Q1 2026 Demant AS Earnings Call
Peter Pudselykke: Good afternoon, everyone, welcome to the conference call for Interim Management Statement for Q1 2026. My name is Peter Pudselykke, and I'm heading up the Investor Relations activities here in Demant. With me here today, I have the usual team. It's our President and CEO, Søren Nielsen, our CFO, René Schneider, as well as my good colleague in the IR team, Gustav Høegh. For the call today, we will follow the normal process. We kick off with the presentation, which will be followed up by our Q&A session, and we expect the total session to last no more than 1 hour. When we get to the Q&A, we kindly remind you to limit yourselves to 2 questions at a time, please, to allow as many as possible to ask a question.
Peter Pudselykke: Before we dig into the presentation, please do pay notice to the disclaimer slide on slide 2. With that, on to slide 3, I'll pass the microphone over to you, Søren, to kick off the presentation with the agenda, please.
Søren Nielsen: Thank you very much, Peter, and welcome everybody to today's call here. I'll take you through business highlight and key financial takeaways, dive a little more into the different business areas, comment on the outlook for 2026, and then open up the floor for questions. Highlights of Q1 2026. Well, the overall high-highlight is a strong start to the year for the group, delivering 6% organic growth, which is obviously in the higher end of our expectation. Growth was additionally supported by 10% growth from acquisitions. Hearing aids delivered a very strong organic growth of 9%, with growth momentum being fueled by Oticon Zeal and our existing product portfolios. We can only attribute it to the strength of our industry-leading AI hearing aid platform, delivering fantastic performance at very low power consumption.
Søren Nielsen: The integration of KIND is progressing as planned, with KIND as, of course, a significant contributor to growth from acquisitions in Q1. Structural changes announced at the full year report in our business to ensure higher growth and improve profitability were announced and have been executed in line with plans for the quarter. Maybe also worth giving a small comment to the market development. We're gonna get back to the more details, we saw an estimated market growth of 4%, which was in the higher end of our expected 2% to 4% growth for the full year. Key financial takeaway from Q1, as already stated, organic growth of 6%, which is again, in the higher end of our expectations.
Søren Nielsen: You can, of course, in the table to the right, see how it's composed of local currency growth, organic growth, acquired growth, and also the negative FX impact. Gross margin increased primarily from 2 elements, higher ASP in hearing aids and a positive mis-mix effect, meaning when hearing care grow faster than hearing aids, then we'll see a natural uplift to the gross margin. OpEx saw organic growth in line with our expectations, and we continue to invest in the business, in particular, of course, in innovation while maintaining a strong focus on cost management, including the already addressed structural changes to everything else equal toward the cost growth. Acquisition contributed, of course, to OpEx due to the consolidation of KIND and, of course, also other acquisitions.
Søren Nielsen: EBIT before specialized items improved compared to Q1 2025, driven by hearing aids and the consolidation of KIND, and this being despite the negative effects from exchange rates. We continue to see solid cash flows, both from operation and free cash flow, was positive. Both were positive in Q1. On the outlook, we maintain the outlook of organic growth of 3% to 6% and EBIT from DKK 4.1 to 4.5 billion. However, with the comment that due to the strong receipt of Oticon Zeal in the market, this makes results at the low end of the range less likely. Business areas, we start with the hearing aid market in Q1. We estimate that the overall unit growth was around 3%.
Ation of Kint and of course also other Acquisitions even before special items improve compared to first quarter 25d by hearing aids and the consolidation of Kint and this being despite the negative effects from exchange rates, we continue to see solid cash flows, both from operation and free cash flow uh was positive both for positive in the first quarter. And on the Outlook, we maintain the Outlook of organic growth of 3 to 6% and Eydie from 4.1 to 4.5 billion Corona. However, with the comment that due to the strong, uh, received of Odon odonil in the market, uh, this makes results in the lower end of the range, uh, less likely
Søren Nielsen: As always, we have statistics from two-thirds. This is relatively solid. Q1 was relatively broad-based, however, still below the structural unit growth rate of 4% to 6%, being 3%, you could say very much in line with what we saw during last year. The ASP was estimated or is estimated by us to be up by 1%. This is stemming from geography mix, channel mixes, and certain price improvements in certain channels. Of course, also, by example, us selling more premium products into the market. This is 1%, all in all, a 4% estimated growth rate. Growth in Europe was primarily driven by Germany and France.
As we start with the hearing aid Market in the first quarter, we estimate that the overall unit growth was around 3%. As always, we have statistics from 2/3. Uh, so this is relatively solid, uh, q1. Uh, was, uh, relatively broad based, uh, uh, however, still below the, uh, structural unit growth rate of 4 to 6%, uh, being, uh, 3%. You could say very much in line with, uh, with what we saw during, uh, last year the ASP was, uh, estimated or is estimated us to be up by 1%. This is steaming from geography makes Channel mixes and and certain
Søren Nielsen: In the UK, growth was negative. This is back to NHS having a very strong Q4 and therefore buying less in the Q1. Not really structural, more timing of ordering. Growth in North America was driven by the private pay channels, but overall growth was significantly impacted from negative growth in managed care. VA growth improved, partly supported by easy comparison figures. In Canada, we saw unit growth remain solid. Rest of the world delivered growth driven by Japan and slight growth in China. We estimate that several emerging markets saw solid growth as well. All in all, a market growth of 4%, meaning in the high end of our expectation for the full year of 2% to 4%.
First quarter.
Søren Nielsen: Hearing aids from our side, significant growth following the launch of Oticon Zeal. With the Oticon Zeal now being rolled out in all major markets here in Q1, we can confirm, and that's basically I would say today's main message, that once Zeal is introduced in the market, we see renewed momentum in the business. We both see a strong interest around Zeal and sales of Zeal, but also growth in our existing product portfolio, and it speaks to the strength of the entire portfolio. This has, in combination, led to a organic growth of 9% driven by share gain in terms of value, but also in units. Both units and ASP supported the growth.
So not really structural more timing of uh ordering growth in North America was driven by the private pay channels uh but uh all growth was significantly impacted from negative growth in Managed Care VA uh, growth improved. Uh, partly supported by easy comparison figures in Canada. We saw a unique growth uh, uh, remain solid waste of the world delivered growth driven by Japan and slight growth in China. We estimate that civil Emerging Markets. So, solid growth as well. Again, all in all a micro for 4%, uh, meaning in the high end of our expectation, for the full year of the 2 to 4%.
Hearing aids from our side saw significant growth following the launch of Holy Concealed with the oil. Concealed, now being rolled out in all major markets here in the first quarter, we can confirm. And that's basically, I would say, today's main message: that, uh, 1 Seal is introduced in the market. We see renewed momentum in the business. We both see a strong interest around Seal and sales of Seal, but also growth in our existing, uh, product portfolio, and it speaks to the strength of the entire portfolio. This has, in combination, led to organic growth of 9%, driven by, uh, share again in terms of value. But also,
Søren Nielsen: We continue to invest in the business, including new products. We can also confirm we will come with new products in H2. We have no more comments to what exactly it is, but we will also be bringing new products to the market in H2 of the year, just like we did, in addition to Zeal, by the way, in H1. Europe growth was fueled by very solid performance in Germany and UK. France, we saw smaller growth. This is back to value versus units. There is a negative mix development since last year because more units are in the freemium driven by the upgrades. Strong double-digit growth in North America, organic growth in North America, very strong and positive feedback to Zeal.
