However, the Danish manufacturer, whose audio products and televisions range into the tens of thousands of pounds, said that its operating margin would rise from a loss to the break-even level in the year ahead as it ditches a number of older lines.
For the full year, the company posted a pre-tax loss of DKr160 million (£18.3m), its third full-year loss in the past five years.
The firm swung to a pre-tax loss of DKr45m in the fourth quarter from a DKr77m profit in the closing months of its previous financial year. Analysts had forecast a DKr43m loss following two profit warnings earlier in the year.
B&O said: “Continued challenging market conditions in Europe are likely to have a negative impact on consumer confidence and continue to create headwind for the overall audio-visual market in the 2013-14 financial year.”
Consumer spending has been weak in many key European markets, although the UK – where B&O’s equipment is sold through a string of dedicated dealers – has proven to be more resilient.
For the current financial year, the firm expects revenue “moderately above the level of the 2012-13 financial year”. Revenue for 2012-13 amounted to DKr2.81 billion, just within B&O’s guidance range given in March.
It has kept its long-term ambition of reaching revenue of DKr8bn to DKr10bn, a goal that some analysts question.