B&O Bleeding Revenue, Profits & Shares Plunge
Premium audio Company Bang & Olufsen who have struggled in Australia for several years, has again delivered another loss with their share value down 72% this year.
In their latest filing the Danish Company reported a loss A$21M for the quarter with market share in Asia Pacific falling by 27%.
Dealers who took on the brand are struggling to get traction for the Companies products with many now reducing the level of orders placed with the Company whose products are seen as being expensive and niche.
The Company is blaming high inflation, rising interest rates, the war in Ukraine as well as the collapse of demand in China for their problems.
Revenue continued to be weighed by lockdowns in China while increased uncertainty and declining consumer confidence led to some retail partners reducing their inventories and being more cautious when replenishing.
Margins were also hit by a poor product mix, higher cost for components and ongoing discounting in the headphone market.
Revenue overall fell 8.2% to A$124M during its first quarter as the business struggled to get traction for their products despite several new product launches during the past quarter.
Sales in Europe, the Middle East and Africa dropped 2% in the three months to August with demand moving to “outdoor products” rather than home entertainment due to hot weather conditions over the summer.
The business said that “uncertainty and declining consumer confidence” had led to some of the company’s retail partners “reducing their inventories and being more cautious when replenishing.”
Kristian Teär, boss of the group, said: “The challenging macroeconomic environment continued in the first quarter of 2022/23, which, seasonally, is our smallest quarter of the year”.
“Regional lockdowns and the economic climate in China had a direct impact on our sales, and rising interest rates, the war in Ukraine and higher inflation affected consumer confidence across Europe. As a result, revenue declined compared to last year.”
“We can see our strategy is working. We have created a strong portfolio with award-winning products and significantly improved our sales and marketing efforts, which will help us realise our growth potential. We have a strong focus on our cost base, adjusting our investment plans to reflect the high uncertainty.”