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 the second half, especially in the Americas and EMEA, and strong performance in the Coffee category.

• EBIT reached AUD 185.7 million, up 8.0% year-over-year and slightly above guidance, with gross profit up 7.7% and NPAT up 7.5%, aided by lower interest costs and improved margins.

• Ended the year with a net cash position of AUD 53.6 million, reversing prior year net debt, driven by a cash inflow of AUD 174.9 million from inventory reduction and operational execution.

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

• Marked sales strengthening in 2H24, with double-digit growth in Americas, EMEA, and Coffee, despite subdued consumer demand.

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 AUD 107 million, returning to equilibrium at 21.8% of sales.

• Net cash position of AUD 53.6 million as of June 30, 2024, with AUD 137.8 million in cash and AUD 190.8 million in unused facilities.

Outlook and guidance

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

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

• Geographic expansion, especially in Asia, is ongoing, with plans to enter more countries over the next decade.

• Freight costs and sourcing benefits expected to remain within normal volatility, with no major concerns for FY25.

• Depreciation and amortization expected to increase in FY25, reflecting continued investment in growth drivers.