Breville expects successful H1 FY2010; upgrades outlook

Breville Group Limited is currently finalising its trading result for H1 FY2010, but is expecting underlying EBITDA to be approximately $30 million. The company has also upgraded its full year profit expectations.

Stephen Audsley, Breville CEO, commented on the preliminary announcement and how the company performed well above expectations.

“Our performance in November and particularly December was well ahead of expectations, and affirms our strategy of focussing on innovative products and leveraging those products across multiple geographies,” he said.

According to the report issued to the Australian Securities and Investment Commission, Breville’s improved earnings has also translated to stronger cash flow generation and a material reduction in both inventory and net debt levels compared to the previous corresponding period.

Due to the fact that the preliminary H1 results are higher than expected, Breville has also upgraded its expectations for the full FY2010. Breville now expects underlying EBITDA to be in the range of $43 million to $46 million. This is in comparison to earlier full year expectations of EBITDA $38.7 million.

Breville has outlined that these earings expectations are based on assumptions, including the fact that there will be no significant changes in the current economic conditions or to consumer sentiment in Breville’s key markets. It also assumes that there will be no significant change in foreign exchange rates.

Breville’s half yearly results will be released on 26 February 2010.

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