The Group's turnover for the first three quarters of the financial year was DKK 3,207 million against DKK 3,287 million for the same period last year. Medicom was recognised in the comparative figures for 2006/07 at DKK 101 million. Consequently, the Group has, in fact, recorded an increase in turnover of DKK 21 million. The Group's gross margin was 46.2 per cent compared to 47.1 per cent for the same period last year owing to a change in the product mix. Operating profit totalled DKK 219 million against DKK 415 million, while result before tax totalled 191 million against DKK 409 million, a decrease of DKK 218 million. Result before tax was among other things affected by non-recurring expenditures and a negative change in the net effect of capitalisation of DKK 58 million and increased distribution and marketing costs of more than DKK 50 million. The Group's third quarter turnover was DKK 1,041 million, equating to a decrease in turnover of DKK 177 million or 15 per cent. Result before tax for the quarter was a profit of DKK 41 million against DKK 171 million last year. In the first three quarters, the three largest markets, Denmark, Germany and the UK, recorded an overall decline in turnover of DKK 132 million of which DKK 118 million was in the third quarter. The North American market maintained its turnover level for the period as a whole, although the third quarter saw a decline of DKK 17 million. The Group's strongest growing geographical markets were the Expansion Markets, Japan, Asia-Pacific, France and Switzerland which recorded an overall advance in turnover of DKK 111 million in the three first quarters, of which DKK 18 million was in the third quarter. Between them, the business areas Automotive and Enterprise recorded an increase in turnover of DKK 81 million and Enterprise's order book has been particularly satisfactory. During the third quarter, Bang & Olufsen launched the BeoLab 10 loudspeaker and the ground-breaking, patented technology, Automatic Colour Management, which has further differentiated the plasma TV portfolio. The Group's strategy continues to be aimed at maintaining a high level of activity in the product development area, to open 50 new B1 shops per annum worldwide and to realise the significant potential within business areas such as Automotive and Enterprise as well as in a number of overseas markets. Turnover for the 2007/08 financial year is expected to be in the region of DKK 4,250 million and DKK 4,350 million while operating profit is expected to be between DKK 225 and 275 million. In accordance with the Group's announcement on March 14, 2008, result before tax is expected to be within the range of DKK 200 to 250 million. Jørgen Worning Peter Thostrup Chairman Executive Vice President For further information, please contact: Executive Vice President Peter Thostrup, tel.: +45 9684 5004.
Interim report for the period 1 June 2007 - 29 February 2008 for Bang & Olufsen a/s
| Source: Bang & Olufsen A/S