Slides
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Page — 1 Trading statement Q1 2026/27 June 2026-August 2026
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Page — 2 Management’s review Q1 2026/27 In Q1 2026/27, Bang & Olufsen generated revenue growth of 2.2% in local currencies, in line with expectations. The gross margin rose to a new peak of 59.4%, an increase of 0.7 percentage points from last year. Like-for-like sell- out increased by 7%, and by 14% in the branded channels, with the Win Cities delivering sell-out growth of 19%. “Bang & Olufsen has started the financial year well, delivering revenue growth, a record-high gross margin, and positive free cash flow in the first quarter. Performance was supported by continued progress in our branded channels and sustained strength in our Win Cities. The results show that the strategy is moving the business in the right direction. However, certain areas of the business still need increased attention and more consistent execution. Together with our employees, partners, and clients around the world, I look forward to unlocking the full potential of the Bang & Olufsen brand." Gianfilippo Testa, CEO Financial highlights (Q1 25/26 in brackets) • Like-for-like sell-out grew by 7% (1%). Like-for-like sell-out for Branded channels grew by 14% (-1%). • Reported revenue increased by 2.5% (-5.0%) year- on-year, or 2.2% in local currencies (-4.0%), to DKK 530m (DKK 517m). • Revenue from Branded channels increased by 10.5% (-12.0%), or 9.9% in local currencies (-10.2%). • Gross margin was up by 0.7pp to 59.4% (58.7%). • EBITDA before special items was DKK 42m (DKK 34m), with an EBITDA margin before special items of 8.0% (6.5%). • EBIT before special items was DKK -23m (DKK -27m), with an EBIT margin before special items of -4.3% (-5.2%). • Special items were DKK 1m (DKK -7m). • The free cash flow was DKK 6m (DKK -135m). FY 2026/27 financial guidance maintained • Revenue growth in local currencies: 1% to 5% • EBIT margin before special items: 1% to 3% • Free cash flow: DKK 25m to DKK 100m Please see the Annual Report 2025/26 for further details on outlook and assumptions. Business highlights • New executive leadership team announced in August: Gianfilippo Testa as Chief Executive Officer, Nikolaj Wendelboe as Chief Operating Officer alongside his role as Chief Financial Officer, and Jesper Hessel as Chief Commercial Officer and Deputy CEO, joining no later than 1 February 2027. • Opening of our largest store in Asia Pacific at Scotts Square in Singapore in June, the first location of our Culture Store concept in Southeast Asia. • Opening of our 260 m² store in Palo Alto, California, in August, completing the three planned California openings alongside our San Francisco and West Hollywood flagships. • Beosystem 3000c Dune Grey Edition launched under the Recreated Classics programme. • In July, John Legend, an American multi-platinum musician, producer, and Emmy, Grammy, Oscar, and Tony winning artist was appointed Global Brand Ambassador. Q1 highlights Q1 2026/27 Revenue growth in LC* 2.2% Gross margin 59.4% EBIT margin bsi** -4.3% Free cash flow, DKK 6m * Local currencies ** Before special items Q1 2026/27 conference call 30 September 2026, at 10.00 CEST via https://bo.nexahub.io/events/trading-statement-1st-quarter-202627 Dial-in details (Pin: 193621): DK: +45 78768490 UK: +44 2037696819 US: +1 6467870157
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Page — 3 Q1 2026/27 Developments in Q1 2026/27 Q1 2026/27 developed in line with our expectations, with revenue growth, a record-high gross margin and positive free cash flow. The work of refocusing the strategic execution, initiated in the second half of last financial year, continued through the quarter. In August, we announced a new executive leadership team to lead the next phase of our strategy execution. Like-for-like sell-out grew by 7%. For the branded channels (company-owned stores, monobrand and e- commerce) like-for-like sell-out grew by 14% year-on- year driven by double-digit growth across the channels. The multibrand channels reported a decline year-on-year. Collectively, sell-out from our Win Cities grew by 19%, the ninth consecutive quarter of double-digit growth, with growth reported in all five cities in the index. Seven cities are active, and the two most recent additions will enter the index