Financial Analysis of Breville Group

Running head: MANAGERIAL FINANCE
Managerial Finance
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Table of Contents
Introduction................................................................................................................................2
Company Overview...............................................................................................................2
Risk Profile.............................................................................................................................3
Financial Performance...........................................................................................................4
Time Value of Money............................................................................................................6
Sources of Finance.................................................................................................................7
Pay-out Policy........................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
Appendix..................................................................................................................................11

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Introduction
The financial analysis of the Breville Group was conducted for the purpose of
analysis and relevant details were extracted for the company for analysing the financial
performance. The financial data for the company for a set of three-years were taken for the
purpose of analysis. The Breville Company focuses on premium kitchen appliances where it
makes a unique designed and developed product to enhance simplicity. Two great
Entrepreneurs from Sydney founded Breville in 1932. Since the year 1960, the aim of the
company was to drive innovation in daily working life. The Company’s focus on delivering
its customer the best premium class kitchen appliances and have made the management of the
company focus on its research and development and challenges for overcoming the new
technology innovation ongoing in the global markets.
Company Overview
Breville has been a major player in the kitchen appliance segment, it has his presence
in 65 countries through its group companies, and it collaborates with other companies for
distribution and as a licensing partner. Breville caters its products also by becoming an
appliance partner for the food and beverages company to provide them with the best products
they require like the Breville company tied up with the Nespresso Coffee Machines to
provide them with the Equipment’s or Assets they require. The major goal of the company is
to capture a significant market share on a global scale basis in the small house appliances
sector (Breville Group Ltd, 2019).
The company’s product distribution is simple through a local third party distributor or
through its group companies like:
1) Polyscience based in North America caters to both commercial and professional markets
by providing its temperature controlling equipment that helped the Breville Company

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develop products such as smoke gun, vacuum sealer, cold plates and vacuum evaporation
systems.
2) Aquaport that the Breville Company acquired from Australia provides a wide range of
Water and Air Purification products.
3) Kambrook was the other company the company acquired to expand its portfolio of
products that helped it serve products such as heating and cooling, vacuums and many more.
4) Stage owned by Breville Global Kitchen products helped the company deliver its
innovation in Europe and the rest of United Kingdom.
Risk Profile
Risk assessment for the company can be done with the help of the systematic risk
which is directly related to the economy or the industry where macro-economic and industry
factors plays a crucial role. On the other hand side the unsystematic risk for the company can
be well defined with the help of the company factors relating to production, revenue cost and
management factors.
Systematic Factors/Risks:
The systematic risk for the company can be in the form of rising inflation, interest
rates and changes in the policy of the government that can significantly affect the operations
of the company. Changes in the macro-economic factors of a company can significantly
affect the operations and the financial performance of a company. The financial performance
of a company can significantly affected with the rise in inflation rate and level of inflation
rates. If there is a significant rise in the interest rate the same can affect the interest cost for
the company whereby the profitability in the income statement of the company can come
under pressure for the company. On the other hand the rise in the inflation rate will not