- Published on 17 August 2023
Demant has published a 2023 Interim Report of 17% H1 revenue growth, a rate the group owes to its strong performance in the hearing healthcare segment. The report underlines the current stability of the hearing aid market.
H1 2023 revenue of DKK 10,694 million (€1,435m) in Demant's Hearing Healthcare segment was driven primarily by hearing aid sales, with Hearing Care and Diagnostics also seeing solid growth. The statement details a gross profit of DKK 8,017m (€1,081m) - a gross margin of 75% - which, after R&D, distribution, admin, and profit share costs gives Demant an operating profit of DKK 2,162m (approx €291.5m)
While H12023 growth in Hearing Healthcare rose 20% on H1 2022, production costs went up over the same period by 27%.
Hearing aids and Oticon Real strong performers
In H1, total revenue in Demant Hearing Aids grew by 23% (Q2: 20%) in local currencies, attributed in part by the group's leaders to successful launches of new premium hearing aids starting in Q1, including their new flagship product, Oticon Real.
In Diagnostics, revenue in H1 increased by 13% (Q2: 15%) in local currencies.
The group's hearing care business saw positive developments in several markets, particularly in Poland and the UK. However, organic growth in France turned negative in Q2, with market growth there slowing down.
Not such blue skies in communications and gaming
In Demant's communications business, revenue in H1 saw growth of -15%, "disappointing and below our original expectations" the group underlined. Hesitation to invest in larger projects and supply constraints for video product hampered growth in the firm's Enterprise Solutions wing, while "the market remained very soft" in Gaming, Demant facing fierce competition and prices impacted by intense promotional activities. Demant expects this weak momentum in these markets to continue throughout 2023.
Outlook overall for the group in 2023 has risen to 11-14% (from 6 - 10%), and in the hearing aid market, Demant sees "stabilisation" and expects the market unit growth rate in 2023 to be slightly above the structural growth rate of 4-6%.
Check out the full Demant 2023 Interim Report here.