Bang & Olufsen’s preliminary Q3 2023/24 result for group revenue is
The revenue outlook for the financial year 2023/24 (ending
The company also narrows the ranges for the EBIT margin before special items and free cash flow. EBIT margin before special items is now expected to be between 0% and 2% (previously 0% to 6%), while free cash flow is expected to be between
CEO
“We are improving our profitability and robustness as we progress with our strategic transition towards higher margin revenue. However, we do not see the expected improvement in macroeconomic conditions in some of our key markets in
“Once again, we deliver a quarter with a record-high gross margin. This is a result of our strategic efforts to improve the experience in our branded channels with our retail partners and strengthen our luxury positioning and product portfolio. This is our fourth consecutive quarter with margins above 50%. The improvement makes us more resilient as a business and enables us to continue with our strategic transition.”
The preliminary results for Q3 2023/24 (9M 2023/24) are as follows:
- Revenue of
DKK 614m , equivalent to -2% y-o-y growth in local currency (9M:DKK 1,933m , equivalent to -7% y-o-y growth in local currency) - Product revenue of
DKK 543m , corresponding to a 0% y-o-y growth in local currency (9M:DKK 1,711m , corresponding to a -5% y-o-y growth in local currency) - Gross profit of
DKK 326m , corresponding to an improvement ofDKK 49m y-o-y (9M:DKK 1,023m , corresponding to an improvement ofDKK 140m y-o-y) - Gross margin of 53.2%, corresponding to an improvement of 9.6 pp. (9M: 52.9%, corresponding to an improvement of 11.0 pp.)
- EBIT before special items of
DKK 11m , corresponding to an improvement ofDKK 54m y-o-y (9M:DKK 48m , corresponding to an improvement ofDKK 162m y-o-y) - EBIT margin before special items of 1.8%, corresponding to an improvement of 8.6 pp. (9M: 2.5%, corresponding to an improvement of 7.9 pp.)
- Free cash flow of
DKK 5m (9M:DKK -32m ) - Like-for-like sell-out decline of 2% y-o-y (9M: Like-for-like sell-out growth of 3% y-o-y)
The company adjusts its outlook as follows:
| -8% to -5% (Previously in the lower end of 0% to 9%) |
| 0% to 2% (Previously 0% to 6%) |
| (Previously in the lower end of DKK -50m to DKK 100m) |
The outlook is subject to uncertainty related to consumer sentiment. In addition, geopolitical uncertainty has increased. The pace of the economic recovery in
The outlook is further subject to the following assumptions:
- No worsening of market situation in
China for the remainder of the fiscal year (previously improved market conditions inChina in H2 23/24). - No worsening of macroeconomic conditions in
Europe and US for the remainder of the fiscal year (previously macroeconomic conditions inEurope and the US will improve during the fiscal year). - Timely launch of two product innovations in fiscal Q4.
- No impact on product availability due to geopolitical changes.
- Exchange rates against DKK, including in particular USD, CNY and EUR, in line with current exchange rate levels, overall.
- No upward pressure on component and logistics costs.
The company will release its quarterly financial report for 9M 2023/24 on
For further information, please contact:
Cristina Rønde Hefting
Director, Investor Relations
Phone: +45 4153 7303
Head of
Phone: +45 2496 9371
Attachment
- BO_2310_company announcement_UK
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