Manager, Company Announcements, Australian Securities Exchange Limited, Level 4, 20 Bridge Street,
Sydney NSW 2000
BREVILLE - CHANGE TO REPORTING SEGMENTS
At the past two reporting periods, Breville Group Limited (ASX:BRG) foreshadowed that it would be changing its external reporting segments to more accurately reflect the way the company is being managed.
This change reflects the transition from a dispersed, geographic structure to a centralized, business unit driven global structure. In this new organisational model, the two segments reflect the two business models in the company: (i) global, innovation driven, product business, and (ii) a distribution business. For both business units, the geographic regions execute the sales and distribution functions, supported by centralised functions (specifically, product development, marketing, and operations).
This new segment reporting format will be used in the half year ending 31 December 2016, with these results to be released on 23 February 2017.
Segment
Segment Description
Global Product
Sells premium products designed and developed by Breville, which are sold globally (currently 65 countries). Products included in this segment may be sold directly or through 3rd parties, and may be branded Breville, Sage, or carry a 3rd party brand.
Distribution
Sells products that are designed and developed by a 3rd party. Breville distributes these products pursuant to a license or distribution agreement, or they are sourced directly from manufacturers. Products in this business unit may be sold under a brand owned by Breville (e.g., Kambrook, Breville), or they may be distributed under a 3rd party brand (e.g., Philips1 or Nespresso2).
As announced to the market on 3 November 2016, the Philips distribution agreement for Australia and New Zealand expires on 31 May 2017.
As communicated on 25 August 2016 at the time of Breville's FY16 results announcement, the distribution territory for
Nespresso designed and developed products has been expanded from ANZ to include North America with effect from 2H17.
To assist market participants in analysing the Group's results, please find attached a summary of last year's (FY16) first half and full year financial results in the new reporting segment format.
Yours faithfully
Sasha Kitto Company Secretary
Breville Group Limited
Telephone: (02) 9384 8100
2
Segment Note Restated - 6 months ended 31 December 2015 and year ended 30 June 2016
Restated 1H16 - 6 months ended 31 December 2015
Global Product segment
Distribution segment
Total
Restated FY16 - year ended 30 June 2016
Global Product segment
Distribution segment
Total
$'000
$'000
$'000
$'000
$'000
$'000
Segment revenue
245,126
86,116
331,242
Segment revenue
427,205
149,368
576,573
Segment results
Segment results
EBITDA
45,234
5,467
50,701
EBITDA
74,069
9,343
83,412
Depreciation and amortisation
(4,269)
(379)
(4,648)
Depreciation and amortisation
(8,920)
(760)
(9,680)
EBIT
40,965
5,088
46,053
EBIT
65,149
8,583
73,732
Finance income
151
Finance income
336
Finance costs
(1,317)
Finance costs
(2,549)
Profit before income tax
44,887
Profit before income tax
71,519
Other segment information
Capital expenditure - plant and equipment
1,366
378
1,744
Capital expenditure - intangibles
11,319
-
11,319
Global Product revenue
Global Product revenue
North America
151,766
North America
251,752
ANZ
52,722
ANZ
93,201
Rest of World
40,638
Rest of World
82,252
Total Global Product revenue
245,126
Total Global Product revenue
427,205
3
Breville Group Limited published this content on 25 January 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 January 2017 08:11:03 UTC.
Original documenthttp://www.brevillegroup.com.au/wp-content/uploads/2017/01/ASX_Segment_Reporting_25_January_2017.pdf
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Breville Group Limited is an Australia-based company engaged in designing, developing and marketing small electrical kitchen appliances across the globe. The Company operates through two segments: Global Product segment and Distribution segment. The Global Product segment sells products designed and developed by the Company that may be sold directly or through third parties or by other group-owned brands. The Distribution segment sells products that are designed and developed by a third party and are distributed pursuant to a license or distribution agreement or are sourced directly from manufacturers. Products in this business unit may be sold under Breville and Kambrook brands or through third-party brands, such as Nespresso. Its products include espresso machines, Nespresso machines, drip coffee machines, coffee grinders, juicers, blenders, ovens and air fryers, pizza ovens, microwaves, bread makers, toasters, grills and sandwich makers, and waffle makers.