Breville Group sees strength in US, Canadian markets

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A strong performance in North America has led kitchen appliance maker and distributor Breville Group to increase its earnings forecasts.

Shares in Breville were boosted by the positive trading update, adding 14 cents, or five per cent, to $2.92 by 1533 AEDT.

Preliminary results for the six months to December 31 point to earnings before interest, tax, depreciation and amortisation (EBITDA) of about $45 million, Breville said on Tuesday.

That would be a 36 per cent improvement on EBITDA of $33.2 million in the same period of 2010.

Breville’s Australian operations performed as expected in a difficult retail environment, acting chief executive Jack Lord said.

The company makes Breville, Kambrook and Ronson products and distributes Philips personal care appliances domestically.

A standout result was achieved by Breville’s North American business, which included the distribution of Keurig coffee machines, Mr Lord said.

For the full 2011/12 financial year, Breville expects its EBITDA to increase by as much as 29 per cent on the previous year to between $65 million and $67 million.

Results from the North American business were expected to be strong, and the remainder of Breville’s international operations should perform to expectations, Mr Lord said.

The full year forecast assumes no significant change in the company’s expectations of economic conditions or consumer sentiment in its key markets.

It also assumes no significant change in foreign exchange and interest rates.