Also in units and both units and ASP supported the growth. Uh if we continue to invest in uh the business including new products and we can also confirm, we will come with new products in the second half. We have no more comments to what exactly it is. But we will also be bringing new products to the market in the second half of the year just like we did. In addition to seal by the way, in the beginning of this year.
Søren Nielsen: US is the market with the highest or biggest market for premium products. Both Zeal and our existing portfolio experience a renewed momentum and strong momentum, and this leads to very strong growth in the US commercial market and also growth in the VA, more driven by pricing. Flat organic growth in Japan, and China's slightly negative. Rest of the world, organic growth was strong. To the right, you can see the growth distribution. You can also see, of course, the strong and significant development in internal revenue stemming from the KIND acquisition, mostly, and also the growing share of wallet there of Demant products. I will spend a little more time commenting on Oticon Zeal.
Europe growth was fueled by very solid performance in Germany and UK, France. We saw a a smaller growth and this is back to Value versus, uh, units. Uh, uh, there is a negative mixed development since last year because more units are in the 3 to client driven by the upgrades, uh, strong double digit growth in, uh, in in the North America organic growth in North North America, very strong, uh, uh, and positive feedback to seal, uh, us is the market with the highest or biggest markets for premium products. So, both seal and our existing, uh, uh, portfolio experience A Renewed momentum, a strong momentum. And this leads to 2 very strong growth in the US commercial market, and also growth, uh, in da both live in by, uh, pricing.
Flat organic growth, in Japan and China slightly negative, rest of the world organic growth. Uh was strong.
To the right, you can see uh the growth distribution. You can also see of course the strong and significant development in Internal Revenue streaming from uh the Kint acquisition mostly and also the the uh growing share of wallet there of payment products.
Søren Nielsen: We were also ourself a little bit, of course, unsure until we had seen how things play out in US. Therefore, I will comment to conclusions now on the product after being broadly introduced. Just to remind everybody, what is it that makes Zeal unique? It is very unique and unmet or unmatched to combine such a small instrument with the latest and greatest in AI signal processing, full connectivity, rechargeability, and the ability to do a same-day fitting. A unmatched product in the market, and therefore, also a positive feedback from the market. What we can now confirm and share, you see here kind of three section. The first one is who can actually use Zeal.
Søren Nielsen: If all hearing impaired users are 100%, there is around one-third where the physics, meaning ear canal, something makes you know, not having this as the right form factor for you. Out of the same 100, there is around 20% that, you know, have a hearing loss bigger than what Zeal can support. Therefore, all in all, you end with 55% of all hearing impaired people that choose to get a hearing aid being candidates for Zeal. A big potential, and there's been many discussion whether this is just an in-ear category or not, and CIC only and so on. We can say this has a broad appeal, and where the broad appeal is seen most clearly is of course first-time users that we know are more skeptical to the cosmetics.
And then I will spend a little more time, uh, commenting on. Oh concealed. Uh, we uh, were also ourselves, uh, uh, uh, a little bit, of course insurance. So we have seen how things play out in the US and therefore, I will comment to conclusions now on, uh, the product after being brought introduced just to remind everybody, what is it? That makes you unique. It is very unique and unmet, or unmet, to combine such a small instrument, with the latest and greatest in AI signal processing full connectivity. We chargeability and the ability to do a safe day feeding. So a, a unmatched, uh, product in the market. And therefore also a positive, uh, feedback from the market and what we can now, uh, confirm and share, uh, you see here kind of tree section. The first 1 is who can actually use seal and if all young compared users are 100%,
Then there is around 1/3 where the physics being ear canal. Uh, something makes you, you know, not having this as the right form factor for you.
Then out of the same 100 that is around 20% that don't have, uh, you know, I have a hearing loss bigger than what seal can support. And therefore, all in all you end with 55% of all hearing impaired, people that choose to get a hearing aid being candidates, uh, for seal
Søren Nielsen: What we have seen so far in the data we have is that around 2/3 of all Zeal users are first-time users. This is more than the normal, which is more like 50/50 or 60/40, a little different from market to market. This means that there is an overrepresentation of first-time users, but it's not exclusively for first-time users. This is exactly also the commercial angle, of course, when it's good for first-time users, it's also good to attract traffic to your business and interest. This, I have no doubt, is part of why Zeal has broad appeal and why many customers would like to be able to offer Zeal. We also had questions and some ourself, how many will go with a dome, how many would need a custom-fitting to make it, you know, perform well.
And she has the only on we can say, this has a broad appeal and where the broad appeal is seen, most clearly is, of course, first time users, that we know are more skeptical to the cosmetics. And what we have seen so far in the data we have is that around 2/3 of All Seal users are first-time users, this is more than the normal, which is more like 50/50 or 60/40 a little different from our so Market. Uh, and this means that there is an all representation of first time users, but it's not exclusively for first time users, uh, but this is exactly. Also, the commercial angle, of course, when it's good for first time users, it's also good to attract traffic to your business and interests. And this I have no doubt, is part of why seal has broad appeal and why many customers would like to be able to offer seal? We also had questions and and some ourself, how many will go with a dome? How many would need a custom?
Søren Nielsen: We can see that 95% of all fittings we have participated in so far, this is US data, I believe, is 95% dome. It is a same-day fit concept, and it gives very strong results this way. To talk about the momentum, what we have tried to illustrate here is the fundamental of what happening. It does create a momentum. It does create interest. It open doors to new customers, and both to existing customers and new customers. It pulls in both sales of Zeal, but also a significant uplift to the remaining portfolio. What the graph to the lower left illustrate is a run rate illustrative before introduction of Zeal and then post-Zeal.
Fitting to make it you know perform. Well, we can see that. 95% of all fittings, we have the participated in so far. This is us data. I believe is 95% Dome. So it is a same day fit concept and it gives very strong results this way.
and then to talk about the momentum,
Søren Nielsen: You could say the distance between the dotted line and the full line is sales of Zeal, and the below is the uplift to the existing portfolio. We see both effects, and they are both stronger than anticipated, or at least in the highest, you know, most positive scenario, and that's what we see now. This is solid. This is maintained. We can see it both in the markets that introduced all the way back to Oia, so more than 6 months in the market, but also, markets where we have been in 2 or 3 months. We see this as a global effect.
Uh, what we have tried to illustrate here, is the fundamental of what happening it does. Create a momentum, it does create uh, interest it opened doors to new customers and both to existing customers and new customers. It pulls in both sales of seal but also uh a significant uplift to the remaining portfolio. So what the graph to the lower left illustrate is a run rate illustrative before introduction of seal. And then postal, you can say the distance between the dotted line and the full line is sales of seal and the below is the uplift to the existing portfolio. So we see both
and they are both.
and,
at least in the
Søren Nielsen: Again, why US and North America ends up playing an even bigger role in this, and which is now why we can reduce the uncertainty, is of course that that's the market in the world where most premium products are being sold, and therefore it was so important for us to see the effect in US before we could, you could say, increase our own comfort and also your comfort in the fact that Oticon Zeal is a very successful product concept that drives, again, both traffic in itself and sales also above what we had as a, you could say, middle of the road scenario, but also pull in extra business of the remaining portfolio. Oticon Zeal is available in all major markets.
You know, most positive scenario—and that's what we see. Now, this is solid, this is maintained, we can see it both in the markets that introduced all the way back to oil—so more than 6 months in the market—but also, uh, uh, markets where we have been in 2 or 3 months. So, we see this as a global effect, and again, why US and North America ends up playing an even bigger role in this. And, which is now why we can reduce the uncertainty is, of course, that that's the market in the world, in the world, where most premium products are being sold. And therefore, it was so important for us to see the effect in the US.
