Bang & Olufsen: sales drop, but profitability improves
(CercleFinance.com) - Danish luxury electronics maker Bang & Olufsen reported a fall in quarterly sales on Tuesday, with hitches in the transformation of the company's distribution network.
Overall, group revenue declined by 9% to 909 million Danish kronor (c. 122 million euros) in the second quarter 2018/2019.
The new outsourced logistics setup, which is located in central Europe and managed by a partner, did not go according to plan, the group said, resulting in delivery issues.
Despite these challenges, profitability improved in the second quarter, due to the asset-light operating model that the company has deployed over the past few years.
Second-quarter EBIT was 90 million Danish kronor, against 83 million Danish kronor last year, meaning a 2% improvement in its operating margin.
B&O shares were jumping 5.3% at 98.1 Danish kronor towards lunchtime today, outperforming Copenhagen's bluechip index, which is up 0.5%.
As a reminder, on 19 December the group reduced its revenue outlook for 2018/2019.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Overall, group revenue declined by 9% to 909 million Danish kronor (c. 122 million euros) in the second quarter 2018/2019.
The new outsourced logistics setup, which is located in central Europe and managed by a partner, did not go according to plan, the group said, resulting in delivery issues.
Despite these challenges, profitability improved in the second quarter, due to the asset-light operating model that the company has deployed over the past few years.
Second-quarter EBIT was 90 million Danish kronor, against 83 million Danish kronor last year, meaning a 2% improvement in its operating margin.
B&O shares were jumping 5.3% at 98.1 Danish kronor towards lunchtime today, outperforming Copenhagen's bluechip index, which is up 0.5%.
As a reminder, on 19 December the group reduced its revenue outlook for 2018/2019.
Copyright (c) 2019 CercleFinance.com. All rights reserved.