterer vi ligeledes vores forventninger til koncernens EBIT for 2021 til DKK 3.150-3.450 mio. (tidligere DKK 3.000-3.300 mio.). I Communications forventer vi at realisere et negativt EBIT i H2, idet vi fortsat vil investere i forretningen som oprindeligt planlagt med henblik på at understøtte vores fremtidige vækst og markedsposition. Som følge af højere forventninger til vores cashflow i H2 forventer vi nu at tilbagekøbe aktier for mere end DKK 3,0 mia. (tidligere mere end DKK 2,5 mia.).
Parameter
Forventninger til 2021
Organisk vækst
26-30 % (tidligere 24-28 %). Vi forventer, at Communications vil realisere negativ organisk vækst i H2.
Akkvisitiv vækst
1 % baseret på omsætning fra akkvisitioner gennemført pr. 11. august 2021.
Valutakursvækst
-1 % (tidligere -2 %) baseret på valutakurser pr. 11. august 2021 og inklusive effekten af kurssikring.
EBIT
DKK 3.150-3.450 mio. (tidligere DKK 3.000-3.300 mio.). Vi forventer, at Communications vil realisere negativt EBIT i H2.
Effektiv skattesats
Omkring 23%.
Gearing-multipel
Gearing-multipel ved udgangen af 2021 på niveau med vores mellem- til langsigtede mål på 2,0-2,5 (NIBD/EBITDA).
Aktietilbagekøb
Mere end DKK 3,0 mia. (tidligere mere end DKK 2,5 mia.).
“Alt i alt ser vi på første halvår med stor tilfredshed, idet vi gør det utroligt godt og vinder markedsandele. Vi er igen blevet inviteret indenfor i mange menneskers liv i kraft af vores innovative teknologi og ydelser, og baseret på tillidsfuldt samarbejde fortsætter vi med at gøre en forskel ved at lette livet for vores kunder og brugere i hele verden. Lanceringen af vores flagskibshøreapparater Oticon More og Philips HearLink skiller sig særligt ud, og vi er i det hele taget lykkedes rigtig godt med vores salgsaktiviteter, hvilket har resulteret i øgede markedsandele og salgstal, som overgår vores oprindelige forventninger. Forretningsområderne Hearing Aids, Hearing Care og Diagnostics har gjort det særligt godt og skabt stærk lønsomhed i perioden. Baseret på vores forventninger om fortsat stærke resultater i andet halvår opjusterer vi nu vores forventninger til vækst og overskud for helåret,” siger koncernchef og administrerende direktør Søren Nielsen.
Demant afholder en telekonference den 12. august 2021 kl. 14.00. For deltagelse i konferencen anvendes et af følgende telefonnumre: +45 3544 5577 (DK), +44 3333 000 804 (UK) eller +1 6319 131 422 (USA). Pin-koden er 65378756#. Præsentationen, som vil blive gennemgået på telekonferencen, vil blive uploadet på www.demant.com, kort før konferencen starter.
Yderligere information:
Koncernchef og adm. direktør Søren Nielsen
Telefon +45 3917 7300
www.demant.com
Øvrige kontaktpersoner:
René Schneider, CFO
Mathias Holten Møller, Head of Investor Relations
Christian Lange, Investor Relations Officer
Trine Kromann-Mikkelsen, VP Corporate Communications and Relations
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
2021-11 Halvårsrapport 2021.pdf
2021-11 Interim Report 2021.pdf
12.8.2021 07:29:54 CEST | Demant A/S |
Half Year financial report
Company announcement no 2021-11 12 August 2021
Interim Report 2021
Excellent Group performance in H1 with 51% organic growth and market share gains in Hearing Healthcare
Recovery in the global hearing healthcare market in H1 at least in line with our expectations
EBIT of DKK 1,638 million in H1, corresponding to an EBIT margin of 18.2%, exceeding our expectations
Positive trends expected to continue in H2 – 2021 organic growth outlook upgraded to 26-30% (prev. 24-28%)
EBIT guidance for 2021 upgraded to DKK 3,150-3,450 million (prev. DKK 3,000-3,300 million)
Revenue (DKK million)
Growth H1 2021 vs H1 2020
Growth H1 2021 vs H1 2019
Revenue and growth rates
H1 2021
H1 2020
H1 2019
Org.
