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Bang & Olufsen continues to struggle

Lucie Rychla
August 11th, 2016


This article is more than 8 years old.

Products from classic segment not so popular

Danish luxury audio systems producer Bang & Olufsen has announced a disappointing set of results for the 2015-16 financial year.

Although the company made 2.6 billion kroner in revenue, it ended the financial year with a 198 million kroner net loss.

Sales of the popular B&O Play unit, which includes high-quality headphones and portable speakers, increased by 60 percent to 970 million kroner.

However, the classic segment sales fell by 5 percent to 1.7 billion kroner.

READ MORE: Bang & Olufsen sells audio systems subsidiary

According to B&O, the poor results are also down to the delayed launch of a new line of TV products, which has been created in a strategic partnership with LG Electronics.

Bang & Olufsen was founded in 1925 in Struer by two innovative engineers, Peter Bang and Svend Olufsen.

Since then, the company has become a high-end icon of design excellence and cutting edge technology.


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A survey carried out by Megafon for TV2 has found that 71 percent of parents have handed over children to daycare in spite of them being sick.

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.

Pill pushers
At the Børnehuset daycare institution in Silkeborg a meeting was called where parents were implored not to bring their sick children to school.

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.”