Bang & Olufsen a/s - Interim Report 2012/13 for the period 1 June - 31 August 2012
ET | Source:Bang & Olufsen A/S
“As expected, first quarter revenue was only marginally above last year. The implementation of our strategy plan, “Leaner, Faster, Stronger”, remains on track and we maintain our guidance for 2012/13. Hence, we continue to expect double-digit growth and an improved EBIT-margin. The first quarter is a seasonally small quarter for Bang & Olufsen. Also, the quarter represents a tough comparison due to a significant impact from new product launches during the same period last year. With this in mind we are satisfied with the earnings for the first quarter of the 2012/13 financial year”, says CEO Tue Mantoni.
The Group’s revenue was DKK 600 million for the first quarter of the 2012/13 financial year compared to revenue of DKK 599 million in the same period last year.
The B2C business recorded revenue of DKK 440 million in the first quarter of the 2012/13 financial year compared to DKK 478 million in the same period last year. The B2B business recorded revenue of DKK 160 million in the first quarter of the 2012/13 financial year compared to revenue of DKK 122 million in the same period last year.
B2C revenue in BRIC markets and in North America increased by 6 per cent and 11 per cent respectively, whereas B2C revenue in Europe decreased by 16 per cent, mainly due to the significant impact a year ago from the launch of the BeoVision 7-55 3D and the BeoSound 5 Encore.
The Group’s gross margin for the first quarter of the 2012/13 financial year was 40.8 per cent against a gross margin of 38.6 per cent in the same period last year.
As expected, amortisation charges were DKK 21 million higher than last year and capitalised development projects were down by DKK 9 million compared to the same quarter last year. This has had an adverse impact on earnings before tax of DKK 30 million explaining the drop from a negative DKK 33 million last year to negative DKK 64 million in the first quarter of this year.
Free cash flow in the first quarter was negative at DKK 145 million compared to negative DKK 137 million in the same period last year. The Group’s net working capital was DKK 703 million at the end of the first quarter of the 2012/13 financial year, compared to DKK 534 million at the end of the first quarter of the 2011/12 financial year. This is mainly due to increased inventories which are built-up in advance of product launches in the second quarter, and a Christmas where Bang & Olufsen for the first time is selling newly launched B&O PLAY products.
For the 2012/13 financial year, an outlook of a double-digit revenue growth, and an improved EBIT-margin year-on-year is maintained.
After the end of the reporting period the previously announced strategic partnership with Sparkle Roll and A CAPITAL has been completed (cf. company announcements no 12.06 and 12.10). The new share issue has been carried out and paid in full, and A CAPITAL’s chairman André Loesekrug-Pietri has been elected member of the Board of Directors of Bang & Olufsen a/s.
Furthermore BeoPlay A9 was launched at the beginning of October, and BeoVision 11 will be launched on 10 October. It is expected that these two products will drive significant revenue in the second quarter.
Agreements have also been made with 19 third party stores in Asia and Europe, and with one online store in Asia, after the end of the reporting period.
Any enquiries about this announcement can be addressed to:
CEO Tue Mantoni, tel.: +45 9684 5000
Investor Relations, Claus Højmark Jensen, tel: +45 9684 1251 or +45 2325 1067
A webcast will be hosted on 10 October 2012 at 10.00. Access to the webcast is obtained through our home page www.bang-olufsen.com.
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