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Bang & Olufsen still losing money

TheCopenhagenPost
December 17th, 2015


This article is more than 9 years old.

Some gains, but bottom line is still red

Renowned Danish electronics icon Bang & Olufsen has released its figures for the first half of the year, and while some gains were made, the company is still losing money.

The results were released earlier than expected, and just three weeks after B&O said there had been inquiries from an interested buyer.

Play paying off
The company has struggled to adapt to changing customer groups and to create popular products. It has sold off some sections and focused on its core television business and its less expensive ‘Play’ line of products.

That focus has payed off during the first half of the year. Sales of Play products have more than doubled, while sales of the company’s classic products have fallen again.

“We are pleased with the demand for our new products and will continue to launch them,” said B&O head Tue Mantoni.

Overall, revenues at Bang & Olufsen rose by one fifth in the first half of the company’s corporate year, which runs from April to October.

Better, but still bleeding
B&O Play products now account for over one third of total sales. The bottom line showed a loss of 97 million, an improvement over the 181 million kroner lost during the same period last year.

READ MORE: Bang & Olufsen raises 259 million from capital increase

It was revealed in November that the company had received inquiries from an interested buyer, which B&O said it is investigating.


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Moreover, 21 percent of those surveyed admitted to medicating their kids with paracetamol, such as Panodil, before sending them to school.

The FOLA parents’ organisation is shocked by the findings.

“I think it is absolutely crazy. It simply cannot be that a child goes to school sick and plays with lots of other children. Then we are faced with the fact that they will infect the whole institution,” said FOLA chair Signe Nielsen.

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At Børnehuset there are fears that parents prefer to pack their kids off with a pill without informing teachers.

“We occasionally have children who that they have had a pill for breakfast,” said headteacher Susanne Bødker. “You might think that it is a Panodil more than a vitamin pill, if it is a child who has just been sick, for example.”

Parents sick and tired
Parents, when confronted, often cite pressure at work as a reason for not being able to stay at home with their children.

Many declare that they simply cannot take another day off, as they are afraid of being fired.

Allan Randrup Thomsen, a professor of virology at KU, has heavily criticised the parents’ actions, describing the current situation as a “vicious circle”.

“It promotes the spread of viruses, and it adds momentum to a cycle where parents are pressured by high levels of sick-leave. If they then choose to send the children to daycare while they are still recovering, they keep the epidemic going in daycares, and this in turn puts a greater burden on the parents.”