Breville Group Limited
Annual Report 2024
1
Breville Group Limited annual report 2024
Breville Group Limited annual report 2024
Contents:
Chair and CEO review
2
Strategy and brands
4
Directors’ Report
12
Corporate Governance Statement
52
Financial Report
58
Shareholder Information
111
Company information
113
Annual general meeting:
Thursday 7th November 2024 at 10am.
Suite 2, 170-180 Bourke Rd,
Alexandria NSW 2015.
The cover of this year’s annual report utilises the “Sunray” graphic element which will
feature on all of our new sustainable packaging, and represents our commitment to
adopt best-in-class sustainable packaging across our entire Breville® | Sage® range
Acknowledgement of Country
Breville® and Sage® appliances are proudly designed and engineered at the
BRG headquarters in Alexandria, Sydney. This is Gadigal Country and the
area has been used by the Gadigal People as well as the Gamayngal,
Bideagal and Gweagal Peoples for millennia.
Evidence of this deep connection can be found with remains of hunted
Dugong bones dating back 6,000 years, and a campsite at nearby
Wolli Creek which is over 10,000 years old.
We acknowledge and pay respects to the traditional custodians of the land
and waters on which we work, the Gadigal People, and we celebrate the
continuing contribution of their food culture, connection to,
and custodianship of, this country.
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Breville Group Limited annual report 2024
Chair and CEO review
On behalf of the Board of Directors (the “Board”) of Breville Group Limited (“BRG”) we are pleased to present the
Annual Report for the year ended 30 June 2024 (“FY24”).
FY24 was, again, a record year for BRG with revenues exceeding $1.5bn and EBIT of $185.7m. These results were delivered
in a year characterised by macroeconomic weakness, led by higher-for-longer interest rates, as well as regional disruptions
and instability.
FY24 adds another year of growth in revenue, gross profit, and EBIT.
It is the unremarkable nature of
this chart that makes it remarkable.
Beneath these numbers lies extreme
volatility, dislocation and disruption:
US tariffs, Brexit, the global
pandemic, material supply chain
disruptions, input cost pressures,
exchange rate volatility, the 'Great
Resignation', central banks taking
rates higher for longer, retailer
bankruptcies, and regional wars.
With this backdrop, BRG’s
consistent execution and delivery
is a testament to: (i) the soundness
of the fundamental strategy being
executed: increased investment in
R&D and marketing, coupled with
rapid geographic expansion on a
scalable platform; (ii) the level and
quality of innovation BRG’s product team is delivering; and (iii) the tenacity and resiliency of the BRG team itself, proving
its ability to tack through the most challenging of environments.
In FY24, the team continued to make progress on each of the reinforcing growth levers.
Investment in R&D, marketing, technology services and solutions
for FY24 was 14.0% of Net Sales, up from 13.1% in the prior year.
BRG continued the steady release of new products including the
InFizz™ range, an entirely new food processor range, and most
recently the Oracle® Jet.
Geographic expansion is now a multi-dimensional project:
Breville® | Sage®, Baratza®, LELIT®, and the beanz™ service are all
expanding geographically. In FY24, Baratza® and LELIT® were both
launched into 3 new countries / regions. Baratza® was introduced into
the UK, the EU, and Australia, and LELIT® expanded into the UK, the
US, and Australia. Baratza® and LELIT®, collectively, grew their revenue in these new markets by 196%. The beanz™ service recently
expanded into Germany, and it took its Powered by beanz™ service live with two retailers in the US.
The Breville® | Sage® geographic
expansion program continues
to materially contribute to the
overall growth of BRG. This
program began in FY18 with our
entry into Germany & Austria.
Since its inception, the program
has delivered a 45.6% CAGR,
which validates the strength of
the product portfolio as well as the
team’s ability to execute entering
into new countries.
“Another year of consistent delivery, with record revenue, gross profit, and EBIT”.
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Breville Group Limited annual report 2024
BRG continued to develop and iterate its solution offerings. We launched the Fast Track Program in the US, the UK, and
Australia—a bundling program combining hardware, coffee, and training, designed to enable consumers to produce café-quality
coffee at home. The Breville+ service was expanded to include content from Sur la Table, a key retailer in the US, and the new food
processor range was launched in the US with the support of the Breville+ service.
FY24 was also the year of bringing the balance sheet back to equilibrium after the disruption of COVID.
This chart illustrates the level of dislocation driven by the global pandemic. When the global lockdowns began in FY20, demand
outstripped supply. As the global supply chain fought to catch the accelerated demand, it began to break. In FY22, BRG began
using inventory as a hedge against supply chain instability. Once the supply chain began to stabilise in FY23, BRG gradually
released the insurance buffer, gliding back to equilibrium in FY24, while simultaneously expanding gross margins. This resulted in
a cash inflow of $174.9m in FY24 which in turn eliminated BRG’s net debt, generating a net cash position of $53.6m as of
30 June 2024.
The Board has declared total full year dividends of 33.0 cents, in line with the target payout ratio of 40% EPS, and 8.2% above
prior year.
BRG has made continued progress on its sustainability plan. Some key highlights include continued delivery of our ThermoJet®
program initiatives; the substantive completion of the Brown Box (sustainable packaging) initiative and related substantial
removal of expanded polystyrene (EPS); and improvements to BRG’s climate-related disclosures, including our first reporting
of scope 3 emissions estimates. These goals continue to form part of the executive long term incentive plan for FY24 and FY25.
We encourage you to read our ESG summary report on pages 18 to 29 of this Annual Report.
The consistent delivery of record results, despite numerous global and local external disruptions, exemplifies the agility
and laser-like focus of our global team to deliver on a sustained basis.
We would like to thank our fellow directors for their continued diligence. The recent enhanced diversification of skills,
geography and gender has substantially improved Board performance.
Finally, on behalf of the Board we would like to thank our shareholders, customers, retail partners, and suppliers for
their continued support, and we look forward to working with you all in FY25 and beyond.
With many thanks,
Timothy Antonie
Non-Executive Chair
Jim Clayton
Managing Director and Chief Executive Officer
the InFizz™
Infuse flavour into every drink. with the
InFizz™ Fusion
the InFizz™ Fusion
With the InFizz™ Fusion you can
fizz juice, tea, cocktails, wine and
re-fizz soda with the innovative
FusionCap™.
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Breville Group Limited annual report 2024
Strategy and brands
A History of Innovation
90 years ago, on Melbourne Cup Day in 1932, two Australian
entrepreneurs, Bill O'Brien and Harry Norville, combined their
surnames together to form the name 'Breville' and founded a
company manufacturing radios out of Sydney.
During the 1960's, Bill's son John focused the organisation on
solving common kitchen problems and founded the Breville
small appliance research and development centre, which
developed the now iconic Breville toasted sandwich maker.
The toasted sandwich maker kick-started a long list of award
winning innovative Breville products developed in Australia
and distributed throughout the world. From the original
Kitchen Wizz® food processor and High-Wall Wok, to the
launch of the world's first wide feed chute juicer, Breville has
become synonymous with ground-breaking innovation in the
kitchen.
In 2000, Breville embarked on a project to expand its design
and innovation capabilities, building a much larger internal
team that has today become Australia's leading product
development team. This investment culminated in the 2003
launch of its premium range of products into the United States
and other international markets.
In 2009, Breville combined its design and development
capabilities with a more focused marketing, recruitment and
cultural initiative entitled "Food Thinking". As a part of this
strategy, internal teams work closely with professional chefs
and consumers to develop insight and an integrated approach
to product development:
• Deeper understanding of food, friction points, and the
challenges consumers face
• Innovation to solve these challenges, protectable as IP;
marketed as "Simple Moments of Brilliance"
• Superior quality and engaging design.
BRG's ethos of "Food Thinking" and creativity remains as
relevant today as it did then and continues to gain momentum
and win over a new generation of consumers, driving
accelerated innovation and increased product development.
BRG's appreciation of food science and culinary trends
naturally fosters relationships with leading food thinkers,
including world barista champions and prominent chefs who
have directly helped BRG's product development.
More recently, BRG has innovated in the world of third wave
specialty coffee and has created a series of award-winning
successes, including the Barista Express®, The Oracle®, and
more recently, machines incorporating the new Impress™ Puck
System: the Barista Express® Impress and the Barista Touch™
Impress.
The success of the connected Joule® Oven, supported by the
Breville+ ecosystem and app, has expanded BRG's presence
in the world of the connected kitchen. The extension of
its updatable features and experiences to non-connected
appliances is another important step towards offering
consumers true cooking solutions that deliver amazing food
and beverages.
The Consumer at the Core of the
Business
BRG focuses on driving consumer understanding of, and
engagement with, the Group's product and proposition. BRG
believes that consumers should be able to produce and enjoy
an amazing result every time, and that they should never have
to settle or compromise just because they are making it at
home.
Through "Food Thinking", BRG provides consumers with
"Mastery in a Box" - innovative products which simplify and
make the process of creation more of a pleasure, and the end
result more perfect, each and every time.
Increasingly these amazing results are delivered not
just through great hardware, or appliances, but through
inspirational recipes, guided content, tips and tricks and
master class training, and great ingredients enabled by
solution offerings such as Breville+ and beanz.com.
At the heart of this proposition lies a passionately held belief
that consumers should feel empowered to share these amazing
results with those who are most important to them: their family
and friends.
The opportunities to make everyday moments an occasion are
innumerable, and BRG believes that the use of its products and
solution offerings will help consumers Master Every Moment®
and enjoy life to the fullest extent.
Coffee
New Products
The completion of our global launch of the Barista Touch™
Impress in FY24 represents our second product utilising the
Impress™ Puck System, a new, innovative assisted lever tamp
system that makes manual espresso easier than ever before
without losing that hands-on feel and follows on from the
Barista Express® Impress that was launched in FY22.
