The Breville Group Ltd (ASX: BRG) share price surged 8% into the green at the open on Wednesday after the company posted its FY24 results.
Shares in the kitchen appliance maker are currently swapping hands at $32.52 apiece, 6.3% higher on the day.
Let's see what the company posted.
Breville share price climbs on solid FY24 results
Key highlights from Breville's year include:
- Revenue came to $1.53 billion, up 3.5% year over year.
- Gross profit of $556.9 million was a 7.7% increase compared to FY23.
- Earnings before interest and tax (EBIT) came to $185.7 million, growing by 8%.
- Net profit of $118.5 million, up 7.5% year over year.
- Declared dividends per share of 33 cents, fully franked, up 8.2%.
What else happened in FY24?
The Breville share price and company both had a solid year in FY24. Breville reported a 3.5% increase in revenue to $1.5 billion, with sales "more than doubling over the last 5 years".
The company's EBIT grew by 8% to $185 million, slightly above the top end of its guidance.
Management said revenue, gross profit, and EBIT had "increased every year since FY15", highlighting the company's longer-term growth record.
Breville also made a number of strides in expanding its global footprint and launching new products during FY24.
The company's Global Product segment, which includes regions like the Americas and Europe, Middle East, and Africa (EMEA), recorded revenue growth of 4.4%.
The second half of the year was particularly strong, with double-digit revenue growth in the Americas and EMEA.
And despite a slight revenue decline in its Distribution segment, the company managed to improve its gross profit by 16.1% in this area, prioritising profitability over volume.
Finally, the Asia Pacific (APAC) segment reported a 6% decline in sales, which was offset by strengths in the other portfolio segments. The diversified revenue streams may have helped the Breville share price.
What did management say?
Breville Group CEO Jim Clayton was positive on the results, saying:
Encouraging signs of strengthening in the 2H with double-digit revenue growth in the Americas and EMEA, double-digit growth in Coffee, and an improving performance in our direct countries in the APAC Theatre.
Overall, the strength of our new product launches, expansion of new markets and the continuing coffee tailwind supported this top line growth as cost-of-living pressures and mean reversion weighed on the business.
Clayton also mentioned that cost management contributed to growth:
Savings in input costs were partially reinvested into our standard promotional program, but only where ROIs supported the investment, driving Gross Margin improvements across the Group. In a lower growth environment, expenses were well controlled to deliver an 8.0% EBIT growth.
What's next?
Looking ahead, Breville is cautiously optimistic about FY25. The company plans to continue its focus on new product development and expanding into new geographies.
It didn't provide any specific guidance but expects growth nonetheless.
It is too early to predict how these forces will play out across the whole year, but our expense budget is again set with flexibility to deliver EBIT growth under a range of probable revenue and cost scenarios.
Breville share price snapshot
The Breville share price has climbed more than 28% over the past 12 months and is up 15.7 % year to date.
