Breville shares rise after solid results
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More news: Shares in Breville Group jumped nearly 7% to $31.57 after the appliances maker lifted its full-year profit and dividend on the back of record sales and said it is planning inventory for accelerated growth in FY25.
Jarden analysts called the performance a "high quality result" slightly ahead of expectations. They see the good momentum to continue into FY25, which could lead to modest positive revisions to FY25 consensus estimates.
Jarden has a 'neutral' rating on the stock with a $23.60 price target.
Breville lifts full-year profit, dividend
The news: Appliances maker Breville Group has lifted its full-year profit and dividend on the back of record sales.
The numbers: Net profit for the year to June rose 7.5% to $118.5 million, while sales were up 3.5% to a record $1.53 billion.
The company lifted its final dividend to 17 cents per share, from 15.5 cents a year ago.
Earnings before interest and tax rose 8% to $185.7 million, ahead of the company’s guidance.
The context: Breville, which is 30% owned by retail billionaire Solomon Lew, said its solid performance was led by double-digit revenue growth in the Americas, Europe and Middle East and the coffee machines category, particularly in the second half.
The group expects FY25 to resemble the previous year in terms of macro headwinds and uncertainty playing against company-specific tailwinds. It is planning inventory for accelerated growth, but will also look to managing costs to protect against downside risks.
What they said: “The strength of our new product launches, expansion of new markets and the continuing coffee tailwind supported this top line growth as cost-of-living pressures and mean reversion weighed the business,” chief executive Jim Clayton said.
The source: ASX announcement