Before we could, you could say uh, increase our own uh, comfort and also your comfort in. The fact that seal is a very successful product concept that drives again both traffic in itself and sales also above what we had as a, you would say middle of the road scenario but uh, also pull in extra business of the remaining portfolio.
Søren Nielsen: It's still only available in a premium price point, also priced above, basically all other products in the market. That's of course also attributes to the value that it brings to clients and brings to our customers on the wholesale side. We have had a staggered launch to make sure we could supply the markets before opening the next one. We have full supply, and operation is running well. We have launched in all major markets unless there is regulatory works outstanding. We have also 1 May introduced Oticon Zeal in VA and now look very much forward to the uptake in VA. All in all, a strong launch, strong feedback from customers and end users that are very happy with the product.
Seal is available. Uh, in all major markets, it's still only available in a premium price point, also priced above uh, basically all other products in the market and uh, that's of course, also attributes to the value that it brings to clients and brings to our customers on the wholesale side. Uh, we have had a staggered launch to make sure we could Supply the markets before. Opening. The next 1 we have uh, full Supply and operation is running, well, we have launched an all major markets. Unless there is a regulatory, uh, worked outstanding. And, uh, we have also May 1st, uh, introduced all the concealed in VA and now look very much forward to, uh, the uh, uh, uptake in uh, VA.
Søren Nielsen: Also a testament to our industry-leading AI-based platform, again, which is based on a very low power consumption, still delivering all the benefits, and therefore able to use a much smaller battery than competitors and also being on all the time, where in most other applications I've seen, there is some kind of limits to how much you can actually use the AI system. Moving on to hearing care. In Q1, we saw good performance with the integration of KIND progressing as planned. We saw a remarkable total growth in local currency of 26%, coming from 4% organic growth and 23% acquisitive growth. A very big step up for that business, but also showing a mature and stable business that continue to deliver strong, solid organic growth rates.
So all in all a strong launch strong feedback from customers and end users, that are very happy with the product. And also a testament to our, I would say industry-leading AI based platform, uh, again, which is based on a very low power consumption. Still delivering all the benefits and therefore able to use a much smaller battery than competitors and also being on all the time, where, in most other applications I've seen at least, there is some kind of limits to how much you can actually use the AI system.
Søren Nielsen: A good start to the year as well for hearing care despite of the many things going on. It was both unit and ASP grown, and we have definitely also seen markets where our own retail have benefited from, the introduction of Oticon Zeal, similar to many other companies. In Europe, solid performance across regions driven by strong performance in UK. Performance in Germany was also solid. Good organic growth in general in North America, with solid growth in Canada and, good organic growth, solid organic growth in the US. Australia saw good growth, whereas China was slightly negative, after several quarters of good performance. Diagnostic had a good start to the year. Strong finish, as you will remember.
Positive Growth. So a very big step up for that business but also showing a mature and stable business that continue to deliver, uh, strong solid, organic growth rates. Uh, so a good start, uh, to the year as well for For Hearing Care, despite of the, the many things going on.
And ASP grown. And we have definitely also seen markets where
all retail have benefited from the introduction of our concealed similar to many other companies.
In Europe, solid performance across regions driven by strong performance in UK. Uh performance in Germany was also solid good. Organic growth in general, in North America with solid growth in Canada and a good organic growth, solid organic growth in the US. Australia saw good growth where China was slightly negative, uh, after several quarters of good performance.
Diagnostic.
Søren Nielsen: Despite us still facing certain headwinds in the US markets from the market still not growing as normal, then a good start, delivering 4% organic growth across many markets. However, Europe being the primary driver of growth. Good examples of that, UK and Poland, whereas US had a slightly negative growth again, still attributed to a lack of market growth in US. Canada was the primary, therefore the primary driver of growth in North America. China continued to be impacted by general market weakness and was a drag in Asia. Most other markets did well for diagnostic. To outlook and our outlook assumptions, I would only highlight market.
In this as you will remember. So despite of still facing certain headwinds, in the US markets from the market, still not growing as normal then uh a good start delivering 4%, organic growth uh across many markets. However you are being the primary driver of growth, a good example of that UK and Poland. Uh, whereas us had a slightly negative growth again still attributed to a lack of market growth in US.
Canada was the primary therefore the primary driver of growth in North America. China continued to be impacted by General market weakness and was a drag in Asia. Most Alum markets did well for Diagnostic
Søren Nielsen: We guided when we started the year for 2% to 4% growth in the market, keeping general macroeconomic uncertainty in mind. We still think this is the best take on the full year. We can very quickly see a few percentages up or down, but of course, we have seen a good positive start. You know, we could see that continue, of course. The rest, special items, et cetera, there are no changes and therefore I will not repeat all of them. Financial outlook is maintained.
To Outlook and our Outlook assumptions are only highlight Market. We uh uh guided, when we started the year for 2 to 4% growth in the market, uh, keeping General macro economic uncertainty in mind, we still think this is the, the best take on the full year, we can very quickly, see a few percentages up and down, but of course, we have seen a good positive start. Uh, and uh, uh, you know, uh, we could we could see that continue. Of course.
Søren Nielsen: However, we find it less likely now that EBIT before special items and organic growth will be in the lower end. This is attributed to the reduced uncertainty around Zeal's ability to deliver growth, and of course, also having seen such a strong start to the year. With that, let's go to Q&A.
The rest special items Etc, there are no changes and therefore, without the repeat, all of them. So Financial Outlook is maintained however, uh, we find it less likely now that we will before inhibit before a special items. And again, the growth, uh, will be in the lower end. And this is attributed to the reduced uncertainty around sales, ability to deliver growth. Uh, and of course, also having seen such a strong start to the year.
And with that, let's let's go to Q&A.
Operator 2: We will now begin the question-and-answer session. To ask a question, you may press star then 1 on your touch tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Our first question comes from Niels Granholm-Leth with DNB Carnegie. Please go ahead.
We will now begin the question.
And answer session.
And 1 on your touchtone phone.
If you were using a speaker-phone, please pick up your handset before pressing the keys.
if at any time your question has been addressed and you would like to withdraw your question, please press star then 2
At this time, we will pause momentarily to assemble our roster.
Our first question comes from Neil's. Grandhomme Le with DNB Carnegie, please go ahead.
Niels Granholm-Leth: Thanks so much. First question would be about the IC, CIC category. Where would you expect this part of the market to be as a % of the overall market as of today? What would be the prospects of this category growing in size going forward? My second question would be if you could just remind us of your exposure to the managed care category in the US, where you mentioned that you're actually growing despite your modest exposure to this category. Thank you.
So much, first question would be about the, uh, it cic categories. So where would you expect, uh, this, uh, part of the market to be as percentage of the overall Market as of today? And, uh, what would be the prospects of this category growing in size going forward? Um,
Then my second question would be uh, if you could just remind us of your exposure to the Managed Care category in the US, uh, where you mentioned that you're actually growing despite uh your modest exposure to to this category. Thank you.
Søren Nielsen: You know, the world market for in-ear CIC, ITC products, I would still say the volume of Zeal compared to the total in-ear, having all price categories in mind, all brands and so on, I would say still not something that significantly changed the assumed 10%. Of course, you can zoom into individual businesses where it is, and you would definitely see a higher share. Again, remember, there's many channels and customers in the world to which it's not introduced that also sell in-ear products. Therefore, I think it will still be, yeah, I haven't done the percentages, but not significantly big on the 10%. For our business, of course, significantly changing. We were underrepresented. We grow in that.
