Shares in appliance maker and distributor Breville Group jumped more than 17% yesterday after the company revealed a very solid performance for the six months to the end of December and gave shareholders a nice boost.
Breville Group’s ((BRG)) first half results, coming in ahead of expectations on most measures, have triggered a review of the outlook from several brokers. Sales growth is accelerating and the company has cycled through periods of strong new product launches.
After the bloodbath yesterday in Telstra stock it was interesting that the lust to punish other companies wasn’t sustained, not after the stupid over reaction to CSL’s solid report and higher dividend on Wednesday.
The broker calls Breville’s result "pleasing", noting it reflects a successful recycling of prior strong numbers on the back of new product releases here and in North America. It appears the group benefited from a strong UK performance and the relationship with Nespresso.
Breville posted a solid result, in line with the broker’s forecast. The US is seeing strong momentum in sales across all key product categories and the company’s development pipeline remains solid, the broker notes.
UBS has reviewed the North American juicer market following the weak second half revenue outcome. The broker believes the company could overcome the weakness in the juicer category by increasing market share in blenders.