Breville Group (BRG) H2 2024 earnings summary

Executive summary

• Achieved record revenue of AUD 1.53 billion in FY 2024, up 3.5% year-over-year, with strong second-half growth, especially in the Americas, EMEA, and Coffee category.

• EBIT reached AUD 185.7 million, up 8% and slightly above guidance, with gross profit up 7.7% due to improved margins and controlled expenses.

• NPAT grew 7.5%, aided by lower interest costs, despite a higher effective tax rate.

• Ended the year with a net-cash position of AUD 53.6 million after a cash inflow of AUD 175 million, driven by inventory reduction and strong operational execution.

• Fully franked dividend increased 8.2% to AUD 0.33 per share.

Financial highlights

• Gross profit rose 7.7% to AUD 556.9 million, with gross margin improving to 36.4% from 35.0%.

• EBITDA increased 12.5% to AUD 245.5 million; basic EPS grew 7.1% to 82.7 cents.

• ROE at 14.6%, down from 15.9% in FY23.

• Working capital reduced by AUD 114 million year-over-year, with inventory at 21.8% of sales, reflecting a new equilibrium.

• Net-cash position of AUD 53.6 million as of June 30, 2024, with AUD 328.6 million in cash and unused facilities.

Outlook and guidance

• New product development and geographic expansion, especially in Asia, remain key growth drivers for FY 2025.

• Continued investment in R&D, marketing, technology, and new markets is planned.

• Freight costs and sourcing benefits expected to remain within normal volatility, with no major concerns for FY 2025.

• Depreciation and amortization expected to increase in FY 2025, reflecting ongoing investment.

• Strength of geographically diverse portfolio expected to support further growth.