Bang & Olufsen (BO) investor relations material

Executive summary

• Revenue declined by 1.6% in local currencies for FY 2025/26, with Q4 revenue down 3.1% year-over-year.

• Gross margin reached a record 58.2% for the year, with Q4 at 58.7%, up from 55.0% and 51.7% respectively.

• EBIT margin before special items was negative at -0.5% for the year, but improved to 5.7% in Q4.

• Free cash flow was negative DKK 141m for the year, but positive DKK 5m in Q4.

• Strategic refocus included cost efficiency measures, a 5% workforce reduction, and retail network optimization.

Financial highlights

• FY 2025/26 revenue: DKK 2,468m; Q4 revenue: DKK 654m.

• Gross profit of DKK 1,436m, highest in eight years.

• Product gross margin for Q4 was 55.8%, up 4.1pp year-over-year.

• Tariff payments of DKK 24m were partly offset by a DKK 20m refund in Q4.

• Capital resources at DKK 294m at year-end; available liquidity DKK 94m.

Outlook and guidance

• FY 2026/27 revenue growth expected at 1–5% in local currencies.

• EBIT margin before special items forecast at 1–3%.

• Free cash flow expected between DKK 25m and 100m.

• CAPEX projected at DKK 270–310m, mainly for retail and product development.

• Margin impact from memory chip supply constraints estimated at 0.5pp and DKK 35–45m cash effect.