Bang & Olufsen slides as it slashes guidance

Bang & Olufsen A/S

18/03/2024 09:17

** Shares in Bang & Olufsen drop 4% after the Danish audio
and video equipment maker slashed its FY outlook for revenue
growth, EBIT margin and cash flow
    ** It cites slower-than-expected improvement of macro
conditions in its key European markets and no recovery in
China's economy in fiscal 2023/24
    ** The company sees 2023/24 revenue falling between 5% and
8% in local currencies (previously in the lower end of 0% to
+9%)
    ** It forecasts EBIT margin before special items of 0%-2%
(previously 0%-6%)
    ** "In terms of earnings it could've been worse," says
Nordnet analyst Per Hansen, calling the downward adjustment to
cash flow and EBIT margin "moderate" given that revenue is
expected to be short several hundred millions
    ** Bang & Olufsen posts preliminary Q3 EBIT before special
items of DKK 11 million ($1.61 million), up by DKK 54 million
from a year earlier

($1 = 6.8457 Danish crowns)

 (Reporting by Agata Rybska)
 ((gdansk.newsroom@thomsonreuters.com;))