Breville Group Limited · ASX:BRG
Breville — Housewares International — H1 2005 Earnings Presentation
12 slides from Breville's earnings presentation, February 2005
Slide 1: Group Report for Half Year Ended 31 December 2004
GROUP REPORT FOR HALF YEAR ENDED 31 DECEMBER 2004 Strong Brands – Innovative Product
Slide 2: Financial Results Summary
FINANCIAL RESULTS SUMMARY 31/12/2004 31/12/2003 % Half year ended A$mil A$mil Change Sales 260.0 260.8 -0.3% Gross profit 69.6 65.6 (% to sales) 26.8% 25.1% Other revenues 1.1 1.5 Share of Joint Venture net profits 0.7 0.2 Other costs (40.9) (38.4) (% to sales) 15.7% 14.7% Underlying EBITDA 30.5 28.
Slide 3: Financial Results Commentary
FINANCIAL RESULTS COMMENTARY Group sales flat, due to weaker retail environment in Australia, continued price deflation and reduced sales of “price entry” merchandise, particularly in the USA Homewares division. During the same time, business volumes measured in cartons despatched, increased by
Slide 4: Financial Results Commentary cont.
FINANCIAL RESULTS COMMENTARY cont. Opportunities exist to reduce operating costs as a percentage of sales over time. EBITDA operating profits, excluding individually significant items, are up 5.8% on the corresponding period. Underlying EPS up 4.3% and capital management focus drives 36% incre
Slide 5: Group Sales Analysis
GROUP SALES ANALYSIS 31/12/2004 31/12/2003 Half Year Sales AUD$mil % Share AUD$mil % Share Electrical Australia 136.3 52% 137.4 53% Overseas 43.5 17% 32.2 12% Total 179.8 69% 169.5 65% Homewares Australia 58.6 23% 59.7 23% Overseas 21.6 8% 31.6 12% Total 80.3 31% 91.3 35% Group Australia 194.9 75% 1
Slide 6: Group Sales Commentary
GROUP SALES COMMENTARY Increasing importance of our Electrical division, and more particularly “Breville”, is evident from the sales summary with Electrical now accounting for 69% of group sales. Overseas electrical sales grew by 35%, reflecting success in the global “Breville best in class” str
Slide 7: Group Profit Analysis
GROUP PROFIT ANALYSIS 31/12/2004 31/12/2003 % Normalised profits after tax for the half year ended AUD$mil AUD$mil Movement By Geographic Split Australia ^ 12.3 11.4 7.4% Overseas 5.0 4.9 4.4% Normalised net profit after tax 17.3 16.3 6.5% By Sub-segment Split * Electrical 15.5 12.0 29.9% Homewares
Slide 8: Group Profit Commentary
GROUP PROFIT COMMENTARY Underlying PAT up 7.4% in Australia and 4.4% offshore to yield an improved group underlying PAT of 6.5% for the six months to 31 December 2004. By segment, the increased importance of our Electrical division is evident in the profit analysis, with the Electrical division’
Slide 9: Group Balance Sheet Commentary
GROUP BALANCE SHEET COMMENTARY Total funds employed increased from $241m at December 2003 to $266m at the half year. The seasonality in the volume of sales during the Christmas trading period results in a higher level of working capital investment at the half year compared to year-end, which cons
Slide 10: Initiatives in Place to Deliver Shareholder Value
INITIATIVES IN PLACE TO DELIVER SHAREHOLDER VALUE Our commitment to innovative product development within our company owned brands has held us in good stead during tough trading conditions. Our brands continue to grow in recognition and the Breville brand is gaining international acceptance as i
Slide 11: Initiatives in Place to Deliver Shareholder Value cont
INITIATIVES IN PLACE TO DELIVER SHAREHOLDER VALUE cont Product development initiatives in the Homewares business are geared towards strengthening future earnings, particularly in the USA. Future international business growth will be underwritten through an increased R&D and marketing spend. Op
Slide 12: Strong Brands - Innovative Product
STRONG BRANDS - INNOVATIVE PRODUCT Housewares International Limited Page 10
Housewares International — H1 2005 Earnings Presentation on 6ix