Revenue up 7.2%.
Breville has recorded group revenue growth of 17.5% for the year ended 30 June, 2019, attributed to successful geographic expansion, increasing marketing and R&D spend and increasing return on organic investment.
Australia and New Zealand experienced revenue growth of 7.2% for the year (or 7% in constant currency). The company said resilient growth in Australia offset lower growth in New Zealand where the Breville business was realigned to a less-promoted business model, in turn improving margins.
Breville ANZ general manager, Mark O’Kelly told Appliance Retailer, “I am very pleased with the ANZ results in a challenging environment. Our future new product line-up, in-store POS and engaged team will further cement our market leading position. I would also like to thank all of our retail partners who continue to support our overall brand strategy.”
Europe was the star performer for the group, experiencing revenue growth of 42.1% for the year (or 35.1% in constant currency) with double digit growth in the UK, strong first full year for Germany and successful expansion into Benelux and Switzerland. The European region is now over two thirds the size of the global segment in the ANZ business.
The group plans to enter Spain and France in FY20 and hinted that Portugal and Italy may be next on the roadmap.
Revenue growth for North America was also healthy at 19.6% for the year (or 12.8% in constant currency) driven by the beverage and juicing categories, partially moderated by a ‘reset’ year in Canada with retailer rationalisation and some major retailers reducing inventories, although sell out continued at historic levels.
Commenting on the results, Breville group CEO, Jim Clayton (pictured) said it was another “good year” for Breville.
“We continued to deliver double digit EBIT growth (12%) while successfully executing our acceleration program, increasing our investment in product development and marketing and geographically expanding in Germany, Austria, Benelux and Switzerland.”
The global product segment EBIT for the year was $78.8 million, representing a 7.5% increase. The distribution segment also grew revenue strongly increasing sales by 18.8%, against a decline of 7.3% in FY18, with strong Nespresso growth in the US and improved performance for Breville and Kambrook in ANZ.
The group said it made significant progress during FY19 in delivering a centralised scalable global platform and will enhance this in FY20 with a third-party logistics model in all geographies, product information management (PIM) system to centralise all product related data, middle ware platform improving flexibility and scalability, and a point of sale module giving access to sell0out data for better decision making.
In July 2019, Breville acquired the ChefSteps business in the US and has plans to roll out four SKUs in FY20 – the Joule Sous-Vide for the consumer, the Sous-Vide Pro for the prosumer, as well as the Chef Series Pro Ultra and Chef Series Pro for commercial.
Breville also revealed two new products that will make their debut at this year’s IFA – the Creatista Pro coffee machine, which claims to make the fastest flat white in the world, and the 3X Bluicer and 3X Bluicer Pro, a combination of blender and juicer.