16.8.2022 07:29:25 CEST | Demant A/S |
Halvårsrapport
Selskabsmeddelelse nr. 2022-12 16. august 2022
Halvårsrapport 2022
Vækst i koncernomsætningen på 9 % i H1 (4 % org.) som følge af flotte resultater i Hearing Aids og Diagnostics
Hearing Aids øger sin markedsandel, hvilket opvejer lavere end forventet markedsvækst i Q2
EBIT på DKK 1.588 mio. i H1 – lidt under forventningerne og svarende til en EBIT-margin på 16,7 %
Forventningerne til 2022 justeres for at afspejle fortsat svagere end forventet markedsvækst ind i H2:
Organisk vækst på 4-6 % (tidligere 5-9 %) og EBIT på DKK 3.500-3.800 mio. (tidligere DKK 3.600-3.900 mio.)
“På trods af stærke sammenligningstal leverede vores Hearing Healthcare-segment solid vækst i første halvår takket være tocifret omsætningsvækst i vores Hearing Aids- og Diagnostics-forretningsområder. Begge forretningsområder vandt markedsandele i et høresundhedsmarked, der voksede mindre end forudset. De flotte resultater udlignede ikke helt lavere end forventet vækst i Hearing Care, og med negativ vækst i vores audioforretning, EPOS, endte koncernens samlede resultat en smule under vores forventninger. Når vi ser fremad mod andet halvår for koncernen, forventer vi, at den usikkerhed, der præger verden i øjeblikket, fortsat vil skabe et dynamisk forretningsmiljø, og at vores markeder vil vokse mindre end oprindeligt forudset. Vi justerer derfor vores forventninger til koncernens resultat for helåret, selvom vi stadig vil se højere vækst end i første halvår som følge af forbedrede markedsvilkår, særligt på det amerikanske marked, og af fortsat øgede markedsandele,” siger Søren Nielsen, koncernchef og administrerende direktør, Demant.
Koncernen rapporterer omsætning og vækstrater på kvartalsbasis, men offentliggør kun fuldstændige resultatopgørelser, balancer og pengestrømsopgørelser på halvårlig basis. Medmindre andet er angivet, vedrører kommentarerne nedenfor H1 2022. Sammenligningstal er blevet justeret for at afspejle, at forretningsområdet Hearing Implants nu indregnes som en ophørende aktivitet.
Omsætning (DKK mio.)
Vækst
Forretningsområde
Q2 2022
Q2 2021
Organisk
Akkvisitiv
LCY
FX
Rapporteret
Hearing Aids
2.491
2.257
8 %
-2 %
6 %
4 %
10 %
Heraf salg til Hearing Care
-454
-412
1 %
4 %
6 %
5 %
10 %
Hearing Care
2.034
2.006
-7 %
4 %
-3 %
5 %
1 %
Diagnostics
563
441
16 %
3 %
18 %
10 %
28 %
Hearing Healthcare
4.634
4.292
3 %
1 %
3 %
5 %
8 %
Communications
260
240
5 %
0 %
5 %
4 %
8 %
Koncern
4.894
4.532
3 %
1 %
3 %
5 %
8 %
Omsætning (DKK mio.)
Vækst
Forretningsområde
H1 2022
H1 2021
Organisk
Akkvisitiv
LCY
FX
Rapporteret
Hearing Aids
4.842
4.416
9 %
-2 %
7 %
3 %
10 %
Heraf salg til Hearing Care
-895
-871
-5 %
4 %
-1 %
4 %
3 %
Hearing Care
3.932
3.737
-3 %
4 %
1 %
4 %
5 %
Diagnostics
1.066
843
17 %
2 %
19 %
8 %
27 %
Hearing Healthcare
8.945
8.125
6 %
1 %
6 %
4 %
10 %
Communications
552
621
-14 %
0 %
-14 %
3 %
-11 %
Koncern
9.497
8.746
4 %
1 %
5 %
4 %
9 %
I H1 leverede koncernen 4 % organisk vækst efter at have oplevet en betydelig nedgang fra 6 % i Q1 til 3 % i Q2. Akkvisitiv vækst bidrog med 1 % (Q2: 1 %) og valutakurseffekter med 4 % (Q2: 5 %). Den samlede rapporterede vækst for koncernen var 9 % i H1 (Q2: 8 %).
