SHERIDAN, WYOMING – May 8, 2025 – GN Store Nord A/S has announced a series of strategic measures to mitigate the adverse effects of increased tariff levels, recently imposed by the U.S. administration. These proactive actions are designed to protect the company’s EBITA margin for 2025 and secure long-term earnings growth despite the heightened uncertainty in the global trade environment.
As the U.S. tariff rates continue to fluctuate, GN is positioning itself to maintain stability in its financials and minimize disruption to its operations. The company has updated its financial guidance for 2025, outlining the expected impact of tariffs, and is taking decisive steps to adjust its manufacturing strategies, product pricing, and cost management to ensure resilience.
Diversification of Manufacturing Footprint Accelerated
In response to the evolving global trade landscape, GN is accelerating its diversification efforts across its manufacturing footprint. By the end of 2025, the company expects to meet the majority of the U.S. market demand with manufacturing facilities located outside of China. This move is in line with GN’s strategy to enhance flexibility in its global supply chain, allowing the company to better adapt to future market shifts.
Strategic Price Increases and Cost Management
In addition to diversifying its manufacturing capabilities, GN will implement price increases for its U.S. customers across its Enterprise and Gaming divisions. These increases are intended to offset the financial strain caused by higher tariffs, ensuring that the company can continue to deliver high-quality products while maintaining profitability.
Furthermore, GN is focusing on cost-saving and cash flow initiatives designed to protect the group’s financial health. These measures are expected to mitigate a substantial portion of the negative impacts from increased tariffs, ensuring the company can continue to operate efficiently in a challenging global environment.
Updated Financial Guidance for 2025
The company has revised its financial outlook for 2025, factoring in the potential impacts of the heightened tariffs. GN now expects organic revenue growth to range from -3% to +3%, with an EBITA margin forecasted between 11% and 13%. Free cash flow, excluding mergers and acquisitions, is anticipated to remain stable at approximately DKK 800 million.
Key revenue assumptions for the year include:
- Hearing Division: GN expects the hearing aid market to grow in line with historical trends, supported by favorable demographic shifts. The division aims for organic revenue growth of 5% to 9%.
- Enterprise Division: A slowdown in IT projects due to market uncertainty has led GN to project a -8% to 0% growth in this segment. The company will prioritize product variants for U.S. customers, which may temporarily impact revenue.
- Gaming Division: Following a decline in consumer sentiment and market uncertainty, GN forecasts a growth range of -6% to +2% in the Gaming division.
Proactive Approach to Market Challenges
Despite the global uncertainties, GN continues to demonstrate strong leadership in its market segments. The company’s flexible supply chain, accelerated diversification, and strategic pricing decisions are all geared toward maintaining its competitive edge. As GN assesses the ongoing developments in the global trade environment, it remains committed to taking additional mitigating actions as necessary.
Conclusion
GN Store Nord A/S is demonstrating a robust commitment to maintaining stability and growth amid uncertain global trade conditions. By diversifying its manufacturing footprint, adjusting its pricing strategy, and implementing cost-saving initiatives, the company is poised to safeguard its operations and continue its market leadership. Learn more about GN’s strategies and its approach