Breville Group Limited · ASX:BRG
Breville — Investor Presentation (August 2021)
31 slides from Breville's investor presentation, Aug 17, 2021
Slide 1: Year Ended 30 June 2021 Investor Presentation
17th August 2021 Manager, Company Announcements, Australian Securities Exchange Limited, Level 4, 20 Bridge Street, Sydney NSW 2000 Year Ended 30 June 2021 Investor Presentation Attached is a copy of the Breville Group Limited Investor Presentation for the year ended 30 June 2021. The release of thi
Slide 2: Breville Group Limited (BRG) Full Year FY21 Results
Breville Group Limited (BRG) FULL YEAR FY21 RESULTS Investor Presentation 17th August 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 FY211 FY201 % Chng Commentary Revenue 1,187.7 952.2 24.7% • Record Group sales reaching ~$1.2bn Gross Profit 413.7 320.6 29.0% • Improved gross margin with higher Gross margin 34.8% 33.7% average selling price offsetting input EBITDA 163.3 120.1 36.0% cost inflation EBIT 13
Slide 5: Segment Results
Segment Results REVENUE EBIT EBIT MARGIN (%) AUDm FY21 FY20 % Chng FY21 FY201 % Chng FY21 FY201 Global Product 984.2 764.4 28.7% 111.1 87.0 27.7% 11.3% 11.4% % Change CC2 37.0% Distribution 203.5 187.8 8.4% 25.3 22.9 10.6% 12.4% 12.2% TOTAL 1,187.7 952.2 24.7% 136.4 109.9 24.1% 11.5% 11.5% Commentar
Slide 6: Global Segment Revenue by Theatre
Global Segment Revenue by Theatre GLOBAL PRODUCT SEGMENT REVENUE AUDm FY21 FY20 % Chng $A % Chng CC* Americas 493.0 422.3 16.7% 27.6% EMEA 257.0 170.0 51.2% 58.4% APAC 234.2 172.1 36.1% 37.4% TOTAL 984.2 764.4 28.7% 37.0% *CC – Constant Currency Group • Growth in constant currency strong in both hal
Slide 7: EBIT Bridge FY20 - FY21
EBIT Bridge FY20 - FY21 Sales & Margin Gains Reinvested in Growth Drivers A$m 13.7 Gross Margin (49.0) +1.1% increase 79.4 Increased investment in (17.6) 136.4 Marketing, R&D, and IT EBIT Increase 109.9 +26.5 24.1% Net sales growth of 24% Funds generation Funds invested FY20 Sales Growth GM% Mkting/
Slide 8: Financial Position at 30 June
Financial Position at 30 June AUDm FY21 FY201 Commentary Inventory2 216.7 153.7 • Working capital below equilibrium by ~$80m Receivables 119.3 156.1 – Inventory recovering, but a high proportion still in Trade and other payables (175.8) (147.9) transit due to Yantian and Suez incidents and inbound p
Slide 9: Key Take Outs from FY21
Key Take Outs from FY21 • Throughout FY21 we experienced strong demand for our products in all geographies, with demand spread broadly across our range • Gross margin % benefitted from mix and temporarily low promotional spend more than offsetting inflationary pressures in input costs • With core ov
Slide 10: FY21 Acceleration Program Execution
• FY21 Acceleration Program Execution • Strategy Assessment & Analysis • FY22 COVID Snapshot 9
Slide 11: FY21 New Product Launches
FY21 New Product Launches FY21 Colours Fast Slow Pro The Bambino Creatista Pro Black Stainless Steel Almond Nougat HydroPro HydroPro Plus FoodCycler 240v Combi Wave 3 in 1 Compact Wave Pizzaiolo Olive Tapenade 10
Slide 12: New Geographies
New Geographies France: April 2020 entry Portugal: March 2021 COVID extended rollout into beginning of FY21 Italy: April 2021 Mexico : May 2021 11
Slide 13: Acquisition
Acquisition • Headquarters: Seattle, WA • Closed transaction Sep. 2020 • Fully integrated into corporate platform • Filled out grinder offering from entry to light commercial • Team extends coffee expertise • Performing above expectations 12
Slide 14: Corporate Platform Rollout
Corporate Platform Rollout FY20 FY21 FY22 • Germany/Austria • United States • Canada (completed) • Benelux • Italy • Baratza (completed) • Switzerland • Portugal • Australia • UK • Mexico • Any New Geography • France • Hong Kong • New Zealand • Republic of Ireland The Northern Hemisphere is now full
Slide 15: Acceleration Program Milestones Achieved in FY21
Acceleration Program Milestones Achieved in FY21 • Total Revenue exceeded $1 Billion • EMEA now bigger than APAC in Global Segment • Mainland Europe now bigger than UK 14
Slide 16: Strategy Assessment & Analysis
• FY21 Acceleration Program Execution • Strategy Assessment & Analysis • FY22 COVID Snapshot 15
Slide 17: Growth Acceleration Framework
Growth Acceleration Framework More Larger Product Market Scalable, Acceleration Platform Growth-Oriented Business Model 16
Slide 18: Reinforcing Loop of Innovation Driven Growth
