By Claire Reilly
Breville is set to announce stellar financial results for the 2011-12 financial year, with the company today forecasting a huge jump in expected earnings.
Breville Group Limited released its earnings update to the Australian Securities Exchange today in relation to its “expected” FY12 results. According to the statement, Breville expects that EBITDA (earnings before interest, tax, depreciation and amortisation) for the financial year “will be in the range of $72 million to $73 million”.
This is a huge increase on the previous year when the company posted earnings of $52.9 million, “before excluding the impact of the onerous lease expense of $5.4 million”. In the annual report released by Breville in October 2011, the company reported an underlying EBITDA of $58.2 million for the fiscal year. This was up on the FY10 EBITDA result of $50.1 million, and well up on the $35.6 million figure from FY09.
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The Group has also seen a steady rise in profits over the years to match this increase in earnings. From the 2009 to 2011 net profits after tax more than doubled, climbing from $17.2 million (FY09), to $28.5 million in FY10 and $35.8 million in FY11.
Since the beginning of 2009, the company's share price has risen from less than $1 per share to over $4.50.
Speaking about today’s earnings update was Breville Group Limited acting CEO, Jack Lord.
“The Group’s very pleasing performance was underpinned by the strong result achieved with Breville designed and developed products in North America and the Keurig distribution business in Canada,” said Lord. “The Australian and International Distributors businesses also showed good growth in the second half after a difficult first half.”
The earnings forecast is still subject to finalisation and review by the company, as well as an external audit, with full results to be announced on 23 August 2012.