Q3 2024 Demant A/S Interim Management Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Martin Parky - seb - Analyst : Great, good afternoon. Martin Parker from CD, a couple of questions. Firstly, to understand the the 18% growth in in sales to own retail. How much is this volume driven and how much is that ASP driven? Because 18% is a lot more than, than the 7% that, that human care are driving. And I guess you already have a pretty high share of wallet in your own clinics already. Can you, so can you talk a little bit of the dynamics on that very high growth rate? And then second question just on the, on the, on the development, could, could you discuss a little bit, what kind of development you have seen in particular among us independences following the big blast of a launch from, from from phone in August, how much have you feel felt pressure on, on you your U independent share? And then just finally, maybe you can also a little bit discuss again, the push and pulls for you if you should deliver more than 2% in the fourth quarter. Of course, I understand that you hope the market growth to be slightly higher in Q4. But are there other factors of your own business that you believe can perform better in Q4 than what we saw the first nine months?

Question: Martin Parky - seb - Analyst : Thank you.

Question: Hassan Al Wakeel - Barclays - Analyst : Hi, good afternoon. Thank you for taking my questions. I have three, please. Firstly, on the margin, given the incremental FX headwind and share losses in higher margin wholesale and a launch into the va to come this month is the lower end of the range more likely. And can you speak to your confidence around Q4 ebit? Secondly, what to your mind drove the stronger performance in hearing care. Are you seeing any signs of improvement in France throughout the quarter? And what are you assuming for Q4 and into next year? Given the anniversary of changes in 2021? And can you talk to the performance in China and, and whether this got worse in the quarter? And then finally, how are you thinking about Sonova's return to Costco? And do you expect any changes to your share dynamics over time or do you view this as relatively limited given they're replacing another player and this is only in select stores at this point? Thank you.

Question: Hassan Al Wakeel - Barclays - Analyst : Perfect. Thank you very. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2024 / 1:00PM, DEMANT.CO - Q3 2024 Demant A/S Interim Management Statement Call Much.

Question: Graham Doyle - UBS - Analyst : Hi guys. Thanks for taking my question. It's just just one for myself. I sort of following up to the point that SAM made there, which is we think about the dynamics into the end of this year. You've obviously got to start formulating an expectation for next year and it doesn't feel like a lot will change in certain segments. So I suppose the question we keep getting asked is in a kind of cautious scenario. Do you still think you can grow wholesale next year? Thank you.

Question: Graham Doyle - UBS - Analyst : Great. Thank you.

Question: Mayor Stephanie Pataki - Kepler va - Analyst : Hi, this is Mayor from Kepler. Two questions please from my side first. Traditionally, you know, new launches, create a lot of bots and then you have a lot of orders and then it's a trial period of around three months and then you know, then the verdict comes whether how many people are reordering. Now, first of all, is the three month assumption, correct or does it take longer? And by when do you believe that you will have a bit more of an understanding of what has been the hype created around new products? I mean, we had Sonova but we had also others and, and we're, you know, to get a bit of a better understanding of how the market landscape is going to look for you going into 2025. That's number one. And then number two, we continue to see relatively weak numbers in Europe and that has been going on for a certain period of time. And it seems a bit counterintuitive given the fact that there seems to be quite, you know, good reimbursement systems in place in Europe. So what is your take on why markets have been solved? And when do you anticipate those to recover? Thank you.

Question: Mayor Stephanie Pataki - Kepler va - Analyst : Okay. Thank you very much.

Question: Niels Granholm-Leth - Carnegie - Analyst : Good afternoon and thank you for taking my questions. First question. Could you talk about your discussions to reenter, manage care? How far are you any, any open doors, any breakthrough that you can talk about so far? Secondly, could you talk about any potential considerations around expanding your own TP A and then just 30 if you could comment on, on your bone ankle business and if you intend to keep that business, thank you.

Question: Niels Granholm-Leth - Carnegie - Analyst : Okay. Thank you.

Question: Jing Naan - citi - Analyst : Hi everyone. Good evening. It's Harry here in Stellarton City. Three questions please on on hearing aid, you mentioned in the release that positive ASP was offset by some lower sales to more price focused channels and segments. Could you elaborate on that, that point a bit further for us? Secondly, can you comment on any geographic differences that you're seeing when it comes to competitive pressures from peers? And third, can you give us an update on how the European market is, is sort of starting to look up what you've seen in October and into November versus third quarter exit. Have you seen any inflections in the German market or is it sort of business as usual? Thank you very much.

Question: Jing Naan - citi - Analyst : Yeah. So in in the in the press release, you mentioned that the positive ASP and hearing aids was offset by slightly lower sales to more price focused channels and segments. I was just wondering if you could elaborate a bit more on that point.

Question: Jing Naan - citi - Analyst : Great. Thank you very much.

Question: Angela Bozinovic - BNP - Analyst : Hi, good afternoon, everyone. This is Angela on for Hugo. Thank you. Thank you for taking my questions. I have to the first one on your guidance. So in your press release, you have pointed to the lower end for the hearing aids and market growth of 46% and also the deteriorating FX assumption in this context. What's your level of confidence in delivering the top end of the guide versus the lower end? And just in France at the eu you hinted at a small investment to get the renewal opportunity. Could you give us some more details given that this has been one of the reasons for a guide cut that one of your competitors? Thank you very much.

Question: Angela Bozinovic - BNP - Analyst : And sorry. The second question on France at the A you hinted at a small investment to capture the renewal opportunity. Could you give us some details given that this has been one of the reasons for a guide to one of your competitors?

Question: Angela Bozinovic - BNP - Analyst : Thank you.