Reinforcing Loop of Innovation Driven Growth Marketing/R&D as % Net Sales => 12% Increase Investment GTM Accelerate Revenue Inorganic NPD R Increase Investment Increase Revenue Geography Increase Geographic Footprint Accelerate Revenue Marketing & NPD Efficiency 17
Slide 19: Acceleration Program: EBIT Growth Evolution
Acceleration Program: EBIT Growth Evolution 160.0 25.0% 140.0 136.4 20.0% Year/Year EBIT Growth Rate 120.0 109.9 97.3 EBIT A$ Millions 100.0 15.0% 86.9 79.0 80.0 73.7 10.0% 60.0 40.0 5.0% 20.0 0.0 0.0% FY16 FY17 FY18 FY19 FY20 FY21 EBIT EBIT Growth 1HFY16: Made commitment that Acceleration Program (
Slide 20: Levers for Migrating Business Model
Levers for Migrating Business Model FY16 FY17 FY18 FY19 FY201 FY21 BRG Rev Growth A$ 9.4% 5.1% 7.7% 17.5% 25.3% 24.7% Global CC Rev Growth 14.3% 13.4% 12.0% 20.1% 37.0% EBIT Growth 5.9% 7.2% 10.0% 12.0% 16.2% 24.1% There are four levers for changing the business model while simultaneously growing EB
Slide 21: Growth Lever Rollout by Theatre
Growth Lever Rollout by Theatre FY17 FY18 FY19 FY20 FY21 Incrementally increase spend on Global Segment APAC marketing and R&D Incrementally increase spend on Global Segment Americas marketing and R&D Acquisitions Geo Exp Incrementally increase spend on Global EMEA Segment marketing and R&D Flip fro
Slide 22: Global Segment Net Sales: APAC Theatre
Global Segment Net Sales: APAC Theatre* Business Model: Business Model: • 8% Net Sales on • Climbing to 12% Net Sales on marketing/R&D marketing/R&D 11.1%* 3.3%* FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Increasing spend on marketing and R&D has resulted in a 7.8% Net Sales CAGR improvement * Net Sale
Slide 23: Global Segment Net Sales: Americas Theatre
Global Segment Net Sales: Americas Theatre* Business Model: Business Model: • 8% Net Sales on • Climbing to 12% Net Sales on marketing/R&D marketing/R&D 12.3%* 8.7%* 1%* US FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Increasing spend on marketing and R&D has resulted in a 3.6% Net Sales CAGR improvement
Slide 24: Global Segment Net Sales: EMEA Theatre
Global Segment Net Sales: EMEA Theatre* Business Model: Business Model: • Distributor GTM • Transitioning to Direct GTM • 8% Net Sales on • Climbing to 12% Net Sales on marketing/R&D marketing/R&D 34.4%* -2.1%* FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Converting Europe to Direct GTM, coupled with inc
Slide 25: Global Segment Net Sales: BRG
Global Segment Net Sales: BRG* Business Model: Business Model: • 8% Net Sales on • Climbing to 12% Net Sales on marketing/R&D marketing/R&D 14.6%* 3.1%* FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Changing the business model, coupled with geographic expansion, has resulted in an 11.6% Net Sales CAGR imp
Slide 26: Evolution in New Country Offense
Evolution in New Country Offense Western Europe* UK* Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 * * Germany and other direct European countries had greater net sales in their 3rd year than the UK did in its 8th year. Meanwhile, the UK exhibits the same acceleration pattern from increase
Slide 27: Strategy Driving Geographic Diversification
Strategy Driving Geographic Diversification FY17 Global Product Segment Net Sales FY21 Global Product Segment Net Sales Total: A$ 470M Total: A$ 984M 24% 26% 57% 50% 17% 26% APAC EMEA Americas EMEA + APAC is equal to the Americas Region. Any shortfall in one region can now be covered by another. EME
Slide 28: Strategy Assessment
Strategy Assessment • Migrating to a business model that spends more on marketing and R&D as a percent of sales is improving the long-term growth rate of the company across all Theatres • Geographic expansion is proving to be an impactful lever in driving top-line growth as well as diversifying reve
Slide 29: FY22 COVID Snapshot
• FY21 Acceleration Program Execution • Strategy Assessment & Analysis • FY22 COVID Snapshot 28
Slide 30: FY22 COVID Snapshot
FY22 COVID Snapshot • Expect FY22 to be a transitional year of sorts: – Countries in various states of vaccine rollout, opening up, with regional lock downs – Comping a COVID-driven spike (FY21). Consumers have pent up savings and economies are growing as they open, but consumers will begin spending
Slide 31: Breville Group Limited (BRG) Full Year FY21 Results
Breville Group Limited (BRG) FULL YEAR FY21 RESULTS Investor Presentation 17th August 2021