Bang & Olufsen A/S
CSE:BO
Bang & Olufsen A/S
Bang & Olufsen A/S engages in the provision of audio products. The firm supplies primarily music systems, loudspeakers, television sets and multimedia products. Its activities are divided into two business areas: Business-to-Consumer (B2C) and Business-to-Business (B2B). The B2C area includes two segments: audiovisual (AV), offering audio and video products sold under the Bang & Olufsen brand; and B&O PLAY, which delivers stand-alone, portable products. The B2B business area also consists of Automotive segment, which comprises development, production and sale of sound systems for a range of cars, such as Aston Martin, Audi, BMW and Mercedes-Benz. Furthermore, the Company is parent of Bang & Olufsen Group, which operates worldwide.
Bang & Olufsen A/S engages in the provision of audio products. The firm supplies primarily music systems, loudspeakers, television sets and multimedia products. Its activities are divided into two business areas: Business-to-Consumer (B2C) and Business-to-Business (B2B). The B2C area includes two segments: audiovisual (AV), offering audio and video products sold under the Bang & Olufsen brand; and B&O PLAY, which delivers stand-alone, portable products. The B2B business area also consists of Automotive segment, which comprises development, production and sale of sound systems for a range of cars, such as Aston Martin, Audi, BMW and Mercedes-Benz. Furthermore, the Company is parent of Bang & Olufsen Group, which operates worldwide.
Leadership Change: Bang & Olufsen announced a CEO transition, with CFO Nikolaj Wendelboe stepping in as Interim CEO while the search for a permanent replacement continues.
Revenue: Group revenue declined by 1.2% in local currencies to DKK 676 million for the quarter, with growth in branded channels but declines in non-branded and partner channels.
Gross Margin: Gross margin reached a record 57.9%, up 4.2 percentage points from last year, driven by a favorable product mix and reduced promotions.
Profitability: EBIT margin before special items fell to minus 5.3% due to higher marketing costs for the centennial campaign; adjusted EBIT margin was around 0%.
Guidance Narrowed: Full-year revenue growth outlook was narrowed to 1%-5% (from 1%-8%), and free cash flow guidance was tightened to minus DKK 100 million to minus DKK 50 million.
Product Launches: New products (Beo Grace earpieces, Beosound Premiere soundbar, Reloved program) launched, with more impact expected in the second half.
Retail Expansion: Opened flagship stores in Paris and San Francisco, with further US expansion planned.
