HIGHLIGHTS
"The revenue development in AV remains challenging, whereas our investments in new product innovation continue to pay off evidenced by the success of BeoVision 11, B&O PLAY and Automotive. The quarter was negatively impacted by the accelerated transformation of our retail network, as we transition to fewer, more productive stores in Europe. We begin to see positive impact from our growth strategy in China however this is still not enough to compensate for the continued macro-economic weakness, especially in Europe-, says CEO Tue Mantoni.
-- The Group's revenue was DKK 655 million for the third quarter of the 2012/13 financial year compared to revenue of DKK 766 million in the same period last year. -- The B2C business recorded revenue of DKK 524 million in the third quarter of the 2012/13 financial year compared to DKK 638 million in the same period last year. Newly launched products such as BeoVision 11 and B&O PLAY products showed strong performance. -- The B2B business recorded revenue of DKK 131 million in the third quarter of the 2012/13 financial year compared to revenue of DKK 126 million in the same period last year. -- B2C revenue in Europe decreased by 37 per cent in the third quarter compared to the same quarter last year. The decline was seen in all European markets. North America increased by 2 per cent, whereas B2C revenue in BRIC markets increased by 67 per cent. The strong revenue growth in the BRIC markets is mainly driven by strong growth in Bang & Olufsen's own stores in Hong Kong and South China as well as sales related to the opening of new shops, whereas the takeover of the master dealer in mid-China continued, as expected, to have an adverse impact on the revenue in China. Revenue in Rest of World increased by 13 per cent. -- The Group's gross margin for the third quarter of the 2012/13 financial year declined to 34.9 per cent from 38.3 per cent in the same period last year. The decline is mainly due to a decline in the AV margin related to the low revenue resulting in relatively higher semi-variable costs, and an adverse effect from indirect production costs due to a reduction in inventory. -- Capacity costs were DKK 343 million in the third quarter, compared to DKK 271 million in the third quarter last year. The increase includes non-recurring costs mainly related to organisational changes and network restructuring of DKK 15 million. In addition the quarter is impacted by higher amortisation and lower capitalisation on development projects of DKK 19 million compared to the same quarter last year. Additional cost increases relate to an increased level of own retail, the establishment of a B&O PLAY organisation etc. -- Earnings before tax for the third quarter of the 2012/13 financial year were negative DKK 125 million against positive DKK 19 million in the same quarter last year. -- Free cash flow in the third quarter was positive at DKK 92 million compared to positive DKK 16 million in the same period last year. The Group's net working capital was reduced to DKK 708 million at the end of the third quarter of the 2012/13 financial year, compared to DKK 927 million at the end of the second quarter and DKK 525 million at the end of the third quarter of the 2011/12 financial year. -- The Group's total revenue for the first nine months of the 2012/13 financial year was DKK 2,074 million against DKK 2,140 million last year, a decrease of 3 per cent. Earnings before tax for the first nine months of the 2012/13 financial year were negative DKK 167 million against positive DKK 27 million last year. Free cash flow in the first nine months of the 2012/13 financial year was negative at DKK 261 million compared to negative DKK 108 million last year. -- On 29 January Bang & Olufsen announced the partership with Hengzhunzixun (Beijing) Co., (a JV between Sparkle Roll Group Ltd and Mr. Qi Jianhong), hereafter called Sparkle Roll. The company has agreed to open and operate B1 shops and dedicated B&O PLAY shop-in-shops in China. Sparkle Roll expects to open 3 B1 shops and more than 50 B&O PLAY shop-in-shops in the 2013 calendar year. -- As previously announced in company announcement no 12.21 from 22 March 2013 the revenue outlook for the 2012/13 financial year is expected to be in the range of DKK 2,800-2,900 million. The gross margin for the 2012/13 financial year is expected to be at the same level as the previous financial year, and the outlook for EBIT is a negative EBIT in the range of DKK 150-200 million for the 2012/13 financial year. The EBIT guidance for the 2012/13 financial year includes non-recurring costs of DKK 40 million mainly relating to organisational changes and network restructuring. In addition an adverse impact of more than DKK 100 million compared to last year is expected from higher amortisation and lower capitalisation of development projects, while continuing a high level of product development activity. -- After the end of the reporting period Bang & Olufsen and Universal Music Group have announced a new partnership dedicated to music excellence and sound experiences. In addition Bang & Olufsen has announced a new partnership with Spotify, the world's leading music streaming service and Spotify is now integrated into the BeoSound 5 music system. -- John Bennett-Therkildsen (Executive Vice President, Operations) has decided to retire from Bang & Olufsen in July 2014. John Bennett-Therkildsen will step down from Executive Management on 31 July 2013. John Bennett-Therkildsen will be replaced by Folkert Bölger who has been Head of Global Procurement since 1 August 2012. Prior to joining Bang & Olufsen, Folkert Bölger was Senior Vice President Procurement at Philips Health Care. Folkert Bölger will not be a member of Executive Management which hereafter will consist of CEO Tue Mantoni and CFO Henning Bejer Beck.