På trods af stærke sammenligningstal var den organiske vækst i Hearing Healthcare 6 % i H1 (Q2: 3 %) drevet af flotte resultater i Hearing Aids og Diagnostics, som imidlertid blev mere end opvejet af lavere end forventet organisk vækst i Hearing Care.
Hearing Aids fortsatte med at vinde markedsandele igennem hele H1, hvilket medvirkede til at opveje lavere end forventet markedsvækst i Q2 som følge af påvirkninger fra coronavirus i Asien og Stillehavsområdet samt usikkerhed blandt forbrugere, ikke mindst på markeder, hvor privat betaling er fremherskende, fx i USA. Væksten i H1 var drevet af flot stykvækst på 16 %, hvorimod ASP-væksten var -8 % som følge af ændringer i både det geografiske miks og kanalmikset med særligt høj vækst i salget i udviklingslande og til NHS.
Den negative vækst i Hearing Care skyldes primært meget høje sammenligningstal i Frankrig som følge af implementeringen af høresundhedsreformen sidste år samt lavere end forventet vækst i USA, der dels kan henføres til vores beslutning om at trække os fra visse managed care-ordninger, dels et svagere markedsmomentum i Q2. Derudover var væksten i Australien negativt påvirket af coronavirus i hele H1. Akkvisitioner i Hearing Care bidrog betydeligt til væksten i både Q1 og Q2.
Diagnostics fortsatte det meget flotte momentum igennem hele H1 til trods for en marginalt negativ effekt af nedlukningerne i Kina.
Communications leverede organisk vækst på -14 % i H1 (Q2: 5 %) som følge af meget høje sammenligningstal i Q1. Selvom væksten i Q2 var positiv, var den under forventningerne som følge af den fortsatte afmatning på markedet for gaming-headset samt udfordringer i forsyningskæden, der havde en negativ effekt på salget, særligt i Enterprise Solutions.
Koncernens bruttomargin var 74,6 %, hvilket er en mindre stigning på 0,1 procentpoint sammenlignet med H1 2021. Stigningen var drevet af et gunstigt miks mellem forretningssegmenterne og positive valutakurseffekter, men blev delvist udlignet af negative miksændringer i Hearing Aids. Den dynamiske forsyningssituation, især højere fragtomkostninger, fortsatte med at påvirke bruttomarginen med ca. -0,5 procentpoint.
OPEX voksede organisk med 8 % med yderligere vækst på 1 % fra akkvisitioner. I lokal valuta lå væksten en smule under vores oprindelige planer, selvom vi fortsat investerer betydeligt i F&U. Omkring halvdelen af den organiske vækst i OPEX afspejler midlertidige omkostningsbesparelser i sammenligningsperioden, som beløb sig til DKK 150-200 mio. i alt. På nuværende tidspunkt oplever vi ikke noget inflationspres, der overstiger vores oprindelige forventninger.
Koncernens EBIT nåede DKK 1.588 mio., hvilket er lidt under vores oprindelige planer som følge af lavere end forventet omsætning og negative miksændringer. EBIT-marginen var 16,7 %. EBIT faldt 5 % i H1, idet EBIT i sammenligningsperioden var positivt påvirket af midlertidige omkostningsbesparelser på DKK 150-200 mio. og den ekstraordinære positive effekt af den franske reform på ca. DKK 100 mio. Justeret for disse faktorer lå EBIT-væksten på ca. 13 %, inklusive positive valutakurseffekter.
Koncernens pengestrømme blev negativt påvirket af en stigning i arbejdskapitalen som følge af dels en normalisering af tilgodehavender og leverandørgæld, og dels opbygning af lagre til håndtering af den dynamiske forsyningssituation. CFFO beløb sig til DKK 915 mio. og FCF før akkvisitioner til DKK 398 mio.
