We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Bang & Olufsen A/s | LSE:0MRM | London | Ordinary Share | DK0010218429 | BANG & OLUFSEN ORD SHS |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 12.305 | 12.00 | 12.61 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Electronic Components, Nec | 2.75B | -141M | -1.1485 | -10.71 | 1.51B |
Group revenue was DKK 2,752m in 2022/23, a decline of 7% (-8% in local currencies) compared to last year. The decline was primarily driven by macroeconomic headwinds and the unexpected COVID-19 development in China, negatively impacting product sales. The company’s strategic efforts to expand its Brand Partnering business resulted in revenue growth of 22% in that segment.
In December, China suddenly abandoned its COVID-19 lockdown policy. This led to a surge in infections, which impacted the company’s sales. In Asia, revenue declined by 19% in 2022/23. Revenue in EMEA declined 6%, while Americas achieved 2% growth. Both regions were impacted by macroeconomic headwinds caused by high inflation and increasing interest rates. In addition, European retail partners were more cautious with replenishing inventory. Like-for-like sell-out declined by 2%, mainly impacted by China.
Gross margin was 44.2% against 45.3% last year. The decline was mainly related to a change in product mix being skewed towards lower-margin products. The overall margin level reflected higher-than-normal component and logistics costs of around DKK 160m. In Q4, component and logistics costs significantly decreased, and the company achieved a gross margin of 51.4%, up 7.8pp compared to Q3 of 2022/23. The EBIT margin before special items was negative 3.8% for the year, driven by the lower revenue and gross margin. The free cash flow improved by DKK 152m compared to 2021/22 and was negative DKK 20m in 2022/23. In Q4, the company had free cash flow of DKK 27m. This was the third consecutive quarter of positive free cash flow. Net working capital on 31 May 2023 was DKK 222m, a decrease of DKK 113m year-on-year primarily due to lower inventories.
In January, Bang & Olufsen presented a sharpened strategic direction with the ambition to strengthen its luxury timeless technology proposition. The Win City concept continued to yield results in Paris and London with like-for-like sell-out in company-owned stores growing by 16%. In Q4, New York was added to the list of Win Cities, and Bang & Olufsen expects the Win City concept to be a key driver of growth in the future. The company continued to invest in building a better and more connected portfolio of products based on its proprietary software platforms. Seven new product innovations were introduced this year. In addition, the company introduced its new Atelier Editions, which showcase Bang & Olufsen’s capabilities to offer bespoke solutions and create limited editions. The partnership with Ferrari helped increase awareness of the Bang & Olufsen brand, and the new product collaboration is expected to support that as well as drive revenue. This year, Bang & Olufsen also committed to long-term climate targets as part of its work to support the transition to a more sustainable future.
CEO Kristian Teär comments:
“It was a challenging year for Bang & Olufsen with COVID-19 and macroeconomic headwinds impacting our business. I am proud to see the continued passion and resilience of our colleagues and partners, and I want to thank them and our customers for their support in 2022/23. We are not satisfied with the financial results and aim to return to profitable growth next year.”
“Our strategy is right, and we aim to scale our initiatives as quickly as we can. Our Ferrari partnership is helping us increase global brand awareness, and we will soon launch our product collaboration. Our Win City concept is working, and we are expanding that to more cities. We have improved our portfolio based on our new software platforms and are building modular and long-lasting products that our customers can enjoy for decades.“
“We still expect much uncertainty in the coming year, especially in China. Therefore, we will also be phasing in our strategic investments while working to ensure a lean cost base and continue improving our profitability. We have the right direction for the year and the future and will work closely with our partners to deliver the right customer experience in the stores, online, and in our products and services.”
Financial highlights, FY 2022/23
Financial highlights, Q4 2022/23
Strategic initiatives
OutlookThe company will continue to execute in line with its strategy and long-term vision but will make adjustments based on market development. The outlook for 2023/24 is subject to uncertainty related to consumer sentiment due to high inflation, rising interest rates and the war in Ukraine, which has increased the risk of recession. Furthermore, there is higher geopolitical uncertainty and risk related to the recovery in China. The company's outlook for the financial year 2023/24 is as follows:
| 0% to 9% |
| 0% to 6% |
| -50 to 100 |
The outlook is based on certain assumptions described in the annual report.
Conference call for analysts and investorsThe company will host a webcast on 6 July 2023 at 10:00 CEST, where the financial development for FY 2022/23 will be presented.
The webcast can be accessed at https://streams.eventcdn.net/bo/annual-report-202223
Dial-in details for participants in the Q&A:Denmark: +45 78 76 84 90UK: +44 203 769 6819US: +1 646 787 0157
For further information, please contact:
Cristina Rønde HeftingInvestor RelationsPhone: +45 41 53 73 03
Jens Bjørnkjær GamborgGlobal sustainability and communicationPhone: +45 2496 9371
Attachments
1 Year Bang & Olufsen A/s Chart |
1 Month Bang & Olufsen A/s Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions