(CercleFinance.com) – Bang & Olufsen announced on Wednesday that the growth of its annual turnover would be at the lower end of its initially communicated range due to the lower dynamism of the Asia Pacific region and the postponement of a launch of product.
The Danish high-end electronics manufacturer said its free cash flow would also be at the lower end of its previous targets.
BO has so far targeted growth in its turnover of 0% to 9% in local currencies for its 2023/2024 financial year, which will close at the end of May, for a ‘free cash flow’ of between -50 and +100 million Danish crowns.
Its operating margin (Ebit) before exceptional items is still anticipated between 0% and 6%.
In its second quarter, ended at the end of November, the group saw its turnover expressed in local currencies fall by 16% due to the slowdown in the Chinese market, which was added to an unfavorable base effect after the successful launch of Beosound Theater soundbar last year.
The company says it has also suffered from its decision to sell certain multi-brand stores as part of the implementation of its new strategy.
The operating margin (Ebit) before exceptional items stood at 3%, an improvement of 1.4 percentage points from one year to the next.
Following this publication, the stock lost more than 7% on Wednesday on the Copenhagen Stock Exchange, but still posted a gain of more than 16% over the last 12 months.
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