Acq.
LCY
Org.
Acq.
LCY
Hearing Aids
4,416
2,937
3,852
55%
0%
55%
17%
1%
17%
Hereof sales to Hearing Care
-871
-465
-607
90%
4%
94%
42%
6%
48%
Hearing Care
3,737
2,154
3,128
72%
5%
78%
15%
7%
23%
Hearing Implants
266
246
304
11%
0%
12%
-9%
1%
-8%
Diagnostics
843
660
673
34%
1%
35%
29%
2%
31%
Hearing Healthcare
8,391
5,532
7,350
55%
2%
57%
14%
3%
17%
Communications
621
546
–
16%
0%
16%
n.a.
n.a.
n.a.
Group
9,012
6,078
7,350
51%
2%
53%
15%
11%
26%
Please note that there are no comparative figures for Communications in 2019, as EPOS was not consolidated until 2020. Unless otherwise indicated, 2020 figures are adjusted for one-offs related to the consolidation of EPOS with financial effect from 1 January 2020.
In H1, Group revenue amounted to DKK 9,012 million, corresponding to growth of 53% in local currencies compared to H1 2020, with 51% organic growth and 2% acquisitive growth. Exchange rate effects were -5%. Compared to pre-pandemic levels in H1 2019, the Group saw growth of 26% in local currencies, with 15% organic growth and 11% acquisitive growth. The latter can mainly be attributed to the consolidation of EPOS in 2020. Exchange rate effects were -3%.
Our Hearing Healthcare segment saw growth of 57% in local currencies compared to H1 2020, reflecting both strong business performance and the severe negative impact of coronavirus on comparative figures. Hearing Aids and Hearing Care benefitted from the strong recovery of the hearing aid market, particularly in the US where we saw the release of some pent-up demand in Q2. We also saw a significant positive impact of the hearing healthcare reform in France, which we estimate added around DKK 200 million to revenue in H1 that will not recur to the same extent in H2. Furthermore, Hearing Aids gained market share thanks to the highly successful launch of new flagship hearing aids, including Oticon More and Philips HearLink. Diagnostics delivered very strong performance and gained market share and exited H1 with an all-time high number of orders in the order book. Hearing Implants continued to see a significant negative impact of the slow recovery in a number of our key cochlear implants markets. Relative to H1 2019, Hearing Healthcare grew by 17% in local currencies, with 14% organic growth and 3% acquisitive growth, which is significantly above the market growth rate.
In Communications, growth was 16% in local currencies compared to H1 2020, all of which was organic growth. Following the very high double-digit organic growth rate realised in the first months of the year – also aided by extraordinarily low comparative figures – growth decelerated significantly. Besides higher comparative figures, the deceleration was driven by a softening in the number of new orders, particularly for low-priced wired headsets. While we view this as a temporary slowdown, it will also impact growth in H2 negatively.
The Group realised a gross margin of 74.5% in H1, corresponding to growth of 4.5 percentage points compared to H1 2020 and to sequential growth of 2.0 percentage points compared to H2 2020. The improvement was mainly driven by higher production volumes and by strong growth in Hearing Healthcare, which has a structurally higher gross margin than the Communications segment.
The Group’s OPEX grew by 18% in local currencies compared to H1 2020, with organic growth of 16% and acquisitive growth of 2%. This reflects both the substantial sales growth and the very significant, temporary cost savings realised in the comparative period, including support from government schemes related to coronavirus. We continued to see material temporary savings in OPEX, although these, as expected, gradually diminished during the reporting period. While we will continue to benefit from the structural savings announced in October 2020, we only expect a limited impact of further temporary savings in H2.
