Bang & Olufsen A/s · OMXCOP:BO
Bang & Olufsen A/s — Q4 2024 Earnings Presentation
22 slides from Bang & Olufsen A/s's earnings presentation, Jul 4, 2024
Slide 1: Full Year and Q4 2023/24 Webcast presentation
Juli 2024 FULL YEAR AND Q4 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 # Mid-term ambitions and Outlook 24/25 # Financial Performance in Q4 3|
Slide 4: Positive earnings and continued focus on luxury positioning despite challenging markets
Positive earnings and continued focus on luxury positioning despite challenging markets Q4 2023/24 FY 2023/24 Revenue Highlights DKK 655m DKK 2,588m 3% growth in local currencies -5% growth in local currencies • Like-for-like sell-out growth of 3%. • Record high gross margin. • Positive EBIT margin
Slide 5: Strategic highlights from the year
Strategic highlights from the year • Luxury positioning: Partnerships with Ferrari and Riva, new brand ambassador, Charles Leclerc. • Customer base up by 19%, number of customers Luxury Timeless owning two or more products up by 14%. • Continued channel optimisation and pricing. • Six product innova
Slide 6: Tapping into market potential by accelerating strategy execution
Tapping into market potential by accelerating strategy execution Growing Luxury Audio Revenue We are on the right track EBIT margin bsi & TV market • Strategic initiatives has yielded results 2,950 2,630 2,748 2,588 • Increasing customer base 2,021 B&O’s current • Strong product portfolio 1.8% marke
Slide 7: Accelerating the execution of our five strategic shifts to drive profitable growth
We are accelerating the execution of our five strategic shifts to drive profitable growth Strategic shifts #1 #2 #3 #4 #5 Brand Product portfolio Retail experience Win key cities Adjacent businesses Further enhance brand Investing in our product Optimisation of the monobrand store network and store
Slide 8: Mid-term financial ambitions 25/26 – 27/28
Mid-term financial ambitions 25/26 – 27/28 Organic growth EBIT margin bsi* Free cash flow 8% 8% DKK 250m . in 27/28 CAGR 25/26 – 27/28 in 27/28 Assumptions: The financial ambitions are based on constant currencies and on the current political and economic environment and projections. Any change to t
Slide 9: Key building blocks to generate revenue growth and margin expansion
Key building blocks to generate revenue growth and margin expansion Investments: CAGR of 8% 25/26 – 27/28 2025/26 – 27/28 CAPEX: Annual capex expected to be around 30% - 40% higher than the expected level for 24/25. Capacity costs: Revenue 23/24 Outlook 24/25 Brand awareness Channel development Grow
Slide 10: Outlook for 2024/25 - an investment year
Outlook for 2024/25 - an investment year Revenue growth in EBIT margin bsi* Free cash flow local currencies The outlook is based on the DKK planned accelerated strategic Outlook -3% to 3% -2% to 1% -100m to 0m execution, including a capital FY 2023/24 increase enabling increased investments as descr
Slide 11: Financial Performance in Q4
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Slide 12: Like-for-like sell-out reflected improved market demand in China
Like-for-like sell-out reflected improved market demand in China compared to Q4 last year Regions Product Categories Regions -5% 9% • EMEA: Monobrand was impacted by softer demand in Europe, especially EMEA Staged UK, Germany and Scandinavia. -2% • Americas: Company-owned stores grew, monobrand and
Slide 13: Group revenue increased 3% in local currencies year-on-year
Group revenue increased 3% in local currencies year-on-year DKKm Group revenue Product sales Brand partnering & other activities DKKm 26.1% -2.2% DKKm 1.4% 24% in LC 0% in LC 3% in LC 754 859 625 105 103 551 564 542 543 552 92 520 84 82 77 75 71 700 646 655 635 612 619 614 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 14: Product revenue on par year-on-year in local currencies
Product revenue on par year-on-year in local currencies EMEA Americas APAC EMEA: Up 1% in LC DKKm 0.6% DKKm DKKm -11.3% Strong performance from 106 9.2% (-6% in LC) 400 (1% in LC) (12% in LC) 248 Enterprise. 218 211 333 342 78 309 303 311 73 71 72 184 180 293 63 67 70 172 163 Americas: Up 12% in LC
Slide 15: Record-high gross margin and positive EBIT margin bsi throughout the year
Record-high gross margin and positive EBIT margin bsi throughout the year % Gross margin % EBIT margin bsi* 0.4pp 2.9 pp 2.6% 3.0% 1.6% 1.4% 1.8% 1.8% 53.1% 53.2% 54.3% 51.4% 52.6% 44.4% 43.6% 36.6% -6.8% -14.1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022/23 2023/24 2022/23 2023/24 *Before
Slide 16: Capacity costs increased mainly due to cost related to reorganisation
Capacity costs increased mainly due to cost related to reorganisation Capacity costs Development costs Distribution & marketing costs Administrative costs DKKm DKKm DKKm DKKm 16.6% 37% 23.1% 12.4% 38 37 369 380 263 35 355 86 255 33 33 246 335 326 81 80 234 31 309 309 318 216 215 217 29 69 71 72 205
Slide 17: Focus on working capital - Inventory level reduced
Focus on working capital - Inventory level reduced since 2022/23 Net working capital Inventory Trade receivables Trade payables DKKm DKKm DKKm DKKm 445 624 396 632 648 335 568 325 365 565 311 499 499 341 286 297 478 460 469 327 327 506 320 309 269 263 447 451 424 222 403 401 11.2% 11.4% 9.6% 8.1% 11
Slide 18: Positive free cash flow of DKK 43m for the quarter
Positive free cash flow of DKK 43m for the quarter Free cash Flow CAPEX Capital resources DKKm DKKm DKKm Intangible 43 Tangible 384 33 27 24 344 337 328 323 318 307 310 1 5 69 71 58 57 11 53 14 12 48 43 42 19 17 11 15 10 55 60 46 -61 36 38 33 32 32 -81 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 19: Summary
tated BEELER REEL
Slide 20: Summary
Summary Margins significantly improved, generating positive EBIT margin and best EBIT performance in six years. Strategic focus: • Partnerships reinforcing our luxury positioning. • Channel optimisation and pricing. • Four new or relocated company-owned stores during the year. • Launched new iconic
Slide 21: Q&A
Q&A
Slide 22: Investor Relations Contact
INVESTOR RELATIONS CONTACT Cristina Rønde Hefting +45 41 53 73 03 crrh@bang-olufsen.dk