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Bang & Olufsen to accelerate strategic execution and set medium-term financial ambitions


Bang & Olufsen announces plan to accelerate its strategic execution, aiming to drive long-term growth and further improve profitability. As part of this mid-term plan, Bang & Olufsen has set an ambition of achieving organic revenue growth of 8% (CAGR) in the three-year period covering the financial years 2025/26 to 2027/28 and an EBIT margin before special items of 8% as well as a free cash flow of DKK 250m, both to be achieved in 2027/28.

Over the last 18 months, Bang & Olufsen has executed on its Luxury Timeless Technology strategy, thus laying the foundation for a longer-term profitable and sustainable growth. During the financial year 2023/24, the company had a particular focus on strengthening its luxury positioning, improving the experience in branded channels, reducing the presence in multibrand, and creating products of the highest quality. This contributed to Bang & Olufsen delivering an all-time high gross margin and the best EBIT margin before special items in six years.

In order to accelerate the strategic execution and to achieve the medium-term financial ambitions, value-creating investments are required in the short term. The plan is therefore conditional upon a capital increase of up to 20% of the company’s share capital. The investments will primarily focus on strengthening Bang & Olufsen’s position in the luxury audio market by increasing brand awareness, optimising the retail network and continuing to build world-class products.

The capital increase is subject to approval of an authorisation to increase the company’s share capital by up to 20% at the annual general meeting to be held on 15 August 2024. Once the authorisation is approved by the shareholders, the capital increase is expected to be carried out within the first half of 2024/25 (end of November 2024) as a directed issue and private placement without pre-emptive rights for existing shareholders.

CEO Kristian Teär comments:

“We have made good progress on our strategy despite a challenging market environment. This year, we delivered an all-time high gross margin and the best EBIT margin in six years. To capture the market opportunity, we want to build on that momentum and further accelerate our strategic execution and make investments, which will enable us to deliver profitable and sustainable growth in the medium term.”

"We remain strongly focused on ensuring a robust financial foundation. We also want to invest more in increasing brand awareness, strengthening our retail network, and continuing to create world-class products. Our branded channels play a key role in our growth plans. This is where we can give customers the full Bang & Olufsen experience, and we want to have stores in the right locations and in the right cities around the world. We have seen from our Win City concept and from our key retail partners that when we do it well, we can grow the business significantly. With these investments, we will be able to realise Bang & Olufsen's growth potential and solidify our position as the world's leading luxury audio brand.”

Solid plan for profitable and sustainable growth
Key elements of the strategic acceleration to reinforce Bang & Olufsen’s luxury positioning and the plan to meet the medium-term financial ambitions in the period to and including the financial year 2027/28 are:

  • To further enhance brand awareness and brand equity as a luxury audio brand.
  • To optimise the monobrand store network and store experience. This includes closing underperforming stores, relocating and upgrading existing stores and opening new monobrand and company-owned stores in key global cities and regions where Bang & Olufsen does not have a sufficient presence today.
  • To continue investing in the product portfolio and IP (Intellectual property) rights.
  • To increase pricing to reflect the luxury position of Bang & Olufsen.
  • To grow license revenue from strategic partnerships.

The above initiatives are expected to increase CAPEX and capacity costs during the period to and including 2027/28. Annual CAPEX is expected to be around 30-40% higher than the expected level in 2024/25. Capacity costs are expected to increase by DKK 100-200m per year during the period. For more details on the medium-term ambitions, please refer to the Annual Report 2023/24.

2023/24 results and 2024/25 financial outlook
In a separate announcement to be released immediately following this announcement, Bang & Olufsen will publish its 2023/24 Annual Report, which was originally planned for release on 4 July 2024. For 2023/24, Bang & Olufsen is reporting group revenue of DKK 2,588m (-5% growth in local currencies), an EBIT margin before special items of 2.4% and a positive free cash flow of DKK 11m for the year.

For the financial year 2024/25, Bang & Olufsen expects revenue growth in local currencies from
-3% to 3%, with an EBIT margin before special items from -2% to 1%. Free cash flow is expected from DKK -100 to 0 million.

The 2024/25 outlook is based on the assumption of a capital increase enabling increased investments as described in relation to the medium-term ambitions. CAPEX is expected to be around DKK 250-275m. Please see the Annual Report 2023/24 for detailed assumptions.

For further information, please contact:

Cristina Rønde Hefting
Director, Investor Relations
Phone: +45 4153 7303

Jens Gamborg
VP, Global Sustainability & Communications
Phone: +45 2496 9371

Forward-looking-statement disclaimer:
Certain statements in this announcement are forward-looking statements which are based on the company’s expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts, including with respect to the timing, terms and consummation of the rights issue described herein. These forward-looking statements, which may use words such as “aim”, “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning, include all matters that are not historical facts. These forward-looking statements involve risks, and uncertainties that could cause the actual results of operations, financial condition, liquidity, dividend policy and the development of the industry in which the company’s business operates to differ materially from the impression created by the forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, Bang & Olufsen undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.”


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