The Impress™ Puck System applies a constant 10kg
impression to your dose, finishing it with a 7° barista twist
for a more polished puck, and works in combination with an
intelligent dosing system that learns on the job, automatically
calculating and adjusting the dose of freshly ground coffee as
required, based on the last grind and tamp outcome.
The Barista Touch™ Impress also features a larger touch
screen that shows off our new Barista Guidance system, which
coaches consumers through the process of extraction and
allows for the presentation of our automatic alternative milks
settings with our Auto MilQ™ steam wand system.
BRG’s primary strategy is the design and development of the
world’s best kitchen solutions, whilst expanding distribution, which
is supported by dynamic marketing, on a global scale.
the Paradice™ 9
Where precision and performance
meets compact design.
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Breville Group Limited annual report 2024
FY24 also saw the introduction of the Baratza® Encore™ ESP,
a new variant of the popular Encore™ grinder, optimised
to deliver the precision required for espresso. Its metal
adjustment system is built to stand up to the rigors of
daily espresso grinding, with settings #1-20 delivering
high-resolution espresso grinds and #21-40 giving you the
resolution needed for filter, French press or cold brew.
beanz™
BRG's focus on providing its customers the best at-home
specialty coffee experience includes providing easy access to
third wave coffee beans which, at the end of the day, is the core
and foundation for true specialty coffee. Beanz™ by Breville
| Sage, which is easily accessed at beanz.com, is designed
to seamlessly complement our internationally renowned
espresso and coffee product portfolio, providing consumers
with an easy pathway and better access to beans from top tier
specialty coffee roasters.
Beanz™ is available now in the US, UK, Germany, and
Australia, with other markets soon to follow, and is designed
for consumer-facing coffee discovery and education. All
beanz™ roasters are renowned, best-in-class, independent
roasters, and the service introduces consumers to their product
at roaster direct pricing, with coffee roasted to order and
delivered free to the consumer's home.
Coffee Essentials
Built on extensive customer research into the espresso
machine buying experience, BRG launched "Coffee Essentials"
bundles in December 2021.
Carefully engineered to deliver a frictionless experience, coffee
essentials guides consumers to the right espresso machine
for their lifestyle and pairs this with beanz™ to ensure freshly
roasted specialty beans are delivered to their doorstep.
The right machine, quality freshly roasted beans and
"masterclass" tuition together ensure a great consumer
experience.
Cooking
New Products
In FY24, Breville | Sage successfully launched the new flagship
Paradice™ 9 Cup Food Processor across the world, delivering
to consumers the combination they had been seeking – a more
powerful food processor but in a more compact size. The
new food processor incorporates a high torque, heavy duty
brushless induction motor with a direct drive mechanism
to deliver the high performance of its larger siblings and
offers a 30-year motor warranty. Additionally, the new unit
incorporates the company's first on-board storage caddy, which
includes the precision dicing disc, to keep the overall footprint
small.
The new product is also supported by the Breville+ companion
app that features an impressive offering of video-guided
recipes and content from world renowned chefs and culinary
partners. The food processor recipes and experiences also
directly refer to the colour coded accessories that are stored in
the on-board caddy – essentially "cook by colour" experiences
that make preparing delicious foods much simpler and easier.
FY24 also featured the launch of the new InFizz™ series of
water carbonators. The flagship InFizz™ Fusion features new
and unique technology in the form of the FusionCap™, which
allows consumers to safely carbonate beverages that contain
sugar (think of putting a mint candy in soda and its explosive
result). This means consumers can "start with full flavour
and then fizz for more", versus the other technologies where
they first carbonate the water and then add small amounts of
flavourings afterwards. The company also offers the InFizz™
Aqua, which allows consumers who only need the ability to
carbonate water alone a more accessibly priced alternative to
the line’s premium materials and design.
Launched across the world, the product has met with positive
reception and successful sales results in the premium priced
segments.
This was followed with the launch of the Control Freak™
Home, a new version of the successful commercial precision
induction cooker, the Control Freak™ which was launched in
February 2016 to popular commercial kitchen acclaim.
Designed to fit into the home environment and its
requirements, the unit delivers similar precision and cooking
performance to its bigger brother, but the new unit is slightly
smaller, and more accessibly priced.
The product was launched via ChefSteps, where the technical
story was immediately appreciated by its subscriber base and
contributed to strong initial awareness and sales. The Control
Freak™ Home moves to broader distribution in US mass
premium channels in August of 2024.
Cooking Solutions
In September 2023, BRG introduced its best in class cooking
solution with the launch of the Breville+ service in the US.
Building on the Joule® Oven App, Breville+ today includes
over 1,300 recipes from ChefSteps, the Breville Test Kitchen,
the New York Times, Serious Eats, America’s Test Kitchen,
Williams Sonoma, Sur la Table and many well-known
individual chefs, combined with cooking guides and live and
on demand cooking classes. The amount of available content
and experiences grows with each passing day and is free to
Breville owners upon registration.
All the Breville+ content is specifically optimized for the
products supported by the app, which currently includes the
Joule® Oven, along with three other popular Breville smart
ovens, as well as the Pizzaiolo and the Joule® Turbo Sous Vide.
In FY24, the recipes and cook guide functionality was extended
to the new Paradice™ 9 cup and 16 cup food processors along
with the Breville Sous Chef™ 9 and 16 cup food processors and
includes "cook by colour" guidance for all of these variants.
All Breville+ experiences are tested and tuned to the specific
Breville device by the brand's resident experts and enable
consumers to deliver amazing food results the first time, every
time.
Strategy and brands continued
Baratza® Encore™ ESP x
the Bambino® Plus
(above) The perfect pair for simple
espresso at home.
LELIT® Bianca espresso
machine
(right) Elegance and power come
together in this outstanding piece
of design.
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Breville Group Limited annual report 2024
Strategy and brands continued
Brands
Breville® | Sage®
The Breville® and Sage® brands are at the core of BRG's
strategy, representing the majority of revenues and marketing
activities. In line with its global strategy, BRG is focused on the
design, development, and sale of Breville-branded and Sage-
branded products currently supplied to 81 countries in the
premium kitchen segment of the market (Global Product).
However, there are now a number of additional company-
owned brands and brand partners in different geographies that
will accelerate the delivery of the BRG business strategy.
Baratza® and LELIT® were acquired in FY22 and FY23
respectively and are complementary to BRG's existing
premium coffee business with all four brands having a
shared passion for using product innovation to improve the
consumer's coffee experience at home.
The Distribution segment sells products that are distributed
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 BRG (Breville®,
Kambrook®, Aquaport™, Cli-mate™), or they may be distributed
under a third-party brand (Nespresso®).
Americas
In the Americas, BRG distributes its range of internally
designed and developed kitchen products primarily
under the Breville®, Baratza® and LELIT® brands mainly
through premium channels and its own direct-to-consumer
e-commerce platform. A range of Breville co-branded
Nespresso® coffee machines are also sold in North America
where Breville is one of Nespresso's machine partners.
Beanz™ was first launched in the US and continues to connect
consumers with freshly roasted specialty coffee and is utilised
in our new specialty coffee bundles. As noted above, Breville+
was launched in September 2023, and subsequently expanded
to Canada in March of 2024 as the next step in the roll-out plan.
Asia Pacific
In Australia and New Zealand, BRG primarily trades under
its company owned brands, Breville®, Baratza®, LELIT®,
Kambrook®, Aquaport™ and Cli-mate™.
In the Asia Pacific region, BRG markets its premium designed
and developed kitchen products under the Breville®, LELIT®
and Baratza® brands as well as selected products under the
Kambrook® brand.
Beanz™ was most recently launched in Australia in 2024.
Beanz™ connects consumers with freshly roasted specialty
coffee and is utilised in our new specialty coffee bundles.
In Asia, BRG began direct retail sales in South Korea in FY23.
Distribution in the rest of the region is managed using local
third-party distributors.
Europe, Middle East and Africa
In the United Kingdom and Europe, the Breville® brand is
not owned or operated by BRG, so the company markets
and distributes its premium designed and developed
global kitchen products under Sage®. Its brand identity and
positioning is aligned to the global Breville® brand identity,
"Food Thinking" approach, and Master Every Moment®
empowerment strategy.
BRG also markets and distributes the Baratza® and LELIT®
brands across the region.
BRG also works with distribution partners who take advantage
of BRG's investment in the Sage® brand in their territories.
Countries such as Denmark, Sweden, Norway, Finland, Estonia,
Lithuania, Latvia, Czech Republic and Slovakia, amongst
others, were the first to transition. Sage® branded goods are
now also supplied to certain distributors located in the Middle
East.
Beanz™ was launched in the UK in 2023 and continues to
connect consumers with freshly roasted specialty coffee and is
utilised in our specialty coffee bundles.
Baratza®
In FY22, BRG acquired Seattle-based premium coffee grinding
company, Baratza. Baratza designs and markets premium
coffee grinders for North America and international markets.
The brand shares a passion for innovation and an unwavering
commitment to enhancing the consumer experience, most
recently through the launch of the Encore™ ESP grinder.
LELIT®
On July 1st, 2022, BRG completed its acquisition of Italy-based
Lelit, which designs, manufactures, and markets premium
home coffee equipment throughout the world. The acquisition
brought together two of the great coffee cultures of the world:
Italy and Australia.
ChefSteps
In July 2019, BRG completed the acquisition of ChefSteps,
incorporating both the connected IoT Joule® Sous Vide
immersion circulator, as well as taking over the ChefSteps.com
website. The Joule® Turbo Sous Vide immersion circulator has
been fully incorporated into the Breville® brand through the
introduction of a new version of the product, and the website
has been re-invigorated. The brand is also an integral part of
the Breville+ solutions offering.