You know, the world market for any year, CIC ITC products. I would still say the volume of sale compared to the total in the year.
Søren Nielsen: With the customers to whom we have introduced it, yes, a significant change to product mix. In the premium segment, of course, we still talk about a premium-only product, which also put some limitations to the total market growth of the category. Managed care, yes, we are definitely under-indexed. We actually see good growth in our managed care business. Absolute, good growth as well. For us, it is, despite of the headwind from the market, a positive addition, what we experience right now.
Introduced that also sell India products, and therefore, I think it it will still be. Yeah, I haven't done the percentages but not not not significantly, big on the 10%, but for our business, of course, significantly changing. We were under represented, we grow in that. And with the customers to whom we have introduced it? Yes, a significant change to a product mix in the premium segment. Of course, we still talk about a premium only product, which also put some limitations to, uh, the total market growth of the category.
And Managed Care. Yes. Uh, we are definitely under index. We actually see good growth in our managed care business. Uh, so absolute good growth as well. So, for us, it is, despite of the headwind from the market, a positive addition. What we experience right now?
Niels Granholm-Leth: We should expect you to grow further into managed care from here?
So we should be expected to grow further into Managed Care from here.
Søren Nielsen: It's, you know, one step at a time, but upwards, yes.
It's
Niels Granholm-Leth: Okay. Thank you.
okay, thank you.
Operator 2: Our next question comes from Andjela Bozinovic with BNP Paribas. Please go ahead.
Our next question comes from Angela banovic with BNP Paribas, please go ahead.
Andjela Bozinovic: Hi, good afternoon, thank you for taking my questions. I have two as well. First one is on the guidance. Can you please discuss why after strong Q1 and what seems to be a strong start into Q2, you have reiterated a full range for the guidance? Can you discuss further phasing into the year and what is needed for you to maintain this momentum? The second one is on market. We have seen the positive development, especially in the US in Q1. I was wondering if the US recovery is mainly driven by easy comps from last year, or you expect the market growth to continue to improve throughout the year. A follow-up to this is we've heard from your peer Amplifon that they are expecting a pent-up demand in the market to realize, especially in EMEA region.
Andjela Bozinovic: Can you give us your thoughts on this? Thank you.
Søren Nielsen: Yeah. Thank you very much. First of all, why keep the guidance? You know, we are still within what we guided for. We see a market delivering 4% growth. We guided for 2% to 4%. We could see the market be 3%, we could see the market be 2%. You know, things go up and down. There's also a little bit of number of working days between quarters, et cetera. That's definitely still, we think the right guidance. Of course, our own, we have done well. We have seen a market in the upper end, therefore we also land in the 6% for the quarter, and we find it less likely on the full year basis to deliver in the lower part.
Hi, good afternoon and thank you for taking my questions, 52 as well. First 1 is in the guidance. Can you please, uh, discuss? Why after strong, q1 and what seems to be a strong start into Q2? You have reiterated a full, uh, range for the guidance. Can you discuss further phasing into the year and what is needed for you to, to maintain this momentum? And the second 1 is on Market. So we have seen the positive development, especially in the, US in q1. And, um, I was wondering if the US recovery, is, mainly driven by easy comps from last year, or you expect the market to grow to continue to improve throughout the year. And the follow up to this is we've, we've heard from your peer amplifon, that they are expecting a pent up demand in the market, to realize, especially in in near region. Can you give us your thoughts on this? Thank you.
Yeah, thank you very much. Uh, the first of all, why keep the guidance, you know, we are still within what we did for, we see a market deliver in 4% growth, we guided for 2 to 4, uh, we could see the market between, we could see the market be 2, you know, things go up and down. Uh, there's also a little bit of, uh, uh uh, number of working days between quarters, Etc. So, that's definitely still. Uh, we think the right guidance, uh, then of course, our own we have done. Well, we have seen a
Søren Nielsen: I think that's as far as we can take it for now. Of course, if things continue to develop this positive way, both market and us, then we will also further increase the likelihood of being in the positive end of our guidance. That's the color we try to bring you, and we feel that's the right assessment of what's in front of us and still the uncertainty related to a dynamic market with multiple competitors, et cetera. On market for Q1, is it only comms or what is it? Not in particular. I think this is again, I mentioned the NHS, then timing of orders and so on. There is always a lot of dynamics.
Market in the upper end. So therefore we also land in the uh, 6% for the quarter and we find it less likely on the full year basis to deliver in in the lower part. And I think that's as far as we can take it for now. Of course, if things continue to develop this positive way, uh, both market and us, then we will also further increase the likelihood of being in the positive end of our guidance. And that's the caller, we try to bring you and we feel that the right assessment of what's in front of us and still the uncertainty related to a dynamic Market with multiple competitors, Etc.
Søren Nielsen: The regions you also saw last year, varies, who in the exact quarter delivers the growth. Looking at the full year, we saw 3% in units. Now we have seen 3%, therefore, we take this as stability, not particularly upwards. It is true that if there are people not fitted in a certain period, yes, then theoretically you build for a later uptake. That's also why it is unusual that you see two years in a row with a below the 4% to 6%. We have basically not seen that for many years. Yes, our 2% to 4% guidance for the full year, as we said in the beginning of the year, could be seen as slightly conservative, but we prefer that against being too optimistic.
Uh, on market for q1, is it only comes or what is it? Not in particular. Uh, I think this is, again, I mentioned the NHS when timing of orders and so on. And so, there is always a lot of Dynamics, the regions you also saw last year, where is who in the exact quarter delivers the growth. So, looking at the full year we saw 3% in units. Now, we have seen 3%. So therefore, we take this as stability, uh, not particularly, uh, upwards, but it is true that if there are people not fitted in a certain period. Yes. Then theoretically, you build for a later, uh, uptake, and that's also why it is unusual uh that you see 2 years in a row with a below, the 4 to 6, we have
Facing. Not seen that for many years. So yes, our 2 to 4% guidance for the full year, as we said in the beginning of the year, could be seen as slightly conservative, but we prefer that against being too optimistic.
Andjela Bozinovic: Perfect. Thank you.
Perfect, thank you.
Operator 2: Our next question comes from Martin Parkhøi with SEB. Please go ahead.
Our next question comes from Martin parkco with Seb.
Please go ahead.
Martin Parkhøi: Yes, Martin Parkhøi, SEB. Firstly, of course, Zeal with the addressable market of 55%, are there anything you can see that is possible with a second generation Zeal, although that it may be too early to talk about that, but are there any possibility of with this size and that production technique you have that you can lift the hearing loss that it can meet, or you could do anything to fit better into your anything you can do on that front? Secondly, just again, I don't just want to talk so much about the guidance.
Martin Parkhøi: It's obviously somewhat conservative, but can you talk about the momentum in the February and March versus what you saw in January, and if that momentum for February and March is also what you have seen at least in going into Q2?
And are there anything you can see that is possible with a second generation uh seal? Uh, although that it may be too early to talk about that. But uh, are there any, uh, possibility of with this size and that production technique you have that, you can lift the, um, the, uh, the, the, the, the hearing loss, that it can meet, or you could do anything to it, fit better into your anything, you can do, uh, on that, uh, front and then, uh, secondly, uh, just again, I just just want to talk so much about the the guidance. It's obviously somewhat conservative, uh, but can you talk about the momentum in the, uh, in the February and, uh, and and March versus what you saw in in January and uh and if that momentum for February or March, uh, is also what you have seen at least in going into the second quarter.