Pengestrømme til opkøb udgjorde DKK 513 mio., og pr. 30. juni 2022 havde vi tilbagekøbt aktier for DKK 1.307 mio. Koncernens gearing-multipel (NIBD/EBITDA) var 2,4 ved udgangen af juni 2022.
Som annonceret den 27. april 2022 har vi besluttet at afvikle vores Hearing Implants-forretning, som derfor indregnes separat som en ophørende aktivitet. Sammenligningstal er blevet justeret for at afspejle dette. Betinget af regulatoriske godkendelser og opfyldelsen af andre sædvanlige vilkår forventes det stadig, at frasalget af forretningsområdet til Cochlear Limited gennemføres i H2, hvor DKK 700 mio. af den samlede salgssum på DKK 850 mio. vil blive betalt. I H1 var resultatet efter skat for ophørende aktiviteter DKK -107 mio.
Den 14. juni 2022 annoncerede vi opkøbet af de resterende 80 % af ShengWang, det førende netværk i Kina med ca. 500 høreapparatklinikker, som vil være en fremragende vækstplatform i de næste mange år. Den samlede købspris for 100 % ejerskab af ShengWang var RMB 1.750 mio. (DKK 1.863 mio.), og transaktionen blev gennemført med finansiel effekt fra den 1. juli. ShengWang er således fuldt konsolideret ind i Demant fra begyndelsen af H2.
Forventninger til 2022
Vores forventninger til 2022, som er opsummeret i tabellen nedenfor, justeres, således at de afspejler, at vi nu forventer, at vores markeder vil vokse mindre i H2 end oprindeligt forudset som følge af usikkerhed blandt forbrugere, hvilket vil mere end udligne positive valutakurseffekter.
Parameter
Forventninger til 2022
Organisk vækst
4-6 % (tidligere 5-9 %)
Akkvisitiv vækst
2 % baseret på omsætning fra virksomheder tilkøbt pr. 15. august 2022
Valutakursvækst
5 % baseret på valutakurser pr. 15. august 2022 og inkl. effekten af valutakurssikring
EBIT
DKK 3.500-3.800 mio. (tidligere DKK 3.600-3.900 mio.)
Effektiv skattesats
22-23 %
Gearing-multipel
Gearing-multiplen (NIBD i forhold til EBITDA) forventes ved udgangen af 2022 at blive en anelse højere end vores mellem- til langsigtede mål på 2,0-2,5
Aktietilbagekøb
Mindst DKK 2,5 mia.
Resultat efter skat fra ophørende aktiviteter
Negativt med DKK 150-200 mio.
Forventningerne er fortsat baseret på en række nøgleantagelser som beskrevet nedenfor (ændringer med fed skrift):
I H1 lå værdivæksten på høreapparatmarkedet under vores forventninger som følge af udviklingen i Q2. I forhold til Q2 forventer vi stadig at se forbedrede markedsvilkår i H2, især på det vigtige amerikanske marked, men vi forventer nu kun en markedsstykvækst i 2022 på linje med det strukturelle niveau på 4-6 %. Vi forventer nu kun begrænset yderligere vækst, da modvind som følge af usikkerhed blandt forbrugere forventes at opveje eventuel medvind fra ophobet efterspørgsel. Vi forventer, at ASP-væksten på markedet i H2 vil være mindre negativ end i H1.
Væksten på det franske høreapparatmarked vil være negativ i 2022 efter den ekstraordinære efterspørgsel i 2021, som efter vores skøn havde en positiv effekt på koncernens omsætning på DKK 300 mio. og på EBIT på DKK 150 mio. Vi forventer ikke at se en gentagelse af denne effekt. Udviklingen i H1 var mindst på niveau med vores forventninger.
