By Patrick Avenell
SYDNEY, NSW: A slight drop in overall sales revenue has failed to dampen what is a solid half yearly report from Breville Group. Although revenue dipped 3.8 per cent, comparative profit after tax was up 42.6 per cent, albeit off a reduced base.
In a report to the Australian Securities Exchange this morning, Breville declared H1 sales for FY2010 totalled $236.9 million, down almost 4 per cent from the corresponding period in FY2009. EBIT and EBITDA both improved 10.8 per cent on the previous. Most importantly, however, was a $4.5 million increase in profit after tax, for a total of $15.3 million.
Breville attributed the drop in group sales revenue to higher foreign currency translation rates and the rationalisation of the US non-electrical homewares category. Unlike other suppliers in the industry who benefited from the improved exchange rate between the Australian Dollar and the Greenback, companies such as Breville that export to the States suffered from the inverse effect.
The effect of this inversion was an 11.7 per cent drop in international revenue, which could only be partially offset by a 5.1 per cent increase in Australian revenue. As a result of this shift, Australian revenue exceeded international sales by 6.3 million. In the corresponding period in FY2009, international sales revenue was almost $15 million stronger.
For the future, Breville has declared itself well-positioned for the second half of FY2010. It has affirmed its previously stated profit guidance of $46-49 million (EBITDA) for FY2010.