Breville has reported a 1.1% increase in revenue to $888 million for first half ended 31 December 2022 – a record sales half for the group. Net profit after tax (NPAT) was up 1.3% to $78.7 million while earnings before interest and tax rose 7.6% to $121.1 million.

According to Breville group CEO, Jim Clayton, it was a solid half performance against a challenging and dynamic backdrop.

“The strength of our product portfolio, coupled with the maturity and agility of our underlying acceleration platform cut through the macro-economic headwinds of 1H23,” he said.

“We grew gross profit 3.8% by tacking into our areas of strength. We managed price to counter material input and logistics cost inflation as well as negative currency swings; we leaned on our geographic diversification to deflect the impact of EMEA retailers buying less than they were selling and we aligned our supply chain and go-to-market to take advantage of the trending tailwinds of air frying and café quality coffee at home. We also executed an improved new product launch process and captured the benefit of investments we’ve made in our digital execution and geographic expansion.”

By region, the Americas was the best performing with an 21.8% increase in revenue to $450.7 million, Asia Pacific saw revenue inch up 0.3% to $163.2 million, while EMEA experienced a 22.2% decline in revenue to $156.6 million.

APAC consolidated the exceptional growth of 1H21 and 1H22 with sell-out moderately exceeding sell-in. The group’s first direct entry into Asia and South Korea is performing above expectations.

“Yet again a stellar set of results by the group against a challenging backdrop. In the first half APAC performed slightly ahead of the prior year. ANZ was solid and we’ve seen Korea perform well in its first year of trading. We have a number of new products launching in calendar 2023 to maintain our current momentum,” Breville APAC president, Mark O’Kelly told Appliance Retailer.

Breville recognises the macro headwinds and tailwinds for this financial year with company-specific tailwinds of new product launches, a growing direct-to-consumer channel, maturing new geographies and cost improvements. A full year EBIT is expected between $165 million and $172 million, or 5% to 10% growth on the previous year, assuming no significant change in economic conditions, no material supply chain disruptions and taking into account its investment levels into marketing, R&D and technology services.