Breville stocks hit a record high on expected jump in earnings

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Shares in Breville Group hit a record high after the kitchen appliance maker said it expects full year earnings to grow by up to 40 per cent.

Breville on Tuesday flagged its earnings before interest, tax, depreciation and amortisation (EBITDA) for the year to June 30, 2012, would be between $72 million and $73 million.

That compares to EBITDA of $52 million in 2010/2011 and a previous forecast of $65-67 million for 2011/12.

Acting chief executive Jack Lord said the stronger performance was underpinned by Breville’s product design and development business in North America and its Keurig coffee machine distribution business in Canada.

“The Australian and international distributors businesses also showed good growth in the second half after a difficult first half,” he said in a statement.

Breville shares leapt eight cents, or 1.7 per cent, to close at $4.78.

The company, which makes espresso machines, mixers and food processors, in February reported a 41 per cent rise in first half net profit to $29.4 million.

Breville’s earnings growth has largely been driven by its focus on the international electrical products market, particularly in North America.

As well as its own-branded products, Breville owns the Kambrook brand and distributes Philips products.