Brief: Bang & Olufsen Q1 EBIT Turns To Loss Of DKK 85 Mln, Outlook Unchanged

Bang & Olufsen A/S

05/10/2022 07:10

Oct 5 (Reuters) - Bang & Olufsen A/S  BO.CO :
    * INTERIM REPORT FOR Q1 2022/23: CHALLENGING MACROECONOMIC ENVIRONMENT CONTINUED IN Q1
    * CHALLENGING MACROECONOMIC ENVIRONMENT CONTINUED IN Q1 OF 2022/23, WHICH, SEASONALLY, IS
OUR
SMALLEST QUARTER OF YEAR
    * Q1 REVENUE DECLINED BY 8.2% (-10% IN LOCAL CURRENCIES) TO DKK 612M
    * WE SAW ROBUST DEMAND FOR OUR PRODUCTS WITH HIGHER SELL-OUT PERFORMANCE THAN SELL-IN IN ALL
MARKETS EXCEPT CHINA
    * REGIONAL LOCKDOWNS AND ECONOMIC CLIMATE IN CHINA HAD A DIRECT IMPACT ON OUR SALES
    * RISING INTEREST RATES, WAR IN UKRAINE AND HIGHER INFLATION AFFECTED CONSUMER CONFIDENCE
ACROSS
EUROPE
    * OUTLOOK 2022/2023: REVENUE GROWTH (IN LOCAL CURRENCIES): -4% TO 5%
    * Q1 RESULT FOR PERIOD WAS A LOSS OF DKK 100M (Q1 21/22: PROFIT OF DKK 1M).
    * Q1 GROSS MARGIN WAS 36.6%, ADVERSELY IMPACTED BY PRODUCT MIX, HIGHER COST FOR COMPONENTS
PURCHASED LAST YEAR, LOCKDOWNS AND SALE OF A LARGE QUANTITY OF EARPHONES AT A LOWER PRICE
    * WILL CONTINUE TO INVEST IN BUILDING ROBUSTNESS, AND LAUNCH OF PRODUCTS AND INITIATIVES
THAT CAN
HELP DRIVE GROWTH IN SHORT-TERM
    * OUTLOOK 2022/2023: EBIT MARGIN BEFORE SPECIAL ITEMS: -2% TO 3%
    * Q1 EBIT LOSS WAS DKK 85 MILLION VERSUS PROFIT DKK 7 MILLION YEAR AGO
    * OUTLOOK FOR 2022/23 IS SUBJECT TO UNUSUALLY HIGH UNCERTAINTY RELATED TO CONSUMER
CONFIDENCE DUE
TO HIGH INFLATION, RISING INTEREST RATES AND WAR IN UKRAINE, WHICH, IN COMBINATION, HAVE
INCREASED RISK OF RECESSION

Source text for Eikon:  ID:nGNE1lvP7G 
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