With investment in execution and strategy.
Breville Group has delivered a 5.1% increase in revenue to $605.7 million with revenue growth in the core global product segment increasing 9.9% to $469.6 million. Group EBIT for the year finished at $79 million, 7.2% higher than the prior year, while net profit after tax (NPAT) increased by 7.3% to $53.8 million.
ANZ led the pack in regional revenue performance with 22% growth, North America continued to deliver year-over-year performance, growing 9.8% in constant currency, and the Rest of World region posted a constant currency growth of 18.9%, collectively resulting in 14.3% constant currency revenue growth for the global segment as a whole.
Breville chairman, Steve Fisher said, “The 2017 financial year was another significant year of achievement for the Breville Group with continued sales and profit growth driven by transformational execution. The 2017 year also represents a significant endorsement of our evolving business model and strategy.
“Breville continues to launch innovation driven products to ensure that it remains relevant to its customers globally and has embraced a culture of change, which is a natural part of the transformation.”
Breville CEO, Jim Clayton (pictured above) commented, “The global segment delivered 14.3% revenue growth in constant currency, growing to $469.6 million, while the distribution segment contracted 8.8% to $136.2 million. The distribution segment shouldered a fair amount of volatility in FY17.
“While we continued to face headwinds in the mass channel, we also saw the end of the Philips distribution agreement, as well as the tailing in of the expanded Nespresso machine partnership agreement to North America. As we move forward, we expect the distribution segment to show improved EBIT performance in FY18 and beyond.
“Throughout FY17, and into this year, we are continuing to improve our in-store execution. This continues to be a work in progress, but we are beginning to see some results. We installed our first build-out in the David Jones store at Bondi Junction, and we have rolled out end caps in 220 Best Buy stores in the US.
“Point of sale material has begun to materialise across the system; we continue to expand and improve our in-store demonstration program; and we are piloting our store associate training program in the US. On the whole, we have a tremendous amount of work in front of us, but it is great to see the efforts we have put into this over the last two years finally reflected in store.”