EBIT for the Group was better than expected and amounted to DKK 1,638 million in H1, corresponding to an EBIT margin of 18.2%. Hearing Healthcare delivered very strong profitability with an EBIT margin of 20.0% driven by a combination of strong revenue and temporary cost savings. Profitability was strongly supported by the success of the new flagship hearing aids, and we estimate that the reform in France added around DKK 100 million to EBIT in H1 that will not recur to the same extent in H2. Conversely, the slowdown in Communications resulted in an EBIT of DKK -44 million, as we continued to invest in R&D and distribution that will support our medium- to long-term growth.
Reflecting the Group’s improved profitability, cash flow was very strong, and both CFFO and FCF more than doubled to DKK 1,511 million and DKK 1,234 million, respectively. M&A activities have largely found their normal level with cash spent on acquisitions amounting to DKK 406 million, predominantly relating to Hearing Care.
Share buy-backs amounted to DKK 1,813 million, while the Group’s gearing multiple (NIBD/EBITDA) was 2.1 at the end of H1, which is in line with our medium- to long-term target of 2.0-2.5.
Outlook for 2021
Based on expectations that our strong business momentum and market share gains in Hearing Healthcare will continue in H2 – despite tailwind from the French reform not recurring to the same extent as in H1 – we upgrade our guidance for the Group’s organic growth rate for 2021 to 26-30% (previously 24-28%). Due to the slowdown in Communications, we now expect this segment to see negative organic growth in H2. As a result of the upgraded outlook for revenue growth, we also upgrade our guidance for Group EBIT for 2021 to DKK 3,150-3,450 million (previously DKK 3,000-3,300 million). In Communications, we expect to realise a negative EBIT for H2, as we will continue to invest in the business as originally planned to support our future growth and market position. Due to higher expectations in respect of our cash flow in H2, we now expect to buy back shares worth more than DKK 3.0 billion (previously more than DKK 2.5 billion).
Metric
Outlook for 2021
Organic growth
26-30% (previously 24-28%). For Communications, we expect negative organic growth in H2.
Acquisitive growth
1% based on revenue from acquisitions completed as of 11 August 2021.
FX growth
-1% (previously -2%) based on exchange rates as of 11 August 2021 and including the impact of hedging.
EBIT
DKK 3,150-3,450 million (previously DKK 3,000-3,300 million). For Communications, we expect a negative EBIT in H2.
Effective tax rate
Around 23%.
Gearing
Gearing multiple at the end of 2021 in line with medium- to long-term target of 2.0-2.5 (NIBD relative to EBITDA).
Share buy-backs
More than DKK 3.0 billion (previously more than DKK 2.5 billion).
“Overall, we look at the first half-year with great satisfaction, we perform extremely well and win market share. We have once again been let into many people’s lives with our innovative technologies and services, and based on trustful collaboration, we continue to make life-changing differences for our customers and users around the world. With the launch of our flagship hearing aids Oticon More and Philips HearLink standing out, we have generally succeeded with our sales activities, leading to market share gains and sales above our original expectations. Our Hearing Aids, Hearing Care and Diagnostics businesses have performed particularly well, resulting in strong profitability for the period. Based on our expectations of continued strong performance in the second half-year, we now upgrade our guidance for growth and profit for the year,” says Søren Nielsen, President & CEO of Demant.
Demant will host a conference call on 12 August 2021 at 14:00 CEST. To attend this call, please use one of the following dial-ins: +45 3544 5577 (DK), +44 3333 000 804 (UK) or +1 6319 131 422 (US). The pin code is 65378756#. A presentation for the call will be uploaded to 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
Christian Lange, Investor Relations Officer
Trine Kromann-Mikkelsen, VP Corporate Communications and Relations
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
2021-11 Interim Report 2021.pdf
