MBA403 Financial Analysis of Breville Company: Investor Report

This financial analysis report examines the Breville Company's performance for 2017 and 2018, focusing on profitability, liquidity, solvency, and marketability. The analysis utilizes data from the company's annual reports, considering both financial and non-financial information. Key aspects include the company's core business operations in Australia, New Zealand, and the United Kingdom, and its competitive landscape. The report highlights positive trends in financial performance, including improvements in gross and net profit margins, as well as enhanced liquidity and reduced debt levels. The analysis also considers industry trends, competitor analysis, and the company's business strategies of product differentiation and customer focus. The report concludes with an assessment of the company's current and future market potential, emphasizing the impact of macroeconomic factors and management strategies. The report provides a comprehensive overview of Breville's financial health and its suitability for investment, based on the provided data and analysis.

1FINANCIAL ANALYSIS
Executive Summary
The financial analysis of the Breville Company will be conducted by assessing the financial
performance of the company for the year 2017 and 2018 undertaking the various operational
and investing activities undertaken by the company. The Australian Appliance Company
focusing on the appliances manufacturing had a key business in making world class kitchen
appliances which helped people enjoy the art of dealing with cooking and other lifestyle
habitat. It is important to consider both financial and non-financial information for the
purpose of analysis of the company and the same was done for the company.
Analysis
The financial analysis of the Breville Company was done with the help of the annual
report of the company where the financial data for the company for the year 2017 and 2018
was collected for the purpose of assessing the financial performance of the company.
Profitability, Liquidity, Solvency and Marketability ratios were some of the common form of
ratio that were discussed for the purpose of analysis of the company.
Core Business Operations
The core business operations of the company is primarily in the Australia, New
Zealand and United Kingdom. The company was founded in the year 1932 in Sydney and is
now capturing the major part of the appliance sector from oven, fryers, coffee machine. The
wide range of kitchen appliances along with the various research and development carried out
by the company has made possible that the operations of the company is present in around 30
global countries (Breville Platform Site 2019).
Interpretation
The changes in the financial performance and financial position of the company
stands out to be on a positive scale whereby the company has tried hard in increasing the
various operational work undertaken (Know Your Grinder 2016).
Financial Results
In terms of profitability, liquidity and solvency there has been improvement done by
the company. The profitability of the company was slightly higher from the last year reported
numbers by the company. The gross profit margin for the company increased by around 2%
and the net profit margin increased from 8.89% to 8.98% from the year 2017-2018. In terms
of liquidity there has been major improvement that has been shown by the company in terms
of wide coverage of current assets of the company in terms of the current obligations or the
current liabilities. The debt level for the company also decreased significantly from 37.96%
to 36.40% in the year 2017-18.
Industry Trend
The primary competitors of the Breville Company has been KitchenAid, Cuisinart and
Dualit. There has been tremendous growth and opportunity seen in this sector with the
application of various technical knowledge companies are making world class appliances
which not only help them in their household activity but also enjoy their work
(Marketwatch.com 2019).
Business Strategy
Product Differentiation and Customer Focus has been the ley business strategy that
has thrived the growth of the various product portfolio for the company in these years. The
pricing of the product though when compared with other competitors stands out to be a bit

2FINANCIAL ANALYSIS
higher and the same is commanded by the company in the view of premium kitchen
appliances delivered on a customer center basis (Markets.ft.com 2019).
Current and Future Market Potential
Currently the operations of the company is on a global basis but the majority of the
revenue of the company is primarily derived from Australia and UK. Changes in the business
factors and macro-economic factors in these economies would be significantly affecting the
operations of the company (InvestSMART 2019). This is the key reason where management
of the company has implemented policies of the company in such a manner that helps them in
well operating the activities of the company (Annualreports.com 2019).
Ratio Analysis 2018 2017
Ratio Company: Breville Group Ltd Absolute Absolute
Category $ Values $ Values
Liquidity
Current ratio
3,15,705 3,00,934
1,08,801 1,16,946
Ratio Ratio
2.90 2.57
Quick ratio
2,16,036 1,84,372
1,08,801 1,16,946
Ratio Ratio
1.99 1.58
Profitability
Gross profit rate/margin
2,32,260 2,00,268
6,52,348 6,05,733
Ratio Ratio
35.60% 33.06%
Profit margin
58,519 53,834
6,52,348 6,05,733
Ratio Ratio
8.97% 8.89%
Solvency Debt to total assets
1,62,114 1,58,823
4,45,349 4,18,432
Ratio Ratio
36.40% 37.96%
Market Earnings per share (EPS) Ratio Ratio
45.00 41.40
Price-earnings ratio
11.63 10.33
0.45 0.41
Ratio Ratio
26 25
Conclusion
The financial analysis report for the Breville Company was prepared by taking
various business and macro-economic factors that affects the operations of the company. The
Profitability, Liquidity, Solvency and Marketability ratios were some of the common form of
ratio that were discussed for the purpose of analysis. Both the financial performance and the
financial position of the company helped us knew the stable and sustainable operations of the
company. Financial and Non-financial information’s were taken for the purpose of analysis
of the company. Business strategy followed by the company and the better management
structure of the company were some of the ley aspects that were discussed in the report.

3FINANCIAL ANALYSIS
References
Annualreports.com. (2019). Breville Group Ltd - AnnualReports.com. [online] Available at:
http://www.annualreports.com/Company/Breville-Groupltd [Accessed 31 May 2019].
Breville Platform Site. (2019). Breville | US | A World Leader in Kitchen Appliances .
[online] Available at: https://www.breville.com/us/en/home/index.html [Accessed 31 May
2019].
InvestSMART. (2019). Breville Group Limited. [online] Available at:
https://www.investsmart.com.au/shares/asx-brg/breville-group-limited/financials [Accessed
31 May 2019].
Know Your Grinder. (2016). About Breville - Company Overview. [online] Available at:
https://knowyourgrinder.com/about-breville-company-overview/ [Accessed 31 May 2019].
Markets.ft.com. (2019). Breville Group Ltd, BRG:ASX profile - FT.com. [online] Available
at: https://markets.ft.com/data/equities/tearsheet/profile?s=BRG:ASX [Accessed 31 May
2019].
Marketwatch.com. (2019). Breville Group Ltd.. [online] Available at:
https://www.marketwatch.com/investing/stock/bvilf/profile [Accessed 31 May 2019].