The company’s share price is up more than 40% year-to-date, including an astronomical 27% in the last week alone as the appliance maker’s international expansion continues to pay dividends.
What was so good about Breville’s earnings?
The company’s first-half revenue rose 15.4% on the prior corresponding period to $440 million with the company’s expansion into Germany and Australia proving to be a resounding success. Management intends to continue its European expansion with its Sage brand into Belgium, the Netherlands, Luxembourg and Switzerland in 2H19 and Spain in 1H20.
North America continues to pay dividends for the company with strong beverage and juicing product sales in the USA underpinning earnings.
Net profit for the group was up 19.7% to $43.5 million which saw the company increase its interim dividend by 2 cents per share (cps) on 1H18 levels to 18.5 cps, franked to 60%.
The company has ridden a 2018 health craze to be riding high in a sector that’s under some serious pressure, both here and in the USA. The Aussie appliance maker still managed to grow revenue by 7.6% in its Australian and New Zealand segment despite recent Reserve Bank of Australia (RBA) data suggesting a miss on estimates in the sector.
Breville is an anomaly in an otherwise faltering retail sector, with economic data continuing to weaken and the retail REITs such as Vicinity Centres Re Ltd (ASX: VCX) starting to feel the heat.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
Motley Fool contributor Lachlan Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
- Why the HomeCo (ASX:HDN) share price is one to watch – February 17, 2021 9:38am
- EBOS (ASX:EBO) share price on watch after dividend surge – February 17, 2021 9:01am
- A turbulent tale of 2 ASX biotech shares: Polynovo (ASX:PNV) and Pro Medicus (ASX:PME) – February 15, 2021 11:28am