Breville Group Limited · ASX:BRG
Breville — Investor Presentation (February 2024)
21 slides from Breville's investor presentation, Feb 13, 2024
Slide 1: Breville Group Limited – Half Year Ended 31 December 2023
13 February 2024 ASX Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Breville Group Limited – Half Year Ended 31 December 2023 Investor Presentation Attached is the Breville Group Limited Investor Presentation for the half year ended 31 December 2023. The
Slide 2: Breville Group Limited
BRGGROUP Breville Sage GLELIT BARATIA’ filchefsteps beanz.com Breville Group» Limited © (ASX: BRG)
Slide 3: Forward-looking statements disclaimer
To the extent this Presentation contains any forward-looking statements, such statements are not guarantees of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of Breville, its Directors and management, and involve eleme
Slide 4: Acknowledgement of Country
Acknowledgement of Country We would like to acknowledge the traditional custodians on whose land we meet today. We would like to pay respect to their Elders: past and present; and further extend that respect to all Aboriginal and Torres Straight Islanders present here today. We celebrate the continu
Slide 5: Modest revenue growth achieved against subdued consumer backdrop
AUDm 1H24 1H23 % Chng Revenue 905.8 888.0 2.0% • Modest revenue growth achieved against subdued consumer backdrop Gross Profit 332.0 311.3 6.7% • Good growth in gross profit $ with input cost Gross margin (%) 36.7% 35.1% savings more than funding well controlled EBITDA 159.2 141.9 12.2% promotional
Slide 6: Global Product Segment: 1.6% Revenue Growth, 4.8% Gross Profit Growth
Revenue Gross Profit Gross Margin (%) AUDm 1H24 1H23 % Chng 1H24 1H23 % Chng 1H24 1H23 Global Product 782.8 770.5 1.6% 298.5 284.8 4.8% 38.1% 37.0% % Change CC1 (1.3)% 2.0% Distribution 123.0 117.5 4.6% 33.5 26.4 26.7% 27.2% 22.5% TOTAL 905.8 888.0 2.0% 332.0 311.3 6.7% 36.7% 35.1% Minor differences
Slide 7: Sell-out and sell-in broadly tracking in line with each other
GLOBAL PRODUCT SEGMENT REVENUE AUDm % Chng 5 Yr 1H24 1H23 % Chng CC1 CAGR2 CC Americas 450.3 450.7 (0.1)% (2.2)% 13.8% APAC 155.4 163.2 (4.8)% (5.7)% 13.7% EMEA 177.2 156.6 13.2% 5.5% 23.0% TOTAL 782.8 770.5 1.6% (1.3)% 15.5% Minor differences may arise due to rounding 1CC – Constant Currency 2CAGR
Slide 8: D&A growing following increased number of new product launches in recent periods
14.5% 13.6% -7.4 131.0 20.7 -4.0 0.6 A$m EBIT Growth 121.1 +$9.9m / +8.2% Gross Profit Overall Opex increased $20.7m increased $10.8m or 6.7% or 5.7% 1H23 EBIT Gross Profit D&A Employee Cost Other 1H24 EBIT Minor differences may arise due to rounding • D&A growing following increased number of new p
Slide 9: Inventory reduction delivered through normalised purchases
AUDm Dec 23 Dec 22 Inventory 380.0 465.2 • Inventory reduction delivered through normalised Receivables purchases rather than discounting. Further reductions 449.8 388.8 forecast for 2H24 Trade and other payables (333.7) (303.8) • Receivables increase driven by stronger Q2 sales growth. Ageing is co
Slide 10: Steady EBIT growth delivered through gross profit gains despite headwinds
• Steady EBIT growth delivered through gross profit gains despite headwinds • Another record sales half • Growth drivers of NPD, and geographic expansion overcoming the core business resetting in face of cost-of-living pressures and mean reversion • Forecasted inventory and net debt reduction delive
Slide 11: Why is BRG behaving differently? 2H24 Considerations & Outlook
- Why is BRG behaving differently? - 2H24 Considerations & Outlook #10 Sovees AY 44 a < , BRGGROUP | Breville Soge GULeLIT BARATIA’ [fichetsteps beanz.com MS, | XN Aye
Slide 12: COVID – Mean Reversion Pattern BRG Performance 1H19 – 1H24
COVID – Mean Reversion Pattern BRG Performance 1H19 – 1H24 ILLUSTRATIVE 35 10 1,000 500 NS CAGR 15.5% 9 30 +15.3% 900 450 -1.8% 8 Gross Profit / EBIT, A$ millions -10.4% 800 400 +2.3% 25 -x% GP CAGR 16.2% Net Sales, A$ millions 7 700 350 Gross Profit / EBIT 6 Net Sales 20 600 300 5 500 250 15 EBIT 4
Slide 13: Migration to Quality Coffee Air Frying
Migration to Quality Coffee Air Frying 12
Slide 14: Barista Touch Impress, Joule Turbo Sous Vide, Vertuo Creatista
Barista Touch™ Impress The Vertuo Creatista® The Joule® Turbo Sous Vide 13
Slide 15: The InFizz Fusion, The Paradice, The Sous Chef, The Oracle Touch Noir
The InFizz™ Fusion The Paradice™ 16 The Sous Chef® 16 The Oracle™ Touch Noir 14
Slide 16: Breville Sage New Country Revenue Growth
BREVILLE|SAGE NEW COUNTRY REVENUE GROWTH • Mexico Net Sales • Portugal Growth 73% • Spain • France • Italy • Poland • South Korea 1H23 1H24 15
Slide 17: We have been able to dependably convert gross profit dollars to EBIT dollars
Fiscal Year Budget σ σ What we think we’ve learned What we believe may be true from the historical performance in the next 18-24 months of BRG and Others July 1 July 1 Opex Plan Inventory Plan • We have been able to dependably convert gross profit dollars to EBIT dollars by embracing the uncertainty
Slide 18: Why is BRG behaving differently? 2H24 Considerations & Outlook
- Why is BRG behaving differently? - 2H24 Considerations & Outlook ies AY ; 217 A, “7 BRGGROUP | Breville Soge GULeLIT BARATIA’ [fichetsteps beanz.com ae, 4 i
Slide 19: Macro / mean reversion headwinds continue
• Macro / mean reversion headwinds continue • Fairly stable denominator across Theatres in 2H • Retailers enter the half in a good inventory position (sell-in / sell-out tracking in 1H) • Solid NPD launches / rollouts in 2H • Reduced inventory levels will drive a working capital release • Will conti
Slide 20: We expect FY24 EBIT growth to be in the range of 5.0% - 7.5%
We expect FY24 EBIT growth to be in the range of 5.0% - 7.5% assuming: • No significant change in economic conditions in the Group’s major trading markets; • No material supply chain interruptions; and, • Taking into account our expected 2H investment levels into marketing, R&D and technology. 19
Slide 21: Breville Group Limited
BRGGROUP Breville Sage GLELIT BARATIA’ filchefsteps beanz.com Breville Group» Limited © (ASX: BRG)
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