Breville shares jump as global health and coffee craze boost profits
Breville Group is cashing in on our obsession with homemade lattes, smoothies and acai bowls.
The global health and coffee craze helped lift earnings at the Sydney-based small appliances company, which reported a 20 per cent rise in profits for the six months to December 31 to $43.5 million.
Chief executive Jim Clayton told investors on Thursday there was a health trend and the company was introducing a new range of blenders and tea makers to capitalise on this.
“Looking globally at a macro level … I think we also see a systemic move to quality in the coffee category,” Mr Clayton said.
Breville Group has defied the doom-and-gloom across the retail sector and a global economic slowdown, reporting a 15.4 per cent growth in revenue to $440.4 million.
The company recorded a big 32 per cent boost in European sales, propped by its move into Germany and Austria in the first half of this year. North American sales increased by 7.1 per cent, while Australia and New Zealand grew by 7.6 per cent
A delayed customer shipment that slipped into January drove down results in the Rest of the World region, recording an 11 per cent or $1.3 million drop in sales.
“If we keep focus on customers, investing in retailers and executions, things tend to work out,” Mr Clayton said.
“If we think news is bad in Australia, it’s been bad in the UK for a very bad time and we seem to be sliding through that. I can’t say we’re not affected by macro forces, but we don’t see it in the numbers. “
Shares in Breville closed up 18 per cent to $14.
The company will pay an 18.5 cent dividend, franked at 60 per cent, on March 19.
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