Bang & Olufsen A/s · OMXCOP:BO
Bang & Olufsen A/s — Q3 2024 Earnings Presentation
20 slides from Bang & Olufsen A/s's earnings presentation, Apr 10, 2024
Slide 1: Q3 2023/24 Webcast presentation
April 2024 Q3 2023/24 Webcast presentation
Slide 2: Disclaimer
Disclaimer This presentation does not constitute or form part of and should not be construed as an offer to sell or issue or the solicitation of an offer to buy or acquire securities issued by Bang & Olufsen a/s in any jurisdiction, including the United States of America, Canada, Australia, Japan or
Slide 3: Agenda
Agenda # Key Highlights # Strategy Update # Financial Performance in Q3 # Outlook 3|
Slide 4: Positive earnings and strategic transition progressing, revenue challenged by macro
Positive earnings and strategic transition progressing, revenue challenged by macro Record-high gross margin Challenged markets Outlook FY 23/24 Revenue outlook adjusted on 53.2% -2% 17 March 2024. Positive earnings for the full year still expected despite lower-than- Gross margin Sell-out growth ex
Slide 5: Margins significantly improved, generating positive earnings despite lower revenue level
Margins significantly improved, generating positive earnings despite lower revenue level Q3 2023/24 9M 2023/24 Financials DKK 614m Revenue DKK 1,933m • Positive earnings despite lower-than-expected revenue performance. • Record high gross margin – delivering a gross margin above 51% for the -3% grow
Slide 6: Strategic highlights from the quarter
Strategic highlights from the quarter Renewed Ferrari partnership Branded channels in focus. for 2024 and 2025 seasons. Activations and training. Luxury Timeless Local pop-up stores. Flagship store in London. . Pop-up store in Paris. Partnership with Waldorf Astoria Residences New York. Customer bas
Slide 7: Financial Performance in Q3
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Slide 8: Like-for-like sell-out reflected softer demand in EMEA and improved market activity in China
Like-for-like Sell-out reflected softer demand in EMEA and improved market activity in China compared to last year Regions Product Categories Regions -13% -10% • EMEA: Monobrand was impacted by EMEA Staged softer demand in Europe. -2% • Americas: Company-owned stores grew, monobrand and ecommerce de
Slide 9: Lower-than-expected revenue performance due to macroeconomic conditions
Lower-than-expected revenue performance due to macroeconomic conditions DKKm Group revenue Product sales Brand partnering & other activities DKKm -1.6% DKKm -3% 0% in LC -16.3% -3% in LC -17% in LC 754 859 625 551 564 542 543 105 520 92 84 82 77 75 71 700 635 646 612 619 614 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1
Slide 10: Product revenue flat year-on-year in local currencies
Product revenue flat year-on-year in local currencies EMEA Americas APAC DKKm -12.2% DKKm DKKm 24.1% -4.0% (27% in LC) (-12% in LC) (1% in LC) 248 400 106 218 211 342 333 309 303 184 180 EMEA: Down 12% in LC 293 172 73 72 239 63 71 67 70 145 Company-owned stores and our e-commerce delivered growth,
Slide 11: Margins significantly improved. Gross margin above 51% for fourth quarter in a row
Margins significantly improved. Gross margin above 51% for the fourth quarter in a row. % Gross margin % EBIT margin bsi* 9.6 pp 8.6pp 2.6% 3.0% 1.6% 1.4% 1.8% 52.6% 53.1% 53.2% 51.4% 44.4% 43.6% 36.6% -6.8% -14.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022/23 2023/24 2022/23 2023/24 *Before spe
Slide 12: Capacity costs 5% lower than Q3 of last year
Capacity costs 5% lower than Q3 of last year Capacity costs Development costs Distribution & marketing costs Administrative costs DKKm DKKm DKKm DKKm -5.1% -16.3% 0.5% -12.1% 38 255 35 86 246 33 33 81 234 31 72 216 215 217 29 369 69 71 205 27 355 65 63 335 326 309 309 318 11.3% 9.4% 13.5% 10.1% 10.2
Slide 13: Focus on working capital - Inventory level reduced since 2022/23
Focus on working capital - Inventory level reduced since 2022/23 Net working capital Inventory Trade receivables Trade payables DKKm DKKm DKKm DKKm 445 632 648 624 325 335 568 396 565 311 365 297 499 499 506 286 478 341 269 460 469 327 327 320 451 424 403 222 11.2% 11.4% 9.6% 8.1% 11.3% 11.0% 11.5%
Slide 14: Positive free cash flow of DKK 5m for the quarter
Positive free cash flow of DKK 5m for the quarter Free cash Flow CAPEX Capital resources DKKm DKKm DKKm Intangible 33 384 27 24 Tangible 337 328 323 318 5 307 310 1 69 58 57 53 14 48 12 43 42 17 19 11 15 10 55 -61 46 36 32 32 38 33 -81 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2
Slide 15: Outlook
Outlook
Slide 16: Revenue outlook 2023/24 adjusted March 2024; EBIT margin and free cash flow ranges narrowed
Revenue outlook 2023/24 adjusted 17 March 2024. The ranges for EBIT margin bsi* and free cash flow narrowed Revenue growth EBIT margin bsi* Free cash flow We adjusted our revenue outlook in local currencies due to the macroeconomic conditions in our key markets in Outlook DKK Europe and China. -8% t
Slide 17: Summary
Summary • Margins significantly improved, generating positive earnings despite lower-than- expected revenue performance. • Significantly improved gross margin – above 51% for the fourth quarter in a row. • Normalisation of component and logistics costs has lifted the margin level. • Margin improved
Slide 18: Q&A
Q&A
Slide 19: Investor Relations Contact
INVESTOR RELATIONS CONTACT Cristina Rønde Hefting +45 41 53 73 03 crrh@bang-olufsen.dk
Slide 20: Improved gross margin across product categories
Improved gross margin across product categories Gross margin, product categories Brand Partnering and Other % % Staged Flexible Living On-the-go 11.6pp 4.7pp 13.6pp -0.3pp 52.3 53.4 52.6 34.9 33.6 87.9 87.8 87.9 58.4 57.2 49.9 48.1 33.0 47.9 31.6 52.8 54.0 84.8 84.5 49.4 41.6 45.6 82.1 82.6 38.1 20.