once they have a comparable measurable period. Revenue (sell-in) was DKK 530m and grew by 2.2% year- on-year in local currencies (2.5% in reported revenue). Revenue from our branded channels grew by 9.9% in local currencies. Company-owned stores and our own e- commerce both delivered double-digit revenue growth, while the monobrand channel delivered single-digit growth. Revenue from the eTail channel declined by double-digits. The development in the eTail channel was mainly due to generally lower level of activity around Amazon Prime Day. In addition, we have reduced our promotional activity on the platform as we are elevating our brand positioning. In terms of product categories, revenue from the Staged category grew by 9% and revenue from the Flexible Living category grew by 16%, reflecting increased sales in the branded channels. Revenue from the On-the-go category declined by 19%, reflecting lower sales in the etail channel. Continuing its upward trend, the gross margin rose to a record-high 59.4% compared to 58.7% in Q1 last year. The development was driven by a shift in product- and channel mix towards higher-margin products, further gross margin expansion in the On-the-go category, and a higher share of license income from Brand Partnering & other activities. Currency movements had a positive impact of 0.3pp on the gross margin. EBIT margin before special items was -4.3%, an improvement of 0.9pp compared to Q1 last year. The development was driven by the higher revenue level and the improved gross margin, which was partly offset by one-off and timing of costs. Inventories were DKK 438m at quarter-end compared to DKK 418m at year-end. The increased level reflected general seasonality and procurement of memory chips to secure production in the coming year as communicated in connection with the release of the annual report in July 2026. Net working capital decreased to DKK 313m from DKK 349m at year-end mainly due to timing of receivables. Capex investments were DKK 54m compared to DKK 58m in Q1 last year. Free cash flow was DKK 6m for the quarter compared to DKK -135m in Q1 last year. The improvement reflected the reduction in net working capital during the quarter, a higher EBITDA, and lower capex. Cash was DKK 123m, while net available liquidity was DKK 80m compared to DKK 94m at year-end. The development since year-end was driven by financing activities. Capital resources were DKK 330m compared to DKK 344m at year-end. Year-end 2025/26 has been adjusted for a more accurate reflection of the capital resources available to the company. Segment performance EMEA Like-for-like sell-out in EMEA grew by 6%. Like-for-like sell-out for branded channels grew by a double-digit. Company-owned stores and monobrand stores both delivered double-digit growth, whereas e- commerce declined by a double-digit. Non-branded channels declined by double-digits. The decline in eTail was mainly due to lower activity and reduction of promotional activity on the platform. Revenue was DKK 226m compared to DKK 234m in Q1 last year, representing a decline of 3.4% or 3.6% in local currencies. Revenue from our branded channels grew by 1.2% in local currencies, with growth in company-owned stores and monobrand partly offset by a decline in own e- commerce. The regional decline was driven by eTail and multibrand. During the quarter, we opened three new stores in Germany. As part of our ongoing footprint optimisation in EMEA, we have closed 20 monobrand stores since Q1 last year. Gross profit was DKK 114m compared to DKK 127m in Q1 last year, corresponding to a gross margin of 50.6% compared to 53.9% in Q1 last year. The underlying margin development was positive, with improved margins. This was more than offset by a higher level of indirect production costs, absorbed over a lower revenue base. Americas Like-for-like sell-out in the Americas declined by 2%. Like-for-like sell-out for branded channels grew by a double-digit driven by double-digit growth in both company-owned stores and own e-commerce, while monobrand stores reported a single-digit decrease. eTail declined double-digit. The eTail decline was mainly due to Business update
