Half-Year Financial Overview
Danish luxury audio-visual company Bang & Olufsen has announced its financial results for the first half of the 2025/26 fiscal year, covering the period up to November 2025. The report indicates a 1.2% decline in group revenue in local currencies. Despite this, the company's branded channels experienced a positive growth of 5.4% in local currencies. Total reported revenue for the period reached DKK 676 million, marking a 3.2% decrease year-on-year.
The gross margin saw an improvement, rising to 57.9% from 53.7% in the previous year, with product sales achieving a record-high margin. However, the EBIT before special items stood at DKK -36 million, resulting in an EBIT margin of -5.3%. Excluding one-off costs of approximately DKK 38 million related to the company's centennial celebrations, the EBIT margin would have been around 0%. Free cash flow for the period was reported at DKK -33 million.
Strategic Initiatives and Product Launches
Interim CEO and CFO Nikolaj Wendelboe attributed the slight revenue decline primarily to the timing of new product introductions, specifically the Beo Grace earbuds and the Beosound Premiere soundbar. These launches, along with the opening of new flagship stores in Paris and San Francisco, are expected to contribute to revenue growth in the latter half of the fiscal year.
The second quarter of the fiscal year also marked Bang & Olufsen's 100th anniversary, celebrated with various events and brand campaigns globally. The company's strategic focus continues to include optimizing its retail network, expanding its product portfolio, and enhancing brand awareness.
Outlook for the Fiscal Year
Looking ahead, Bang & Olufsen has narrowed its financial guidance for the full 2025/26 fiscal year. The company now anticipates revenue growth in local currencies to be between 1% and 5%, a revision from the previous range of 1% to 8%. The adjusted operating margin is still projected to range from -3% to 1%. The forecast for free cash flow has been revised to between -DKK 100 million and -DKK 50 million, compared to the earlier range of -DKK 100 million to 0 million.
5 Comments
BuggaBoom
Their branded channels are growing strong. The core business seems healthy and resilient.
Eugene Alta
It's encouraging to see growth in branded channels, suggesting strong customer loyalty. However, the negative free cash flow and overall revenue dip point to broader market challenges that B&O needs to address strategically.
Noir Black
The luxury market is tough. B&O just isn't keeping up with modern demands.
Raphael
B&O consistently delivers high-quality, premium products, which is reflected in their strong gross margin. The company's main challenge, however, continues to be consistently translating that product excellence into sustainable profitability and positive cash flow amidst intense competition.
Coccinella
Gross margin is up, showing efficiency! That's a good sign for future profitability.