Kambrook®
Kambrook® has become known for quality, durable products
at an affordable price. The ever-expanding product range
encompasses appliances for the kitchen, living room, laundry
and bedroom. Kambrook® continues to highlight the durability
of its appliances and the rigorous testing process that each
new product undergoes.
Commercial Products
Products designed for commercial use are distributed around
the world under either the brand Breville® | Commercial or
Sage® | Commercial, as locally relevant.
The commercial division manages products such as the
HydroPro™ series, which are the world's premier immersion
cooking circulators (for sous vide cooking), as well as various
specialty cooking accessories such as The Smoking Gun®
(for rapid food smoking), the Control Freak™ (for precision
Breville+
(above) Open a world of instant mastery
with 1000+ guided recipes, live and on-
demand classes, cook guides and more.
Perfect meals.
First time.
Every time.
the Control Freak™ Home
(above and right) The next generation
of high-performance precision induction.
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Breville Group Limited annual report 2024
cooktop applications), vacuum sealers, cold plates and vacuum
evaporation systems. In 2023, the division launched the Super
Q™ Pro commercial blender and the Juice Fountain® XL Pro
commercial juicer, and more recently, launched the smoke
bubble attachment for The Smoking Gun®, increasing its utility
and appeal to professional mixologists. This new offering
includes both the bubble attachment as well as a proprietary
bubble solution, thus allowing bars across the world to offer up
safe and easy ways to deliver the flavour and drama of smoke
to customers demanding more.
Innovation and product development
The core driving BRG's growth continues to be investment in
product development and a focus on design and innovation.
BRG has further deepened its understanding of food, and
how the consumer interacts with it, applying this to solving
problems in ways that are both valuable to people and
differentiated from competitors.
BRG actively protects this customer value through increased
investment in intellectual property protection and via the
development of a portfolio of patented innovative products for
future sustainable growth.
People - creative food thinkers
BRG enjoys the benefits of highly experienced talent across all
departments and geographies.
Integrated throughout its food thinking culture, the passion,
creativity and insight of our team has helped to consistently
bring world class innovative products to consumers around the
world. The team continues to be awarded both domestically
and internationally, with multiple design awards and
recognition through mainstream media.
BRG invests in the training and education of its team, building
strong, collaborative links with world experts in food thinking
and technology. BRG is also involved in several consumer-
facing and chef liaison activities.
Strongly committed to its core values of creativity, simplicity,
insight and excellence in all departments, BRG recruits, trains,
assesses and rewards employees on this basis. With a team
anchored around these common values, the business is able to
foster a workplace that stimulates idea generation, a passion
for learning, and the continuous search for new and better
solutions.
During FY24, BRG continued to grow its highly talented
and experienced team, bringing on board new experience
and expertise, particularly in the areas of marketing, product
design, research and development, UI/ UX, and technical
services.
Processes built for the future
With an aligned calendar setting process, within both BRG
itself and its external manufacturing and retail channel
partners, BRG seeks to fully leverage an increasing number
of new product introductions to continue to drive its business
and iconic brands forward.
In FY23, BRG began executing against an enhanced process,
Launch v2.0, and in FY24 continued to refine and adjust it to
accommodate a changing marketplace.
This process ensures that the 'go-to-market' launches are
aligned functionally, regionally and with our external wholesale
and retail partners. Enough inventory is built in market prior to
launch, activities are aligned, and materials are prepared well
in advance allowing BRG to launch new products, with impact
across a number of markets simultaneously. This maximizes
the velocity of launch and the returns on our development
investments.
Reconciliation Action Plan
The company's first 'Reflect' Reconciliation Action Plan (RAP)
received official endorsement from Reconciliation Australia in
March 2022 and the BRG RAP Working Group is now working
toward our second RAP stage, ‘Innovate’.
The progress of our RAP is guided by an Advisory Council
of elders and community stakeholders that provides the
BRG RAP Working Group with advice and information on
equity issues facing Aboriginal and Torres Strait Islander
communities as well as feedback and support around
implementation and monitoring of actions, projects and
commitments identified in the RAP.
More information on these initiatives and our Reconciliation
Action Plan can be found on the Breville Group Corporate
website brevillegroup.com.
Aboriginal Culinary Journey
BRG is donating 100% of the company's profits from the sale of
the 'Aboriginal Culinary Journey' range to create opportunity
for Indigenous Australians. Our ultimate goal to raise over
$1,000,000 through the sale of these items globally.
Half of these funds will be used to support the National
Indigenous Culinary Institute's work to create employment
opportunities for aspiring Aboriginal and Torres Strait Islander
chefs and the 'Indi-Kindi Program' by the Moriarty Foundation
to support better childhood nutrition and sharing Indigenous
Food Culture. The other half will be used to fund Indigenous
scholarships at the University of Technology Sydney to create
pathways for employment in engineering, technology, and
design. The first two scholarships were awarded in May 2024.
Brown Box
In 2023 Breville | Sage developed and launched the
Sustainable Brown Box initiative which will see the company
adopt best-in-class sustainable packaging practices across
its entire product range. The goal is to reduce our packaging
footprint by moving to a recyclable brown box, the complete
removal of expanded polystyrene (EPS), and minimal use
of internal soft plastics. Work in this area will be ongoing
as we are yet to find a suitable replacement for low density
polyethylene (LDPE) bags in some cases.
In addition, the new brown box will carry simplified on-
pack communications with the rollout of a new product
information and sticker strategy. This will allow Breville | Sage
to streamline its sustainable packaging supply chain for BRG’s
three theatre, multi-region production.
We are currently on track to have all EPS removed from the
Australian market by the end of 1H25.
Strategy and brands continued
12 Breville Group Limited annual report 2024
Directors’ report
The Board of Breville Group Limited (company) has pleasure in
submitting its report in respect of the Group for the year ended
30 June 2024.
Board of Directors
The names and details of the company’s Directors in office
during the year and until the date of this report are as below.
Unless indicated otherwise, directors were in office for this
entire period.
Timothy Antonie
Non-Executive Chair: BEcon
Mr Antonie has more than 25 years’ experience in investment
banking, corporate advisory and formerly held positions of
Managing Director from 2004 to 2008 and Senior Advisor in
2009 at UBS Investment Banking, with particular focus on
large scale mergers and acquisitions and capital raisings in the
Australian retail, consumer, media and entertainment sectors.
Mr Antonie is currently a principal of Stratford Advisory Group
providing independent financial advice to Australian and
international corporations. He holds a Bachelor of Economics
degree from Monash University and qualified as a Chartered
Accountant with Price Waterhouse.
During the last four years he has served as a Non-Executive
Director of the following other listed companies:
•
Netwealth Group Limited # (Chair)
•
Premier Investments Limited #
# denotes current directorship
Lawrence Myers
Non-Executive Deputy Chair and Lead Independent
Director: B.Acct, CA, CTA
Mr Myers has over 25 years’ experience as a practicing
Chartered Accountant. He is the Managing Director and
founder of MBP Advisory Pty Limited, a high-end Sydney firm
of Chartered Accountants. He is also the Chief Executive Officer
of Consolidated Press Holdings Pty. Limited. Mr. Myers sits on
numerous public, private company and not-for-profit Boards,
including the Foundation Board of the Art Gallery of New South
Wales, and acts as a trusted advisor and mentor on business
and financial matters. His specialist areas of practice include
business and corporate advisory as well as mergers and
acquisitions. Mr Myers is Chair of the Audit and Risk Committee
(ARC) and is the company’s lead independent director and
Deputy Chair.
During the last four years he has served as a Director of the
following other listed companies:
•
Accent Group #
•
Regal Asian Investments Limited #
•
VGI Partners Global Investments Limited #
# denotes current directorship
Jim Clayton
Managing Director and CEO: BBA, JD
Mr Clayton was appointed Managing Director on 18 August
2021 and has been CEO since 1 July 2015. Mr Clayton has
extensive international experience in consumer electronics,
business transformation and strategy. He joined Breville from
LG Electronics Inc., where he held a number of senior roles
since 2009, including Executive Vice President, New Business
Division for LG’s Home Entertainment Company.
Prior to this, Mr Clayton worked for Symphony Technology
Group, a Silicon Valley based private equity firm focused on
midmarket enterprise software and technology enabled service
companies, and McKinsey & Company in the US, Germany and
Singapore.
During the last four years he has not served as a Director of any
other listed company.
Tim Baxter
Non-Executive Director: BS
Mr Baxter is an accomplished senior executive, with over
35 years’ experience across the consumer electronics, retail,
technology and telecom industries. He was previously Chief
Executive Officer of Samsung Electronics North America,
having been promoted to the role from Chief Operating Officer,
America. Prior to this, he held several senior management
positions across sales and marketing at Samsung, Sony
Corporation and AT&T Inc. Mr Baxter serves as a Non-
Executive Director on a number of public and private company
boards.
During the last four years, he has served as a Non-Executive
Director of the following listed companies:
•
PAVmed Inc. #
# denotes current directorship
Peter Cowan
Non-Executive Director
Mr Cowan has more than 30 years’ experience in leading and
building globally respected organisations and brands in the
FMCG sector. He served as both Chairperson of the Board
and CEO in key developing markets for Unilever and has held
Managing Director roles at Lion Nathan and New Zealand Dairy
Board (Fonterra). Mr Cowan also held Regional Vice President
positions at Alberto Culver and Johnson & Johnson. Mr Cowan
is Chair of the Sustainability Committee.
During the last four years he has not served as a Director of any
other listed company.
