Breville’s Share Price Surges by 20.27% after Half Year Sales

Home goods and electrical consumer products company, Breville Group Limited [ASX:BRG] has experienced a surge in their share price, following today’s announcement of a large increase in their half year sales and profits.

It comes as welcome news after a disappointing few months, and in return, their share price hit a 20.27% increase earlier today, making it one of the best performers on the ASX today.

At time of writing, Breville’s share price sits at $14.20.

What do Breville’s half year results reveal?

Breville’s half year results seem to display good news across the board.

The company reported their group revenue to be 15.4% higher this year, which was apparently driven by solid growth across the business, including geographic expansion.

Their EBIT (earnings before interest and taxes) has continued to grow, increasing by 12.9%, while their EBIT margin is broadly steady at 14.2%.

Their NPAT (net profit after tax) is up 19.7% after being impacted by an AU$1.6 million reduction in deferred tax asset in the US during the last financial year.

However, if excluded from their comparator, Breville’s NPAT had increased by 14.8%.

Their interim dividend is up by 18.5 cents per share, with 60% franked.

Net Cash was also reported to follow the seasonal pattern for the first half of the year.

The US was the company’s most important market, seeing constant currency growth in the double digits, despite the tough conditions in the year prior.

What’s next for Breville’s share price?

It seems as though the company has proved critical investors wrong when it comes to their bounce back — and perhaps it will hold.

The company stated that the results are most promising, while they are aware of the current political and economic environment that they find themselves in. They hope that if there is no significant change in the major trading markets, their EBIT growth rate could be even greater.

Perhaps if they can stay strong with their most recent performance, we’ll be seeing a few more positive figures from Breville in the near future.


Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is one of Money Morning’s junior analysts. Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects. Ryan’s primary focus is assisting Sam Volkering with background research and insight for readers by dissecting the latest events affecting the world. Working closely with Sam, they explore the latest in small-cap and technology stocks as well as cryptocurrency opportunities. You can find Ryan’s contributing research, developments, and supporting information across several e-letters, including:

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