By Claire Reilly
Breville has announced its half yearly profit results, with a poor performance in the Australian market offset by stellar results in the company’s North American division.
For the half-year ended 31 December 2011, Australian revenues for Breville fell by 6.4 per cent (down to $111.8 million) while earnings before interest and tax (EBIT) fell by 14.5 per cent from $15.9 million to $13.6 million.
It was a totally different story in North America, with the company almost doubling its earnings, albeit off a low base. Revenue climbed from $77.5 million to $86.8 million, an increase of 12 per cent, while earnings before interest and tax grew a massive 84.7 per cent, from $12.2 million in the first half of the 2010-11 financial year to $22.5 million for the corresponding period in 2011-12.
When the results of Australia, North America and international distributors are taken in total, Breville experienced a 0.9 per cent decline in group revenues (down to AUD $233.6 million). However, the company recorded 40 per cent increase in both EBIT and net profits after tax (NPAT) for the year up to $41.8 million and $29.4 million respectively.
According to the company, the Australian branch of Breville is being adversely affected by the soft retail climate across the country, though there are still elements of the business that are finding success.
“The result from the Australian business reflects difficult retail trading conditions and the decision by certain retailers to rationalise their ranging and support more house brand and entry level product,” said a Breville spokesperson.
“The Breville brand continued to successfully launch innovative new premium products that increased its average sales price, whilst Kambrook performed solidly in the increasingly competitive entry level segment of the market, successfully maintaining a price premium over house brand products.
“The Philips distribution business performed well growing its share of the iron and shaving categories.
“Through its multi brand strategy, the Group maintained its market leadership position in the core kitchen appliance category and has grown its share in the ironing and personal care categories.”