Søren Nielsen: Yeah, thank you very much, Martin. No, I cannot disclose a lot about the future, but we always end up improving hearing aids. I would say for now, squeezing the size further, we would have to scratch our head a little bit, but I would find it more likely that we over time would be able to increase the fitting range, meaning we could fit slightly higher hearing losses. You know, another 5 or 10 to be would definitely bring in more as the penetration is higher when you get higher hearing losses. Yes, we of course, work on how to make Zeal fit even more people over time. The sequencing, of course, it matters that we had an introduction in late January, early February in North America.
Yeah, thank you.
Very much Martin.
No, I cannot. This goes a lot about the future but we always
Moving hearing aids and outside say for now squeezing the size further we would have to scratch our head a little bit but I will find it more likely to that. We all time would be able to increase the fitting range. Meaning we could fit a slightly higher hearing losses and you know another 5 or 10 to be would definitely bring in more as the penetration is higher when you get higher hearing losses. So so yes, we of course work on how to make seal feel fit.
Even more people over time.
Søren Nielsen: On the other hand, there is also a certain introduction effect. If you take the average for the quarter, then things are relatively stable with a, of course, continuous slide upwards positive. We also look at the comms from last year, and you saw, you know, the momentum growing during the year. What do we see? Well, we see a continued strong momentum in the business and expect that to continue.
Uh, and then, uh, the sequencing—of course it matters that we had an introduction in late January, early February in North America. But, on the other hand, there is also a certain, uh, introduction effect. So if you take the average for the quarter, then things are relatively stable with a, of course, continued slide upwards—positive. We also look at the comps from last year, and you saw, you know, the momentum growing during the year. So, what do we see? Well, we see a continued strong momentum in the business and expect that to continue.
Operator 2: Our next question comes from Martin Brenøe with Nordea. Please go ahead.
Our next question comes from Martin, Bruno with nordea. Please go ahead.
Martin Brenøe: Hi, I'm Martin Brenøe. Thank you for taking my questions. Different Martin, slightly different question on Zeal. Just wanted to understand what the cadence could be in terms of not a new generation of Zeal, but just the same generation Zeal at a lower price point. At what time would it make sense for you guys to introduce a product that would be sort of more affordable? That's the first question. The second question would be on the reception of Zeal in France. How has that been doing compared to what you have seen in the US, should we expect to see more sort of expansion to new markets here in Q2? Thank you.
Hi Simon, Renee. Thank you for taking my questions, different Martens slightly different question, on seal, just wanted to understand, uh, what the Cannons could be in terms of not a new generation of seal, but just the same generation seal at a lower price point. Uh, at what time would it make sense for you guys to, uh, to to introduce a product that, uh, that would be a sort of more affordable? Uh, that's the first question. Um, and then the second question would be on the reception of seal in France. Uh, how has that been uh doing compared to
What you have seen in the US and, uh, should we expect to see more sort of uh expansion to to New Markets here in in Q2, thank you.
Søren Nielsen: Yeah, thank you, Martin, for that. I would say as long as we have a good strong demand for the pricing we have and the price points we have chosen to introduce and match that well with production capacity, I don't see a need to expand it further. Any timing of additional price points or brands for that matter is something we will share once it happens. On France, you know, it's difficult to call out a individual market, but France would also experience that it creates a new momentum in the business. We introduced it relatively long into March, but we have not seen, or we have seen the same effect in France as we have seen other places.
Yeah, thank you. Uh, Martin for that.
I would say as long as we have a good strong demand for the pricing, we have and the, uh, price points. We have chosen to introduce and match that well with production capacity, I don't see a need to expand it further. So any timing of additional price points or brands for that matter, is, is something we will share once it happens.
Søren Nielsen: Keep in mind that the premium sales in France as a share of the total French market after the many freemium products coming in is not the same share of the market as it is in US, and therefore slightly different. Same good momentum, definitely bringing attention. Definitely, France has for long been characterized as, you know, either as a RIC or it's a CIC type of market. Good positive front, I'm sure.
Uh, on France, you know, it's difficult to call out a a individual Market. But France would also experience that it creates a new momentum in the business. We introduced it relatively long into to March, but we have not seen or we have seen the same effect in France as we have seen other places but keep in mind that the premium sales in France as a share of the total French market after the many free to client products coming in is not the same. Uh, she has the the market as it is in us and therefore slightly different but same good momentum definitely bring attention definitely France. Have for long been characterized as you know either as a rig or it's a cic type of market so uh good positive friend. I'm sure.
Martin Brenøe: Thank you very much.
Thank you very much.
Operator 2: Our next question comes from Wenjie Zhang with Citi. Please go ahead.
Our next question comes from Jiang Wen with City. Please go ahead.
Wenjie Zhang: Hey, guys. Thanks for taking my question. Zhang from Citi. I'm gonna ask about the market. The first question is, can you provide a bit more comments on the hearing aids market developments in the quarter? Specifically, what was the exit growth rate for wholesales? Was this the average of 4? Is there any comments you can provide on April and May? The second question is whether you have seen any signs of disruption or opportunities from the announced deal between Amplifon and GN Hearing in the market. Thank you.
Søren Nielsen: Thank you very much. Well, we always have a natural seasonality in Q1, where January is basically the weakest month in the full year. Of course, you can look at the growth, but it's almost a little bit relevant because of the actual absolute size of the market. Yes, we have seen a improved growth rate during the quarter, ending relatively strong in March. There's also an effect of 1 more working day compared to last year. All in all, I would say, modest upwards growing trend. Don't overinterpret it. All in all, 4%, that's in the higher end of what we guided. It's in the lower end of the normal, nothing really seems to change.
Can you provide on April and May? And the second question is, whether you have seen any signs of disruption or opportunities from the announced deal between, um, Amplifon and GN Hearing in the market. Thank you.
Søren Nielsen: We don't have market statistics yet for neither April or May. We can only look at our own business, and that is, yeah, a continued strong momentum. Nothing there.
Yeah, thank you very much. Well, uh, we always have an actual natural seasonality in the first quarter, where January is basically the weakest month in the full year, and of course, you can look at the growth, but it, it's almost a little bit relevant because of the actual absolute size of the market. So, yes, we have seen a improved growth rate during the quarter, uh, ending a relatively strong in March, but there's also an effect of 1 more working day compared to last year. So, all in all a, I would say modest upwards going Trend, but don't or interpretate it, but all in all 4%. Uh and that's yeah, it's in the higher end of what we got it, it's in the lower end of the normal. So uh, nothing really seems to change. We don't have Market statistics yet for for an other April or May, so we can only look at our own business and that uh is uh yeah. I continued strong momentum. So nothing there
Wenjie Zhang: Thank you.
Søren Nielsen: Sorry, your second question, I hadn't made a good enough note on that.
Wenjie Zhang: Yes.
Søren Nielsen: Well, I can't comment on the specific, but it is also always so that when big things happen, as when we acquired KIND, then there is a bit of dynamic and disruption to stability of customer relationships and so on. We of course try to benefit as much as we can from that.
Thank you. Sorry, your second question. I, I had made a good enough note on that. Well, I can't comment on this specific, but it is also always sold and with big things happen. Uh, just when we, as when we acquired kins, then there is a bit of dynamic and, uh,
And disruption to stability of customer relationships and so on. And we of course try to benefit as much as we can from that.
