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Here’s why this Aussie icon hit an 87-year high today

Shares in the 87-year-old Breville Group Ltd (ASX: BRG) took the company to a record valuation near $2.5 billion today after the kitchen appliance group’s management team updated investors on its performance at a conference hosted by investment giant Macquarie Group Ltd (ASX: MQG).

Sydney-based Breville is a market leader globally in manufacturing cutting-edge common kitchen appliances such as toasters, coffee makers, juicers, microwaves, and kettles.

This is important as if you ‘engineer’ top of the range products you can charge premium prices that produce big profit margins.

As such it’s important to note Breville is not targeting households on budgets, as the majority of households are actually happy to spend big on top-class kitchen products.

The group is planing on expanding further into the developed economies of the U.S. and Europe over the years ahead and is forecasting earnings before interest and tax (EBIT) growth of 11% in fiscal 2019.

It looks a well run company with a consistent strategy it has executed successfully over the long term and it also has a highly successful long-term retail backer in Solomon Lew’s Premier Investments Limited (ASX: PMV).

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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. 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.