Breville will continue to accelerate global growth

Bringing more products to market.

Last week, Breville Group reported revenue growth of 5.1% and a 7.2% increase in earnings before interest and tax (EBIT) for the year ended 30 June 2017. To coincide with the release of its results, Breville affirmed its progress through its acceleration program of selling more products into an expanding market on a corporate platform. The Group outlined how it is supporting this program.

  • Moving from a model of impressions (how many people saw something) to a model of engagement (how many people meaningfully engaged in the product)
  • Improving the in-store customer experience
  • Revamping the sales demonstration program and piloting a retail sales associate training program
  • Expanding the Sage brand transition to parts of Southern and Eastern Europe, with Sage branded product targeted to be ‘on shelf’ in the second half of FY18.

Breville is now operating under a four region structure, being ANZ, North America, Europe and Rest of World.

In a statement to the ASX, Breville Group said, “From an operations perspective, we have implemented a system-wide new product launch process and we are currently executing the IT integration for the consolidation warehouse. In addition, we have reshaped the FY18 inventory purchase pattern and are realigning our Australian supply chain to improve efficacy and scalability.”

Aquaport acquisition

Breville recently executed the acquisition of Aquaport, an Australian business operating in the water and air purification categories, which will be included within the distribution segment.

  • It will lay down the Group acquisition and integration process foundation and expect full integration within 30 days
  • Accretive acquisition with revenue upside in New Zealand and cost structure synergy
  • The Aquaport EBIT will be applied to the global product segment marketing and R&D acceleration
  • It may drive broader global product opportunities

“Looking forward, as always, it is difficult to provide financial guidance prior to Christmas trading. While the macro environment continues to be dynamic and challenging, we believe our acceleration program is progressing well and will position us for continued success,” the company said.

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