Any enquiries about this announcement can be addressed to:
CEO, Tue Mantoni, tel.: +45 9684 5000
Press contact, Morten Juhl Madsen, tel.: +45 4030 8986
Investors, Claus Hoejmark Jensen, tel.: +45 2325 1067
A webcast will be hosted on 5 April 2013 at 10.00. Access to the webcast is obtained through our homepage www.bang-olufsen.com
Attachment:
https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=426377
"The revenue development in AV remains challenging, whereas our investments in new product innovation continue to pay off evidenced by the success of BeoVision 11, B&O PLAY and Automotive. The quarter was negatively impacted by the accelerated transformation of our retail network, as we transition to fewer, more productive stores in Europe. We begin to see positive impact from our growth strategy in China however this is still not enough to compensate for the continued macro-economic weakness, especially in Europe-, says CEO Tue Mantoni.
-- The Group's revenue was DKK 655 million for the third quarter of the 2012/13 financial year compared to revenue of DKK 766 million in the same period last year. -- The B2C business recorded revenue of DKK 524 million in the third quarter of the 2012/13 financial year compared to DKK 638 million in the same period last year. Newly launched products such as BeoVision 11 and B&O PLAY products showed strong performance. -- The B2B business recorded revenue of DKK 131 million in the third quarter of the 2012/13 financial year compared to revenue of DKK 126 million in the same period last year. -- B2C revenue in Europe decreased by 37 per cent in the third quarter compared to the same quarter last year. The decline was seen in all European markets. North America increased by 2 per cent, whereas B2C revenue in BRIC markets increased by 67 per cent. The strong revenue growth in the BRIC markets is mainly driven by strong growth in Bang & Olufsen's own stores in Hong Kong and South China as well as sales related to the opening of new shops, whereas the takeover of the master dealer in mid-China continued, as expected, to have an adverse impact on the revenue in China. Revenue in Rest of World increased by 13 per cent. -- The Group's gross margin for the third quarter of the 2012/13 financial year declined to 34.9 per cent from 38.3 per cent in the same period last year. The decline is mainly due to a decline in the AV margin related to the low revenue resulting in relatively higher semi-variable costs, and an adverse effect from indirect production costs due to a reduction in inventory. -- Capacity costs were DKK 343 million in the third quarter, compared to DKK 271 million in the third quarter last year. The increase includes non-recurring costs mainly related to organisational changes and network restructuring of DKK 15 million. In addition the quarter is impacted by higher amortisation and lower capitalisation on development projects of DKK 19 million compared to the same quarter last year. Additional cost increases relate to an increased level of own retail, the establishment of a B&O PLAY organisation etc. -- Earnings before tax for the third quarter of the 2012/13 financial year were negative DKK 125 million against positive DKK 19 million in the same quarter last year. -- Free cash flow in the third quarter was positive at DKK 92 million compared to positive DKK 16 million in the same period last year. The Group's net working capital was reduced to DKK 708 million at the end of the third quarter of the 2012/13 financial year, compared to DKK 927 million at the end of the second quarter and DKK 525 million at the end of the third quarter of the 2011/12 financial year. -- The Group's total revenue for the first nine months of the 2012/13 financial year was DKK 2,074 million against DKK 2,140 million last year, a decrease of 3 per cent. Earnings before tax for the first nine months of the 2012/13 financial year were negative DKK 167 million against positive DKK 27 million last year. Free cash flow in the first nine months of the 2012/13 financial year was negative at DKK 261 million compared to negative DKK 108 million last year. -- On 29 January Bang & Olufsen announced the partership with Hengzhunzixun (Beijing) Co., (a JV between Sparkle Roll Group Ltd and Mr. Qi Jianhong), hereafter called Sparkle Roll. The company has agreed to open and operate B1 shops and dedicated B&O PLAY shop-in-shops in China. Sparkle Roll expects to open 3 B1 shops and more than 50 B&O PLAY shop-in-shops in the 2013 calendar year. -- As previously announced in company announcement no 12.21 from 22 March 2013 the revenue outlook for the 2012/13 financial year is expected to be in the range of DKK 2,800-2,900 million. The gross margin for the 2012/13 financial year is expected to be at the same level as the previous financial year, and the outlook for EBIT is a negative EBIT in the range of DKK 150-200 million for the 2012/13 financial year. The EBIT guidance for the 2012/13 financial year includes non-recurring costs of DKK 40 million mainly relating to organisational changes and network restructuring. In addition an adverse impact of more than DKK 100 million compared to last year is expected from higher amortisation and lower capitalisation of development projects, while continuing a high level of product development activity. -- After the end of the reporting period Bang & Olufsen and Universal Music Group have announced a new partnership dedicated to music excellence and sound experiences. In addition Bang & Olufsen has announced a new partnership with Spotify, the world's leading music streaming service and Spotify is now integrated into the BeoSound 5 music system. -- John Bennett-Therkildsen (Executive Vice President, Operations) has decided to retire from Bang & Olufsen in July 2014. John Bennett-Therkildsen will step down from Executive Management on 31 July 2013. John Bennett-Therkildsen will be replaced by Folkert Bölger who has been Head of Global Procurement since 1 August 2012. Prior to joining Bang & Olufsen, Folkert Bölger was Senior Vice President Procurement at Philips Health Care. Folkert Bölger will not be a member of Executive Management which hereafter will consist of CEO Tue Mantoni and CFO Henning Bejer Beck.
Any enquiries about this announcement can be addressed to:
CEO, Tue Mantoni, tel.: +45 9684 5000
Press contact, Morten Juhl Madsen, tel.: +45 4030 8986
Investors, Claus Hoejmark Jensen, tel.: +45 2325 1067
A webcast will be hosted on 5 April 2013 at 10.00. Access to the webcast is obtained through our homepage www.bang-olufsen.com
Attachment:
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© 2013 GlobeNewswire
