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COPENHAGEN, Jan 12 (Reuters) - Denmark’s Bang & Olufsen posted a profit for the first time in nearly two years in its second quarter, as consumers spent more on home goods in lockdown periods during the pandemic.
The Danish manufacturer of luxury audio and visual goods has struggled to increase sales and improve earnings for years, but has seen its shares soar almost 60% since mid-December when the company reported higher demand from lockdown-hit consumers.
B&O said on Tuesday it generated a quarterly profit of 12 million Danish crowns ($1.96 million) in the September to November period, compared to a loss of 60 million crowns a year earlier. That is the first profit posted by the firm since February 2019.
“People are buying more products for the home,” CEO Kristian Tear told Reuters on Tuesday.
Shares in the company, known for its TVs and speakers that can sell for up to $90,000, traded up as much as 7.4% following the release of the results.
The audio visual equipment maker said sales had risen 10.5% in the quarter. “We have found ways to get through to our consumers,” Tear said.
B&O implemented a revamped strategy in April to boost its online presence and cut costs - it said on Tuesday cost reductions amounted to 63 million in the first half of its financial year.
$1 = 6.1162 Danish crowns Reporting by Tim Barsoe and Nikolaj Skydsgaard, editing by Louise Heavens, Kirsten Donovan