Breville Earnings: Pricing Power Drives Margin Expansion
Breville’s fiscal 2024 EBIT grew 8% to AUD 186 million, marginally above our AUD 185 million forecast. The result was largely driven by key American and European regions lifting revenue 5% and 14%, respectively. This more than offset declines in Asia-Pacific and distribution of 6% and 3%, respectively. We lift our fiscal 2025 EBIT forecast by 1% to AUD 207 million. We make only minor adjustments to our longer-term forecasts with an average EBIT increase of about 1% over the next decade. We lift our fair value estimate to AUD 21 per share from AUD 20, principally due to time value of money in addition to the minor increases to our earnings forecasts.
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