Sally Herman
Non-Executive Director: BA, GAICD
Ms Herman is an experienced Non-Executive Director sitting on
public and private Boards in financial services, retailing, property
and consumer goods. She had a long career in financial
services in both Australia and the United States, including
16 years with the Westpac Group, running business units
in most operating divisions of the Group. Ms Herman is
actively involved in the community, with a particular interest in
education, the arts and social justice. She is a member of Chief
Executive Women.
During the last four years she has served as a Non-Executive
Director of the following other listed companies:
•
E&P Financial Group Limited
•
Irongate Funds Management Limited (the responsible entity
for Irongate Property Fund I and Irongate Property Fund II)
•
Abacus Group #
•
Premier Investments Limited #
•
Suncorp Group Limited #
# denotes current directorship
13
Breville Group Limited annual report 2024
Dean Howell
Non-Executive Director: FCA, CTA
Mr Howell has had an extensive career in accounting, spanning
over 40 years, and accordingly has a wealth of commercial
and advisory experience. He was the former senior partner of
a Melbourne firm of chartered accountants and also served on
that firm’s national and international Boards.
During the last four years he has not served as a Director of any
other listed company.
Tuula Rytilä
Non-Executive Director: MSc
Ms. Rytilä is an accomplished senior executive, with over
30 years’ experience across the consumer technology and
product sector in technologies, digitisation and product
management. Ms. Rytilä brings an international perspective
having worked across Europe, North America, Asia and Africa.
Her most recent focus has been on driving global business
model change and customer experience optimisation. Ms.
Rytilä has detailed insight into product roadmaps, product
development, consumer insights as well as experience with
global go-to-market strategies and e-commerce. Before joining
the Board, Ms. Rytilä worked for Microsoft for 9 years, with
global responsibility for Microsoft Digital Stores. Prior to this,
during her 15 years with Nokia, Ms. Rytilä rose to the position of
global CMO.
During the last four years she has served as a Non-Executive
Director of the following listed company:
•
Bang & Olufsen A/S #
•
Kempower Oyj #
# denotes current directorship
Kate Wright
Non-Executive Director: BA
Ms Wright has more than 30 years’ experience in the consumer
industry across Australia, the South Pacific and the USA.
Her career has spanned manufacturing operations, sales,
marketing, human resources and general management within
the consumer sector. Ms Wright has held the positions of
Managing Director, Australia and South Pacific region at Philip
Morris from 2001 to 2004 and Head of Korn Ferry Australia’s
Consumer and Retail Practice from 2005 to 2016. Ms Wright
holds a Bachelor of Arts degree from the University of New
South Wales. Ms Wright is chair of the People, Performance,
Remuneration and Nominations Committee (PPRNC).
During the last four years she has not served as a Director of
any other listed company.
Company secretaries
The names and details of the company secretaries in office
during the year and until the date of this report are as below.
Sasha Kitto
LLB, FCA
Ms Kitto is a chartered accountant and has over 25 years’
experience as a practising chartered accountant and in senior
finance roles.
Craig Robinson
BA, ACMA
Mr Robinson is a Chartered Management Accountant with over
25 years’ commercial finance experience. He has worked in
FMCG, Medical Diagnostics and Sales Service industries in the
UK, Australia, Switzerland and the USA.
Reporting currency and rounding
This preliminary final report is presented in Australian dollars and
all amounts have been rounded to the nearest thousand dollars
($’000) unless otherwise stated under the option available to
the Company under ASIC Corporations (Rounding in Financial
/ Directors Reports) Instrument 2016/191. The Company is an
entity to which the instrument applies.
Performance indicators
Management and the Board monitor the annual financial
performance of the Group by measuring actual results against
expectations as developed through an annual business
planning and budgeting process and refreshed through in-year
reforecasts.
Appropriate key performance indicators (KPIs) are used to
monitor operating performance and management effectiveness.
Operating and financial review
The operating and financial review has been designed
to enhance the periodic financial reporting and provide
shareholders and other stakeholders with additional information
regarding the Group’s operations, financial position, business
strategies, risks and prospects. This review complements the
financial report and has been prepared in accordance with the
guidance set out in ASIC Regulatory Guide 247.
Company overview and principal activities
The Group’s principal activities, and underlying strategy, remains
the design and development of innovative world class, small
electrical kitchen appliances and the effective marketing and
distribution of these products across the globe.
In line with this strategy, and to drive sustainable growth in both
revenue and profits the Group has developed:
•
a strong, competitive and growing product portfolio with
proven international success;
•
an innovative, committed and high-quality global team;
•
a research and development (R&D) culture that focuses on
consumer solutions, sustainability and emerging food and
beverage technologies;
•
a strategic marketing capability supporting new product
launches and building brand awareness;
•
unified global IT and SaaS platforms rolling out globally to
bring speed and competitive advantage;
•
a proven methodology of successfully expanding into new
geographies;
•
a track record of successfully integrating acquisitions; and,
•
a strong balance sheet that provides a platform to take
advantage of future opportunities.
Board of directors continued
14 Breville Group Limited annual report 2024
With significant headroom to grow, the Group’s objective
is to deliver annual EBIT growth against a variety of trading
backdrops, while reinvesting in R&D, marketing, technology
services, solutions and geographic expansion to drive sustained
growth in shareholder value. During FY24 the Group continued
to invest in new product development, to enhance our digital
marketing offense and product solutions, to roll out a global
IT platform, and to grow in our newly entered markets thereby
increasing geographic diversity.
The Group operates a global centralised business structure
with two business segments and three geographic theatres as
described below. The business segments comprise:
•
The Global Product segment, which sells premium products
designed and developed by BRG that may be sold directly
or through third parties and may be branded Breville®,
Sage®, Baratza®, LELIT® or other Group owned brands.
•
The Distribution segment, which 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 a brand owned by the
Group (e.g. Breville®, Kambrook®), or may be distributed
under a third-party brand (e.g. Nespresso®).
The three geographic theatres execute the sales, distribution,
and business development functions in each geography. The
theatres are supported by centralised functions including
product development, marketing, operations, technology
services, finance, and HR.
•
In Asia Pacific (APAC), the Group principally trades under
its owned brands, including Breville®, Baratza®, Kambrook®
and LELIT® branded products, and also distributes products
under a machine partnership with Nespresso®.
•
In the Americas, the Group markets and distributes Breville®,
Baratza® and LELIT® branded products and distributes
Nespresso® products, under a machine partnership.
•
In Europe, Middle East, and Africa (EMEA), the Group
markets and distributes BRG designed products under
the owned brands Sage®, Baratza®, LELIT® and Breville® in
select markets.
Group operating results
AUDm1
FY24
FY23 % Growth
Revenue
1,530.0
1,478.6
3.5%
Gross profit
556.9
516.9
7.7%
Gross margin
36.4%
35.0%
EBITDA
245.5
218.2
12.5%
EBIT
185.7
172.0
8.0%
NPAT
118.5
110.2
7.5%
Dividend per share - ordinary
(cents)
33.0
30.5
8.2%
Franked (%)
100%
100%
Net cash / (debt) ($m)
53.6
(121.3)
ROE2 (%)
14.6%
15.9%
1 Minor differences may arise due to rounding.
2 ROE is calculated based on NPAT for the 12 months ended 30 June
2024 (FY23: 12 months ended 30 June 2023)
In FY24, the Group delivered record revenue of $1.53bn, or
3.5% growth, with a marked strengthening in 2H24, including
double-digit growth in the Americas, EMEA and in the Coffee
category within the Global Product segment. This top line
growth was supported by new product launches, the expansion
of new markets and the continuing coffee tailwind and was
delivered against a subdued consumer backdrop.
Importantly, in the current inflationary environment, Gross Profit
grew by 7.7% (with the second half at 9.3%), as our Gross
Margin improved year-on-year by 140bps.
The Group delivered EBIT of $185.7m, or 8% growth, a result
slightly above the top end of our guidance, with expenses
successfully aligned to a lower growth environment.
NPAT grew at 7.5%, after the reversion of the effective tax rate
to 28.5%.
As planned, a net cash position was delivered with strong
cashflow of $174.9m across the year, substantially driven by a
reduction in inventory levels, whilst Gross Margin increased.
Operating and financial review continued
Company overview and principal activities
continued
Directors’ report continued
Segment results
AUDm1
Revenue
Gross Profit
Gross Margin
FY24
FY23
% Growth
FY24
FY23
% Growth
FY24
FY23
Global Product
1,336.0
1,279.2
4.4%
503.0
470.5
6.9%
37.7%
36.8%
% Growth in constant currency
2.0%
Distribution
194.0
199.3
(2.7)%
53.9
46.4
16.1%
27.8%
23.3%
TOTAL
1,530.0
1,478.6
3.5%
556.9
516.9
7.7%
36.4%
35.0%
1 Minor differences may arise due to rounding.
Our Global Product segment grew revenue by 4.4% (or 2.0% in constant currency) and Gross Profit grew by 6.9%. 2H24 revenue
growth was markedly stronger at 8.7% (or 7.1% in constant currency) as Coffee delivered double-digit growth and Cooking and
Food Prep slowed their rates of decline.
In the Global Product segment our NPD launches landed well, with strong sales from the Barista TouchTM Impress, the Vertuo
Creatista, the ParadiceTM Food Processors and the InFizzTM range. After a quiet period during Covid, new product launches are firing
with a healthy pipeline in place for FY25.
15
Breville Group Limited annual report 2024
New geographies continued to outperform, as did DTC (direct to consumer) channels which grew strongly.
Our Distribution segment saw a small revenue decline, but Gross Profit grew by 16.1% as Gross Margin improved, and Gross Profit
growth was prioritised over revenue in this segment.
