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- · The gross margin was 44.4%. This represents a 0.2pp decrease year-on-year. The marqin reflected an improved product mix, increased prices, offset by higher component costs (approx. 4.5pp).
- EBIT before special items was DKK 28m, equivalent to an EBIT margin of 3.5% (Q2 20/21: 4.1%).
- · Earnings for the period were a profit of DKK 10m compared to DKK 12m last year.
- Free cash flow was DKK 11m (Q2 20/21: DKK 139m). The year-on-year decline was related to last year's working capital improvement, partly offset by improved EBITDA.
- Available liquidity was DKK 534m (Q1 21/22: DKK 608m). The decline in the quarter was related to the purchase of treasury shares to cover outstanding LTIP programmes and settlement of the Danish Holiday Fund.
- · For the first six months of the financial year, Bang & Olufsen delivered 27% revenue growth in local currencies, EBIT before special items of DKK 37m (H1 20/21: DKK -11m) and a positive free cash flow of DKK 32m (H1 20/21: DKK 77m).
Progress on strategic priorities
Despite high activity levels for securing component supply, and re-working marketing execution adjusting to available supply, the company continued to deliver on the strategy at a steady pace.
- · The six European core markets delivered 8% growth, adjusted for product returns. The growth was driven by double-digit sell-out growth.
- The two Asian core markets delivered year-on-year growth of 32% in local currencies. The company finalised its China growth plan, with a strong emphasis on go to market tactics.
- · Americas grew 99% in local currencies, mainly driven by the partnerships with Verizon and BestBuy
- With the launch of two products innovations in Q2, the company is on track to deliver on the roadmap for 2021/22. In Q2, the company launched a pilot of the Bespoke Programme inviting customers to customize and individualize products to their preference.
- · In the first half of the year, a 16% growth in new customers was registered in the company's app.
Outlook
The company maintains the outlook for the financial year 2021/22, which is as follows:
| · Revenue: |
DKK 2.9bn to DKK 3.1bn |
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| • EBIT margin before special items: |
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7-4% |
| • Free cash flow: |
DKK Om to DKK 100m |
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The outlook is based on certain assumptions (see page 20 in the interim report for H1 2021/22) and continues to be subject to high uncertainty due to general pressure on supply chains and COVID-19.
Conference call for analysts and investors
The company will host a webcast on 12 January 2022 at 10:00 CET, where the financial development for Q2 21/22 will be presented.
The webcast can be accessed at https://streams.eventcdn.net/bo/q2202122/ Dial-in details for participants in the Q&A: DK: +45 7815 0109 UK: +44 333 300 9034 US: +1 646 722 4902
For further information, please contact:
Martin Raasch Egenhardt Investor Relations Phone: +45 5370 7439
Jens Bjørnkjær Gamborg Group Communications Phone: +45 2496 9371