Breville Profits Up 29.2% to $64.2m, Dividends Slashed
Appliance seller Breville enjoyed its fourth year of double-digit growth after it December half-year net profit surged by 29.2 per cent to $64.2 million.
Huge demand for coffee machines and blenders during the work-from-home trend helped boost Breville’s earnings, with solid revenue growth in these categories.
Overall revenue for the company soared to $711 million, up 28.8 per cent from 552 million in the same period the previous year.
Revenue was strong in all of Breville’s geographic territories, including the APAC region.
In its earnings presentation, Breville also cited lower growth in rival businesses Nespresso and Kambrook as revenue drivers.
But despite forecast-smashing results, Breville slashed interim dividend by a third to 13c a share in order to self-fund growth opportunities.
The appliance giant was not immune to stock shortages which affected revenue growth for the period, with Breville noting ‘inventory is tight across all geographies’.
However, Breville CEO Jim Clayton said the company’s bumper results is an indication of the company’s ability to withstand the ongoing stock shortages and steady shift to online sales.
“Breville has been tested and we passed, which bodes well for the next five to ten years,” Clayton said.
Sales for the full year are set to exceed $1 billion for the first time