The Group recorded a total turnover of DKK 2,790 million for the 2008/09
financial year against DKK 4,092 million last year, which is in line with the
announced.
The Group's gross margin was 39.6 per cent against 46.2 per cent in 2007/08.
Operating losses totalled DKK 496 million, of which DKK 106 million relates to
restructuring costs, against operating profits of DKK 195 million for the
2007/08 financial year. Result before tax was negative at DKK 523 million
against the Group's stated expectations for a negative result of DKK 510
million. Result before tax for the 2007/08 financial year was positive at DKK
154 million.
The result before tax was negatively affected by two lawsuits, where Bang &
Olufsen was sued by French dealers. At first, Bang & Olufsen won both cases,
but subsequently lost on appeal in June 2009. As a result of the ruling of June
2009, DKK 12.3 million has been expensed.
In the 2008/09 financial year, Bang & Olufsen Automotive recorded a turnover of
DKK 174 million and a positive result, which is in line with previously
announced expectations.
The Group's Pole Position strategy plan, which was launched in October 2008,
was implemented as planned during the financial year.
In keeping with the strategy plan, Bang & Olufsen has focused the product
development aimed at launching more new products. Among others, a global launch
of the digital music system BeoSound 5, BeoVision 4-103 and BeoVision 8-40 was
completed.
The Group also succeeded in reducing general cost levels, which has resulted in
a lowering of the breakeven turnover.
The Group has significantly reduced its working capital following a reduction
in its liquidity tie-up in receivables and inventories. This has contributed to
positive cash flows from operating activities.
As expected, the 2008/09 financial year saw a net reduction in the number of B1
shops of 64 to 758 shops.
During the fourth quarter, the Group completed a fully subscribed preferential
subscription rights issue, which yielded gross proceeds of approx. DKK 459
million corresponding to net proceeds of approx. DKK 433 million after costs
relating to the offer.
Bang & Olufsen expects that the 2009/10 financial year as a whole will result
in a break-even result before tax based on a turnover level a little below the
previously announced DKK 3,200 million.
Jørgen Worning Karl Kristian Hvidt Nielsen
Chairman President & CEO
For further information:
President & CEO Karl Kristian Hvidt Nielsen, tel.: +45 9684 5000.
