Breville shares drop after cautious forecast
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More news: Shares in Breville Group are down 2.3% to $36.87 in early trading on the ASX after the appliances maker lifted its first-half profit and dividend but warned of slower earnings growth in the second half amid the potential impact of US trade policies.
RBC Capital Markets labelled the update as "positive" and have a "sector perform" rating on the stock with a price target of $28.
What they said: "BRG's 1H25 results were generally ahead of consensus with EBIT growing 10.5%... FY25 guidance has been provided with EBIT growth expected to be in the range of 5% to 10%," RBC analysts said in a note.
"Consensus is already factoring 10% y/y growth which suggests possible risk of 2H downgrades on today's 1H beat."
Breville lifts first-half profit and dividend
The news: Appliances maker Breville Group has lifted its first-half profit and dividend after resilient consumer demand helped deliver double-digit revenue growth.
The numbers: Net profit for the six months to December 2024 was up 16.1% to $97.5 million, while sales were up 10.1% to $997.5 million. The company lifted its interim dividend to 18 cents per share, from 16 cents a year ago.
The context: Breville, which is 30% owned by retail billionaire Solomon Lew, said its solid first half came against a backdrop of resilient consumer demand with all three major segments achieving double digit growth on the back of new product launches, expansion into new markets and the continuing coffee tailwind.
Chief executive Jim Clayton said the company had rushed some inventory to the US ahead of the potential Trump tariffs, but expects macroeconomic uncertainties to continue to swirl in the second half.
Breville said the impact of US trade policies is still unknown, but the group is shifting production of some of its range out of China. As a result, it expects full-year earnings growth to be between 5% and 10%.
The source: ASX announcement
