
B&O plans capital increase amid revenue dip
Bang & Olufsen saw a 12% decrease in revenue in the first quarter of the fiscal year 2024/25, earning 544 million DKK. Despite the decline, sales met expectations. CEO Kristian Teär highlighted the focus on increasing global brand awareness, optimizing the retail network, and creating world-class products. The company seeks to boost capital by 20% through a directed share issue following an approved general assembly plan, to implement a three-year strategic plan. B&O reported a quarterly net loss of 17 million DKK, 24 million worse than the previous year. Investment economist Per Hansen comments that although gross margins are up, the key to noticeable improvement on the bottom line would be actual revenue growth. After five years of net losses, B&O recently reported a positive operating profit for the first time in six years.