Q2 2026 Demant A/S Earnings Call Transcript
Key Points
- Strong momentum in all business areas with group reported growth of 15% in H1 2026, driven by successful Oticon Zeal launch and KIND acquisition.
- Gross margin expanded by 1.1 percentage points, exceeding expectations, due to strong ASP development and favorable product mix.
- Cost-saving initiatives announced in February 2026 are progressing ahead of plan, supporting underlying margin improvements.
- Launch of new premium hearing aid Oticon Reveal with world's first dual AI system, expected to drive further growth and market share gains.
- Upgraded 2026 outlook: organic revenue growth now expected at 6-7% and EBIT before special items raised to DKK4.4-4.8 billion.
- Global hearing aid market growth remains below normal expectations at 4% in value and 3% in units, with US commercial market flat.
- Negative FX impact of 3% on revenue and an estimated DKK50 million negative effect on EBIT from exchange rates.
- Hearing care organic growth in Q2 was partly supported by easier comparatives, and China saw negative growth due to tough market conditions.
- Special items increased to DKK400 million due to higher integration costs for KIND and cost-saving initiatives.
- Increased competitive pressure expected in H2 with multiple new product launches from competitors, which could impact pricing and market share.
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Good afternoon, everyone, and welcome to the conference call for Demant's interim report for 2026. My name is Peter Pudselykke, and I am heading up the Investor Relations activities here in Demant.
With me today, I have our usual crew, our President and CEO, Soeren Nielsen; our CFO, Rene Schneider; as well as one of my good colleagues in the IR team, Gustav Hoegh. As you should have seen by now, there were a couple of announcements out from us last night, one relating to the interim report and one relating to the launch of our new premium hearing aid, Oticon Reveal.
We will be discussing both during today's call, and we plan to kick off with a presentation, which will be followed up by a Q&A session. The total session is expected to last no more than one hour, and the presentation should be online by now. (Operator Instructions)
Before we dig into the presentation, please do pay notice to the disclaimer slide on slide 2.
And with that, on to slide 3, where I
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