Breville Group Limited · ASX:BRG
Breville — Housewares International — FY2005 Earnings Presentation
12 slides from Breville's earnings presentation, Jun 30, 2005
Slide 1: Group Report for the Year Ended 30 June 2005
HOUSEWARES INTERNATIONAL 1 GROUP REPORT FOR THE YEAR ENDED 30 JUNE 2005
Slide 2: Financial Results Summary
FINANCIAL RESULTS SUMMARY 2 June 2005 June 2004 Change Year ended A$m A$m Sales 441.0 457.6 -3.6% Gross profit 113.5 118.4 -4.1% (% to sales) 25.7% 25.9% Underlying EBIT 29.3 39.3 -25.5% (% to sales) 6.7% 8.6% Underlying net profit after tax 18.1 23.9 -24.1% (% to sales) 4.1% 5.2% Significant Items
Slide 3: Balance Sheet at 30 June 2005
BALANCE SHEET AT 30 JUNE 2005 3 $MIL JUNE 2005 JUNE 2004 INVENTORIES 106 94 RECEIVABLES 63 71 PAYABLES & PROVISIONS -43 -46 WORKING CAPITAL 126 119 FIXED ASSETS 13 11 INTANGIBLES 76 78 INVESTMENTS 6 7 OTHER (NET) 12 7 FUNDS EMPLOYED 233 222 DEBT (NET) 74 63 SHAREHOLDERS FUNDS 159 159 GEARING 32% 28%
Slide 4: Restructuring of Homewares Division on Plan
RESTRUCTURING OF HOMEWARES 4 DIVISION ON PLAN HOMEWARES RESTRUCTURE: 12 TO 18 MONTHS FROM APRIL 2005 CHARGE TO PROFITS: - NON-CASH $4.6 MIL RE INVENTORY (AUSTRALIA $4.0 MIL USA $0.6 MIL) - CASH $2.0 MIL RE REDUNDANCIES AND IMPLEMENTATION AUSTRALIAN HOMEWARES PRODUCT (SKU) COUNT TO BE REDUCED BY 50%
Slide 5: Sales
SALES 5 June 2005 June 2004 MOVEMENT $A MIL % SHARE $A MIL % SHARE ELECTRICAL AUSTRALIA 227.7 52% 238.4 52% -4.8% OVERSEAS 80.1 18% 57.9 13% 38.3% TOTAL 307.8 70% 296.3 65% 3.9% HOMEWARES AUSTRALIA 95.6 22% 113.1 25% -15.5% OVERSEAS 37.6 8% 48.2 10% -22.0% TOTAL 133.2 30% 161.3 35% -17.4% GROUP AUST
Slide 6: Underlying Profit After Tax
UNDERLYING PROFIT AFTER TAX 6 June 2005 June 2004 % Movement A$m % Share A$m % Share By sub-segment split Electrical 20.7 88% 17.9 61% 15.6% Homewares 2.9 12% 11.3 39% -74.3% Total 23.6 100% 29.2 100% -19.2% Less Corporate -5.5 -5.3 -3.8% Underlying PAT 18.1 23.9 -24.1% By geographic split Australia
Slide 7: Homewares Australia
HOMEWARES AUSTRALIA 7 SALES OF $95.6 MIL DOWN 15.5%, REPRESENTS 22% OF GROUP SALES RESTRUCTURE TO ADD TO FUTURE PROFITS FY06 $1.3 TO $1.8 MIL FY07 $3.8 TO $4.3 MIL PROJECT ADDRESSES PRODUCTS (SKUS) WITH LIMITED BRAND DIFFERENTIATION, LOW MARGINS, HIGH BULK TO GROSS PROFIT $, LOW DESIGN OR PRODUCTION
Slide 8: Homewares Overseas
HOMEWARES OVERSEAS 8 SALES $37.7 MIL DOWN 22.0%, REPRESENTS 8% OF GROUP SALES FIRST HALF SALES DECLINED 32% DUE TO LOST RETAIL ACCOUNTS SALES TEAM RESTRUCTURED AND REVITALISED PRODUCT SOURCING CHANGED SECOND HALF SALES DECLINED 3% FULL YEAR SALES DECLINED 22% NEW PRODUCT INITIATIVES BEING DEVELOPED
Slide 9: Electrical Australia
ELECTRICAL AUSTRALIA 9 SALES OF $227.7 MIL DOWN 4.5%, REPRESENTS 52% OF GROUP SALES • AUSTRALIAN RETAIL ENVIRONMENT WEAKENED IN SECOND HALF; AFFECTED BY SLOWER CONSUMER SPENDING, FALLING REAL ESTATE PRICES AND INCREASED FUEL PRICES. SALES FOR THE YEAR WERE DOWN 4.5% ON LAST YEAR. • WHILST THE AUSTRA
Slide 10: Electrical Overseas
ELECTRICAL OVERSEAS 10 SALES OF $80.1 MIL UP 38.3%, REPRESENTS 18% OF GROUP SALES • IN A TIGHT RETAIL MARKET NEW ZEALAND PERFORMED WELL WITH SALES UP 25% ON LAST YEAR. • EXPORT SALES HAVE CONTINUED TO GROW STRONGLY, 28% UP ON LAST YEAR, WITH NEW MARKETS OPENED IN RUSSIA AND FRANCE. • USA SALES MORE
Slide 11: Future Outlook
FUTURE OUTLOOK 11 INCREASING IMPORTANCE OF ELECTRICAL NOW 70% OF SALES NOW 88% OF PROFITS INCREASING IMPORTANCE OF OVERSEAS NOW 26% OF SALES NOW 34% OF PROFITS INCREASING IMPORTANCE OF AND VALUE OF "BREVILLE" GLOBAL BRAND FOCUS ON CORE COMPETENCIES ABILITY TO DESIGN, DEVELOP AND INNOVATE GLOBAL PROD
Slide 12: Questions
12 HOUSEWARES INTERNATIONAL QUESTIONS
Housewares International — FY2005 Earnings Presentation on 6ix