René Schneider: Maybe as a reminder, sales to Amplifon from Demant is very limited, less than 1% of sales and even less of profit. There's no negative for sure impact.
Maybe as a reminder state to amplify from demand.
Søren Nielsen: No, no, it's a pure, I would say, opportunity.
Is very limited to less than 1% of sales and even less of profit. So there's no, uh, negative, uh, for sure impact. No, no, it's a pure, I would say opportunity.
Wenjie Zhang: Thank you. Sorry, just to confirm whether you have already seen the disruption in Q1 that you could perhaps take advantage of, or is it more of a forward-looking comment?
Søren Nielsen: Yeah, yeah. That's always something on the longer run. Yes, discussions are going on, and people ask a lot of questions, what do we think and so on. You know, materializing not anything meaningful in Q1.
Thank you, and sorry, just to confirm—whether you have already seen the disruption in Q1 that you could perhaps take advantage of, or is it more of a forward-looking comment?
Yeah. Yeah that's a that's always something on the longer run. Uh yes discussions are going on and people ask a lot of questions what do we think and so on? Uh but uh you know, materializing not the anything meaningful in first call.
Wenjie Zhang: Understood. Thank you.
Understood, thank you.
Operator 2: Our next question comes from Martinian Rula with Jefferies. Please go ahead.
Our next question comes from martinian. Rula with Jeffrey's please go ahead.
Martinien Rula: Hi. Thank you very much for taking my questions. It's Martinien from Jefferies. I would have two, if that's okay for you. The first one would be a very quick one actually on France. As you know, we've had one of your peers reporting yesterday as well. They commented a little on France, saying that the French market was up in a solid way in Q1. Given the anniversary of the reform and so on, the trend for the remainder of 2026 was somewhat uncertain. I would love to hear your thoughts on that one. The second one would be on Zeal.
Hi, thank you very much for taking my questions this morning, it's martinian from Jeffrey. I would have to it. That's okay for for you. The first 1, uh, would be very quick 1 actually on phones because as, you know, we've had 1 of your peers reporting yesterday as well. They commented a little on France, um, saying that the French Market was up in a solid way in q1, but given the anniversary of the, the reform, and so on.
Martinien Rula: I appreciate the slides that you've provided us with the comments of more than 50% of your addressable market being relevant for Zeal, and that two-thirds of your Zeal customers are new users. I would love to hear your view on the remaining inherent risk of cannibalization and how you intend to balance or mitigate that risk with the new products that you introduce into H2. Will these products be differentiated because you intend to innovate on the design side of things, on the features, battery capacity, or is it also just on the pure tech side with stronger noise filtering capabilities and so on?
The trend for the remainder of 2026 was somewhat uncertain. So I would love to to hear your thoughts on that 1 and the second 1 would be on Deal. Uh, I appreciate the, the slide that you've provided us with, with the documents of of more than 50% of your addressable Market being, uh, relevant for Zeal and that 2/3 of your zero. Customers are new users but I would love to hear uh your view on the remaining inherent risk. As can I buy realization and how you intend to balance or mitigate that risk with the new products that you introduced into H2? Will these products be differentiated? Because you intend to innovate on the on the design side design side of things on the features battery capacity, or is it also just on the pure Tech side with stronger? No filtering capabilities. And so on.
Søren Nielsen: Thank you very much for your 2 questions. It's difficult to, you know, to have a very firm, and we don't have any different view on France. We said we will see growth in France. Some have been speculating it, whether for the full year would be negative. We believe in growth, full year. Yes, there is definitely this effect that due to the analyzation, you know, you could argue that you would see more growth in Q1 in units than later. I don't think it come in like that precise than exactly the day when 4 years are gone, then people come in and get a new hearing aid. Many come 4 and a half year, 5 year. I think we'll see a continued good inflow of users.
Uh, thank you very much for your 2 questions.
Uh,
It's it's difficult to you know to have a very firm and we don't have any different view on France. We said we will see growth in France, some have been speculating it whether for the full year would be negative we believe in growth full year. And yes there is definitely this uh, effect that due to the analyzation. You know, you could argue that you would see more growth in the first quarter in units than later. I don't think it come in like that precise than exactly the day when 4 4 years ago, and people come in and get a new hearing aid. So many carbon 4 and a half year, 5 year,
Søren Nielsen: Still the main tricky point is the product mix that this realize. Therefore, more units, a little less on the SP side. On Zeo, and risk of cannibalization. I would have to repeat what we have seen with Zeo. Any new product that has market relevance brings in momentum and business to the one that brings it. Therefore, I would say, no, I don't see a significant risk of cannibalizing Zeo with new products. Zeo has its relevance in the market. Other new products would have additional, and you would most likely, if all products are perceived good, and they should be from us, then you will see momentum increase.
So I think we'll see a a a continued good inflow of of users. Still the main triggy point is the product mix uh that this realize uh and therefore more units, a little less on the SP side.
Product that has Market relevance brings in momentum and business to the 1. That brings it and therefore I would say no, I don't see a significant risk of candle bling seal renew products seal has its relevance in the market. Other new products would have additional and you would most likely, if, uh, all products are perceived good and they should be from us, then you will see momentum, increase
Martinien Rula: Okay, that's perfect. Thank you very much. Congrats on the print.
Okay, that's perfect. Thank you very much and congrats on the print.
Søren Nielsen: Thank you.
You.
Operator 2: Our next question comes from Richard Bernstein with Bernstein. Please go ahead.
Our next question comes from Richard hach with Bernstein. Please go ahead.
Richard Bernstein: Hi, good afternoon. Thank you very much, guys, and congrats on the strong quarter. I have two questions, please. First, you noted that both unit growth and ASP contributed to performance in Q1. Would you be able to quantify the contribution? How much of the ASP lift was driven by product mix versus improved geographic or channel mix? Secondly, you briefly mentioned the KIND integration. Could you give a bit of color how you're progressing in the conversion to Demant products? Thanks.
Hi, good afternoon. Uh, thank you very much guys. And congrats on the strong quarter. Um I have 2 questions please. Uh so first you noted that both unit growth and ASP contributed to Performance in q1. Would you be able to quantify the contribution? How much of the ASP lift was driven by product mix versus improved Geographic or Channel mix?
And then secondly um you briefly mentioned the Kint integration. Um, could you give a bit of color how uh, your progressing in the conversion to uh, demand products? Thanks?
Søren Nielsen: Yeah, thank you very much for your 2 questions. It's right. It's both units growth and ASP growth. They are not that far from one another, but ASP is the strongest effect, and that comes from the mix arriving. You can always discuss, is it product or is it geography? I would say it's geography, and then it becomes product mix because again, North America, US delivering double-digit growth, then you do get a positive ASP effect because more people in US buy the premium products. We have market share gains also in units, and then I think you have enough to figure out more or less where we are. On KIND integration, yes, it goes well and follow plans, and part of that plan is to significantly increase the share of Demant-fitted products.
Yeah, thank you very much for your 2 questions. It's, alright. It's both units growth and ASP growth. Uh, they are, they are not that far from 1. Another, but ASP is, is the strongest effect and that comes from the mix arriving. You can always discuss is a product or is a geography. I would say it's geography and then it becomes product mix because again, North America, uh, us delivering double digit growth. Then, uh, you do get a positive aspect because more people in US buy uh the premium products.
