Q1 Highlights
”The start to the year with moderate growth was anticipated due to delayed product launches, and the decline in the Bang & Olufsen segment was in line with our expectations. B&O PLAY continued the double-digit growth and delivered a good start to the year. Overall, we see solid progress ahead, supported by strong and relevant products in our pipeline,” says CEO, Henrik Clausen.
- The group realised a moderate revenue growth of 2 per cent. The Bang & Olufsen segment revenue declined by 16 per cent due to delayed product launches, whereas the B&O PLAY revenue increased by 41 per cent.
- The Group gross margin increased to 33.4 per cent from 32.5 margin last year, primarily due to improved gross margins in B&O PLAY.
- EBITDAC was negative DKK 67 million in the quarter compared to negative DKK 50 million last year. The decline in profitability was primarily a result of the decline in revenue in the Bang & Olufsen segment. The anticipated growth in the Bang & Olufsen segment, along with the continued growth in B&O PLAY, is expected to contribute to an improved EBITDAC for the full year.
- Free cash flow was negative DKK 32 million compared to negative DKK 168 million last year. The change was mainly related to an improved net working capital.
- The outlook for 2016/17 remains unchanged. Revenue for the Group is expected to grow compared to 2015/16, driven by double-digit growth in B&O PLAY and moderate growth in the Bang & Olufsen segment. EBITDAC for the underlying business is expected to improve compared to the EBITDAC of DKK 14 million in the underlying business in the 2015/16 financial year.
- On 12 September 2016, HARMAN and Ford Motor Company announced a collaboration that entails Ford offering B&O PLAY audio solutions for Ford’s vehicle lineup worldwide. This is expected to generate license fee income for the Group in the coming years.
- Launch of exciting new products including two new Bang & Olufsen TV models is expected to drive revenue growth in the segment in the coming quarters.
Any enquiries about this announcement can be addressed to:
Investor contact, Claus Højmark Jensen, tel.: +45 2325 1067
Press contact, Morten Juhl Madsen, tel.: +45 4030 8986
A webcast will be hosted on 4 October 2016 at 10:00 CET. Access to the webcast is obtained through our website www.bang-olufsen.com
