By Keri Algar
SYDNEY, NSW: Investment in new products and marketing has cemented Breville’s place as Australia’s most recognised kitchen appliances maker, according to Breville Group’s annual report released today on the Australian Securities Exchange.
Breville used Pure Profile brand research collated in February to determine its prime position on bench tops. The report also said Breville was voted Australia’s most trusted home appliance brand in 2010 by Australian Readers Digest.
The “food thinkers” have attributed the Group’s positive financial situation to three things: consumer acceptance of new product launches, targeted advertising campaigns, and increased interest in home cooking. According to the report, “this has resulted in a positive shift in the mix of sales to higher value price points.”
Product innovation highlighted in the report included a juicer that accepts whole fruit, a toaster with “a bit more” button, and a fully automatic tea maker. Focussed marketing in 2009 lifted sales and drove higher value sales in specific categories, according to the report. Key products launched during this year included the Scraper Mixer Pro bench mixer, the Easy Sear Pan slow cooker, and the Automatic Tea Maker.
So while the end of financial year report in June stated a significant boost in the underlying net profit after tax of $28.5 million, up 65 per cent, this was largely due to tight management of its working capital – Breville’s reported sales revenue was actually down $11 million to $420.9 million for the year to June 2010.
This financial result however, has been a recurring trend across appliance and consumer electronics suppliers due to a slower second half impacted by higher interest rates and softer consumer demand.
Breville Group CEO Stephen Audsley credited the strong brand for the company’s financial position.
“Market share was maintained by both Breville and Kambrook brands, driven by a strong pipeline of new product launches,” said Audsley.
“Importantly, the group maintained its strategic focus on differentiation through continued investment in its design and innovation capabilities to respond to changing consumer needs and economic conditions.”