Breville Group Limited · ASX:BRG
Breville — Investor Presentation (February 2021)
20 slides from Breville's investor presentation, Feb 16, 2021
Slide 1: Half Year Ended 31 December 2020 Investor Presentation
16 February 2021 Manager, Company Announcements, Australian Securities Exchange Limited, 20 Bridge Street, Sydney NSW 2000 Half Year Ended 31 December 2020 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the Half Year Ended 31 December 2020. The relea
Slide 2: Breville Group Limited (BRG) Half Year Results FY21
Breville Group Limited (BRG) Milestone Achieved CY 2020 Revenue HALF YEAR RESULTS $1.1 Billion FY21 Investor Presentation 16th February 2021
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 1H21 1H20 % Chng Commentary Revenue 711.0 552.0 28.8% • Sustained sales growth across the half • Improved gross margin EBITDA 112.4 85.2 32.0% • Opex investments tactically increased EBIT 94.6 73.0 29.6% – Step up in investment in medium-term growth drivers of NPD, IT and G
Slide 5: Segment Results
Segment Results REVENUE EBIT2 EBIT MARGIN (%) AUDm 1H21 1H20 % Chng 1H21 1H20 % Chng 1H21 1H20 Global Product 592.9 442.6 34.0% 79.3 59.7 32.8% 13.4% 13.5% % Change CC1 39.2% Distribution 118.1 109.4 7.9% 15.3 13.3 15.3% 13.0% 12.2% TOTAL 711.0 552.0 28.8% 94.6 73.0 29.6% 13.3% 13.2% Commentary • Gl
Slide 6: Segment Results cont'd
Segment Results cont’d GLOBAL PRODUCT SEGMENT REVENUE AUDm 1H21 1H20 % Chng $A % Chng CC* Americas 314.9 258.6 21.8% 29.1% EMEA 145.3 94.7 53.4% 56.1% APAC 132.8 89.3 48.7% 49.7% TOTAL 592.9 442.6 34.0% 39.2% *CC – Constant Currency Region Definitions • Americas: All countries in North, Central, and
Slide 7: Sales Growth Reinvested in Acceleration Platform Drivers
Sales Growth Reinvested in Acceleration Platform Drivers EBIT Bridge H1 20-H1 21 8.2 A$m Gross Margin 22.1 +1.1% increase Increased 8.4 53.8 investment in 9.9 94.6 Marketing, R&D, Seasonal receivables and IT peak and risk profile 73.0 unchanged since June 20 13.3% Margin Net sales growth of 28.8% 13
Slide 8: Financial Position at 31 December
Financial Position at 31 December AUDm 1H21 1H20 Commentary • BRG is an internationally expanding business that Inventory 160.5 175.2 structurally invests in working capital to drive organic Receivables 270.7 257.4 growth under normal conditions – Dec 20 balance of $203m is approximately $95m below
Slide 9: Key Points 1HFY21
Key Points 1HFY21 • Throughout the 1H, we experienced strong demand for our Global products in all geographies with the demand spread broadly across our range • The Distribution Segment growth rate slowed as previously forecast. Breville Local grew double digit, while Nespresso and Kambrook grew sin
Slide 10: Acceleration Platform Update / 2H Considerations and FY21 Outlook
• Acceleration Platform Update • 2H Considerations and FY21 Outlook 9
Slide 11: Acceleration Platform Cadence Continues
Acceleration Platform Cadence Continues US/China Tariffs COVID Brexit • Sales and Operations Planning Tactical Operations Platform • Real-time order management • Real-time credit management • Geographic Expansion • New Product Development Strategic Acceleration Platform • Go-To-Market • Corporate Pl
Slide 12: Strategy Driving Geographic Diversification
Strategy Driving Geographic Diversification 1HFY17 Global Product Segment Net Sales 1HFY21 Global Product Segment Net Sales Total: A$ 265M Total: A$ 593M 22% 26% Global Product Segment 60% 4 Year CAGR*: 21% 14% 54% 24% EMEA APAC Americas 4 Year CAGR* 39% 18% 18% EMEA + APAC is almost equal to the Am
Slide 13: France Delivered First Holiday Cycle
France Delivered First Holiday Cycle Despite the complexity of COVID, we are represented in every major premium retailer in France, and we are running Masterclasses in partnership with premium roasters. 12
Slide 14: Mexico, Italy, and Portugal
Mexico, Italy, and Portugal • Content websites are live for Italy and Mexico (Portugal coming shortly) • Portugal, Italy, and Mexico will all go live with retailers in March-April 13
Slide 15: Global Corporate Platform Rollout Continues
Global Corporate Platform Rollout Continues • Europe, UK, US, Mexico and Hong Kong now live on new corporate platform, and content website is live in the Middle East • Remaining Geographies: Italy/Portugal, Canada, New Zealand and Australia 14
Slide 16: Global Platform Capability Centres
Global Platform Capability Centres • IoT Cloud 75 • Web Development • Platform Development, Deployment, and support • IoT Cloud & Firmware 30 • Analytics • UX / Voice • Content and Data Management • App Development • Tech Services Operations • Content Management • Architecture • IoT Cloud 50 • Firmw
Slide 17: Acceleration Platform Update / 2H Considerations and FY21 Outlook
• Acceleration Platform Update • 2H Considerations and FY21 Outlook 16
Slide 18: 2H21 Considerations
2H21 Considerations • We expect our constant currency revenue growth rate for the Global Product segment to remain healthy through the 2H21 • Inventory is tight across all geographies. Working to get in front of demand and re-pipeline the channel, but at this point, it’s unclear whether this will oc
Slide 19: Dividend Policy & Outlook
Dividend Policy & Outlook Dividend Policy • The Board has resolved to adjust its targeted dividend payout ratio, from approximately 70% to 40% of EPS, having regard to the funding of company growth through geographic expansion (working capital), capital investment (including NPD and customer facing
Slide 20: Breville Group Limited (BRG) Half Year Results FY21
Breville Group Limited (BRG) Milestone Achieved CY 2020 Revenue HALF YEAR RESULTS $1.1 Billion FY21 Investor Presentation 16th February 2021
Breville Group — Investor Presentation (February 2021) on 6ix