By Shivaun Hales
Breville’s half yearly results released this morning indicate a revenue drop for the Australian business, outshone by a strong performance in North America with a 12% revenue increase.
In Australia revenue for the half year ended December 31, 2011 fell 6.4% to $111.8 million, with earnings before interest and tax (EBIT) down 14.5% to $13.6 million.
In a statement issued to the Australian Security Exchange, Breville said it continuing challenging conditions impacted the results.
“The result from the Australian business reflects difficult retail trading conditions and the decision by certain retailers to rationalise their range and support more house brand and entry level products,” the statement read.
Breville reported a 12% revenue lift in North America to $86.8million, up from $77.5 million in the first half of the 2010-11 financial year. EBIT increased 84.7%, 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.
North American results were lifted by the rollout of new products into key retail channels, category extension and broader product ranging.
Across the Tasman, Breville New Zealand delivered promising results, with revenue up 14.6% to $13.3 million, while EBIT jumped 37.1% to $2.3 million.
“This growth in New Zealand was driven principally by the success of recently launched premium products and the Philips distribution business.”
Moving forward, Breville plans to continue to invest in building the brand globally. Breville said it’s developing the group into an international small appliance category by expanding into new markets, increasing footprint and distribution in existing markets, and continuing investment in support infrastructure.
The company will continued to invest in “innovation and development with a strong pipeline of products.” |