Interim Report, 1st quarter 2013/14, 1 June 2013 - 31 August 2013
| Source:Bang & Olufsen A/S
“Although we are beginning to see the results of our strategic transformation efforts, overall revenue declined six per cent in the first quarter of the 2013/14 financial year. B&O PLAY and Automotive continued to show revenue growth in the quarter achieving 19 per cent and 13 per cent growth respectively and BRIC revenue increased by 28 per cent driven primarily by strong progress in China. These positive developments were outweighed by continued challenges in the AV business, especially in Europe”, says CEO Tue Mantoni.
The Group’s revenue was DKK 566 million in the first quarter of the 2013/14 financial year compared to revenue of DKK 600 million in the same period last year, corresponding to a decline of six per cent, which was a lower rate of decline than in the previous quarters.
The B2C business recorded revenue of DKK 397 million in the first quarter of the 2013/14 financial year compared to DKK 440 million in the same period last year. B&O PLAY grew by 19 per cent compared to the same period last year, but this was not enough to outweigh the decline of 18 per cent in AV.
B2C revenue decreased compared to the same quarter last year in all markets except for BRIC which increased by 28 per cent. North America decreased by DKK 10 million to DKK 42 million and Rest of world decreased by DKK 10 million. Europe continued to decline and decreased by DKK 58 million compared to the same quarter last year.
The B2B business recorded revenue of DKK 173 million in the first quarter of the 2013/14 financial year compared to revenue of DKK 160 million in the same period last year, which was driven by a 13 per cent growth in Automotive.
The Group’s gross margin in the first quarter was 40.1 per cent, compared to a gross margin of 40.8 per cent last year. The decline in the gross margin was mainly a result of the decline in revenue resulting in relatively higher semi-variable costs.
Capacity costs were DKK 291 million in the first quarter, compared to DKK 306 million in the first quarter last year.
Earnings before tax for the first quarter of the 2013/14 financial year were negative DKK 68 million against negative DKK 64 million in the same quarter last year.
Free cash flow in the first quarter was negative DKK 70 million but improved by DKK 75 million compared to the same quarter last year. The Group’s net working capital was reduced to DKK 545 million at the end of the first quarter of the 2013/14 financial year compared to DKK 703 milion at the end of the first quarter last year and DKK 557 at the end of the 2012/13 financial year.
As previously communicated Bang & Olufsen acquired 20 shops from the previous master dealer Richcom in mid-China (including Beijing and Shanghai) on 1 June 2013.
The work to create a healthier retail network, with fewer, more productive stores is progressing as planned.
The 2013/14 financial year is the third year of the transition phase in the “Leaner, Faster, Stronger” strategy. The key focus for the year will be to continue to build a strong foundation that will prepare Bang & Olufsen for future growth, while ensuring a significant improvement in the financial results.
At the end of September Bang & Olufsen announced the introduction of a new wireless speaker platform at CEDIA 2013 tradeshow in Denver, Colorado. The platform is the first ever to use wireless technology that is robust enough for high-end digital sound. The new wireless technology by Bang & Olufsen incorporates WiSA’s (Wireless Speaker and Audio Association) open standard to achieve the ultimate sound performance in multi-channel wireless set up, and is a major step in terms of innovation.
Any enquiries about this announcement can be addressed to:
GlobeNewswire, a NASDAQ OMX company, is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.