The Breville Group Ltd (ASX: BRG) share price is up 7% after the appliance maker reported its FY24 result.
Breville has a number of brands including Breville, Sage, Kambrook, Lelit and Baratza.
FY24 result
- Revenue rose 3.5% to $1.53 billion
- Gross profit rose 7.7% to $556.9 million
- EBITDA grew by 12.5% to $245.5 million
- EBIT increased 8% to $185.7 million
- Net profit after tax (NPAT) grew 7.5% to $118.5 million
- Dividend per share grew 8.2% to $0.33
Breville said it achieved record sales, with revenue of more than $1.5 billion, which meant sales more than doubled over the last five years.
There was a “marked strengthening” in the second half of FY24 thanks to double-digit revenue growth in the Americas, EMEA (Europe, Middle East and Africa) and the coffee category in the global product segment.
Breville’s generated EBIT was above the top end of its guidance which was given in February 2024.
The company ended FY24 with net cash of $53.6 million, thanks to “strong” cash inflow of $174.9 million, which was substantially driven by inventory levels returning to equilibrium.
Management commentary
The Breville Group CEO Jim Clayton said:
Overall, the strength of our new product launches, expansion of markets and the continuing coffee tailwind supported this top line growth as cost-of living pressures and mean reversion weighed on the business.
Savings in input costs were partially reinvested into our standard promotional program, but only where ROIs supported the investment, driving gross margin improvements across the group.
In a lower growth environment, expenses were well controlled to deliver an 8.0% EBIT growth.
We enter FY25 with some momentum on the top line, our NPD pipeline continuing to release, new markets outperforming and our solutions offerings developing. We will continue to plan inventory for accelerated growth, whilst at the same time managing costs to protect against downside risks.
Outlook for the Breville share price
The company said FY25 “resembles FY24”, with macroeconomic headwinds and uncertainty going against company specific tailwinds, including “new product launches, fast-growing new geographies and solution plays, as well as some degree of 2H24 sales strengthening.”
Breville is definitely one of the ASX’s success stories and it continues to deliver growth. The question is – how much more can it grow sales and profit? The appliance market is very large. I don’t know the answer though, so I’d rather focus on other ASX shares that are easier to predict.