Global Product Segment Revenue Growth – reported and constant currency
AUDm1
Global Product Segment Revenue
FY24
FY23
% Growth
% Growth
in constant
currency
1H24
in constant
currency
2H24
in constant
currency
Americas
735.5
701.2
4.9%
2.9%
(2.2)%
12.0%
EMEA
325.2
285.8
13.8%
8.5%
5.5%
12.3%
APAC
275.4
292.2
(5.8)%
(6.4)%
(5.7)%
(7.1)%
TOTAL
1,336.0
1,279.2
4.4%
2.0%
(1.3)%
7.1%
Operating and financial review continued
Segment results continued
1 Minor differences may arise due to rounding.
FY24 grew at 4.4%, led by the EMEA and the Americas.
2H24 saw a marked strengthening in sales growth to 7.1% (in
constant currency), with two out of the three theatres in double-
digit growth. With consumers across the globe resetting to the
new economic reality at different rates, the Group’s geographic
diversity proved to be an asset, with improving second half
overall growth.
The Americas grew revenue by 2.9% in constant currency for
the full year, strengthening to 12.0% in 2H24 as all categories
improved their growth rate with strong double-digit growth in
Coffee and Food Preparation back into growth, supported by
strong NPD activity.
In EMEA FY24 constant currency revenue growth of 8.5% was
driven by 12.3% in the 2H24 as direct countries into which we
sell continued their strong growth and markets still served by
distributors improved their performance. NPD launches landed
well driving double digit 2H24 growth, whilst our DTC channel
continued its strong growth trajectory.
In APAC we saw a full year revenue decline of (6.4)% in
constant currency, but we saw good signs of 2H24 recovery
in our key direct markets of Australia, New Zealand and South
Korea with the Coffee category delivering second half growth
across the three markets combined. Performance was weaker
in APAC distributor markets, which dampened the combined
number for the Theatre. Encouragingly, South Korea continued
its strong performance and reached its first milestone in 2H24,
surpassing New Zealand in Gross Profit.
The second half performance was a good example of our
diversified portfolio and growth levers working for us, delivering
a promising return to stronger growth.
EBIT and NPAT
In a low-growth revenue year we optimised Gross Profit and
contained operating expenses to deliver an 8.0% increase in
EBIT.
Input cost savings flowed through the year in both product
costs and freight, with the latter increasing somewhat towards
the end of the year. Warranty costs reverted to slightly below
historic norm at 3.2% of revenue. We were measured in our
promotional calendar, only participating where we believed we
would deliver a positive ROI. This approach drove Gross Margin
gains of 140bps and maximised Gross Profit.
Across the year Gross Profit grew by 7.7% or $40.0m of which
approximately one third flowed through to EBIT, with two thirds
funding increased operating expenses.
D&A expenses increased, in line with plan, by $13.6m year-on-
year due to the acceleration in the rate of new product launches
post-Covid and an increase in depreciation of ROU (right of use)
assets in line with our warehouse footprint expansion in FY23.
Employment expenses grew by $13.5m driven by the team
earning 100% STI (short term incentive) payout as opposed to
58% in the PY. Like-for-like headcount was relatively stable and
other expenses, collectively, were flat year-on-year.
Investment functions expenses of marketing, R&D, technology
services and solutions increased to 14.0% of sales vs 13.1% in
the prior year.
NPAT grew 7.5% due to reduced finance costs in the second
half as improved cashflow reduced debt, partially offset by the
Group’s effective tax rate reverting to the long-term norm of
28.5% from 27.0% in the pcp due to higher R&D tax credits.
Financial Position
The Group’s lower net working capital position at 30 June 2024
of $341.6m ($455.1m in the pcp) largely reflects the reduction
in inventory levels delivered through measured purchase
reductions, rather than discounting, with Gross Margin
strengthened as inventory balances were reduced by $106.8m
or 24.3% to $332.8m (pcp $439.6m).
The Group’s receivables balance of $282.0m was broadly flat
year-on-year (pcp $276.8m), and debtor days are in line with
the prior period.
The development of new products and solutions is a key
element of the Group’s growth strategy and is reflected in
the balance sheet as “Capitalised Development Costs and
Computer Software”. As more new products are developed and
then launched, capitalisation increases, and with a lag so does
amortisation, driven by the length of our development cycle.
In FY24 the Group capitalised Development Costs and
Computer Software of $37.2m (pcp: $32.8m) and recognised
an amortisation expense of $22.4m (pcp: $16.5m), increasing
the capitalised value to $86.3m. This intangible balance is
a good leading indicator of future growth, with the growing
balance signalling that the Group has larger projects moving
toward launch or recently launched.
16 Breville Group Limited annual report 2024
PPE balances increased by $9.1m in the year mainly due to the
above-mentioned acceleration in new product development
increasing the number of projects investing in tooling, as well
as investments to support the business (e.g. store fit out,
manufacturing equipment and facilities).
Net Debt and Cash flow
Free cashflow (FCF) for the 12 months to 30 June 2024 was
an inflow of $240.8m (pcp $37.1m) substantially driven by the
reduction in inventory balances.
Strong cashflow over the last 12 months delivered a net cash
position of $53.6m at 30 June 2024 (pcp net debt of $(121.3)
m), an improvement of $174.9m.
The Group is now completely unleveraged and has significant
cash of $137.8m and unused debt facilities of $190.8m,
providing flexibility for seasonal working capital build and
expansion.
Dividends
A final dividend of 17.0 cents per share (100% franked) has
been declared (FY23: 15.5 cents,100% franked), bringing the
total dividends for the year to 33.0 cents per share (FY23: 30.5
cents).
The dividend reflects the target payout ratio of 40% of EPS on a
full year basis.
The final dividend will have a record date of 13 September 2024
and will be paid on 4 October 2024.
Material business risks
The material business risks that may impact the achievement of
the Group’s strategy and its financial prospects are summarised
below, together with key actions intended to mitigate these
risks.
Operating and financial review continued
Financial Position continued
Directors’ report continued
Risk
Nature of risk
Key actions to mitigate risk
Supply
chain
disruption
and input
cost risk
Concentration of supply from one region
and country (China) raises the risk of
supply interruption due to geo-political
tensions, public health decisions or
extreme climate events.
This potential puts the Company’s ability
to adequately supply its market, and thus
Group revenue and profitability, at risk.
Inflationary pressures on manufacturing
and transport costs may arise either
from high demand for consumer goods,
shipping and labour or from general
inflationary pressures and exchange rate
movements or additional tariffs. Unless
recoverable by pricing this puts the
profitability of the Group at risk.
Inventory is held in market to provide a buffer against supply chain
interruptions. In a period of heightened risk, inventory holdings may
be increased or brought to market early.
Alternative sourcing locations are being established, nearer to
market, with the first, Mexico, having been commissioned for one key
product.
Core S&OP process gives long forward visibility to suppliers to help
ensure that required components, labour etc. are secured.
The Company uses multiple manufacturers where possible to
de-risk dependence on single suppliers and establishes long-term
partnerships to manage short-term cost fluctuations.
Input cost inflation is monitored and negotiated by SKU and supplier
in both USD and landed currency.
Pricing power of our premium, innovative products is leveraged to
protect margins where possible on a market-by-market basis.
Contracted shipping and logistics rates are secured where possible.
Exchange rates are hedged 12 months in advance. Both of these
activities provide forward visibility of costs for 12 months to allow
effective management of margins.
Demand
pattern risk
There is risk of volatility in the growth
trajectory of the Company arising from
consumer-based cost of living pressures
including interest costs.
This can be exacerbated in the short
term by retailer destocking / restocking
decisions sometimes effected by global
shocks, as well as by the general risk
stance of retailers in the current uncertain
economic environment.
This can impact revenue and profits
and reputational risk with investors if
expectations are not met.
The increasingly diversified global revenue footprint of the Group
spreads this risk and mitigates the impact of disruption in a specific
region, or country, on the Group results.
Weekly sell-out is monitored by SKU and customer. This forward
visibility allows informed adjustments in terms of market activity and
promotion in a timely, effective manner to optimise revenue and
margin.
Rolling forecasting of annual gross profit delivery allows contraction,
and expansion, of expenses as needed to deliver profit within a
specific year. The Group has a strong track record of delivering
EBIT growth against a variety of backdrops whilst still maintaining
investment for sustainable long-term growth.
The premium, innovative nature of the product range historically
provides some resilience of demand to short term economic
conditions.
Investment in enhanced promotional programs and initiatives may be
used to stimulate demand where there is an attractive ROI (return on
investment).
17
Breville Group Limited annual report 2024
Risk
Nature of risk
Key actions to mitigate risk
ESG risk and
sustainability
The potential exists for reputational risk
with employees, customers, investors,
regulators and society, and subsequent
financial impact, if the Group fails to act
adequately on ESG issues and / or fails to
communicate its strategy and approach,
including in response to relevant
regulations.
There is a risk to supply continuity from
extreme climate events (see above).
Changing consumer trends, preferences
or expectations regarding sustainable
product design could adversely influence
demand for the Company’s products if the
Company fails to adapt to these.
The Company’s approach to ESG issues and risks is detailed
in the ESG report section of the Directors report page 18 to 29
which cover the Group’s approach to climate emissions and ESG
responsibilities more generally.
The Group’s commitment to a sustainable business model is guided
by the Board Sustainability Committee.
Product
development
and
innovation
risk
Insufficient or ineffective investment in
product development and innovation,
and inadequate communication of the
innovative range to customers and
consumers may result in loss of revenues
and competitive advantage.
Securing of proven, world class leadership for product
development, technology services, marketing and solutions
functions helps to mitigate this risk.
