This morning kitchen appliance business Breville Group Ltd (ASX: BRG) posted its financial results for the full year ending June 30, 2017.
Below is a summary of the results with comparisons to the prior corresponding period.
- Full year revenue of $605.7 million, up 5.1% over prior year
- EBITDA (operating income) of $89.8 million, up 7.6%
- Net profit of $53.8 million, up 7.3%
- Earnings per share of 41.4 cents, up 7.3%
- Dividends per share of 30.5 cents, up 7%
- Return on equity (profit/shareholder equity) 21.3%
- Net cash balance of $41.3 million
This is a typically solid result from a business with an impressive track record in delivering revenue, profit, and dividend growth to shareholders over the long term.
The company is part-owned by Solomon Lew's retail investment conglomerate Premier Investments Limited (ASX: PMW) and Breville's operational performance and strong management has its fingerprints of success all over it.
Breville sells must-have high-end kitchen equipment such as kettles, toasters, coffee machines, and juicers, but operates in a competitive market that is also sensitive to swings in consumer confidence, wage growth, and the like.
Profit margins also remain critical with total EBIT margins for the year up 0.2% to 13% thanks to new product launches and the push to sell more high-margin products.
As with Premier Investements the group maintains a super-strong balance sheet, pays healthy dividends and is pushing to grow its most successful product offerings in large overseas markets such as the UK and US.
Foolish takeaway
Today the stock is up 5.4% to $10.81 and over the past 5 years has climbed 111%.
While Breville looks a good business, the valuation is expensive at 26x trailing earnings, with a fully franked dividend yield of 2.8%. The group didn't provide any sales guidance as it heads into what will be an important Christmas trading period.
