Annual report 2023/24: B&O reports positive EBIT margin for 2023/24 despite lower revenue

Bang & Olufsen delivered a record-high gross margin and an improved EBIT margin for 2023/24 despite a decline in revenue. Group revenue was DKK 2,588m, 5% down year-on-year in local currencies. Revenue performance was in the upper range of full year guidance of -8% to -5%, as the company reported growth of 3% in local currencies for Q4 2023/24 (March through May). The company's product revenue in local currencies was flat, while customer demand (measured as like-for-like sell-out)...

Struer, 03/07/2024 (informazione.it - comunicati stampa - servizi)

Bang & Olufsen delivered a record-high gross margin and an improved EBIT margin for 2023/24 despite a decline in revenue. Group revenue was DKK 2,588m, 5% down year-on-year in local currencies. Revenue performance was in the upper range of full year guidance of -8% to -5%, as the company reported growth of 3% in local currencies for Q4 2023/24 (March through May). The company's product revenue in local currencies was flat, while customer demand (measured as like-for-like sell-out) increased by 3% driven by increased demand in APAC.

Bang & Olufsen continued the execution of its Luxury Timeless Technology strategy, thus laying the foundation for a longer-term profitable and sustainable growth. During the financial year, the company had a particular focus on strengthening its luxury positioning, improving the experience in branded channels, reducing the presence in multibrand, and creating products of the highest quality.

Gross margin improved to 53.3%, a 9-percentage point increase compared to last year. The gross margin increased throughout the year and ended at 54.3% in Q4. Normalised component and logistics costs since Q4 2022/23, a strong pricing focus, and a positive change in both channel and product mix drove the increase.

EBITDA before special items was DKK 300m, an increase of DKK 183m compared to last year and corresponding to a margin of 11.6%. The EBIT margin before special items improved by 6.2 percentage points to 2.4%. The reported EBIT before special items was the highest reported in more than half a decade. The free cash flow was positive and improved by DKK 31m to DKK 11m for the full year.

CEO Kristian Teär comments:

“We ended the year with a record high gross margin and the best operating profit in six years. While sales at DKK 2.6 billion were lower than we originally had expected, we are pleased that the work we have done to build a robust financial foundation for the future is paying off. Among other things, this is the outcome of our strong focus on creating the right experience in our branded channels, building products of the highest quality, and strengthening our luxury positioning. We firmly believe this is the right way for us to create profitable growth for Bang & Olufsen in the medium-term.“

Financial highlights, FY 2023/24

Financial highlights, Q4 2023/24

Strategic highlights, FY 2023/24

Outlook 2024/25
With reference to company announcement no. 24.02, the outlook for 2024/25 is based on the assumption of a capital increase enabling increased investments as described in relation to the medium-term ambitions. The company's outlook for the financial year 2024/25 is as follows:

Please see the Annual Report 2023/24 for further details on outlook and assumptions.

Conference call for analysts and investors
The company will host a webcast on 4 July 2024 at 10:00 CEST, at which the financial developments for FY 2023/24 will be presented.

The webcast can be accessed at https://bangolufsen.eventcdn.net/events/full-year-report

Dial-in details for participants in the Q&A:
DK: +45 78768490
UK: +44 2037696819
US: +1 6467870157
Pincode: 193621

For further information, please contact:

Cristina Rønde Hefting
Investor Relations
Phone: +45 4153 7303

Jens Bjørnkjær Gamborg
Global Sustainability and Communications
Phone: +45 2496 9371

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