By Claire Reilly
Breville is expecting to perform well in the current financial year, with the company today announcing an earnings forecast in the range of $65 to $67 million. The results reflect positively on Breville’s fiscal position when compared to the previous financial year, when Breville reported earnings of $57.4 million, after excluding the impact of onerous lease expenses.
Speaking about the projected results, which represent a 16 per cent increase on last year, was Breville Group Limited acting CEO, Jack Lord.
“We are expecting a solid performance in FY12 underpinned by the strong results from North America with the balance of the International business continuing to perform to expectations,” said Lord.
“Whilst trading conditions in Australia remain difficult to predict with considerable retail volatility and uncertainty, we do expect earnings’ growth in 2H12 compared to the softer second half last year.”
The company also announced a preliminary result for the first half of the 2011-2012 financial year, which is set to be officially reported on 23 February 2012. Breville is anticipating an EBITDA (earnings before interest, tax, depreciation and amortisation) of approximately $45 million, compared to the $38.6 million for the corresponding period in 2010.
“The Group’s strong performance for the first half has been pleasing, with a standout result achieved in our North American business, including the Keurig [coffee machine] distribution business in Canada,” said Lord.
“Australia performed as expected in the difficult retail environment which has been widely reported.”