Breville Group (BRG) H2 2024 earnings summary

Executive summary

• Achieved record revenue of AUD 1.53 billion in FY24, up 3.5% year-over-year, with significant sales acceleration in 2H24, especially in the Americas and EMEA, despite subdued consumer demand.

• EBIT reached AUD 185.7 million, up 8.0% year-over-year and slightly above guidance, with gross profit up 7.7% and EBIT margin improving to 12.1%.

• NPAT increased 7.5% to AUD 118.5 million, aided by lower interest costs and improved cash flow.

• Net cash position of AUD 53.6 million at year-end, reversing prior net debt, with strong cash inflow of AUD 174.9 million driven by inventory reduction.

• Fully franked full-year dividend increased 8.2% to AUD 0.33 per share.

Financial highlights

• Gross profit rose 7.7% to AUD 556.9 million, with gross margin improving to 36.4% from 35.0%.

• EBITDA increased 12.5% to AUD 245.5 million; basic EPS grew 7.1% to 82.7 cents.

• ROE at 14.6%, down from 15.9% in FY23.

• Inventory reduced by over AUD 106 million, returning to 21.8% of sales.

• Working capital decreased by 24.9% to AUD 341.6 million.

Outlook and guidance

• Entering FY25 with momentum from new product launches, expanding geographies, and solutions offerings; continued investment in R&D, marketing, technology, and geographic expansion.

• Expense budget set with flexibility to deliver EBIT growth under various revenue and cost scenarios amid macro uncertainty.

• Geographic expansion continues, with direct market entry in Asia and Europe prioritized, though expansion cadence may slow due to operational complexity.

• Depreciation and amortization expected to step up in FY25, reflecting ongoing investment in growth drivers.

• Strength of geographically diverse portfolio expected to support further growth.