The Company has a strategic annual target of increasing its
investment in product development, technology and solutions as
well as marketing and communications. This forms part of the LTI
(long term incentive) plan.
The prioritisation of investment in these growth drivers is
communicated as a core part of Group strategy in investor
engagements and results presentations.
Cyber
security risk
Breaches of cyber security is a
growing global risk as the volume and
sophistication of threats has increased.
Risks include:
•
Unauthorised access to data /
information leading to reputational
damage and / or risk of litigation.
•
Malicious attacks that result in outages
and service and revenue disruption.
•
Ransom demands with direct financial
consequence to the business.
•
Failure to comply with regulatory
standards risks financial fines or
restrictions to conduct business.
•
Business interruption and availability of
systems following a breach.
The technology services team has further developed the Group’s
cyber security and privacy programs in FY24 within an overall
security and privacy framework, including:
•
Deployment of modern IT infrastructure with latest security
defences.
•
Penetration testing and vulnerability assessments.
•
Continuous cyber threat monitoring and a robust incident
management process.
•
PCI Audits and external reviews of some of our key cloud
operating environments.
•
Selection of a privacy and data mapping platform to facilitate
compliance with multiple global privacy obligations.
•
Employee mandatory multi-factor authentication and annual
cyber security and phishing training.
•
Annual cyber-attack simulation exercise.
Key
employee
risk
High turnover of key staff may impact
the performance of the Group if there
is inadequate succession planning in
place. Inadequate career planning and
inadequate comparative remuneration
may heighten turnover especially given the
Group’s increasing international footprint
and the global “war for talent”.
Annual high potential and succession planning identifies successors
for key roles and individual development plans for key employees.
Key roles are benchmarked to market domestically and
internationally to ensure that they are competitive.
Retention is encouraged through the use of LTI plans and deferred
remuneration share rights.
Operating and financial review continued
Material business risks continued
18 Breville Group Limited annual report 2024
Risk
Nature of risk
Key actions to mitigate risk
Health and
safety risk
Inadequate WHS and well-being practices
can impact the safety, motivation and
engagement of employees resulting in an
impact on business performance as well
as exposing the Group to reputational and
financial risk via litigation and fines.
Inherent in producing and selling kitchen
appliances is also the risk of poor-quality
products harming consumers, with a
safety and reputational impact as well
as financial risk from lost revenue and
damages.
The Board receives and reviews WHS statistics and incidents on
a monthly basis to ensure top-down ownership of this risk. WHS
office ensures accurate monitoring and timely action on any issue.
In recognition of the strain that employees can face to their mental
and physical wellbeing, a range of wellbeing activities and support
programs are available to employees.
BRG has extensive compliance processes in place to ensure
its products are safe and exceed regulatory standards in our
various markets. Rigorous safety standards are a critical element
in our approach to product development. Post design the Group
maintains a zero-tolerance Pre-Shipment Inspection (PSI) program
for all products before they leave the factory.
Protocols are in place for rapid reaction to any reported in-use
consumer event including product recalls. BRG has not had to issue
a product recall since 7 November 2016.
BRG has an outsourced business model for manufacturing and
distribution with the exception of Lelit®.
Operating and financial review continued
Material business risks continued
Directors’ report continued
Group acceleration strategy update
During FY24, the Group has continued to progress its
acceleration program, the impacts of which helped drive the
FY24 performance as well as position the Group for future
growth.
The strategic decision made in 2016 to increase investment
into the organic growth engines of the Company, and continued
every year thereafter, materially supported the Group’s growth
in FY24.
Innovative new products, including the Barista TouchTM Impress,
the Vertuo Creatista, the InFizzTM range and the ParadiceTM Food
Processors all performed well. Go-To-Market increasingly used
its new Launch v2.0 process, enabling the entire retail channel
of a country go live on a single day. The Technology Services
team, in concert with the Go-To-Market team, continued to
productise and improve the Group’s digital offense, supporting
the growth rate in all digital channels.
FY24 growth was also supported by the Group’s geographic
expansion efforts, which began in earnest in FY18. Countries
entered since FY18 grew their aggregate revenue by 30.4%
in FY24, outperforming the Group and contributing strongly to
overall Group growth performance. In FY24 the Global Product
segment revenue of EMEA comfortably surpassed APAC, the
home region of the Group, and within APAC the Gross Profit of
South Korea exceeded New Zealand in the 2H24. These are
two examples of newer geographies not only growing fast but
having the scale to impact overall Group results.
In early FY24, Breville-branded products were made available to
Specialty Coffee retailers in the US through the new B2B portal,
widening Breville’s channel footprint in coffee and allowing all
three brands, LELIT®, Breville® and Baratza® to be sold side-by-
side. The Group also continued the multi-country rollout of both
Baratza® and LELIT®, transitioning from a distributor model to a
direct model in multiple countries. Baratza® was introduced in
Europe and Australia, and LELIT® was introduced in the US and
Australia. This global rollout will continue as both Baratza® and
LELIT® leverage the Group’s global footprint and capability.
BRG also made significant progress in its development of
solutions. In Coffee, the beanz™ platform is live in Australia, the
US and the UK, with further countries to follow. Supporting the
Cooking category, the Breville+ service in the US now includes
over 1200 recipes sourced from ChefSteps, the Breville Test
Kitchen, the New York Times, Serious Eats, Americas’ Test
Kitchen, Williams Sonoma and many individual chefs; cooking
guides to help consumers achieve great results with their
own recipes; and live and on-demand cooking classes. All
Breville+ content is specifically optimised for the individual
Breville products supported by the service. The service now
encompasses food processors as well as ovens and sous
vides.
Underpinning these growth levers is the corporate platform,
with the benefits of the platform visible in how quickly the team
rolled out new websites and integrated new geographies.
In FY24 the total P&L expense on R&D, technology services,
marketing and solutions was 14.0% of sales, an increase from
13.1% in the prior year.
Environmental, Society and Governance
(ESG) Report
Our commitment to ESG
BRG is committed to ethical, responsible, and sustainable
conduct across and throughout its business, reinforced through
our culture, values, process, structure, and policies. Our ESG
priorities and strategy are a central part of our overall business
strategy and are a fundamental part of the way we work.
Our ESG strategy – “to create innovative, attractive and
energy efficient kitchen appliances, designed and sourced in a
socially and environmentally responsible manner that delights
our consumers, meets the expectations of our stakeholders
and delivers sustainable value creation” is embedded in our
business operations and risk management process.
As a consumer-facing company that operates in the heart of
our consumers’ homes, the kitchen, our reputation, and ability
to meet ethical and behavioural expectations, is core to our
sustained sales, business health and value creation. Our ESG
strategy and priorities are shaped by an ongoing engagement
19
Breville Group Limited annual report 2024
and dialogue with consumers and other stakeholders, allied
with scientific analysis and measurement to ensure that we
prioritise initiatives that empirically have the biggest impact on
reducing carbon emissions.
Reporting and regulatory frameworks have continued to
develop across the markets in which we operate in FY24.
During FY24 we completed an ASRS (Australian Sustainability
Reporting Standards) gap assessment on our climate reporting,
supported by Deloitte, to ensure that we are progressing on
the path to be ASRS compliant in our reporting for the period
1 July 2025 to 30 June 2026. We have developed a road map
to ensure timely compliance with both ASRS1 and ASRS2 and
have adopted several of the upcoming requirements in this
year’s report.
We also acknowledge and work towards the 17 UN sustainable
development goals in shaping our ESG priorities.
For FY24 our key ESG priority areas are described below.
Key Priorities
Environmental
1. Climate Change
1.1 Climate risks & opportunities (ASRS)
1.2 Carbon emissions - measurement and reduction
1.3 Energy efficiency initiatives
1.4 Sustainable design, repairability and end of life
1.5 Sustainable packaging
1.6 Waste Diversion
Social
2. Ethical Sourcing: Human rights and modern slavery
3. Product Quality and Safety including Product
Recall
4. Community Relations
4.1 Community engagement
4.2 Reconciliation Action plan
5. Employee Wellbeing
5.1 Diversity and inclusion
5.2 Health, safety and wellbeing
Governance
6. Corporate Governance
6.1 Board independence and diversity
6.2 Sustainability governance and reporting
7. Corporate Behaviour
7.1 Anti-bribery and corruption and whistle blowing
7.2 Cyber security and data privacy
7.3 Policy availability
Environmental
1. Climate Change
1.1 Climate risks and opportunities (ASRS)
As recommended under ASRS we examine our exposure to
climate-related risks, and the adequacy of mitigants, under two
key scenarios. We seek to assess both how climate change
could impact our sustainability as well as the impact that BRG is
having on the climate, examining:
i.
How climate risks and opportunities should impact the type
of products we design and produce;
ii. How consumer and society expectations are evolving; and
iii. How climate change and events can impact our business
operations.
We considered the potential impact of a high global warming
scenario and low global warming scenario, with both scenarios
being based on the draft guidance in the Supplementary
Explanatory Memorandum concerning the Climate Change Act
(section 296D(2B)) and chosen from the Network for Greening
the Financial System (NGFS) scenarios.
1. High global warming scenario, defined as an increase
of >2.5°C from pre-industrial levels in the global average
temperature arising from the moderate and heterogeneous
NDCs (Nationally Determined Contributions) in place at the
beginning of 2021 being pursued across the 21st century
resulting in an emissions decline, but nonetheless a >2.5°C
of warming, and associated moderate to severe physical
risks. Transition risks, in contrast, are relatively low.
i.
