Breville slides after weaker-than-expected HY results
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More news: Shares in Breville Group were down more than 9% to $24.81 in early trading on the ASX after the appliances maker posted single-digit increases in profit and sales amid a challenging consumer backdrop and forecast fiscal 2024 earnings growth of 5% to 7.5%.
What they said: E&P Financial Group analyst Olivier Coulon said the profit was slightly lower than anticipated.
"Considering the relatively upbeat trading updates released by key peers DeLonghi and Groupe SEB for their CY23 third and fourth quarter sales, we think the market will be disappointed at the weaker sales trend shown in this result," Coulon said.
Breville lifts first-half profit, dividend
The news: Appliances maker Breville Group has lifted its half year profit despite a challenging retail environment.
The numbers: Net profit for the six months to December 2023 rose 6.7% to $83.9 million, while sales were up 2% to $905.8 million. The company lifted its interim dividend to 16 cents per share, from 15 cents a year ago.
The context: Breville, which is 30% owned by retail billionaire Solomon Lew, said despite its solid results the consumer backdrop was challenging.
The group benefited from strong demand for its coffee machines, with Nespresso sales bouncing back in the US market.
The company expects headwinds to continue through the second half and is forecasting fiscal 2024 earnings growth of 5% to 7.5%.
What they said: Breville CEO Jim Clayton said: “The strength of our new product launches, expansion of new markets and the continuing coffee tailwind supported top line growth as cost-of-living pressures and mean reversion buffeted the business".
The source: ASX announcement
