Breville Share Price Suffers on after Heavy Selling

The stock market has been hit hard today amid the news of the latest Trump–China debacle. It’s been the worst sell-off since January, but it seems as though Australian shares have recovered well.

One of the worst performers on the ASX today has been Breville Group Ltd [ASX:BRG], declining by  -2.66% from yesterday’s closing price $19.18.

At time of writing, the appliance company’s share price is sitting at $18.68.

2019 is Breville’s best year, so far…

It’s a disappointing drop for the Australian-based international producer of appliances and home goods, in what has been an incredibly positive start to the year.

After crawling figures for the past year, Breville experienced a sharp increase in their share price in February, following the release of their half year report ending 31 December 2018. On the day of the release, Breville shares increased in price by 18.01%.

The results revealed that the company experienced a revenue increase of 15.4% to $440 million, an increase in interim dividends to 18.5 cps (60% franked), and an EBIT increase of 12.9% to $62.3 million. They reported that this growth was due to solid improvement in operations across the business, especially in geographic expansion.

Their expansion into Europe was well accepted, with a 32% increase in revenue. Operations in the UK also performed well.

So even though the drop looks concerning, especially next to decreases across the board, it should signify nothing more than a side effect of current events. And as they are experiencing their most positive year yet, Breville should experience smooth sailing, unless something were to rock the boat internally.

The year ahead for Breville Group

There’s lots of reasons to remain positive about Breville. Last month, the company reported great revenue increases across the globe — the best performers being North America at $303.6 million and Australia and New Zealand at $123.9 million.

Following behind was their venture in Europe at $61.8 million, and the remainder of their world operations at $37.6 million. They’ve reported great customer satisfaction, and their best performing products to be their award-winning coffee machines, which are popular regardless of geographical location.

In terms of future growth, Breville is expecting their operations to expand in North America, Europe and the rest of the international market.

We look forward to seeing them doing so.

 

Regards,

Ryan Clarkson-Ledward,

For Money Morning

PS: In such volatile times, it’s worth checking out this special FREE report, showing you the top three small cap stocks we believe could be some of the best performing of 2019. Click here to download.


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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