Bang & Olufsen a/s Group Annual Report 2011/12
8/15/2012 2:19 AM EST
Bang & Olufsen A/S
Annual report/ annual accounts
Bang & Olufsen a/s Group Annual Report 2011/12
Please see attached Annual Report 2011/12 and attached announcement for Q4
2011/12.
“In line with the announced expectations for the 2011/12 financial year, the
Bang & Olufsen a/s Group realised revenue of DKK 3,008 million and a profit
before tax of DKK 104 million, with an EBIT-margin of 4.1%,” says CEO Tue
Mantoni.
“During a strong fourth quarter, where our topline increased 22% compared to
last year, B&O PLAY introduced a new TV family, BeoPlay V1, and two new audio
products, BeoPlay A3 and BeoPlay A8. In the fourth quarter, Bang & Olufsen also
announced that the company’s audio systems in the future will be part of the
equipment list for a number of new car models.”
Headlines
• The Group’s revenue was DKK 867 million for the fourth quarter of the 2011/12
financial year compared to revenue of DKK 711 million last year. This is an
increase of 22%.
• The B2C business line recorded revenue of DKK 688 million in the fourth
quarter of the 2011/12 financial year compared to DKK 555 million in the same
period last year. The growth was driven primarily by new product launches and a
favorable impact on TV sales from the European Championships in football. The
B2B business line recorded revenue of DKK 136 million in the fourth quarter of
the 2011/12 financial year compared to revenue of DKK 136 million in the same
period last year.
• The Group’s gross margin for the fourth quarter of the 2011/12 financial year
was 40.6% against a gross margin of 39.2% in the same period last year.
• The profit before tax for the fourth quarter was DKK 77 million against DKK 8
million last year.
• Free cash flow in the fourth quarter was negative at DKK 47 million compared
to a negative figure of DKK 22 million in the same period last year. The
Group’s net working capital was DKK 613 million at the end of the 2011/12
financial year. The net working capital has increased by DKK 162 million from
DKK 451 million at the end of financial year 2010/11. This is primarily a
result of the significant amount of new products launched late in the quarter
adversely impacting accounts receivables and inventories.
• The Group’s total revenue for the 2011/12 financial year was DKK 3,008
million against DKK 2,867 million last year, which is an increase of 5%. The
profit before tax for the 2011/12 financial year was DKK 104 million against
DKK 40 million last year. In the 2011/12 financial year, the positive net
impact from non-recurring items was DKK 3 million, compared to negative one-off
items of DKK 32 million last year. Free cash flow in the 2011/12 financial year
was negative DKK 155 million compared to positive DKK 2 million last year.
Outlook
The challenging macroeconomic outlook, the low level of consumer confidence and
the company’s high exposure to Europe lead to an uncertain trading environment
ahead. However, due to the company’s strong innovation pipeline and the
continued implementation of the strategic initiatives from the “Leaner, Faster,
Stronger” strategy, we expect double-digit revenue growth in 2012/13 driven
mainly by Automotive and B&O PLAY.
The core AV business will remain challenged due to two factors: 1. Exposure to
Europe remains high and trading conditions in the region continue to be tough
2. The impact from key improvement initiatives like retail network
restructuring takes time to materialise. This is consistent with the
communication made at the launch of the “Leaner, Faster, Stronger” strategy,
that the first two years represent a transition period to prepare the business
for future growth.
We expect Q2 and Q3 to be strong compared to last year, the timing driven
primarily by product launches and updates. Q1 and Q4 represent tough
comparisons and no or moderate growth can be expected in these quarters.
We expect an improved EBIT-margin compared to the previous year, despite
increased amortisation charges on development projects.
Any enquiries about this announcement can be addressed to: President & CEO Tue
Mantoni, tel.: +45 9684 5000.
A webcast will be hosted on 15 August 2012 at 10.00. Access to the webcast is
obtained through our home page www.bang-olufsen.com