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GN Store Nord cuts forecasts after product line wind-down

By Jesus Calero

(Reuters) - Denmark's GN Store Nord lowered its 2024 financial targets on Tuesday citing plans to gradually wind down its Elite and Talk product lines.

The maker of hearing aids, speakerphones and headsets expects an impact of around 450 million Danish crowns ($64.95 million) on its revenue and has narrowed its EBITA margin guidance to 12-13% from 12-14%, GN said in a statement.

GN's consumer business, which contributed 7% of its 2023 revenue of 18.12 billion crowns, was driven primarily by the Elite and Talk product lines, specialised in premium audio products.

Its revised guidance reflects a strategic pivot, with the strength of the Hearing division partially absorbing the costs of the winding down of the product lines, said Nordnet analyst Per Hansen.

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"While these changes affect 2024, they do not have negative long-term aspects," he said.

He added that the news came as a negative surprise for investors after the company posted a solid performance in the first quarter.

GN shares were down 6.2% at 0859 GMT.

($1 = 6.9288 Danish crowns)

(Reporting by Jesus Calero; editing by Louise Heavens and Jason Neely)