Q1 2025 Bang & Olufsen A/S Earnings Call Transcript
Key Points
- Bang & Olufsen AS (BGOUF) achieved a record high gross margin of 55.2%, indicating strong financial performance.
- The company reported double-digit sell-out growth in its 'win cities' and single-digit growth in branded channels.
- The launch of the new flagship headphones, H100, has been successful, receiving positive market reviews.
- Bang & Olufsen AS (BGOUF) has entered a promising six-year technology licensing partnership with TCL, enhancing its audio presence in TCL's premium TV portfolio.
- The company is focusing on strategic investments to strengthen its luxury position, including brand awareness and retail network optimization.
- Revenue declined by 12% in local currencies compared to the previous year, attributed to strategic changes and high comparables from last year.
- The EBIT margin before special items was negative 3.1%, primarily due to lower revenue levels.
- Sell-out in the Americas declined by 7%, and like-for-like sell-out in APAC decreased by 2%, indicating regional challenges.
- The company experienced a significant reduction in multibrand stores, particularly in the US, impacting overall sales channels.
- Free cash flow for Q1 was negative, at minus DKK36 million, reflecting ongoing financial challenges.
Welcome to Bang & Olufsen interim report for the first-quarter 2024, '25 presentation. (Operator Instructions) This call is being recorded. I will now hand the call over to speakers. Please begin.
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Hello, everyone, and thanks for joining the call. With me today is our CFO, Nikolaj Wendelboe. I will start by taking you through our key highlights and business review. Nikolaj will take us through the financials in more detail, and I will conclude before we open up for questions.
If we move to next slide. Let us begin by looking at our Q1 performance. We delivered a first quarter in line with our plans and expectations. We had a decline in revenue of 12%. This was mainly due to a strong comparable first quarter last year, which was positively impacted by increased demand ahead of a planned price increase in the following quarter.
We improved our gross margin further to a record high 55.2%. This shows the
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