Breville Group Limited · ASX:BRG
Breville — Investor Presentation (February 2020)
21 slides from Breville's investor presentation, Feb 13, 2020
Slide 1: Half Year Ended 31 December 2019 Investor Presentation
13 February 2020 Manager, Company Announcements, Australian Securities Exchange Limited, 20 Bridge Street, Sydney NSW 2000 Half Year Ended 31 December 2019 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Half Year Ended 31 December 2019. The relea
Slide 2: Half Year Results FY20
Breville Group Limited (BRG) HALF YEAR RESULTS FY20 Investor Presentation 13th February 2020
Slide 3: Disclaimer
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 in
Slide 4: Group Summary Result
Group Summary Result AUDm 1H20 1H19 % Chng Commentary Revenue 552.0 440.4 25.4% • Group revenue +25.4% increase, driven by good growth across all geographic segments and categories EBITDA2 pre AASB 16 81.0 70.5 14.9% • Adoption of AASB 162 in FY20 boosts reported 1H20: EBIT2 pre AASB 16 72.0 62.3 15
Slide 5: Segment Results
Segment Results REVENUE EBIT1 pre AASB 16 EBIT1 MARGIN (%) AUDm 1H20 1H19 % Chng 1H20 1H19 % Chng 1H20 1H19 Global Product 442.6 356.1 24.3% 58.9 52.1 12.9% 13.3% 14.6% % Change CC2 20.3% Distribution 109.4 84.3 29.9% 13.1 10.2 28.5% 12.0% 12.1% TOTAL 552.0 440.4 25.4% 72.0 62.3 15.6% 13.0% 14.2% Co
Slide 6: Segment Results cont'd
Segment Results cont’d GLOBAL PRODUCT SEGMENT REVENUE AUDm 1H20 1H19 % Chng $A % Chng CC* North America 258.1 214.9 20.1% 14.6% Europe 83.7 51.4 63.0% 60.0% Australia and 82.3 74.1 11.0% 10.7% New Zealand (ANZ) Rest of World 18.6 15.7 18.1% 10.9% TOTAL 442.6 356.1 24.3% 20.3% *CC – Constant Currency
Slide 7: Financial Position at 31 December
Financial Position at 31 December AUDm 1H20 1H19 Commentary • Working Capital: Normal seasonal build (lower than pcp); Inventory 175.2 112.0 increase over PY primarily reflecting business growth Receivables 257.4 217.3 • Inventory: includes normal business growth and: Trade and other payables (174.4
Slide 8: Europe Update
• Europe Update • Distribution Segment • 2H Considerations 7
Slide 9: The Race is On: 1HFY20 Global Product Segment
The Race is On: 1HFY20 Global Product Segment Europe $83.7M* ANZ $82.3M* 1HFY20 FY20 * Regional Net Sales in the Global Product Segment for the 1HFY20 8
Slide 10: In Coffee, It's Europe Chasing North America
In Coffee, It’s Europe Chasing North America ANZ Europe NA 1HFY20 In the 1HFY20, Europe outsold North America (Net Sales) on a number of coffee SKUs, though North America holds the lead in aggregate. 9
Slide 11: John Lewis Christmas Partnership
John Lewis Christmas Partnership 10
Slide 12: Sage Entry Into Spain
Sage® Entry Into Spain the Barista Pro™ Velocidad y precision
Slide 13: Next Up
Next Up 12
Slide 14: Europe Update
• Europe Update • Distribution Segment • 2H Considerations 13
Slide 15: Distribution Segment Turn Around
Distribution Segment Turn Around FY15 FY16 FY17 FY18 FY19 Revenue $153.7 $149.4 $136.2 $124.6 $148.0 EBIT NA $8.6 $6.6 $13.6 $18.5 ANZ ANZ ANZ & NA ANZ & NA ANZ & NA 14
Slide 16: Reinvigorating Breville (ANZ): NPD FY17-FY19
Reinvigorating Breville (ANZ): NPD FY17-FY19 We have launched 21 new products in the last 3 years, driving over 30% of the Breville-branded revenue in Distribution over that same period. 15
Slide 17: Continued Progress in FY20
Continued Progress in FY20 We have completely replatformed Climate® with the launch of Breville AirTM 16
Slide 18: Europe Update
• Europe Update • Distribution Segment • 2H Considerations 17
Slide 19: 2H20 Considerations
2H20 Considerations • We expect our constant currency revenue growth rate for the Global Product segment to remain healthy through the 2HFY20. • In Europe, 2H growth will be driven by the (i) continued progress in existing countries, both ranging and channel where appropriate; and (ii) our entry int
Slide 20: Intersection of Coronavirus News and Breville
Intersection of Coronavirus News and Breville Manufacturing Partners • Manufacturers located in Shenzhen area. No manufacturers or suppliers in Hubei Province (Wuhan) • Manufacturers opening this week and next (Chinese health audit process) • All manufacturers are implementing government-required pr
Slide 21: 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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