Breville FY Results Boosted By US
Breville Group has posted a 7.5 per cent increase in net profit after tax for the 2016 full year, with its North America business delivering strong revenue growth.
Breville has reported net profit after tax for the full year of $50.2 million, with revenue of $576.6 million up 9.4 per cent.
By regional markets, North America led the way in terms of revenue, posting $251.8 million, up 24 per cent, which Breville advised was up 10.3 per cent in constant currency, with EBIT of $43.6 million up 36.9 per cent.
Breville stated that the revenue increase was “underpinned by new product releases as well as the sustained performance of the existing product range in the key categories of beverage and cooking”, with core products including its espresso machine, mini oven, toaster and kettle ranges.
The EBIT increase was “driven by the increase in revenue along with a more favourable product mix”.
Breville’s ANZ market delivered revenue of $242.6 million, down 1 per cent, with EBIT of $16.6 million down 9.4 per cent, with Breville stating that ANZ “continues to face market challenges in the mid-market segment”.
Breville advised that ANZ revenues from Breville designed and developed products have continued to increase, up 11.2 per cent, however remaining revenues from “sourced products”, accounting for a greater proportion of total revenue, “declined given the competitive nature of this segment of the market”.
“The price-driven nature of this segment, coupled with discount retailers favouring their own home brands in the entry-to-mid price-points, contributed to the decline in the revenue of this market segment,” Breville stated.
Breville advised that EBIT in the second half clawed back some of the first half’s reported shortfall, increasing to $5.3 million from $2.1 million year-on-year.
Meanwhile, the rest of the world segment’s revenue totalled $82.3 million, up 4.3 per cent, with EBIT of $22.1 million up 8.4 per cent.
“Despite the challenging nature of the global market, the group was able to deliver in line with our expectations, while simultaneously making meaningful progress on our transformation program,” Breville Group CEO Jim Clayton commented.