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Group Revenue: Declined by 1% year-on-year.
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Gross Margin: Increased to 53.7%, up 0.6 percentage points year-on-year.
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EBIT Margin Before Special Items: 1.7%, compared to 3% in Q2 last year.
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Free Cash Flow: Increased to DKK30 million, up DKK6 million from last year.
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Capital Increase: Raised DKK228 million through issuance of new shares.
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Store Network: Reduced monobrand stores in EMEA by 28 to 270 stores; reduced monobrand stores in Asia Pacific by 3.
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Win Cities Sell-Out Growth: 24% growth across channels.
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Branded Channels Sell-Out Growth: 5% growth.
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Revenue by Region: EMEA grew 3%, Americas increased 17%, APAC decreased 13% in local currencies.
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Product Category Performance: Staged category grew 9%, Flexible Living declined 10%, On-the-go declined 13%.
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Net Working Capital: Decreased by DKK32 million to DKK250 million.
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CapEx: DKK54 million for Q2, expected to increase in the second half of the financial year.
Release Date: January 10, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Bang & Olufsen AS (BGOUF) reported a gross margin increase to 53.7%, showing progress in building a robust financial foundation.
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The company's 'Win cities' initiative generated a 24% sell-out growth, indicating successful strategic focus.
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The launch of the flagship headphone H100 exceeded demand expectations, reflecting strong market reception.
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Bang & Olufsen AS (BGOUF) completed a capital increase, raising DKK228 million to fund strategic execution and drive long-term growth.
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The Americas region saw a strong performance with a 17% revenue increase in local currencies, supported by double-digit growth across channels.
Negative Points
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Overall group revenue declined by 1% due to negative growth in China, impacting the company's financial performance.
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The APAC region experienced a 13% revenue decrease in local currencies, with China accounting for a significant portion of the decline.
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EBIT margin before special items decreased to 1.7% from 3% in the previous year, affected by increased development costs.
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The Flexible Living and On-the-go categories saw declines of 26% and 5% respectively, reflecting challenges in these segments.
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The gross margin in the APAC region declined from 51.6% to 47.4%, impacted by a change in product mix and lower revenue levels.
Q & A Highlights
Q: Could you explain the impact of centralizing your global sales structure and not having a regional base structure? A: Kristian Tear, CEO: The centralization aims to enhance focus on strategic cities by allocating more resources locally. The successful EMEA operating model will be implemented globally, and a new partner distribution sales organization will be established to find new partners, particularly in North America. Additionally, more emphasis will be placed on hospitality, which has shown success.