Breville share price lifts on record FY22 revenue and dividend boost

Revenue growth slowed in the second half of the year, in part impacted by Russia's invasion of Ukraine.

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Key points

  • The Breville share price dipped on open but has bounced back into the green
  • The company reported record revenues of $1.4 billion
  • Full-year dividend increased 13.2% from FY21

The Breville Group Ltd (ASX: BRG) share price is moving higher in early trade, up 0.86%, while the S&P/ASX 200 Index (ASX: XJO) is down 0.5%.

Breville shares closed yesterday at $21.47 and opened lower at $21.11, but are currently trading at $21.66 apiece.

This comes after the release of the electrical appliance manufacturer's full-year results for the 12 months ending 30 June (FY22).

Let's take a look at what the company announced.

Breville share price climbs amid record FY22 revenue

What else happened during the year?

With sales growth of 19.4% over the year, Breville's $1.4 billion of revenue sets a new record for the company.

The company's operations were not immune to the impacts of Russia's invasion of Ukraine, which contributed to a slowing revenue growth rate of 13.2% in the second half of the year.

Gross margins came in at 34.3%, just down from the 34.8% posted in FY21. Breville was able to maintain its margins by adjusting prices as it faced inflation from a strong US dollar alongside increased freight and product costs.

EBIT came in at $156.4, meeting the company's guidance, and up 14.6% from the prior year.

A final dividend of 15.0 cents per share was declared (fully franked) with a record date of 15 September.

The company's net cash position went from $129.9 million in FY21 to a debt of $4.1 million as at 30 June this year. The company stated the lower net cash flow "reflects a year of free cash outflow as working capital has been normalised and inventory pulled forward".

What did management say?

Commenting on the results, Breville Group CEO Jim Clayton said:

A solid year of performance for the Group, delivering guidance once again, against a dynamic backdrop of supply chain challenges, inflationary pressures, and headwinds resulting from the Ukraine invasion.

Having doubled the size of the business in the last 4 years, the strength of our geographic portfolio came through in FY22 as the Americas accelerated in the 2H to pick up the slack in Europe. We managed margins well, demonstrating the pricing power of our brand and our premium products.

The investment in growth drivers continued, while demonstrating the ability to align expenses with revenue, within the envelope of guidance.

What's next?

The Breville share price could be under some pressure for the company's lack of specific guidance. Instead, the company noted that FY23 looks to be one of competing macro headwinds and tailwinds for its business.

While Breville couldn't yet forecast how these forces will play out over the full year, Clayton said, "We enter FY23 in a solid position: we've successfully pulled forward our inventory build for 1HFY23, and our NPD pipeline is beginning to release."

Breville share price snapshot

The Breville share price has struggled in 2022, down 35% year-to-date. That compares to an 8% loss posted by the ASX 200.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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