The recently released annual report of Bang & Olufsen shows a steep revenue increase of 31% in local currencies to DKK 2,629m. Whereas, EBIT before special items summed to DKK 38m, equivalent to a margin of 1.4%, up 16.4pp compared to 2019/20. Induced by revenue growth and lower net working capital, free cash flow was DKK 119m. Strong strategy execution aided by higher demand for home entertainment products is considered as the reason behind the enhanced financial performance. The company anticipates yielding double-digit revenue growth, backed by continued investments in demand creation and product portfolio consolidation. Also, the company looks forward to increasing profitability and delivering positive free cash flow while building endurance.
Kristian Teär, CEO, Bang & Olufsen states, “We are pleased with the progress we have made this year as we completed the first phase of our turnaround. We delivered double-digit growth, returned Bang & Olufsen to profitability, and improved our liquidity position. This is a major achievement and the result of the hard work of our passionate colleagues and partners. Despite being faced with many challenges related to the pandemic, they have executed diligently on our strategy, and I want to say a big thank you to all of them. Our financial results for 2020/21 demonstrate that our strategy is working. We reduced our cost base, improved our sales and marketing, and strengthened our digital capabilities and platforms. At the same time, with the launch of 14 new products in the past year we have created a much stronger product portfolio. All in all, we are in a stronger position as we enter the second phase of our strategy”.
“In 2021/22, we will maintain our current strategic direction. We will continue to focus on eight core markets, invest in product development, upgrade our ecosystem of connected products, and strengthen local sales and marketing. We expect to deliver double-digit revenue growth and improve our profitability. However, we expect uncertainty related to the global component shortage to persist throughout the financial year”, he added.