Earnings from product sales rose 7.5 per cent to $78.8 million and margins slipped from 14 per cent to 12.9 per cent due to the stronger US dollar (the group’s hedging shields it from foreign exchange movements) and higher marketing and research and development spending.
In the distribution business, which distributes Nespresso machines in North America and Breville and Kambrook in Australia and New Zealand, sales rose 18.8 per cent to $148 million and earnings by 36 per cent to $18.5 million, with margins rising to 12.5 per cent from 10.8 per cent.
Breville increased its final dividend by 2¢ a share to 18.5¢, payable September 27, taking the full year payout to 37¢ compared with 33¢ in 2018.
Breville shares have risen 80 per cent this year to $19.15 and hit a record $19.53 in May.
Last month Breville made its first acquisition in two years, buying Seattle-based food and technology company, ChefSteps, which makes Joule, the world’s smallest sous vide immersion circulator controlled by a smartphone app.
Breville chief executive Jim Clayton says the acquisition will not have a material impact on earnings in 2020 “but hopefully in 2021 or 2022 and so forth it will start to have some impact”.
Breville is 28 per cent owned by Solomon Lew’s listed retail investment company, Premier Investments.
more to come …
Taste The Coffee 2019