Policy ambition: 2.6°C
ii. Policy reaction: NDCs
iii. Technology change: Slow change
iv. CDR (carbon dioxide removal) technologies: Low-
medium use
v. Regional policy variation: Medium variation
2. Low global warming scenario, defined as an increase
of 1.5°C above pre-industrial levels arising from the
implementation of stringent climate policies and innovation,
reaching global net zero emissions around 2050 with the
US, EU and Japan also reaching net zero for all greenhouse
gases by this point. Physical risks are relatively low, but
transition risks are conversely high.
i.
Policy ambition: 1.5°C
ii. Policy Reaction: Immediate and smooth
iii. Technology change: Fast change
iv. CDR technologies: Medium-high use
v. Regional policy variation: Medium variation
BRG has chosen to examine the impact of transition risks for
the low scenario, and physical risks for the high scenario.
The key risks, impact, mitigants, and opportunities layout aligns
with the emerging ASRS framework. Chosen timeframes of 3
years (Short-term), 7 years (Mid-term), and 15 years (Long-term)
are relevant to our product innovation cycle.
Primary risks and opportunities include not only physical
disruption from extreme weather events, but also changing
consumer and employee expectations which will increasingly
guide the type of products we develop, how they are packaged,
how energy efficient they are and how we communicate this to
consumers.
Operating and financial review continued
ESG Report continued
Our commitment to ESG continued
20 Breville Group Limited annual report 2024
Directors’ report continued
We have already made good progress in designing,
engineering, and providing our customers with more energy
efficient options (see ThermoJet® on page 23). Our design and
engineering teams increasingly look to optimise the strength
and weight of the materials we use to reduce their consumption
as well as identifying alternative recyclable materials. We also
endeavour to engineer repairability into products to delay and
reduce the end-of-life impact of appliances. Our packaging
teams are committed to reducing our environmental footprint
by minimising unnecessary packaging and aiming to use 100%
recyclable materials.
Operating and financial review continued
ESG Report continued
1.1 Climate risks and opportunities (ASRS) continued
Type of risk
Description of risk
Risk mitigation measures
Opportunities
296D(2B) Low
Global Warming
Scenario:
NGFS Net Zero
2050
Category:
Transition –
reputational risk
Internal
assessment:
High
Business area:
Strategic
Timeframe:
Short, Mid, and
Long term
Initiatives and
communication
There is a risk that BRG
will not meet consumer,
employee, and investor
expectations for sufficiently
fast climate base initiatives
and disclosures as both
societal expectations and
regulatory frameworks
evolve.
Potential financial impact
•
Short-term: Reduced
employee attraction and
retention.
•
Mid-term: Reduced sales
arising from consumer
preferences
•
Long-term: Reduction in
capital availability.
Implement accurate, complete, and reliable
emissions measurement and undertake
meaningful and quantifiable interventions.
Effective communication with consumers,
employees, investors, and other
stakeholders.
Increase our level of emission reduction
activity, including:
•
Product Design – energy efficiency
•
Product Design – materials, durability
and recyclability
•
Product Design – repairability
•
Product Design – recyclable packaging
Upgrading our disclosure to better reflect our
progress and to adopt the ASRS framework.
Increase the attractiveness
of BRG to consumers,
employees, and investors,
by leading on initiatives and
disclosures.
Potential financial impact
•
Short-term: Benefits to
employee satisfaction
resulting in lower turnover
and higher productivity.
•
Mid-term: Sustained or
increased sales.
•
Long-term: Increased
access to capital due
to higher ESG investor
ratings reducing cost of
capital.
296D(2B) Low
Global Warming
Scenario:
NGFS Net Zero
2050
Category:
Transition – market
risk
Internal
assessment:
Medium risk
Business area:
Strategic
Timeframe:
Short, Mid, and
Long term
Innovation and
technological advantage
From a technology
perspective in the transition
to a low carbon economy
there is a risk / opportunity
that new materials, power
sources and designs emerge
that give a technological
or cost advantage to our
competitors.
Potential financial impact
•
Short-term: Reduced
revenue from losing
our premium product
differentiation.
•
Mid-term: Cost
disadvantage if cost-
effective new materials
are not adopted on a
timely basis.
•
Long-term: Expensive
research and
development (R&D)
expenditures required
to catch up if BRG is
left behind on new and
alternative technologies.
•
R&D spending and quality – the
quantum of investment in R&D has
been increased over the last five years.
Focus on emerging sustainable materials
e.g. moulded paper pulp vs. expanded
polystyrene (EPS) is embedded in R&D
process.
•
Innovation pipeline – The BRG new
product development (NPD) process
uses an innovation funnel. The use of
sustainable materials and repairability
increasingly informs sales estimates and
the commercial assessments of potential
projects via use of Life-Cycle Analysis
(LCA) for new products.
•
Project Forever – a specific deep dive
R&D project identified a variety of
opportunities for BRG to participate
more fully in the circular economy. The
findings will increasingly inform our NPD
funnel and ESG priorities.
Clear opportunity to innovate
and develop new low-
emission products to improve
our competitive position
and capitalise on shifting
consumer preferences.
Existing examples include
our energy efficient and
proprietary ThermoJet®
heater technology used in
our espresso machines.
Potential financial impact
•
Mid-term: Increased
demand for goods and
services due to shift in
consumer preferences
and cost advantage from
early adoption of new
materials.
21
Breville Group Limited annual report 2024
Type of risk
Description of risk
Risk mitigation measures
Opportunities
296D(2B) High
Global Warming
Scenario:
NGFS Nationally
Determined
Contributions
Category:
Physical – chronic
risk
Internal
assessment:
Medium risk
Business area:
Operational
Timeframe:
Short, Mid, and
Long term
Supply risk
Chronic climate risks
like drought, or repeated
flooding, heightens the risk
of unavailability of parts,
disruption to production and
delivery to the end consumer.
Potential financial impact
•
Mid-term: Reduced
revenues from
interruptions to market
supply.
•
Mid-term: Increased
insurance premiums and
potential for reduced
availability of insurance
on assets in “high-risk”
locations.
•
Long-term: Increased
cost of sustaining
multiple sourcing
locations.
•
Inventory in Market: holding of finished
product inventory in end consumer
market reduces periodic vulnerability to
non-supply.
•
Globally Diverse operations: our wide
geographic spread provides a hedge
against sales disruption in one territory.
Dual warehouses in bigger markets
such as USA mitigate against in-country
disruption.
•
Alternative Supply: qualifying suppliers
in alternative geographies is a slow
but effective way to mitigate this risk.
A Mexico manufacturing plant was
commissioned in FY23, and this initiative
is continuing.
•
Operations and logistics: give forward
demand visibility to suppliers to secure
parts and materials well in advance to
protect against supply interruptions
including climate events.
Opportunity to sustain
BRG’s supply chain as
competitively reliable.
Potential financial impact
•
Mid-term: Increased
diversity of supply chain
and ability to operate
under various conditions
should bring stability to
product costs.
•
Mid-term: Reliability of
supply in end consumer
market can bring sales
uplift if peers manage
less effectively.
•
Mid-term: demonstrated
ability to flex inventory up
and down with negligible
effect on discounting
and obsolescence make
this a relatively low cost
mitigant.
296D(2B) High
Global Warming
Scenario:
NGFS Nationally
Determined
Contributions
Category:
Physical – acute
risk
Internal
assessment:
Medium risk
Business area:
Operational
Timeframe:
Short, Mid, and
Long term
Business interruption
After a violent disruptive
event such as extreme
weather events interruption
could occur to supply.
Potential financial impact
•
Short-term: Reduced
revenue from
transportation challenges
and lost stock as well as
temporarily decreased
production capacity.
•
Mid-term: Increased
capital costs from
damage to facilities.
•
Inventory in Market: holding of finished
product inventory in end- consumer
market reduces periodic vulnerability to
non-supply.
•
Supply planning: retail partners hold
stock in market, providing a further buffer
against disruption to supply.
•
Business interruption insurance.
•
Physical Diligence: sprinkler and fire
extinguishers at our sites are regularly
inspected and maintained. Supplier sites
are reviewed as part of our SMETA audit
program. Additionally, audits relating
to fire safety and emergency response
are completed at office locations and
warehouses on a regular basis.
Opportunity to sustain
BRG’s supply chain as
competitively reliable.
Potential financial impact
•
Mid-term: Opportunity
to gain market share
if more reliable supply
chain is delivered and a
competitor is interrupted.
•
Long-term: Increased
market valuation through
demonstrated supply
chain resilience.
•
Mid-term: demonstrated
ability to flex inventory up
and down with negligible
effect on discounting
and obsolescence make
this a relatively low cost
mitigant.
Operating and financial review continued
ESG Report continued
1.1 Climate risks and opportunities (ASRS) continued
1.2 Carbon emissions – measurement and reduction
BRG is committed to comprehensively measuring and reducing
its carbon footprint across Scope 1, 2 and 3 emissions.
In line with ASRS, BRG aligns all its metrics with the
Greenhouse Gas Protocol (GHGP) and measures all carbon
emissions against 100-year time horizon global warming
potentials (GWP) relative to CO2.
BRG has implemented and is populating SpheraCloud®
Corporate Sustainability software (SCSS) to comprehensively
record and model emissions. Scope 1 and 2 are relatively
straightforward, whereas Scope 3 measurement is more
complex and needs to be determined at an individual product
level using LCA.
To enable this approach, we have also implemented the Sphera
“LCA for Experts” package (LCAE) to perform in-house, cradle-
to-grave, LCAs on our product range. This not only enables
credible granular modelling and targets to be set but is also
proving invaluable in methodically identifying priority areas
for intervention e.g. the use of ThermoJet® energy efficient
espresso heaters.