Markedet for enterprise- og gaming-headset og videoløsninger vil vokse under det skønnede strukturelle vækstniveau på ca. 12 % grundet den aktuelle forsyningssituation. Afmatningen på gaming-markedet i H1 forventes nu også at fortsætte ind i H2, mens vi forventer en gradvis bedring af forsyningssituationen.
I H2 forventer vi fortsat at øge vores markedsandele i Hearing Healthcare. I Communications forventer vi at se tocifret organisk vækst i H2.
Forsyningssituationen vil forblive dynamisk i hele 2022 og vil resultere i højere komponent- og fragtomkostninger end normalt, hvilket vil have nogenlunde samme effekt som i 2021, men ikke vil medføre en betydelig negativ påvirkning af vores salgsaktiviteter.
Koncernens OPEX-base vil ikke opleve nogen effekt af midlertidige omkostningsbesparelser i 2022, som efter vores skøn beløb sig til DKK 150-200 mio. i H1 2021.
I Communications forventer vi nu et EBIT på ca. DKK -150 mio. for 2022 som følge af den negative markedsudvikling samt udfordringerne i forsyningskæden. Vi anser fortsat de fundamentale vækstdrivere på markedet som værende intakte på mellemlang til lang sigt.
Det planlagte frasalg af Hearing Implants forventes afsluttet i slutningen af 2022.
Demant afholder en telekonference den 16. august 2022 kl. 14.00. For deltagelse i konferencen anvendes et af følgende telefonnumre: +45 8088 6270 (DK), +44 808 101 1183 (UK) eller +1 800 420 1271 (USA). Pinkoden er 86628. Præsentationen, som vil blive gennemgået på 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 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
2022-12 Halvårsrapport 2022.pdf
Interim Report 2022.pdf
16.8.2022 07:29:25 CEST | Demant A/S |
Half Year financial report
Company announcement no 2022-12 16 August 2022
Interim Report 2022
Group revenue growth of 9% in H1 (4% organic) due to strong performances by Hearing Aids and Diagnostics
Market share gains in Hearing Aids offset lower-than-expected market growth in Q2
EBIT of DKK 1,588 million in H1, slightly below expectations and corresponding to an EBIT margin of 16.7%
Outlook for 2022 adjusted to reflect continuation of weaker-than-expected market growth into H2:
Organic growth of 4-6% (prev. 5-9%) and EBIT of DKK 3,500-3,800 million (prev. DKK 3,600-3,900 million)
“In the first half of 2022, our Hearing Healthcare business segment delivered solid growth – in spite of strong comparative figures – thanks to double-digit revenue growth in our Hearing Aids and Diagnostics business areas. Both businesses gained market shares in a hearing healthcare market that grew less than anticipated. The strong performances did not fully offset lower-than-expected growth in Hearing Care, and with negative growth in our business for premium audio technology, EPOS, the Group’s total performance ended slightly below expectations. Looking ahead to the second half-year for the Group, we expect global uncertainties to continue to cause a dynamic business environment, and we now expect our markets to grow less than originally anticipated. We thus adjust our outlook for the full year for the Group, although we still expect growth to accelerate compared to the first half-year due to improving market conditions, most importantly in the US market, and to continued market share gains,” says Søren Nielsen, President & CEO of Demant.
The Group reports revenue and growth rates on a quarterly basis, whereas full income statements, balance sheets and cash flow statements are only reported on a half-yearly basis. Unless otherwise indicated, the commentary below relates to H1 2022. Comparative figures have been restated to reflect that Hearing Implants is now recognised as a discontinued operation.
