Insights

Why the Breville (ASX:BRG) share price is lifting today

The Breville share price is up slightly today after the company annnounced solid results for FY20 and provided strong guidance for FY21.
The post Why the Breville (ASX:BRG) share price is lifting today appeared first on Motley Fool Australia. –

Breville

Breville Group Ltd (ASX: BRG) shares are lifting after the company announced an update on its business and provided guidance for FY21 at today’s annual general meeting (AGM). At the time of writing, the Breville share price is trading 1.3% higher at $26.46. 

Highlights from the AGM

Breville delivered some key numbers for FY20:

  • 25.3% increase in top line revenue to $952 million. 
  • Earnings before interest and taxes (EBIT) grew by 14.3% to $113 million after normalising one-off expenses incurred due to COVID-19.
  • Net profit after tax (NPAT) on a normalised basis increased by 11.2% to $75 million
  • Dividend for the year grew 10.8%, tracking growth in NPAT. 

The appliance company also mentioned the successful acquisition of Baratza, a designer and distributor of premium coffee grinders, in October.

Guidance for FY21 

Breville also issued an outlook for FY21, with a caveat that it won’t have a clear visibility of its numbers until January 2021 due to prevailing uncertainties. However, assuming no significant change in market conditions, Breville expects EBIT for the full year of FY21 to be consistent with the market’s current consensus forecast range of $128 million to $132 million.

A brief look at Breville

Breville is a well-known Australian designer and manufacturer of small appliances such as blenders, coffee machines, juicers and mixers. It owns popular brands such as Kambrook, Ronson, Sage, Solis, Gastroback, Stollar, Catler, Bork and Riviera & Bar. 

Breville positions its brands at the premium end of the market. The company’s brand strength is particularly prominent in North America and Europe, where it enjoys a substantial price premium to competitors, and where retail pricing is routinely up to 30% higher than in Australia.

In Australia ironically, Breville does not benefit from the same pricing premiums it commands in North America and Europe. While its domestic pricing is still at the upper end of the market, it doesn’t command an additional premium against high-end competitors such as De’Longhi and KitchenAid.

As the company’s products are priced at the top end, management has acknowledged that Breville’s business is exposed highly to the economic cycle, and a downturn could lead to consumers opting for cheaper alternatives that would erode its margins. 

How the Breville share price has performed in 2020

The Breville share price has climbed up by almost 50% this year, rising from $17.46 in January to $26.46 at today’s trading. The company has benefited from the COVID-19 lockdowns as more people working from home buy small appliances like coffee machines and blenders. Breville commands a market cap of $3.6b billion.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Breville (ASX:BRG) share price is lifting today appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!