Breville shares took a beating on Tuesday after record Fy21 earnings were overshadowed by potential supply chain issues.
The company achieved record group sales resulting in a 24.7% increase in revenue to $1,187.7 million delivering another year of growth on a strong prior year. A result the business attributed to successful international expansion into markets such as Italy and Mexico, along with a general boost from more people working at home.
Breville reported strong demand for its products across all geographies and product ranges. Despite rising costs during the year, Breville’s gross margin increased thanks to the product mix and low promotional spend.
Gross profit was up 29.0% to $413.7 million, while net profit after tax was up 42.3% to $91.0 million.
However, Breville warned investors that supply chain and logistics issues have dominated the beginning of the new financial year.
Dividends per share down 35.4% to 26.5 cents per share (FY20: 41.0 cents per share). Down on last year due to the company focusing on reinvesting earnings into internal growth.
The group also finalised the acquisition of USA-based coffee machine manufacturer Baratza in September 2020 which is reportedly performing above expectations.
Chief executive Jim Clayton commented, “A fairly remarkable year for the Group with the accelerated demand experienced in the first half carrying through to the second half. Increased consumer demand, driven by the need/requirement to work from home, coupled with our continued geographic expansion, outweighed logistical challenges and a weakening USD.”
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