Breville profit lifts 14.6% to $136m
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The news: Appliance maker Breville has seen its full-year profit increase by 14.6% to $135.9 million amid strong coffee product-led growth across the company’s three global markets in the Americas, EMEA and APAC.
The numbers: Full-year profit was ahead of the $118.5 million reported in FY24 and ahead of the market consensus estimate of $133.5 million, according to Visible Alpha.
EBITDA lifted 10.8% to $271.9 million from $245.5 million, which is also ahead of the estimated $269.2 million. Revenue increased by 10.9% to $1.7 billion, from $1.53 billion, and was ahead of the $1.69 billion expected by analysts.
EBIT lifted 10.2% to come in at $204.9 million, at the top end of guidance.
A full-year dividend of 37 cent per share fully franked was declared, better than FY24’s 33 cents and in-line with the expected 36.71 cents.
The context: Breville said it has "largely mitigated" potential US tariff impacts on cost of goods sold in the second half of FY25 by pre-emptively importing inventory to the US before April 2025.
The company also entered markets in the Middle East and China in FY25. Coffee led perfomance across the group as "Cooking returned to growth and Food Prep stabilised".
The company also flagged that revenue, gross profit and EBIT have increased every year since FY15.
Looking forward, the company expects "significant input cost increase in FY26 and FY27 for US-based sales" amid macro headwinds, with the company actively pursuing cost mitigation strategies.
The company expects to be in a better position to issue FY26 guidance alongside the release of first-half results for FY26 as Breville believes "it is too early to predict how the various forces will play out across the next 12 to 18 months".
What they said: "After multiple years of macro uncertainty and post-Covid normalisation, BRG Group returned to double-digit revenue growth in Global Product across all three theatres (Americas, EMEA and APAC)," Breville managing director and CEO Jim Clayton said.
The source: ASX
