Danish electronics company B&O makes great progress in emerging Asian markets

Focusing on sleek design, the luxury Danish brand has shown once again it can create sustainable growth through structural and business model transformation

Ross McPherson

Luxury electronics manufacturer B&O is continuing to lag behind on the North American markets but growing sales in China have resulted in a 2 percent increase in revenue for the first 3 months of the financial year.

In his note in the accounts, CEO Henrik Clausen indicated that he was pleased with the strong growth in the eastern markets, reports Berlingske.

Struggles in the west, growth in the east
B&O’s sales in North America dropped by 29 percent compared with the same period last year, causing a 9 percent drop in revenue within western markets of 280 million kroner.

However, sales in in the east grew by 26 percent over the same period, China being a particularly hot market as the growing middle class purchases an ever-increasing number of luxury products.

Signs of strength
The 2 percent increase in gross revenue amounts to 601 million kroner. Over the same period last year, the company operated at a pre-tax loss of 65 million kroner. This year, the made profits of 5 million kroner. This still means an after-tax loss of 4.4 million kroner, compared to the first quarter last year in which the company lost 55 million kroner.

“In spite of an ongoing reconstruction of our sales and distribution network, revenue increased by 2 percent, while improving earnings before tax and free cash flows significantly,” said Clausen. “Our ability to deliver profitable growth during a traditionally small quarter for B&O, shows the strength of our changing business model,” he added.

TOP STORIES

Connect club

Connect Club is your gateway to a vibrant programme of events and an international community in Denmark.

Sign up here

Career

  • How internationals can benefit from joining trade unions

    How internationals can benefit from joining trade unions

    Being part of a trade union is a long-established norm for Danes. But many internationals do not join unions – instead enduring workers’ rights violations. Find out how joining a union could benefit you, and how to go about it.

  • Internationals in Denmark rarely join a trade union

    Internationals in Denmark rarely join a trade union

    Internationals are overrepresented in the lowest-paid fields of agriculture, transport, cleaning, hotels and restaurants, and construction – industries that classically lack collective agreements. A new analysis from the Workers’ Union’s Business Council suggests that internationals rarely join trade unions – but if they did, it would generate better industry standards.

  • Novo Nordisk overtakes LEGO as the most desirable future workplace amongst university students

    Novo Nordisk overtakes LEGO as the most desirable future workplace amongst university students

    The numbers are especially striking amongst the 3,477 business and economics students polled, of whom 31 percent elected Novo Nordisk as their favorite, compared with 20 percent last year.

Want to advertise your job with CPH Post?

Contact us

Jobs