Gross margin improved to 53.3%, a 9-percentage point increase compared to last year. The gross margin increased throughout the year and ended at 54.3% in Q4. Normalised component and logistics costs since Q4 2022/23, a strong pricing focus, and a positive change in both channel and product mix drove the increase.
EBITDA before special items was
CEO
“We ended the year with a record high gross margin and the best operating profit in six years. While sales at
Financial highlights, FY 2023/24
- Revenue declined by 6% (-5% in local currencies) year-on-year. EMEA declined 3% (-3% in local currencies),
Americas declined by 8% (-6% in local currencies) and APAC declined by 9% (-5% in local currencies). Revenue declined mainly due to the discontinuation of multibrand stores. - Brand partnering & other activities declined by 10% (-9% in local currencies). This was mainly driven by reduced license income. Revenue related to the automotive industry grew year-on-year despite the impact from factory strikes in the US during the year. License income from HP declined year-on-year.
- Like-for-like sell-out grew by 3%. In APAC, sell-out grew by 22% driven by sell-out growth in
China of 34%, EMEA declined by 4%, while sell-out in theAmericas declined by 7%. - The gross margin was 53.3%, which was 9.1pp higher than last year, driven by the normalisation of component and logistics costs. In addition, the margin was favourably impacted by a strong focus on pricing and on improving margins across regions and product categories.
- EBITDA before special items was
DKK 300m (22/23:DKK 117m ) equivalent to an EBITDA margin before special items of 11.6%, compared to 4.3% last year. - EBIT before special items was
DKK 61m (22/23:DKK -105m ) equivalent to an EBIT margin before special items of 2.4%, compared to -3.8% last year. - The free cash flow was
DKK 11m (22/23:DKK -20m ).
Financial highlights, Q4 2023/24
- Revenue grew by 1.4% (3% in local currencies) year-on-year.
- The gross margin was 54.3%, an increase of 2.9pp from 51.4% in Q4 22/23.
- EBITDA before special items was
DKK 72m (Q4 22/23:DKK 66m ) equivalent to an EBITDA margin before special items of 11.0%, compared to 10.2% in Q4 of last year. - EBIT before special items was
DKK 12m (Q4 22/23:DKK 9m ) equivalent to an EBIT margin before special items of 1.8%, compared to 1.4% in Q4 of last year. - The free cash flow was
DKK 43m (Q4 22/23:DKK 27m ).
Strategic highlights, FY 2023/24
- Six new product innovations.
- Presence was strengthened in key cities by the opening of a relocated store in
New York , the opening of a new Flagship store inLondon and, at year-end, the opening of a new company-owned store inParis . In addition, the Win City Concept was initiated inHong Kong . - A new store concept was launched. The new flagship store in
London was the first to feature the store concept, and a roll-out plan has been initiated. - The execution of the Win City concept for
London ,Paris andNew York continued. For the full year,London sell-out was flat. This was mainly due to various issues impacting ability to operate at full capacity at theBicester Village outlet store and a generally toughened retail environment in theUK . By contrast, sell-out in the rest of theUK declined double-digit during the period. - In
Paris , sell-out was negative at 17%. Our monobrand partner could not operate the stores on full capacity during the year. In Q4 sell-out grew by 3% supported by double-digit growth in the company-owned stores. New York sell-out grew by 4%. The company-owned stores reported growth driven by a high double-digit performance by the SoHo store. The Madison store was closed for a few months due to the relocation.- The company continued to implement structural changes in the channel network and to reduce its presence in multibrand and eTail channels.
- In January,
Bang & Olufsen renewed the partnership with Scuderia Ferrari for the 2024 and 2025 seasons after a successful 2023 season. - At end of May, the company partnered with the luxury yacht brand, Riva, to create the ultimate sound for life on board the yachts.
- The customer base grew by 19% and the number of customers owning two or more
Bang & Olufsen products increased by 14% year-on-year.
Outlook 2024/25
With reference to company announcement no. 24.02, the outlook for 2024/25 is based on the assumption of a capital increase enabling increased investments as described in relation to the medium-term ambitions. The company's outlook for the financial year 2024/25 is as follows:
| -3% to 3% |
| -2% to 1% |
| -100m to 0m |
Please see the Annual Report 2023/24 for further details on outlook and assumptions.
Conference call for analysts and investors
The company will host a webcast on
The webcast can be accessed at https://bangolufsen.eventcdn.net/events/full-year-report
Dial-in details for participants in the Q&A:
DK: +45 78768490
US: +1 6467870157
Pincode: 193621
For further information, please contact:
Cristina Rønde Hefting
Investor Relations
Phone: +45 4153 7303
Jens Bjørnkjær Gamborg
Phone: +45 2496 9371
Attachments
- BO_2403_annual report 2023-24_UK
- B&O_Annual report 2023-24
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