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Page — 4 Q1 2026/27 the lower activity, combined with our reduced promotional activity on the platform. Revenue was DKK 62m, unchanged from Q1 last year, representing a decline of 0.4% or 1.4% in local currencies. Revenue from our branded channels grew by 49.5% in local currencies, driven by high double-digit growth in the monobrand channel and own e-commerce and double- digit growth in company-owned stores. Revenue from the enterprise channel and eTail both declined by a high double-digit. During the quarter, we opened a new store in Palo Alto, California, continuing the expansion of our presence in the region. Gross profit was DKK 32m compared to DKK 24m in Q1 last year, corresponding to a gross margin of 51.7% compared to 39.3% in Q1 last year. The improvement reflected the non-recurrence of the US tariff costs that affected the margin in Q1 last year, together with a shift in product and channel mix towards higher-margin categories. APAC Like-for-like sell-out in APAC grew by 14%. Like-for-like sell-out in the branded channels grew double-digit, driven by double-digit growth from company-owned stores, while sell-out from the monobrand channel grew single-digit. The multibrand channel reported high double-digit growth, whereas eTail saw a single-digit decrease. Like-for-like sell-out in China declined by 1%. Revenue was DKK 177m compared to DKK 159m in Q1 last year, representing an increase of 11.7% or 11.5% in local currencies. Revenue from our branded channels grew by 16.3% in local currencies. Revenue from China increased by 10.3% year-on-year, equivalent to growth of 2.9% in local currencies and accounting for approximately 50% of total revenue in APAC. Revenue from South Korea and Hong Kong increased by single- and double-digit year-on-year, respectively. In June 2026, we opened our largest store in Asia Pacific at Scotts Square in Singapore, the first location of our Culture Store concept in Southeast Asia. In addition, we opened a new store in Sydney and a temporary store in Tokyo, one of our Win Cities. Five underperforming monobrand stores in the region were discontinued during the quarter, bringing the number of monobrand stores in APAC to 67 compared to 71 at the end of Q1 last year. Gross profit increased to DKK 107m from DKK 95m in Q1 last year, corresponding to a gross margin of 60.1%, up from 59.8% in Q1 last year. Gross margin improvements were seen across all product categories. Brand Partnering & other activities Revenue from Brand Partnering & other activities was DKK 65m compared to DKK 62m in Q1 last year, an increase of 4.4% or 4.1% in local currencies. The increase was driven by licence income from the TCL partnership. After quarter-end, a new partnership vertical was announced in September 2026 through an agreement with Motorola to bring “Audio by Bang & Olufsen” to selected flagship mobile devices. Gross profit increased to DKK 62m from DKK 58m in Q1 last year, corresponding to a gross margin of 95.4% compared to 93.2% in Q1 last year. The gross margin increased due to the relatively higher share of license income compared to last year. Monobrand * Multibrand Custom installers Points of sale, number of doors 31-08-2026 31-08-2025 31-08-2026 31-08-2025 31-08-2026 31-08-2025 EMEA 219 239 766 971 N/A N/A Americas 21 22 9 22 105 108 APAC 67 71 500 765 N/A N/A Total 307 332 1,275 1,758 105 108 * Monobrand is including company-owned stores
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Page — 5 Q1 2026/27 Segments – geographics – Q1 (DKK million) Q1 2026/27 Revenue Q1 2025/26 Revenue Change Growth in local currencies Q1 2026/27 Gross margin Q1 2025/26 Gross margin EMEA 226 234 -3.4% -3.6% 50.6% 53.9% Americas 62 62 -0.4% -1.4% 51.7% 39.3% APAC 177 159 11.7% 11.5% 60.1% 59.8% Regions, total 465 455 2.2% 2.0% 54.4% 54.0% Brand Partnering & other activities 65 62 4.4% 4.1% 95.4% 93.2% All 530 517 2.5% 2.2% 59.4% 58,7% Segments – product category – Q1 (DKK million) Q1 2026/27 Revenue Q1 2025/26 Revenue Change Growth in local currencies Q1 2026/27 Gross margin Q1 2025/26 Gross margin Staged 261 239 9.1% NA 55.2% 58.4% Flexible Living 98 85 15.8% NA 56.7% 59.5% On-the-go 106 131 -19.1% NA 50.0% 42.4% Products, total 465 455 2.2% 2.0% 54.4% 54.0% Brand Partnering & other activities 65 62 4.4% 4.1% 95.4% 93.2% All 530 517 2.5% 2.2% 59.4% 58.7% Segment overview
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Page — 6 Q1 2026/27 Bang & Olufsen A/S, Bang & Olufsen Allé 1, DK -7600 Struer, Tel. +45 9684 1122, www.bang-olufsen.com, Reg. number: 41257911