Denmark's Bang & Olufsen Q1 preliminary revenue rises on growth in branded channels

Overview

• Denmark audio equipment maker's preliminary Q1 revenue rose 2.2% in local currencies

• Gross margin improved to 59.4%, up 0.7 percentage points yr/yr

• Company maintained full-year outlook for revenue growth and EBIT margin

Outlook

• B&O maintains FY 2026/27 outlook: revenue growth in local currencies of 1% to 5%

• Company expects FY 2026/27 EBIT margin before special items of 1% to 3%

• B&O sees FY 2026/27 free cash flow of DKK 25m to DKK 100m

Result Drivers

• BRANDED CHANNELS - Revenue in branded channels grew by 9.9% in local currencies, supporting overall group revenue growth

• PRODUCT CATEGORY MIX - Staged category revenue grew by 9% and Flexible Living category by 16%, reflecting increased sales in branded channels

• DECLINE IN ETAIL SALES - On-the-go category revenue fell 19%, reflecting lower sales in the etail channel

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the household electronics peer group is "buy"

• Wall Street's median 12-month price target for Bang & Olufsen A/S is DKK10.00, about 3.8% below its September 28 closing price of DKK10.40

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)