Interim Report 1st half-year 2017/18 (1 June 2017 - 30 November 2017)
January 11 2018 - 2:02AM
Interim Report 1st half-year 2017/18 (1 June 2017 - 30 November
2017)
Company announcement No 17.12
Q2 highlights
“In the second quarter, we delivered double-digit growth and
improved our profitability, and we remain on track for the full
year. The result was driven by strong sales in B&O PLAY, cost
control and positive developments across all markets. All in all, I
am pleased with the progress that we have made in the first 6
months. It underlines that we have a strong product portfolio and
that our continued focus on creating a scalable business model is
paying off”, says CEO Henrik Clausen.
Second quarter 2017/18
The Group realised a revenue growth of 15 per cent. The revenue
of the B&O PLAY business unit increased by 30 per cent, and the
revenue of the Bang & Olufsen business unit increased by 4 per
cent. The growth was driven by a combination of strong sales of
both existing and new products with good development across all
markets.
As expected, the gross margin for the Group was on par with last
year (41.2 per cent), but with a higher share of the revenue coming
from the B&O PLAY business unit.
Capacity costs in the underlying business increased by 3.5 per
cent, mainly due to higher depreciations. Excluding the effect from
the higher depreciations, capacity costs were slightly below last
year.
EBITDAC in the underlying business was DKK 135 million against
DKK 70 million last year. The company’s ability to increase revenue
without increasing capacity costs was key to the improved
profitability.
Free cash flow was positive DKK 44 million against DKK 131
million last year. Last year, free cash flow included the escrow
payment from HARMAN of DKK 93 million, and excluding this impact
free cash flow improved by DKK 6 million.
First half year 2017/18
The Group’s total revenue for the first half of 2017/18 was DKK
1,591 million, corresponding to an increase of 15 per cent, which
was driven by 25 per cent growth in the B&O PLAY business unit
and 8 per cent growth in the Bang & Olufsen business unit
compared to last year. EBITDAC in the underlying business for the
first half of 2017/18 was DKK 93 million, which was an improvement
of DKK 90 million compared to last year, while EBIT in the
underlying business was DKK 5 million compared to negative DKK 52
million last year. Free cash flow in the first half of 2017/18 was
negative DKK 114 million against DKK 99 million last year. The
development was mainly due to an increase in net working capital of
DKK 144 million compared to 31 May 2017.
Outlook
The Group expects to continue the growth momentum and increase
revenue by around 10 per cent compared to 2016/17, and to increase
the underlying EBITDAC margin to 8-10 per cent in 2017/18. The
Group’s free cash flow is expected to be positive in 2017/18. The
EBIT margin for the underlying business is expected to be around 3
per cent (previously 1-3 per cent) for 2017/18.
Any enquiries about this announcement can be addressed to:
Investor contact, Claus Højmark Jensen, tel.: +45 2325 1067 Press
contact, Jens Bjørnkjær Gamborg, tel.: +45 2496 9371 A webcast will
be hosted on 11 January 2018 at 10:00 CET. Access to the webcast is
obtained through our website www.bang-olufsen.com
http://prlibrary-eu.nasdaq.com/Resource/Download/6adf109e-eff5-4b01-9812-f80e89b73302
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