Søren Nielsen: As you can see, internal sales have quite strong organic growth, and that's definitely a key contributor. Yes, it goes well with selling more Demant products. We also anticipated that the fitters are very familiar with the Demant product portfolio in KIND's own range. That's what we see. I cannot comment on far, how far we are, but it's going very well.
Uh but we have market share gains also in units. And then I think you have enough to uh to figure out more or less where we are uh on Kindle integration. Yes, it goes well and follow plans and part of that plan is to significantly increase the share of payment fitted products. And as you can see, internal sales have quite strong, organic growth. And that's definitely a key contributor. So yes it goes well with selling more payment products. We also anticipated that the Fitters are very familiar with the icon, uh, on the demand product portfolio, uh, in Ken's own range and, uh, that's that's what we see. Uh, I cannot comment on how far we are, but the, but it's going very well.
Richard Bernstein: Great. Thank you very much.
Thank you very much.
Operator 2: Our next question comes from Philip Cusick with JP Morgan. Please go ahead.
Our next question comes from Phillip Nu with JP Morgan. Please go ahead.
Philip Cusick: Hi, guys. Thank you for taking my question. Can I just ask, so you stated that hearing aids growth was supported by both Zeal and the existing portfolio. Can you help us sort of understand or quantify how much of that Q1 hearing aids growth came from Zeal versus the rest of that portfolio? Then my second question, just on the Costco side, can you help us understand where we are with the Starkey trials, and are you assuming anything within your guidance regarding an additional supply being added in that channel?
Hi guys, thank you for taking my question. Um, can I just ask? So you you stated that hearing aids growth was, uh, supported by both on the existing portfolio. Um, can you help us sort of understand or quantify, how much of of that key 1 hearing aids growth came from zil versus the rest of that portfolio. Um, and then my second question, uh, just on the cost, Go Side. Um, can you help us understand where we are, uh, with the the Starkey trials? And are you assuming anything within your guidance regarding uh, an additional supply of being added in that channel?
Søren Nielsen: Yeah, thank you very much. I cannot go into further details on what contributes from what, but they are both meaningful. Absolutely, Zeal is selling more than our plans and doing very well. Also, I would say what have been the biggest difference in, you could also say our own guidance and where we are a little bit uncertain is, would it ultimately be cannibalization from your existing portfolio, or would it be incremental to selling more of your existing portfolio? It's a meaningful uplift to the existing portfolio. One example is you have a user in trying Zeal, figure out for whatever reason it doesn't fit the ear canal, it's not what you want.
Yeah, thank you very much. I cannot go into further details on what contributes from what but they are both meaningful. Uh, absolutely seal is selling more than our plans and doing very well but also I would say, what have
Been the biggest difference in, you could also say our own guidance and uh and where we are a little bit. Uncertain is yeah, Would It ultimately be cannibalization from your existing portfolio or would it be incremental to selling more of your existing portfolio and it's a meaningful uplift to the existing portfolio. 1 example is you have a user in trying seal figure out for whatever reason.
Søren Nielsen: Well, the most natural thing, if the product is performing well from a sound quality point of view and deliver great benefits, well, you convert the client to another Oticon hearing aid that sound the same fantastic way. Therefore, it also pulls in sales to clients where you might have fitted other RIC products. That's just an example. It's meaningful for both. On Costco, I can only comment on our own business. It is sequentially stable and good and strong. We, I'm sure, maintain a number one position. Is it part of the guidance that some of the suppliers could gain further share? Yes, it is. That's within guidance.
It doesn't fit the ear canal, it's not what you want. Well then the most natural thing. If the product is performing well from a sound quality point of view and deliver great benefits. Well, you convert the client to another old hearing aid. The sound the same fantastic way, and therefore it also pulls in sales to, uh, clients where you might have faded all the way products and that's just an example. So it's meaningful for both on Costco. I can only comment on our own business. It is sequentially stable, and good, and strong. We, I'm sure maintain a number 1 position. Is it part of the guidance? That the, that some of the suppliers could gain further? Share? Yes, it is. That's within guidance.
Operator 2: Our next question comes from Aisyah Noor with Morgan Stanley. Please go ahead.
Our next question comes from Aisha. Noir with Morgan Stanley, please go ahead.
Aisyah Noor: Hello, Søren and René, thanks for taking my question. First one is maybe a technical question for René. I think you mentioned the additional 1 percentage point M&A growth for the full year was for other acquisitions and not from a stronger outlook for a KIND performance. Can you maybe disclose what acquisitions are these and where they are? The second question is maybe again, to push Søren a little bit on the guidance range of 3% to 6% organic growth for the year. Understand the point around conservatism, and maybe it's just semantics, but you said the lower end of the guidance range is less likely. Is there a chance here where the upper end of the guidance could also be too low, given you are already doing 6% in Q1 itself?
Aisyah Noor: I guess another way to ask this question is 6% still the blue sky scenario or, you know, is it more midpoint of the new range? Thank you.
Hello, sorry. Thanks for taking my question. Um, first 1 is maybe a technical question for Renee. Uh, I think you mentioned the additional 1 percentage Point m&a growth for the full year was for other Acquisitions and not from a stronger outlook for a Kint performance. Can you maybe disclose what Acquisitions are these? And, uh, where uh, they are. Uh, the second question is, maybe again to push. Uh, sorry a little bit on the guidance range of 3 to 6% organic growth for the year, understand the point around conservatism, and maybe it's just semantics, but you said the lower end of the guidance range is less likely. Is there a chance here? Where the upper end of the guidance? Could also be too low given you are already doing 60% in q1 itself, I guess another way to ask this question is, is 6% still the Blue Sky scenario or its or you know, is it more midpoint of the new Range? Thank you.
Søren Nielsen: Yeah, thank you very much. Do you wanna start, René?
René Schneider: Yeah. On, on the revised, say, contribution from acquisitions, it is related to our acquisition of the Amplifon business in the UK that we add to the outlook. Everything else is on the plans as we have laid them out in February. That's the reason.
Yeah, thank you very much. Do you want to start again? Uh, yes, sir.
on on the, uh,
Device to... it's a contribution from Acquisitions. It is related to, uh, our acquisition of the Amplifon business in the UK that we add to the outlook. Uh, everything else is, uh, on the plans as we have, uh, laid them out in February.
So that's the reason.
Søren Nielsen: Yeah. On the guidance, you read the less likely very well. Are there things outside 6 that could happen? Yes, of course, it's not our, you know, take right now. One of them is, of course, the market as an example. If we end up exceeding the 2% to 4%, or continuously be in the upper end, yes, things could be different. If Zeal continues to build a strong momentum and exceeds our current expectations, yes, you know, we can keep it on. Can we find things that put it the other way? Yes, we could also. This is our best take on the situation right now. Less likely in the lower end, 3% to 6% growth and a maintained but also similar, less likely in the lower end on the EBIT side.
Yeah, and on the guidance, uh, you read the list like the very well are there things outside 6. That could happen. Yes, of course. But it's not our, you know, take right now 1 of them is, of course, the market as an example, if we end up exceeding, uh, uh, the 2 to 4%, uh, or continuously being the, our end, and yes, things could be different if a seal continues to build a strong momentum and and exceeds our current expectations. Yes. You know, we can keep it on. Can we find things that pull it the other way? Yes, we could also. So this is our best. Take on the situation right now, uh, less likely in the lower end, uh, and 3 to 6% growth and a maintained. But also similar less likely in the lower end on the EV side.
