Today, GN has announced that it will gradually wind down its Elite and Talk product lines in order to focus more on other parts of its business that are more attractive and profitable. This decision comes as part of GN’s strategy to build leading businesses in markets that offer strong growth potential and good returns on investment.
The Elite product line, which was shifted towards the premium segment in 2023, has seen improved profitability. However, the company believes that the long-term investment required for innovation and growth in this competitive space is not justified given the associated risks. The Talk product line, positioned in the declining mono Bluetooth market, follows a similar logic. After a thorough review, GN has decided to wind down both product lines gradually.
Peter Karlstromer, CEO of GN Store Nord, expressed gratitude to retail partners and consumers who supported the Elite and Talk product lines. He emphasized the company’s commitment to working closely with partners to ensure a successful wind-down process. Despite this decision, GN will continue to service and support customers for several years. The company will also release the second generation of Elite 8 Active and Elite 10 earbuds, which are the final products in this line.
In 2023, the consumer business generated revenue of DKK 1,253 million, with the Elite product line accounting for approximately 70% of sales, the Talk product line for 10%, and the BlueParrott product line for 20%. The BlueParrott product line will be moved to the Enterprise division in 2025 to drive growth in the front-line worker segment.
The wind-down of the Elite and Talk product lines is expected to have a negative impact on the revenue of the Consumer business in 2024. However, the strong performance of the Hearing division, supported by the uptake of ReSound Nexia, is projected to partially offset this impact. As a result, GN has narrowed its organic revenue growth guidance for the group.
The wind-down process will involve extraordinary promotional activities and incur costs of around DKK -200 million in 2024. Despite this, GN expects free cash flow excluding M&A to exceed DKK 900 million for the year. The company has also revised its EBITA margin guidance and introduced new long-term targets to drive organic revenue growth and margin expansion.
GN’s focus on more attractive opportunities and investments will help the company achieve its long-term goals and strengthen its position in the market. With a history of over 150 years, GN continues to innovate and connect people through its intelligent hearing, audio, video, and gaming solutions. Through its brands like Jabra, ReSound, and SteelSeries, GN aims to enhance communication, collaboration, and overall sensory experiences for its customers worldwide.
