Breville shares soar on strong earnings

The news: Breville shares have jumped more than 14% after the appliance manufacturer lifted earnings despite a subdued consumer backdrop, high inflation and retailer destocking.

The numbers: Breville posted a net profit after tax of $110.2 million, up 4.2%, as pre-tax earnings grew 16.8% to $218.2 million over FY23. It declared a fully franked dividend of 30 cents per share, up half a cent from the previous year. Breville shares were fetching $26.46 just after midday AEST, up 14.3%.

The context: Breville said it expected subdued consumer expectations would continue in 2024 against a backdrop of high inflation and other macro headwinds. New product launches, geographic markets, solution plays and cost improvements would work in Breville's favour, but it was too early to predict how the opposing forces would play out, the company said in its results announcement.