Breville upgrades its outlook
Breville Group Limited (BRG) said that the positive trading environment meant it was now expecting underlying EBITDA to be around $38.5 million for the year, with underlying net profit to come in at $19 million. Breville said this was higher than the consensus estimates of a basket of brokers, including Credit Suisse, GSJBWere, Macquarie and Wilson HTM.
Broker consensus estimates for the company forecast $35.2 million for EBITDA and $17.2 million for post-tax profit.
Not including an onerous lease arrangement relating to a Victorian property, Breville said that post-tax profit could be as high as $21 million.
The profit was expected despite adverse movements in the exchange rate of the Australian dollar.
CEO Stephen Audsley said the company had seen an improvement in trading particularly in Breville’s core Australian and North American markets.
”Sales in the first four months of the financial year have been pleasing and trading conditions continue to show positive signs during the important pre-Christmas sell in period,” Mr Audsley said.
”Breville’s Target’s Statement in relation to GUD’s takeover offer will contain further details in relation to the assumptions relating to Breville’s expected FY2010 earnings,” the company added.
At 1008 AEDT, Breville shares were trading flat at $2.30.
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