Breville Group Limited · ASX:BRG
Breville — Shareholder Meeting (November 2023)
30 slides from Breville's shareholder meeting presentation, Nov 8, 2023
Slide 1: Breville Group 2023 Annual General Meeting Presentation
8 November 2023 ASX Market Announcements Office Australian Securities Exchange 20 Bridge Street Sydney NSW 2000 Breville Group Limited – 2023 Annual General Meeting Presentation For personal use only Please find attached a copy of the Chairman’s and CEO’s addresses to shareholders to be delivered at
Slide 2: Chairman's Address at 2023 AGM
Chairman’s Address at 2023 AGM Slide 3 I would like to begin by acknowledging and paying respects to the traditional custodians of the land on which we work, and to their Elders, past and present, and we further extend that respect to all Aboriginal and Torres Straight Islanders present here today.
Slide 3: Chairman's and CEO's Address (continued)
With the operational impacts of Covid-19 now behind us, we plan to continue to reduce our inventories throughout FY24, particularly in the second half, resulting in substantially enhanced cash inflows. BRG has recently made good progress on its sustainability and diversity goals and has set clear ob
Slide 4: CEO's Address (continued)
range transition with Nespresso as well as the bankruptcy of Bed Bad & Beyond in the 2H of ‘23. The good news is the Distribution Segment represents a fairly small percent of total at the Gross Profit line, though we expect it to stabilise in FY24. Slide 16 Across the Theatres, we were fortunate tha
Slide 5: CEO's Address: 1H24 Update
partners. This is not a “promotion”—instead, it is an “always on” offering for any Breville coffee machine. We’re seeing positive initial results and will continue to iterate and improve the program as we engage with our customers. Slide 23 Now for a quick update on 1H24. Period to date, it’s as we
Slide 6: Annual General Meeting 8th November 2023
For personal use only Annual General Meeting 8th November 2023
Slide 7: Disclaimer
Disclaimer For personal use only 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
Slide 8: Acknowledgement of Country
For personal use only 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
Slide 9: Chairman's Address
For personal use only Chairman’s Address Mr. Tim Antonie Introductions & Running Order 4
Slide 10: Items of Business
Items of Business For personal use only • 2023 Annual Report • Remuneration Report • Re-election and election of Non-Executive Directors • Grant of rights to Managing Director and CEO 5
Slide 11: A robust year for the Group
For personal use only “A robust year for the Group with solid revenue and EBIT growth, delivered against a challenging backdrop” 6
Slide 12: FY23 Financial Highlights
FY23 Financial Highlights FY23 Revenue - A$1,478.6m FY23 EBIT - A$172.0m For personal use only +4.2% vs FY22 +10.0% vs FY22 +17.8% 5-year CAGR +14.6% 5-year CAGR A$m A$m 1,500 1,479 180 172 1,418 160 156 1,188 140 136 1,000 952 120 110 100 97 760 87 647 80 500 60 40 20 0 0 FY18 FY19 FY20 FY21 FY22 F
Slide 13: FY23 Financial Highlights: Global Product Segment by Theatre
FY23 Financial Highlights Global Product Segment Sales by Theatre: Growth from FY18 to FY23 For personal use only FY18 FY23 A$522m (81% of BRG) <--- CAGR of 19.6% ---> A$1,279m (86% of BRG) 286 (22%) 89 (17%) 137 297 701 (26%) (57%) (55%) 292 (23%) A$m Americas APAC EMEA 8
Slide 14: FY23 Results Summary
FY23 Results Summary FY23 Revenue - A$1,478.6m FY23 Gross Margin - A$516.9m A$m A$m +4.2% 1,479 600 +6.4% 1,500 1,418 517 486 For personal use only 199 500 240 Distribution Global Product 400 1,000 300 1,179 +8.5% 1,279 34.3% 35.0% 500 200 100 0 0 FY22 FY23 FY22 FY23 FY23 Marketing/R&D/ FY23 EBIT -
Slide 15: Group FY23 Results Summary
