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Breville Faces Product Shortages In Key Markets

Breville is one of Australia’s brightest success stories, but the appliance brand is now facing stock shortages in the US, its largest market.

Like a lot of manufacturers, Breville is facing delays at ports, supply chain issues, and part shortages.

Chief executive Jim Clayton said today that “solid” demand in its largest market is being undercut by supply issues.

“On the supply side of the equation, our forward planning process has helped us avoid the lion’s share of parts and manufacturing-related shortfalls experienced by so many others,” he told shareholders at his AGM.

“For us, the challenges have been primarily logistics-related across the supply chain. Logistic steps that used to take one week can now take up to 4-6 weeks.

“In all countries except the US, our in-country inventory positions are enabling us to absorb most of these delays and continue to flow with our retail partners.”

Breville enjoyed a 42 per cent leap in annual profit, to $90.6, with sales hitting $1.19 billion. Now the company is rushing to get products to retailers, running a “real-time offence” in what is otherwise a banner year.

“In the US, because of the LA port delays, we are running more of a real-time offence across some SKUs (stock keeping units). When the containers are delivered to our warehouse, they are unloaded and immediately shipped out to retailers,” Mr Clayton said.

“The team’s focus for the rest of the half will be moving product through the system to our retail partners to meet end-consumer demand. A solid demand line with a dynamic supply chain has caused us to move our planned inventory rebuild to the second half of 2022 with the goal of calming down the supply chain and preparing for the peak season of fiscal 2023.

“While it may differ at the detail level, at the aggregate, the first half of fiscal 2022 is unfolding in line with our expectations.”

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