Breville has seen 2% growth in revenue to $905.8 million for the six months to 31 December 2023. Net profit after tax (NPAT) increased 6.7% to $84 million during the half.
Breville reported strong sales from NPD including the Barista Touch Impress and the Vertuo Creatista coffee machines, as well as the InFizz range for carbonating a variety of drinks, not only water. At a gross profit level, both coffee and cooking categories are growing with food preparation including blenders, juicers and food processors, in decline.
EMEA was the best performing region for the Group with revenue growth of 13.2% to $177.2 million compared to the prior corresponding half. APAC experienced a 4.8% decline in revenue to $155.4 million and in the Americas, revenue was relatively flat, dipping just 0.1% to $450.3 million.
In APAC, Asia continued its strong growth trajectory, while ANZ experienced a weaker first quarter, followed by a stronger second quarter, beginning with Black Friday. Given the environment, Breville restricted its promotional spend and focused on gross profit, which grew half-on-half.
Breville Group CEO, Jim Clayton described it as a solid performance, delivering 8.2% EBIT growth against a subdued consumer backdrop with gross profit up 6.7%.
“The strength of our new product launches, expansion of new markets and the continuing coffee tailwind supported top line growth as cost-of-living pressures and mean reversion buffeted the business. Our five-year revenue CAGR is running at 15.5%,” he said.
“We enter 2H24 in a solid position with our NPD pipeline, new markets maturing, our solutions offering developing and cost pressures well managed. We expect to deliver EBIT growth of 5% to 7.5% for FY24.”