Demant A/s Stock Earnings Reports

Key investor takeaways: Demant reported H1 2025 organic revenue growth of 0% (reported +4% from acquisitions). The global hearing-aid market grew below the normal 4–6% range due to macroeconomic uncertainty, leading consumers to postpone first-time purchases and upgrades. Demant achieved unit growth and some market share gains but saw a decline in average selling price (ASP) driven by geographic and product-mix (growth outside the higher-ASP U.S. market and stronger growth in lower-ASP markets). Gross margin fell ~0.8ppt versus last year; EBIT before special items was DKK 1,849m (an 11% drop) and the EBIT margin contracted ~2.3ppt. Management attributes the full-year profit guide reduction roughly two-thirds to weaker market demand and one-third to lower volumes in a large U.S. retailer (Costco). Free cash flow remained strong (DKK 1.126bn) and operating cash flow was slightly north of DKK 1.5bn. FX was a headwind (≈-1% revenue; ~DKK 50m EBIT impact). OpEx was tightly managed (organic OpEx +1% H1) and sequentially management expects flat reported OpEx in H2 while continuing to fund planned product-launch activities. The announced acquisition of KIND (≈650 clinics, Germany) will pause the share buyback program until close; the transaction timing will determine its P&L/financial impact. Diagnostics remains weak—particularly in the U.S.—with postponed customer investments. Sustainability: Scope 1&2 market-based emissions down 5%; compliance training nearing 100%. Guidance update: market value growth for 2025 revised to 1–3% (from 1–5%) and full-year EBIT before special items guidance lowered to DKK 3.9–4.3bn (from DKK 4.1–4.5bn previously).