Demant (DEMANT) Q1 2026 earnings summary

Executive summary

• Achieved 6% organic growth in Q1 2026, led by 9% organic growth in Hearing Aids from the Oticon Zeal launch and KIND integration.

• 10% acquisitive growth driven by KIND integration, with structural and cost-reduction initiatives implemented to enhance profitability.

• Structural changes and organizational adjustments executed as planned, supporting long-term profitability.

• Outlook for 2026 maintained, with strong Q1 performance making results at the lower end of guidance less likely.

Financial highlights

• Total reported revenue grew 11% year-over-year, with 6% organic and 10% acquisitive growth, offset by -5% FX impact.

• Gross margin improved due to higher ASP in Hearing Aids and favorable mix effects.

• EBIT before special items increased year-over-year, supported by Hearing Aids and KIND consolidation.

• Solid operational and free cash flow remained positive in the quarter, with proceeds from divestments offsetting acquisition outflows.

Outlook and guidance

• Maintained full-year outlook: organic growth of 3%-6% and EBIT before special items of DKK 4.1–4.5 billion.

• KIND expected to contribute DKK 300 million to EBIT before special items in 2026.

• Cost savings of DKK 250 million targeted for 2026, with full DKK 500 million impact by 2028.

• Special items costs of DKK 325 million expected, mainly from KIND integration and structural changes.

• Guidance remains conservative due to market dynamics and macroeconomic uncertainty.