Demant A/S

Demant said first-half 2026 reported revenue increased 15%, driven by 7% organic growth, 10% acquisitive growth and a 3% negative FX impact. Gross profit increased 17% to just shy of DKK 10 billion, with gross margin up 1.1 percentage points versus last year. EBIT before special items was DKK 2.134 billion, implying a 16.5% margin, and operating cash flow was DKK 1.6 billion, up 6% year over year. For the full year, management raised guidance to 6% to 7% organic growth and DKK 4.4 billion to DKK 4.8 billion EBIT before special items. They also updated special items to DKK 400 million, versus DKK 325 million previously, and said gearing is expected to end 2026 slightly above the 2.0 to 2.5 long-term range.

Søren Nielsen emphasized that momentum accelerated from Q1 to Q2 across all business areas, led by Hearing Aids and Hearing Care. He repeatedly framed Oticon Zeal as a growth driver and “door opener,” and said the new Oticon Reveal platform is built to be a premium leap in AI, feedback suppression, and connectivity. His tone was confident and expansive, with a clear message that Demant sees both product innovation and market share gains continuing.

René Schneider focused on the quality of earnings and balance sheet improvement. He said gross profit rose 17% to just under DKK 10 billion, gross margin expanded 1.1 percentage points, and EBIT before special items was DKK 2.134 billion, or 16.5%, despite about DKK 50 million of FX headwind and DKK 30 million of negative EBIT from the U.K. retail integration. He also said special items totaled DKK 216 million in the first half, net cash inflow from acquisitions and divestments was DKK 91 million, share buybacks were paused to reduce leverage, and gearing fell to 3.0. On guidance, he said cost-effectiveness savings now contribute DKK 300 million, KIND’s EBIT contribution is expected at DKK 325 million, and second-half margin expansion is still the working hypothesis.

Analysts focused on the sustainability of Zeal-driven growth, pricing discipline, launch timing, and whether Reveal can maintain premium pricing as more competitors launch products. Management said Zeal still has room to run through new price points, more channels, and more geographies, especially in North America and VA, while Reveal should support a net price increase versus Intent. They also said the second-half margin outlook still calls for expansion, with OpEx likely to grow at about the same organic pace as in the first half because launch investments and marketing will continue. On market questions, management said U.S. commercial remains weak mainly because managed care is still declining, while pricing discipline across the industry has improved because companies want to defend margins and reflect rising technology costs.