Bang & Olufsen: power cut as Q3 loss increases in China

(CercleFinance.com) - Bang & Olufsen said Friday it suffered an operating loss in Q3 2022/2023 as the upmarket electronics group suffered from falling sales in China.


The Danish TV and hi-fi maker said it suffered an operating loss of 43 million DKK (almost E6m) in the three months to end-February, compared with a token profit of 6 million DKK a year ago.

In a statement, the group reported an 18% drop in sales over the quarter, mainly due to a 65% collapse in sales in China.

It explained that the change in Beijing's health policy led to an upsurge in the Covid-19 epidemic in December which weighed heavily on demand.

Following these difficulties, Bang & Olufsen said it had adjusted its FY forecasts, now expecting FY sales to fall by 3% to 9%, with a negative operating margin expected at between -1% and -4%.

B&O shares were down nearly 4% in early afternoon trading on the Copenhagen Stock Exchange, although are still up about 14% YTD.



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