Breville Group Limited · ASX:BRG
Breville — Investor Presentation (February 2019)
20 slides from Breville's investor presentation, Feb 14, 2019
Slide 1: Half Year Ended 31 December 2018
14 February 2019 Manager, Company Announcements, Australian Securities Exchange Limited, 20 Bridge Street, Sydney NSW 2000 Half Year Ended 31 December 2018 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Half Year Ended 31 December 2018. Yours fai
Slide 2: Breville Group Limited Half Year Results FY19
Breville Group Limited (BRG) HALF YEAR RESULTS FY19 Investor Presentation 14th February 2019
Slide 3: Group Summary Result
Group Summary Result Commentary AUDm 1H19 1H18 % Chng Revenue 440.4 381.8 15.4% Group revenue 15.4% higher, driven by solid growth across the business, EBITDA 70.5 61.5 14.6% including geographic expansion EBIT growth trend continues, increasing EBIT 62.3 55.2 12.9% 12.9% (1H18: 12.3% increase)
Slide 4: Segment Results
Segment Results REVENUE EBIT EBIT MARGIN (%) AUDm 1H19 1H18 % Chng 1H19 1H18 % Chng 1H19 1H18 Global Product 356.1 310.1 14.8% 52.1 46.8 11.3% 14.6% 15.1% % Change CC* 9.2% Distribution 84.3 71.7 17.6% 10.2 8.4 22.1% 12.1% 11.7% TOTAL 440.4 381.8 15.4% 62.3 55.2 12.9% 14.2% 14.5% *CC – Constant Curr
Slide 5: Segment Results cont'd
Segment Results cont’d GLOBAL PRODUCT SEGMENT REVENUE AUDm 1H19 1H18 % Chng $A % Chng CC* North America 214.9 188.1 14.2% 7.1% Australia and 74.1 68.7 7.9% 7.6% New Zealand (ANZ) Europe** 51.4 36.8 39.5% 32.0% Rest of World 15.7 16.4 (4.3)% (11.2)% TOTAL 356.1 310.1 14.8% 9.2% *CC – Constant Currenc
Slide 6: Global Product Segment Revenue Growth Pattern
Global Product Segment Revenue Growth Pattern (constant currency) FY19 Half-on-half Revenue Growth FY17 9.2% Half-on-half Revenue Growth 16.0% 14.3% 12.9% 1H 2H FY FY18 Half-on-half Revenue Growth 20.5% 1H 2H FY 13.4% FY18 Global Product Segment 1H kicked off an NPD wave. 2H18 as a denominator, 4.5%
Slide 7: Financial Position at 31 December
Financial Position at 31 December AUDm 1H19 1H18 Commentary • Working Capital: Invested ≈A$18m working capital to Inventory 112.0 116.3 enter Germany/Austria Receivables 217.3 171.3 • Inventory: Number includes Germany/Austria entry working capital & considered stock build pre US tariff and Trade an
Slide 8: Growth Acceleration Framework
Growth Acceleration Framework More Larger Product Market Acceleration Program EBIT Trajectory Scalable, Acceleration Platform Historical Trajectory Growth-oriented Business Model Time 7
Slide 9: Innovation Drumbeat Continues
Innovation Drumbeat Continues “The Breville Super Q is our top choice for serious cooks looking to add a commercial-grade blender to their arsenal. This blender truly has it all …” CookingLight* * https://www.cookinglight.com/cooking-101/best-blendersder 8
Slide 10: The Blender Category
The Blender Category * * “ … we’re naming the Fresh & Furious from Breville our new winning mid-priced blender.” America’s Test Kitchen. https://www.americastestkitchen.com/equipment_reviews/1807-midpriced-blenders 9
Slide 11: the Tea Maker
the Tea Maker” a ved " the Tea Maker” Va » Breville | Sage
Slide 12: The Tea Category
The Tea Category Automatic Tea Makers Manual Tea Makers the Tea Maker* the Tea Maker” the Smart Tea the Smart Tea Compact Infuser* Infuser* Compact Onsite Development Centre Driving Range Extension Breville | Sage
Slide 13: Growth Acceleration Framework
Growth Acceleration Framework More Larger Product Market Acceleration Program EBIT Trajectory Scalable, Acceleration Platform Historical Trajectory Growth-oriented Business Model Time 12
Slide 14: Global Products Organic Growth Drivers
Global Products Organic Growth Drivers FY19 and Beyond Geographic FY17-FY18 Expansion Improved Go-To- Improved Go-To- FY16 Market Market NPD* NPD / OPD** NPD / OPD * New Product Development (Sydney-based) ** Onsite Product Development (China-based) 1H 19 is the first reporting period where Geographi
Slide 15: Europe Update – Germany/Austria
Europe Update – Germany/Austria 1H Revenue Since Launch UK vs Germany +42% UK1H14 UK1H15 UK1H16 DE1H19 UK1H17 New Geography Offense is working … cut 3.5 years off UK market entry 14
Slide 16: Europe Update – Benelux & Switzerland
Europe Update – Benelux & Switzerland • Country-level teams and partners in place and executing • EU-wide packaging complete • Logistics and service infrastructure in place, incremental inventory on the water • Website, content and point-of-sale translated and ready for launch (Switzerland eComm alr
Slide 17: Europe Update – What's Next?
Europe Update – What’s Next? We plan to launch Sage into Spain in 1H20 16
Slide 18: Europe Update – Sage Partner Geographies
Europe Update – Sage Partner Geographies • Turkey flipping from a Breville partner to a Sage partner (2H19) • FY19 headwind as partners transition from Hong Kong to Czech warehouse, though sellout trending well • Launching new products simultaneously with Sage direct territories 17
Slide 19: 2H19 Considerations
2H19 Considerations • We expect our FY19 constant currency revenue growth rate for the Global Product segment to be roughly in line with the growth rate in previous years, with a weak 2H comp and NPD driving growth acceleration in the 2H (FY17: 14.3%, FY18: 13.4%) • In Europe, 2H revenue growth will
Slide 20: Outlook
Outlook • The Board and management are mindful of the dynamic nature of the current global political and economic environment, but are encouraged by the continued progress of the acceleration program. • Assuming no significant change in economic conditions in the Group’s major trading markets, we ex
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