Revenue (DKK million)
Growth
Business area
Q2 2022
Q2 2021
Organic
Acquisitive
LCY
FX
Reported
Hearing Aids
2,491
2,257
8%
-2%
6%
4%
10%
Hereof sales to Hearing Care
-454
-412
1%
4%
6%
5%
10%
Hearing Care
2,034
2,006
-7%
4%
-3%
5%
1%
Diagnostics
563
441
16%
3%
18%
10%
28%
Hearing Healthcare
4,634
4,292
3%
1%
3%
5%
8%
Communications
260
240
5%
0%
5%
4%
8%
Group
4,894
4,532
3%
1%
3%
5%
8%
Revenue (DKK million)
Growth
Business area
H1 2022
H1 2021
Organic
Acquisitive
LCY
FX
Reported
Hearing Aids
4,842
4,416
9%
-2%
7%
3%
10%
Hereof sales to Hearing Care
-895
-871
-5%
4%
-1%
4%
3%
Hearing Care
3,932
3,737
-3%
4%
1%
4%
5%
Diagnostics
1,066
843
17%
2%
19%
8%
27%
Hearing Healthcare
8,945
8,125
6%
1%
6%
4%
10%
Communications
552
621
-14%
0%
-14%
3%
-11%
Group
9,497
8,746
4%
1%
5%
4%
9%
In H1, the Group generated organic growth of 4% after having seen a material slowdown from 6% in Q1 to 3% in Q2. Growth from acquisitions added 1% (Q2: 1%) and exchange rate effects 4% (Q2: 5%). Total reported revenue growth for the Group was 9% in H1 (Q2: 8%).
Despite strong comparative figures, Hearing Healthcare saw organic growth of 6% in H1 (Q2: 3%), driven by strong performances by Hearing Aids and Diagnostics, which were, however, more than offset by lower-than-expected organic growth in Hearing Care.
Hearing Aids continued to gain market share throughout H1, which helped offset lower-than-expected market growth in Q2 due to coronavirus impacts in Asia and the Pacific region and to consumer uncertainty, not least in markets dominated by private pay, such as the US. Growth in H1 was driven by strong unit growth of 16%, whereas ASP growth was -8% due to geography and channel mix changes, with particularly strong sales growth in emerging markets and in the NHS.
The negative growth in Hearing Care can mainly be attributed to very high comparative figures in France due to the hearing healthcare reform implemented last year and to lower-than-expected growth in the US, resulting from the decision to exit selected managed care plans and from weakening market momentum in Q2. Also, growth in Australia was negatively impacted by coronavirus throughout H1. Acquisitions in Hearing Care contributed considerably to growth in both Q1 and Q2.
Diagnostics continued its very strong momentum throughout H1 despite a slightly negative impact of lockdowns in China.
Communications saw organic growth of -14% in H1 (Q2: 5%) due to very high comparative figures in Q1. Growth in Q2 was positive but below expectations due to the continued weakening of the market for gaming headsets and to certain supply chain challenges, which had a negative impact on sales, particularly in Enterprise Solutions.
The Group’s gross margin was 74.6%, a minor increase of 0.1 percentage point compared to H1 2021, driven by a favourable mix between business segments and positive exchange rate effects, but partly offset by negative mix changes in Hearing Aids. The dynamic supply chain situation continued to impact the gross margin by around -0.5 percentage point, primarily due to higher freight charges.
OPEX grew organically by 8% with additional growth of 1% from acquisitions. In local currencies, growth was slightly below our original plans, although we continue to invest significantly in R&D. Around half of the organic growth in OPEX reflects temporary cost savings in the comparative period, which totalled approx. DKK 150-200 million. At this stage, we see no inflationary pressures beyond our initial expectations.
The Group’s EBIT amounted to DKK 1,588 million, which is slightly below our original plans due to lower-than-expected revenue and adverse mix effects. The EBIT margin was 16.7%. EBIT declined 5% in H1, as EBIT in the comparative period was boosted by temporary cost savings of DKK 150-200 million and the extraordinary positive impact of around DKK 100 million of the French reform. Adjusted for these factors, EBIT growth was around 13%, including tailwind from exchange rate effects.
The Group’s cash flows were negatively impacted by an increase in net working capital due to the normalisation of trade receivables and trade payables and also by the build-up of inventories to mitigate the impacts of supply chain dynamics. CFFO amounted to DKK 915 million and FCF before acquisitions was DKK 398 million.
