Bang & Olufsen A/S

XMUN:BUOB

Top line: Bang & Olufsen said full-year revenue was DKK 2.5 billion, down 1.6% in local currencies, with EBIT margin before special items at negative 0.5% and free cash flow at negative DKK 141 million.

Q4 rebound: Fourth-quarter gross margin improved to 58.7%, up 2.9 percentage points year over year, and EBIT margin before special items reached 5.7%, helped by a DKK 20 million U.S. tariff refund.

Product mix: Beo Grace performed strongly and drove double-digit earphone revenue growth, while Beosound Premiere remained below expectations even after its relaunch and lower price point.

Cost actions: Management said it cut around 60 jobs, or about 5% of staff, and reworked product development and marketing to lower costs and improve execution.

Outlook: The company guided for 1% to 5% revenue growth, 1% to 3% EBIT margin before special items, and DKK 25 million to DKK 100 million of free cash flow in the new year.

Supply pressure: DDR4 memory shortages tied to AI and data center demand will create about a 0.5 percentage point gross margin headwind and DKK 35 million to DKK 45 million of cash impact next year.

Retail and demand: Like-for-like sell-out grew 11% in Q4, with APAC up 28% and China up 14%, while Europe remained soft and management expects a smaller store-closure impact next year.