May 5, 2020 / 6:02 AM / a month ago

BRIEF-Demant Q1 Profits Below Year Ago Level

May 5 (Reuters) - Demant A/S:

* REG-DEMANT A/S: INTERIM MANAGEMENT STATEMENT COVERING THE PERIOD YEAR-TO-DATE

* OUTLOOK FOR 2020 REMAINS WITHDRAWN DUE TO CONTINUED UNCERTAINTY OF IMPACT OF CORONAVIRUS

* YEAR-TO-DATE, GROUP’S PERFORMANCE HAS BEEN EXTRAORDINARILY MIXED AS A RESULT OF GLOBAL CORONAVIRUS PANDEMIC

* REVENUE AND PROFITS HAVE YEAR-TO-DATE BEEN SIGNIFICANTLY BELOW LEVELS IN SAME PERIOD LAST YEAR

* LOCKDOWNS OF VIRTUALLY ALL OUR KEY MARKETS IN EUROPE AND NORTH AMERICA IN RESPONSE TO SPREADING OF CORONAVIRUS HAVE ALMOST COMPLETELY ELIMINATED ABILITY TO SERVICE PATIENTS AND HAVE HAD AN UNPRECEDENTED NEGATIVE IMPACT ON HEARING HEALTHCARE MARKET SINCE MID-MARCH

* WE ESTIMATE THAT GLOBAL HEARING AID MARKET IS CURRENTLY SEEING A SALES RUN RATE OF AROUND 20% OF WHAT WE WOULD NORMALLY EXPECT

* UNTIL MID-MARCH, GROUP (EXCLUDING EPOS) SAW DOUBLE-DIGIT ORGANIC GROWTH SIGNIFICANTLY ABOVE ESTIMATED GROWTH RATE OF HEARING HEALTHCARE MARKET

* NEGATIVE IMPACT ON GROUP ACCELERATED IN MOST MAJOR MARKETS IN MID-MARCH, AND SINCE THEN REVENUE HAS BEEN APPROX. 30% OF OUR ORIGINAL EXPECTATIONS (INCLUDING EPOS)

* IN OUR HEARING AID RETAIL BUSINESS, YEAR STARTED WITH STRONG ORGANIC GROWTH DRIVEN BY EUROPE, PARTICULARLY BY FRANCE WHERE COMPARATIVE FIGURES WERE LOW AS A RESULT OF NEGATIVE EFFECT LAST YEAR OF NEW HEARING HEALTHCARE REFORM

* WE ARE STILL NOT ABLE TO PROVIDE A FINANCIAL OUTLOOK FOR 2020

* AS PREVIOUSLY COMMUNICATED, WE BELIEVE THAT NEGATIVE IMPACT OF CORONAVIRUS WILL BE TEMPORARY, AND WE SEE NO CHANGES TO FUNDAMENTAL DRIVERS OF DEMAND FOR HEARING HEALTHCARE PRODUCTS AND SERVICES

* WE BELIEVE THAT HEARING HEALTHCARE MARKET WILL ONLY SEE A GRADUAL RECOVERY, WHICH WILL LIKELY CARRY OVER INTO 2021

* UNCERTAINTY AS TO WHETHER ANY PENT-UP DEMAND WILL START MATERIALISING IN 2020 HAS INCREASED OVER LAST COUPLE OF WEEKS DUE TO FACT THAT IT HAS TAKEN LONGER THAN INITIALLY EXPECTED TO RE-OPEN SOCIETY AFTER LOCKDOWN Source text for Eikon: Further company coverage: (Gdansk Newsroom)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below