Breville sales beat expectations
Breville Group Limited (BRG) said underlying EBITDA for the six months to 31 December 2009 was expected to be around $30 million, ahead of previous guidance. The upbeat forecast comes on the same day that GUD formerly let its bid for the company lapse following the ACCC's rejection of the deal.
Looking ahead the appliance manufacturer said it now expected to deliver full year underlying EBITDA for FY10 in the range of $43 million to $46 million, up from $33.6 million for FY09. The company had previously offered full year EBITDA guidance of around $38.7 million.
CEO, Stephen Audsley, said the result was largely due to a stronger than expected performance in North America and Australia.
“Our performance in November and particularly December was well ahead of expectations, and affirms our strategy of focusing on innovative products and leveraging those products across multiple geographies,” Mr Audsley said.
”Breville’s performance in North America was especially pleasing, with a substantial improvement in what remains a challenging retail environment.”
Breville said it continued to be constrained by an onerous lease obligation, which would cost the company $3 million in EBITDA this year.
The company said the stronger sales had improved the cash flow and reduced debt levels more than anticipated.
At the close Monday, Breville shares were trading at $1.68 each.
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