BREVILLE GROUP LIMITED (BRG)



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General Information
Company Name: Breville Group Limited
Stock Code: BRG
Website: www.breville.com.au
GICS Sub-Industry: Distributors
Market Cap ($M): 935
Equiv. Shares (M): 130

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 7.160 $ 7.350 $ 7.350 $ 7.070 $ 7.250 563,117 $ -0.090  -1.241 %

Current Broker Consensus Recommendation more
Recommendation: Buy
Recommendation Date: 16th May 2013
12 Month Target Price (average): $6.468
Brokers Surveyed: 4

Company Overview

Business Description:
Breville Group Limited (BRG) engages in the development, marketing and distribution of small electrical appliances to the consumer products industry. BRG has product development centre in Sydney, while having a quality assurance centre in Hong Kong. Its products are sold to a number of markets, with principal markets being Australia, North America, New Zealand, and Hong Kong.

Strategy Analysis:
BRG has continued growth in the small domestic appliance market through an ongoing strategy of product differentiation, consumer understanding, innovation and development capability. BRG have invested in their development capability to increase value to the consumer through relevant features, performance and design. In this way BRG are able to increase the value of a category by launching higher value products (such as their kettles, juicers and espresso machines). BRG also continues to develop a strategic alliance program by forming partnerships with manufacturers and designers to increase the product offering available to the company, and increasing the speed by which they go to market. BRG is focused on growing the international business. International sales now represent more than half of sales and earnings. Breville Group reported NPAT up 7.8% to $31.69m for the half-year ended 31 December 2012. Revenues from ordinary activities were $264.42m, up 13.2% from the same period last year. Basic and Diluted EPS was 24.36 cents compared to 22.59 cents last year. Net operating cash flow was $1.96m compared to $7.45m last year. The interim dividend declared was 14.0 cents compared with 12.5 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  F 50.2 38.3 0.8 18.8 26.1 3.6 --
2013  F 49.8 38.0 7.6 18.9 26.1 3.6 --
2012  A 45.9 35.3 27.9 9.5 24.0 7.2 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Breville Group (BRG) $943 M 0.2792 0.0760 0.0087 20.5557 19.1041 18.9394 0.0331 0.0360 0.0359

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
BRG 1.84 19.1 5.27 4.57 2.19
Market 0.83 14.4 1.22 1.88 1.72
Sector 0.98 13.8 2.16 2.33 0.75

Directors
Name Position Start Date
Ms Sally Herman -- 01 March 2013
Mr John Peter Schmoll Chairman 23 November 2004
Mr Samuel Scott Weiss Non-Executive Director 31 March 2008
Mr Steven Klein Non-Executive Director 26 September 2003
Mr Steven Fisher Non-Executive Director 23 November 2004
Mr Dean Warwick Howell Non-Executive Director 31 March 2008

Management
Name Position
Jonathan Lord Chief Executive Officer
Jonathan Lord Chief Executive Officer
M. Cohen Chief Financial Officer
Michelle Waters Company Secretary
C. Dais General Manager - business development and operations
S. Brady General Manager - Global Marketing

Substantial Shareholders
Holding Name
7,964,737 (6.12%) Commonwealth Bank Group
39,297,151 (30.21%) S Lew Custodians Pty Ltd
9,663,775 (7.43%) Perpetual Limited and subsidiaries
8,546,273 (6.57%) National Australia Bank Limited and associated companies

Calendar of Events
Date Event
19 February 2014 Report (Interim)
11 October 2013 Report (Annual)
22 August 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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