Bang & Olufsen: adjusts targets to lower end of range

(CercleFinance.com) - Bang & Olufsen announced on Wednesday that its annual sales growth would be at the lower end of the range it had initially communicated, due to weaker momentum in the Asia-Pacific region and the postponement of a product launch.


The Danish manufacturer of upmarket electronic equipment said that its free cash flow would also be at the lower end of its previous targets.

BO had previously targeted sales growth of 0% to 9% in local currencies for its 2023/2024 financial year, to end-May, for free cash flow of between -50m to +100m DKK.

Its operating margin (Ebit) before exceptional items is still expected to be between 0% and 6%.

In Q2 to end-November, sales in local currencies fell by 16% as a result of the slowdown in the Chinese market, coupled with an unfavourable base effect following the successful launch of the Beosound Theatre sound bar last year.

The company says it has also suffered from its decision to divest certain multi-brand boutiques as part of the implementation of its new strategy.

Operating margin (Ebit) before exceptional items came in at 3%, up 1.4% y-o-y.

Following this publication, the share lost over 7% on Wednesday in Copenhagen, although is still up more than 16% over the last 12 months.


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