Bang & Olufsen (BO) AGM 2024 Presentation summary

Strategic execution and financial performance

• Strategic shift to branded sales channels improved gross margin and profitability, despite a 5% revenue decline to DKK 2.6 billion in 2023/24.

• EBIT margin before special items reached 2.4%, the highest in six years, with positive free cash flow of DKK 11 million.

• Gross margin improved by 9.1 percentage points since 2019/20, reaching 53.2% in 2023/24.

• Capacity costs rose modestly by 2%, with targeted investments in product portfolio and retail experience.

• Net result after tax improved significantly compared to previous years.

Market and operational highlights

• Like-for-like sell-out growth was 3%, with strong performance in APAC (+22%) and Flexible Living products (+15%).

• Several iconic products were launched, and a new global retail function was established to ensure a consistent luxury experience.

• Partnerships with Ferrari and Riva, and brand ambassador Charles Leclerc, enhanced brand visibility.

• Sustainability efforts recognized with Cradle to Cradle certification and a prestigious German award.

Governance, board, and proposals

• Board diversity maintained with three international members and two women, meeting gender balance requirements.

• Board and executive remuneration increased due to improved earnings, with a total executive pay of DKK 37.8 million.

• Proposals include unchanged board remuneration, renewal of share buyback and capital increase authorizations, and adoption of an updated indemnification scheme.

• Deloitte proposed as auditor for both financial and sustainability reporting.