In 2014, consolidated revenue totalled DKK 9,346 million, matching a growth rate of more than 6% in local currencies of which organic growth accounted for more than half. Exchange rates had a negative impact on revenue of 2%.
The Group’s three business activities, Hearing Devices, Diagnostic Instruments and Hearing Implants, achieved revenue growth rates in local currencies of 5%, 11% and 36%, respectively.
The reported operating profit (EBIT) amounted to DKK 1,761 million, equivalent to 1% growth. When adjusted for a negative exchange rate effect of DKK 50 million and a one-off loss on a customer loan of DKK 40 million, the underlying growth in EBIT was 7% compared with 2013. The underlying profit margin was 19.6%.
The Group delivered 5% EPS growth, which is within the most recently announced range of 2-7% EPS growth. The underlying EPS growth was 11%.
Cash flow from operating activities (CFFO) increased by 17% to DKK 1,495 million, corresponding to a cash conversion ratio of 85% (CFFO/EBIT). Free cash flow grew by as much as 28%, amounting to DKK 1,044 million.
Oticon’s new Inium Sense platform is currently being launched in all styles, at all price points and in all markets. This marks the biggest and broadest product launch ever undertaken by Oticon and will support the recent sales momentum achieved in our core business.
In 2015, we expect to continue to generate growth in all of our three business activities, Hearing Devices, Diagnostic Instruments and Hearing Implants. We are guiding for an operating profit (EBIT) for 2015 in the range of DKK 1.7-2.0 billion.