Group FY23 Results Summary FY23 NPAT - A$110.2m A$m +4.2% 120 110 106 For personal use only 100 80 60 40 20 0 FY22 FY23 FY23 Basic Earnings Per Share (EPS) FY23 Dividend Per Share (DPS) 77.2 cents 30.5 cents +1.7% 35 +1.7% Cents 80 75.9 77.2 Cents 30.0 30.5 30 70 60 25 50 20 40 15 30 20 10 10 5 0 0
Slide 16: Thank You
Thank You For personal use only • BRG global team • Shareholders • Suppliers, customers and consumers 11 11
Slide 17: CEO's Address
For personal use only CEO’s Address Jim Clayton 12 12
Slide 18: AGM Agenda
AGM Agenda For personal use only • The Numbers • 1HFY24 Update • Closing Remarks 13 13
Slide 19: Group Summary Result
Group Summary Result Solid year at top end of guidance AUDm FY23 FY22 % Chng Commentary Revenue 1,478.6 1,418.4 4.2% • Solid revenue growth against a subdued For personal use only consumer backdrop and strong prior year Gross Profit 516.9 485.9 6.4% • 2H23 revenue growth stepped up to 9.4% led by Gr
Slide 20: Segmental Results
Segmental Results Revenue Gross Profit Gross Margin (%) AUDm FY23 FY22 % Chng FY23 FY22 % Chng FY23 FY22 Global Product 1,279.2 1,178.5 8.5% 470.5 428.7 9.8% 36.8% 36.4% For personal use only % Change CC* 4.1% Distribution 199.3 239.9 (16.9)% 46.4 57.2 (18.9)% 23.3% 23.8% TOTAL 1,478.6 1,418.4 4.2%
Slide 21: Global Product Segment by Theatre
Global Product Segment by Theatre GLOBAL PRODUCT SEGMENT REVENUE AUDm FY23 FY22 % Chng % Chng CC* Americas 701.2 605.0 15.9% 7.0% For personal use only APAC 292.2 278.4 5.0% 4.3% EMEA 285.8 295.2 (3.2)% (3.1)% TOTAL 1,279.2 1,178.6 8.5% 4.1% *Cc: constant currency Commentary • All Theatres delivered
Slide 22: Opex Well Controlled and Aligned to Sales Trajectory
Opex Well Controlled and Aligned to A$m Sales Trajectory 11.6% EBIT % 11.0% -24.5 -6.5 172.0 156.4 31.0 15.6 For personal use only EBIT Increase • $17.8m increase in • Key marketing projects investment functions largely completed in FY22 10% • $6.7m increase in other • Consumer facing activity funct
Slide 23: Financial Position at June
Financial Position at 30 June AUDm1 June 23 June 22 Commentary Inventory 439.6 445.9 • Working capital increase driven by receivables and payables – Receivables increased $82.6m, after strong Q4 sales, with days Receivables 276.8 194.2 outstanding consistent with prior period For personal use only T
Slide 24: Acceleration Program Scorecard
For personal use only Acceleration Program Scorecard Our core strategy continues to deliver a solid long-term trajectory for the business, despite the challenging currency and market environment: Increase investment in marketing, R&D, and technology coupled with geographic expansion to drive Global
Slide 25: AGM Agenda
AGM Agenda For personal use only • The Numbers • 1HFY24 Update • Closing Remarks 20 20
Slide 26: Breville+ Is Live
Is Live • Live in US For personal use only • Strong retailer support because it is providing value vs. discounting • Service continues to evolve and improve • Consumer reaction to date has been positive • We’re in the test-learn-iterate phase of the service as we dial in where consumers want the hel
Slide 27: Specialty Coffee Bundle is Live
Specialty Coffee Bundle is Live • Live in US, UK, and Australia For personal use only • Fundamental driver is helping our customers get what they really want: café quality coffee at home • Program executed through our retail partners • This is not a “promotion”– it’s always on. Any promotional activ
Slide 28: 1HFY24 Update
1HFY24 Update • New products in coffee and cooking continuing to perform well. • In a test-learn-iterate cycle for both Breville+ and the Coffee Solution. Consumer reaction to For personal use only both has been positive. • Regional sell-in performance YTD: Americas performing as expected with BBB o
Slide 29: AGM Agenda
AGM Agenda For personal use only • The Numbers • 1HFY24 Update • Closing Remarks 24 24
Slide 30: Annual General Meeting 8th November 2023
For personal use only Annual General Meeting 8th November 2023 38