Aisyah Noor: Okay, thank you very much. Thank you very much.
Okay, thank you very much. Thank you very much.
Operator 2: If you have a question, please press star 1. Our next question comes from Andjela Bozinovic with BNP Paribas. Please go ahead.
again, if you have a question, please press star then 1
Our next question comes from Angela, buzzin novik with BMP paribus, please go ahead.
Andjela Bozinovic: Hi. Thank you for squeezing me in for a follow-up. I just wanted to touch upon the point that you made during the call that you want to introduce new products in H2. I'm just wondering, like, what can you share with us at this point, and how do you think about new product introductions between the form factors? Would you continue to innovate in RIC behind the ear or you want to focus your innovation on the, in the ear, custom form factor? Thank you.
Hi, thank you for squeezing me in for a follow-up. Um, I just wanted to touch upon the point that you made during the call that you want to introduce new products in H2. I'm just wondering, like, what can you share with us at this point and how do you think about new person Productions, uh, between the phone factors? So, would you continue to innovate and record behind the ear, or
Or you want to focus your Innovation on uh in the year uh customer phone Factor. Thank you.
Søren Nielsen: Yeah. Thank you very much for the question. We will maintain to our traditional strategy of not disclosing details. Yes, it's meaningful products that we will bring out. Yes, we always work to improve our portfolio. Sometimes it's core technology and what we'll call a new platform. Sometimes it's additional form factors. We don't pick just one. It is important that you have a complete strong portfolio, high relevance for all users and all purposes. I think general logic is of course, to revisit the portfolio and look for either weaknesses or relevance of moving on. I think that's as far as we can take it today.
Yeah, thank you very much for the question. We will maintain to our, uh, traditional strategy of not disclosing details, but yes, it's meaningful products that will bring out. And, uh, and yes, we always work to improve our portfolio. Sometimes it's core technology and what we call a a new platform sometimes it's additional form factors. We don't pick just 1. It is important that you have a complete strong portfolio, High relevance for all users and all purposes and
so, I I think General logic is, of course, to revisit the the portfolio and look for either weaknesses or uh, relevance of moving on
And I think that's a as far as we can take it today.
Andjela Bozinovic: You wouldn't say that this halo effect from Oticon Zeal has changed your perception into where you need to launch new products?
and you wouldn't say that uh uh this uh halo effect from Auto
Søren Nielsen: No, no, this is, you know, a launch schedule for the next one to two years is relatively fixed and on track. Similar to the opposite question, whether it was tactical to do, you know, platform before Zeal or whatever. These things are relatively fixed. We have worked a lot on Zeal to create something really innovative and spectacular and very unique. It has given us a tremendous attention in the market, which we are very good and happy for. There are also other things that needs to be done to make sure we can address the entire market and all, you know, all elements of the market.
Into where you need to launch new products. No, no, no. This is a a, you know, launch schedule for the next, uh uh, 1 to 2 years is relatively fixed and on track uh, similar to the opposite question. Whether it was tactical to do, you know, platform before seal or whatever. These things are relatively fixed, we have worked a lot on seals to create something uh really Innovative and spectacular and very unique. It has given us
And tremendous attention in the market, which we are very good and happy for. But there are also other things that need to be done to make sure we can address the entire market and all, you know, all elements of the market.
Andjela Bozinovic: Perfect. Thank you so much.
Perfect, thank you so much.
Operator 2: Our next question is a follow-up from Richard Bernstein with Bernstein. Please go ahead.
Our next question is a follow-up from Richard home with Bernstein. Please go ahead.
Richard Bernstein: Hi again. Thanks for the follow-up. Just super quickly, could you please elaborate on the decision to separate the Head of Hearing business position out again? Why was now the right time, and are there specific priorities that Mr. Bassel will be asked to focus on in the new role? Thank you.
Uh, head of hearing business position out again. Um, why was not the right time and Are there specific priorities? That um, Mr. Basel will be asked to focus on in the new role.
Søren Nielsen: Yeah, thank you very much for the question. Maybe just a little bit of context if some have just seen it. We've just today released an investor news which says that I'm after 9 years of both serving as Group CEO and President of our hearing aid business, have chosen to now focus my time fully on the CEO role of the group to make sure we continue to deliver growth on group level and strategically move forward in the right way. The group have in those 9 years almost doubled. Time has come to strengthen the all leadership of the group further by adding a dedicated leader to the hearing aid business, similar to what we have for hearing care and hearing aids.
Thank you.
Søren Nielsen: Our new leader president will join us 1 June and come with a solid experience from MedTech, have a good combination of a strong commercial experience, global, international, and also understanding of core technologies, which fits very well with the profile needed. Is there anything special? Yes, continue growth and deliver great results driven by the recipe we have now followed for some time of delivering innovative new products to the market at, I would say, growing speed, and also capturing benefit of new technologies such as AI. No, no revolutionary changes. We'll make a good, solid transition. I'm also still here to advise and be part of developing the group, including the hearing aid business.
Yeah, thank you very much for the question and maybe just a little bit of context, if some have just seen it, we've just today released an investor news, which says that I'm after 9 years of both serving as group CEO and president of our hearing aid, business have chosen to now Focus, uh, my time for fully on the CEO, role of the group, to make sure we continue to to deliver growth on group level and uh, and uh, strategically move forward in the right way. The group have in those 9 years, almost doubled. So, time has come to strengthen the all leadership of the group further by adding, a dedicated leader to the hearing aid business, similar to what we have for here in care and hearing aids. And our new leader president will uh will join us June 1st at, come with a solid experience. From Medtech, have a good combination of a strong commercial experience Global International and also understanding of, uh, call technology
Søren Nielsen: The daily leadership now have a fully dedicated business unit leader, similar to our other two business areas.
Which fits very well with the profile needed. Uh, is there anything special? Yes, continued growth, and deliver great results driven by the, uh, uh, recipe. We have now followed for some time of delivering Innovative new products to the market. And I would say growing speed, uh, and also capturing benefit of new technologies such as AI. So no, no revolutionary changes will make a good, uh, solid transition. Uh, I'm also still here to advise and, uh, and be part of a developing the group including the hearing aid business. But the daily dealership now, have a fully dedicated business unit leader similar to our other 2 business,
Richard Bernstein: Perfect. Thank you.
Perfect, thank you.
Operator 2: This concludes our question and answer session. I would like to turn the call back over to management for any closing remarks.
This concludes our question and answer session.
I would like to turn the call back over to management for any closing remarks.
Søren Nielsen: Thank you, operator. Thank you so much to everybody for joining us today. Before we close off the session, we want to give you a very early heads-up as we expect to host a capital markets day here in the fall of 2026, more precisely on November 24th in Copenhagen. We will of course revert with additional details when we get there closer to the date. Beyond this, please do reach out with any questions that you may have after the results here. As always, we will try to be on the road in the coming weeks, and we look forward to seeing you there. Have a good rest of the day.
Thank you, operator. And thank you so much to everybody for joining us today. Uh, before we close out the session, uh, we want to give you a very early heads up, uh, uh, as we expect to host a capital market today, here, in the fall of 2026 more precisely on November 24th. In Copenhagen, we will of course revert with additional details, when we get there closer to uh to the date. Uh Beyond this, uh, please do reach out with any questions that you may have after the results here. And as always, uh, we will try to be on the road in the coming weeks. And uh, and we look forward to seeing you there.
Have a good rest of the day.
Operator 2: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect
