- The Group’s turnover for the 2010/11 financial year totaled DKK 2,867 million against DKK 2,762 million last year, which equates to an increase of 4 per cent. This is in accordance with previous guidance of a turnover level of DKK 2,850 million. Turnover for the fourth quarter was DKK 711 million against DKK 779 million for the same period last year, equating to a decrease of 9 per cent.
- The decline in turnover in the fourth quarter should be seen in the light of a tough comparison base as the previous year’s quarter recorded a growth of 26 per cent driven by the launch of BeoVision 10-46 and BeoLab 11 as well as the Football World Cup, which resulted in increased sales of video products.
- The result before tax for the 2010/11 financial year was positive at DKK 40 million against a negative result of DKK 50 million for the same period last year. This is in accordance with previous guidance of a result before tax in the region of DKK 40-50 million. Result before tax for the fourth quarter was positive at DKK 8 million against a positive result of DKK 22 million for the fourth quarter of 2009/10.
- The result before tax for the 2010/11 financial year is negatively affected by non-recurring items of DKK 32 million, of which DKK 14 million can be attributed to the costs associated with the departure of the former CEO, DKK 7 million relate to an impairment of a property put up for sale and DKK 11 million are due to an impairment of two development projects in the fourth quarter.
- The Group’s gross margin for the 2010/11 financial year was 40.3 per cent against a gross margin of 39.5 per cent for the same period last year. The Group’s gross margin for the fourth quarter was 39.2 per cent against 40.9 per cent for the same quarter in the 2009/10 financial year.
- The Group’s turnover for the audio-video division for the 2010/11 financial year was DKK 2,335 million against DKK 2,427 million for the corresponding period last year, which equates to a decrease of 4 per cent. For the fourth quarter, turnover for the audio-video division was DKK 566 million against 657 in the corresponding period 2009/10, equating to a decrease of 14 per cent.
- Automotive showed continued growth in the 2010/11 financial year with a turnover of DKK 452 million, equating to an increase of 69 per cent. In the fourth quarter, turnover amounted to DKK 120 million against DKK 101 million for the same period last year, which equates to an increase of 19 per cent.
- The number of B1-shops was increased by 4 shops during the fourth quarter, which means that the number of B1-shops by the end of the 2010/11 financial year equated to 690 compared to 703 shops by the end of the 2009/10 financial year.
- Bang & Olufsen rolls out a five year strategy plan ‘Leaner, Faster, Stronger’. The strategy outlines concrete steps to strengthen Bang & Olufsen’s focus on developing integrated audio-video solutions and market these around the world through a network of dedicated retailers.
- The aim of the strategy plan is to realise the company’s full potential, which is believed to be in the range of DKK 8-10 billion in turnover with EBIT margins exceeding pre-crisis levels of 12 per cent. The speed of implementation will be impacted by, in a favourable or adverse way, the development in the company’s financial resources. During the first two financial years (2011/12 and 2012/13) the attention will be on regaining a leading position within Bang & Olufsen’s key areas of strengths and building a more effective, globalised and customer-focused organisation.
- In connection with the definition of Bang & Olufsen’s new five-year strategy, a detailed analysis of the Board of Management composition and structure has been prepared. The strategy will be executed through a flatter organisation focused on the customers and dealers. As a consequence, Christian Winther steps down as Executive Vice President, Sales & Marketing in Bang & Olufsen a/s as of 30 November 2011.
- Bang & Olufsen expects the 2011/12 result before tax to be in the level of DKK 100 million based on a turnover level exceeding DKK 3,000 million.
Ole Andersen Tue Mantoni
Chairman President & CEO
Enquiries about this statement can be addressed to: President & CEO Tue Mantoni,
tel: +45 9684 5000.
