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Highlights
- Breville Group shares fell 0.8% to AU$37.42, hitting their lowest level since January 15.
- The company's 1H FY25 net profit after tax (NPAT) of AU$97.5 million slightly exceeded analyst estimates.
- Breville’s FY25 EBIT growth forecast of 5%–10% was seen as conservative compared to market expectations of 12%.
Shares of Breville Group Ltd (ASX:BRG) slipped 0.8% to AU$37.42 on Tuesday, marking their lowest level in nearly a month. The decline comes despite the Australian home appliances maker reporting a better-than-expected first-half profit and maintaining its dividend payout.
Half-Year Results: A Mixed Bag
Breville posted a net profit after tax (NPAT) of AU$97.5 million for the six months ended 31 December, 1% ahead of Visible Alpha consensus estimates of AU$96.6 million, according to Citi analysts.
The company also declared an interim dividend of 18 Australian cents per share, which was in line with analyst expectations.
However, some investors may have been underwhelmed by Breville’s FY25 earnings before interest and tax (EBIT) growth forecast of 5%–10%, as consensus estimates suggested a stronger 12% growth. Analysts at Citi suggested the guidance may be overly conservative, especially given the company's strong first-half performance.
Market Reaction and Analyst Sentiment
Despite the slight earnings beat, Breville shares saw a pullback, possibly due to concerns over its cautious full-year outlook. The stock had been on a positive run, rising 6.6% year-to-date before today’s dip.
Analyst ratings on Breville remain mixed:
- 6 out of 14 analysts rate the stock as a ‘Buy’, another six rate it as ‘Hold’, and two have a ‘Sell’ recommendation.
- The median price target (PT) sits at AU$33.09, suggesting that some analysts see downside risk at current levels.
