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By Claire Reilly
Breville Group Limited, which owns the Breville and Kambrook small appliance brands and acts as the exclusive Australian distributor for Philips personal care and garment care appliances, released its annual report for the 2010-11 financial year yesterday.
The report showed a slight decrease in revenue for the year, falling by a minimal 0.2 per cent to $393.6 million. However, underlying EBITDA (earnings before interest, taxes, depreciation and
amortisation) was up 16 per cent (to $58.2 million) and underlying net profit after tax climbed 25 per cent to $35.8 million.
Discussing the results was outgoing Breville Group CEO Stephen Audsley.
“The Breville Group continued to achieve good progress in delivering on its strategy, with strong profit growth in the 2011 financial year,” said Audsley. “This was achieved despite difficult and competitive retail trading conditions in the core markets in which we operate.”
“Group revenue was steady at $393.6 million despite unfavourable foreign exchange movements on the translation of non Australian dollar denominated sales and the residual impact of the now completed exit of the North American non-electrical homewares category.”
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Audsley conceded that second-half sales in Australia were impacted by deflationary pressures and weaker consumer spending, causing lower sales and earnings results for the year as a whole.
Despite this, he noted that there were several highlights for the year including a strengthening of the Breville brand internationally, expanded distribution and product range in North America, and positive consumer responses to new product launches.
“The group’s multi-brand strategy continues to demonstrate its relevance in the Australian market with the group’s brands maintaining overall market leadership in the core appliance category,” Audsley added, citing GfK data for the year ended June 2011.
“The group is new singularly focused on its core electrical business. Ongoing investment in developing innovative products and the extension of our geographic reach, positions the group well to compete effectively on an increasingly international platform.”