Cash spent on acquisitions amounted to DKK 513 million, and as of 30 June 2022, we had bought back shares worth DKK 1,307 million. The Group’s gearing multiple (NIBD/EBITDA) was 2.4 at the end of June 2022.
As announced on 27 April 2022, we have decided to discontinue our Hearing Implants business, which is therefore recognised separately as a discontinued operation. Comparative figures have been restated to reflect this. Subject to regulatory approvals and other customary closing conditions, the divestment of the business to Cochlear Limited is still presumed to close in H2 at which time DKK 700 million of the total DKK 850 million consideration will be paid. In H1, profit after tax from discontinued operations amounted to DKK -107 million.
On 14 June 2022, we announced the acquisition of the remaining 80% of ShengWang, the leading hearing care network in China with around 500 clinics, which offers an excellent growth platform for the next many years. The total purchase price for 100% ownership of ShengWang was RMB 1,750 million (DKK 1,863 million), and the transaction was closed with financial effect from 1 July. ShengWang will thus be fully consolidated into Demant from the beginning of H2.
Outlook for 2022
Our outlook for 2022, which is summarised in the table below, is adjusted to reflect that we now expect our markets to grow less in H2 than originally anticipated due to negative impacts of consumer uncertainty, which will more than offset positive exchange rate effects.
Metric
Outlook for 2022
Organic growth
4-6% (previously 5-9%)
Acquisitive growth
2% based on revenue from acquisitions completed as of 15 August 2022
FX growth
5% based on exchange rates as of 15 August 2022 and including the impact of hedging
EBIT
DKK 3,500-3,800 million (DKK 3,600-3,900 million)
Effective tax rate
22-23%
Gearing multiple
Gearing multiple (NIBD relative to EBITDA) at the end of 2022 to slightly exceed medium- to long-term target of 2.0-2.5
Share buy-backs
At least DKK 2.5 billion
Profit after tax from discontinued operations
Negative by DKK 150-200 million
The outlook continues to be based on a number of key assumptions as described below (changes in bold):
In H1, value growth in the hearing aid market was below expectations due to developments in Q2. Relative to Q2, we still expect market conditions to improve in H2, particularly in the important US market, but we now only expect total market unit growth in 2022 in line with the structural level of 4-6%. We now only expect limited excess growth, as headwinds from consumer uncertainty are expected to outweigh any tailwinds from the release of pent-up demand. We expect ASP growth in the market in H2 to be less negative than in H1.
Growth in the French hearing aid market to be negative in 2022 following the extraordinary demand in 2021, which we estimate benefitted the Group’s revenue by DKK 300 million and EBIT by DKK 150 million. We do not expect this benefit to recur. Developments in H1 were at least in line with expectations.
The market for enterprise and gaming headsets and video solutions to grow below the estimated structural growth level of around 12% due to the current supply chain situation. The weakening of the gaming market in H1 is now also expected to carry over into H2, however we expect the supply chain situation to gradually improve.
In H2, we expect to continue to see market share gains in Hearing Healthcare. For Communications, we expect to see double-digit organic growth in H2.
Supply chain situation to remain dynamic throughout the year and to result in higher-than-normal component costs and freight charges with an impact that is roughly similar to the impact in 2021 but with no material disruption to sales activities.
The Group’s OPEX base to see no benefit from temporary cost savings in 2022, which we estimate amounted to DKK 150-200 million in H1 2021.
For Communications, we now expect EBIT of around DKK -150 million in 2022 due to negative market trends and supply chain challenges. In the medium to long term, we still consider the fundamental growth drivers of the market to be fully intact.
Planned divestment of Hearing Implants to close at the end of 2022.
Demant will host a conference call on 16 August 2022 at 14:00 CEST. To attend this call, please use one of the following dial-ins: +45 8088 6270 (DK), +44 808 101 1183 (UK) or +1 800 420 1271 (US). The pin code is 86628. 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
Peter Pudselykke, 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
2022-12 Interim Report 2022.pdf
Interim Report 2022.pdf
