By Patrick Avenell
The Breville Group has a revealed a very strong result for the first half of the 2013 financial year and more is expected from the Breville, Kambrook and Philips (personal care and ironing) suppliers once the first batch of Nespresso coffee machines are released.
For the six months to 31 December 2012, Breville Group’s revenue was $264.4 million, up 13.2 per cent from the previous corresponding period. Net profit after tax was up 7.8 per cent to $31.7 million.
CEO Jack Lord contributed this growth to a solid performance in Australia and excellent sales in Breville’s international business. He also noted this growth came during a period of worldwide economic uncertainty.
“This result reaffirms the group’s strategy of designing and developing innovative world class products and effectively marketing these across multiple geographies,” Lord said. “Although impacted by the difficult retail environment globally, the group has successfully leveraged its core capabilities to drive revenue and earnings growth.”
Special mention was made in The Breville Group’s half year report of the positive impact Nespresso is set to have on the publicly listed company. Breville is expected to release its first co-branded Nespresso capsule coffee machine in June or July 2013.
“The portioned coffee machine market in Australia and New Zealand is now in excess of $100 million per annum and still growing,” Lord said. “We see the Nespresso partnership as a great collaboration where you have the combination of the world’s best espresso capsule system with Australia and New Zealand’s most trusted kitchen appliance brand.”
Breville’s report noted that the Breville brand had performed very strongly with growth in the juicer category and the United States business, particularly through the Award winning YouBrew coffee machine. The Kambrook brand also performed well in competition with house brands in the very competitive entry-to-mid level market.
The Philips brand, for which Breville only supplies personal care and garment care appliances, performed “steadily”.
Further Breville growth is expected when the company enters the UK market with an as yet unknown new brand.