BRG

0.58%

$32.51 breville group limited

Ann: Half Year Ended 31 December 2016 - Investor Presentation, page-3

First 3 Last

Share
Profile

Follow
ValueSnatcher

793 Posts.

6

23/02/17

12:50

Post #: 22843169
Share

Originally posted by madamswer ↑

Another Australian-domiciled company with predominantly offshore revenues and earnings, which has done well to weather the strengthening A$, given 7% EBIT growth and 9% NPAT growth.

Although, to be balanced, it warrants noting that Advertising Expenses (which are 4% of Total Operating Costs and 21% of Cost of Doing Business Expenses) fell by 14%, so this flatter the operating performance somewhat.

Now, sure; most of these Advertising expenses would have occurred in no-A$ terms, so the stronger A$ would explain some of the reduction. For context, if Advertising Expense remained unchanged in currency-adjusted terms, then EBIT growth would have been closer to 4%.

So, no fireworks but not too shabby, either, under the circumstances.

The highlight of the result, in my mind, was the working capital management, thanks to the early fruits of the S&OP process undertaken in the half. Working Cap-to-Sales fell to 21.1%, from 23.1% in pcp and 24.9% at the end of June 2016. [We'll see if it can be sustained and is not merely a one-off score.] At any rate, this had the effect of releasing some $10m in working capital ($23m, alone, from Inventory lock-up) in the half.

As a result, Operating Cash Flow was $24m, and all-time record (by far) for a Dec half.
(Due to northern hemisphere seasonality, BRG typically generates all of its Cash Flow in the June half. In most years Operating Cash Flow in the December half is, in fact, negative.)

The net cash balance grew to $33m, from $3m.

Given that the current half is BRG's cash flow half, even if the working cap gains are only partly kept and assuming Working Cap-to-Sales eases back to 22%, that would leave Net Cash at the end of this financial year at somewhere close to $60m.

Which would be an all-time record for BRG, by far.

In that light, I thought that the 7% lift in the dividend was a bit parsimonious.

Expand

Thanks for your notes mate.
Nice balanced view.

Interesting regarding the marketing spend. I was expecting them to be ratcheting that up, so a bit of a flag there.

Pretty clean set of accounts to examine as usual with BRG.

BRG Price at posting: $8.87 Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

SIG

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

PYC

Scientific conference spotlights PYC's work on blindness disease treatment

LPE

Sales growth pushes Lovisa's fortunes (and shares) upwards

DUI

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

HotCopper Highlights: Your most watched stocks for Week 47, 2024

There are more pages in this discussion • 3 more messages in this thread...

First 3 Last

Add BRG (ASX) to my watchlist

(20min delay)
Last $32.51		Change -0.190(0.58%)		Mkt cap ! $5.010B

Open	High	Low	Value	Volume
$32.87	$33.04	$32.40	$5.954M	182.6K

Buyers (Bids)

No.	Vol.	Price($)
1	199	$32.50

Sellers (Offers)

Price($)	Vol.	No.
$32.51	776	1

View Market Depth

No.	Vol.	Price($)
2	3410	16.190
2	6463	16.180
4	9877	16.160
2	4376	16.150
6	14542	16.140

Price($)	Vol.	No.
16.210	5714	1
16.220	5631	2
16.230	5902	3
16.240	2673	2
16.250	11731	7

Last trade - 16.10pm 22/11/2024 (20 minute delay)

BRG (ASX) Chart

Ann: Half Year Ended 31 December 2016 - Investor Presentation, page-3

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

Scientific conference spotlights PYC's work on blindness disease treatment

Sales growth pushes Lovisa's fortunes (and shares) upwards

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: Half Year Ended 31 December 2016 - Investor Presentation, page-3

Top Stories

Dale Gillham's weekly wrap: Sigma-Chemist Warehouse merger creates pharma powerhouse

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Week 47 Wrap: HotCopper users' most watched; Brent lifts on Putin's scary letter; RFK dents CSL

Scientific conference spotlights PYC's work on blindness disease treatment

Sales growth pushes Lovisa's fortunes (and shares) upwards

Panic, paranoia, and gangland politics: HotCopper users react to Dubber's missing $26M

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

HotCopper Highlights: Your most watched stocks for Week 47, 2024

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News