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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.
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