22 Breville Group Limited annual report 2024
Scope 1 and 2 Emissions
BRG has committed to reach net zero emissions for Scope 1
and 2 in our sites and operations in FY25. To date we have:
•
Moved to renewable electricity and solar in key locations;
•
Implemented energy efficiency initiatives including optimised
lighting and sensors; and
•
Defined an offset strategy for unavoidable emissions.
Our Global headquarters and R&D facility in Alexandria, Sydney
initially accounted for 79% of the baseline (2020) Scope 1 and
2 emissions. By FY24 we achieved a 59% emissions reduction
from this key site. FY23 saw the inclusion of Lelit factory
sites into Scope 1 and 2 emissions that partially masked this
progress.
FY24 Scope 1 and 2 emissions were measured as 1,116 MT
C02eq. and we remain confident of achieving our net zero
emissions target by reducing gross emissions further and
through the limited use of carbon credits. We have partnered
with Clima who are assisting us in creating a robust offset
portfolio including projects in Australia and relevant overseas
locations where we have operations.
* Modelled using SCSS. Lelit manufacturing facilities added into scope
in FY23
Scope 3 Emissions
The majority of BRG emissions are produced from activities
not owned, or directly controlled, by BRG, such as the impact
of third-party manufacturing including power, materials and
parts used, third party logistics, the usage of our products
in consumers’ homes and finally their disposal. The Scope
3 emissions we estimate for the Group are modelled on
a product-by-product basis for key products and then
extrapolated to estimate the Group’s total emissions.
Using LCAE we are able to build granular product-by-product
LCAs. We have completed this detailed product level LCA
modelling for our 17 highest revenue products (13 espresso
machines and 4 ovens) which represented 62.5% of FY24
sales.
In building an LCA, material usage and energy consumption
are specifically modelled for the individual product using the
bill of materials and product testing respectively. However, to
model a complete and full LCA, assumptions need to be made
about frequency of product use, power source, transport type
and distance, usage life span and final disposal route. These
elements aren’t recorded by product, so the LCA modelling
estimates their impact based on our best estimate assumptions.
We are deliberately conservative in our assumptions, so it is
likely that our illustrative emissions estimates are towards the
high end of a range of probable outcomes. Specifically, our best
estimate assumptions are currently:
•
Products are used for 7 years before disposal;
•
Emissions impact of electricity consumption matches the
Australian electricity matrix (which has a low renewables
mix);
•
Ovens’ usage frequency is the same as the patterns we
observe from our connected oven data;
•
Espresso machines are used to make an average of 10
lattes per week, every week of ownership, for all users;
•
Products are transported by road and sea travel from
Shenzhen to our in-market warehouses;
•
1,000km of further road transport occurs from warehouse
to the consumer's home;
•
All paper packaging waste is recycled, and plastic
packaging waste is sent to landfill; and
•
At their end of life, all products are sent to landfill, with
150km of road transport (despite recycling options).
Using these assumptions, the LCAs for our top 17 products
(62.5% of our total FY24 sales), multiplied by FY24 sales units,
gives an estimated Scope 3 emissions for FY24 of 845,352.33
MT CO2 eq. including biogenic carbon and 837,812.21 MT CO2
eq. excluding biogenic carbon.
If we simply extrapolate this number to include the 37.5% of
units not yet LCA modelled, we come to an illustrative carbon
footprint for all products sold in FY24 of 1,352,563.74 MT CO2
eq. including biogenic carbon and 1,340,499.54 MT CO2 eq.
excluding biogenic carbon.
This extrapolation implicitly assumes that the footprint of the
products yet to be modelled is similar to the 17 that we have
modelled. It is our working assumption that these remaining
products will use less energy and material, and have a lower
emissions footprint, as they are, on average, simpler and less
frequently used appliances. Our illustrative estimate is therefore
likely to have a further layer of conservatism built in. This will
be updated across FY25 and FY26 as more products are
modelled.
* Modelled using LCAE for 17 products and then extrapolated for
illustrative purposes to show estimated Group emissions.
We currently measure the critical 7 Scope 3 categories for BRG
of the 15 set out in the Greenhouse Gas Protocol. These 7 are
estimated to make up over 90% of our Scope 3 emissions. In
FY25 we will complete the assessment and measurement of the
remaining minor categories and include these in our Scope 3
emissions estimate.
Directors’ report continued
Operating and financial review continued
ESG report continued
1.2 Carbon emissions – measurement and reduction
continued
23
Breville Group Limited annual report 2024
The LCA’s we have completed (covering 62.5% of our FY24
sales) clearly show that the largest contributor to our product
emissions is the in-use electricity, making up 82.6% of total
product emissions. This is highest in ovens and lower in
espresso machines. The manufacturing phase, led by material
usage, is the second largest contributor. Packaging, transport
and end of life disposal have a more minor impact.
These findings inform both our current focus on energy
efficiency (i.e. ThermoJet® initiative) as well as medium
term product development strategies focused on alternative
production material and reduced usage.
* Average of 17 products for which detailed LCA modelling has been
completed using LCAE.
The impact of Scope 3 emissions far outweighs that of our
Scope 1 and 2 emissions, so whilst we will work towards net
zero carbon emissions for Scope 1 and 2, the largest priority for
the Group is Scope 3 targeted reductions.
1.3 Energy efficiency initiatives
As shown in the above pie chart the key emissions opportunity
for an appliance company such as BRG is enhancing energy
efficiency in the consumer use-phase. This is particularly
relevant while the electricity matrices of our key consumer
markets have a low renewables mix.
We assess our energy efficiency performance using the
Swiss Energy Ratings label across our key appliances to
monitor the relative energy efficiency of our range (star rating
is currently not available for small domestic appliances). BRG
also voluntarily tests its products against the European Union’s
Ecodesign Directive (Directive 2009/125/EC), which sets
ecological requirements for energy use. All BRG products are
also designed to comply with the EuP (Energy using Products)
requirements set by the European Union meaning that products
without a screen must use half a watt or less in stand-by mode
and products with a screen must use one watt or less in stand-
by mode and switch off before a maximum of 30 minutes.
As a key energy saving initiative, BRG is proud to have jointly
pioneered the ThermoJet® heating system in its espresso
machines addressing the major energy usage in a typical
espresso machine – delivery of hot water and steam.
Traditional espresso machines are one of the highest energy
consuming products in the small kitchen appliances world
due to the need to heat up and keep a body of water at
temperature, traditionally done using metal boilers.
The alternative to boilers, thermocoils, still require the heating
of blocks of aluminium to transfer energy, a process that
consumes significant amounts of energy.
It was with this in mind that BRG helped pioneer a printed
thick film heater for coffee makers (ThermoJet®) that heats
up instantly and delivers precise temperature control using a
significantly less energy than traditional methods.
BRG espresso machines fitted with a ThermoJet® heater:
•
Use approximately 2.5 times less total energy during normal
use than a BRG thermocoil machine, 6.6 times less energy
than a BRG dual boiler machine, and 21.8 times less energy
than a traditional boiler machine; and
•
Save between 49 to 230 (kWh) per Thermojet® machine vs.
a thermocoil or dual boiler machine respectively.
We believe that this is one of the most significant climate-
friendly innovations in small kitchen appliances in the last
decade and it forms a key part of our path to reduce our in-use
energy consumption. The technology scores an A rating in
Swiss Energy Ratings for energy savings compared to a B or C
rating for thermocoils and a D rating for boilers.
ThermoJet® – a significant innovative impact on reducing
C02 emissions
By examining detailed LCAs for different types of espresso
machines we can see the difference between the carbon
emissions from each type of boiler, with ThermoJet®
significantly lower than the alternative technologies.
* Modelled using LCAE
BRG has embraced this energy efficient technology;
•
Doubling the number of machines sold using a ThermoJet®
from FY20 to FY24 reaching over 677,000 in FY24;
•
Increasing the percentage of BRG coffee machines using
ThermoJet from 43% in FY20 to 53% in FY24
•
Reducing the proportion of coffee machines using Boilers to
3.6% in FY24, down from 5.9% in FY20;
Operating and financial review continued
ESG report continued
1.2 Carbon emissions – measurement and reduction
continued
24 Breville Group Limited annual report 2024
Directors’ report continued
•
All new BRG coffee machines launched in FY24 and
78% of new models currently under development use a
ThermoJet®;
•
Based on units sold in FY20-24 the adoption of the
ThermoJet® technology is estimated to have saved
approximately 1,104 million kilowatt hours (kWh) of lifetime
electricity used against an equivalent range of thermocoil
machines, and 4,402 million kilowatt hours (kWh) against
a range of dual boiler machines. Both estimates based on
assumed annual consumer usage and a 7-year lifecycle;
•
Assuming 0.386 kgs of CO2 was generated per kWh
(sourced from US Energy Information Administration) BRG’s
transition to ThermoJet® heaters over FY20-24 is estimated
to have saved between 426,346 and 1,700,856 metric
tonnes of CO2 over the lifetime of the machines sold.
This progress reflects a significant, and innovative, contribution
to our energy efficiency and emissions reduction journey.
Looking forward, BRG remains committed to have at least 75%
of our new coffee machines sold in FY28, and launched since
2020, using ThermoJet® or equivalent technology.
This is a key, material and measurable initiative and target for
our Emissions reduction ambition (see page 25).
1.4 Sustainable design, repairability and end of life
Our LCAs also highlight an emissions reduction opportunity
from reducing key material usage, notably plastics and metals,
in our products’ manufacturing phase.
Our design and engineering teams are continually working
to optimise the strength and weight of materials used in
our key machines to reduce material consumption whilst
maintaining desired quality, using Finite Element Analysis (FEA),
Computational Fluid Dynamics (CFD), Design for Manufacturing
studies (DFM), as well as Failure Mode and Effect Analysis tools
(FMEA).
To complement this approach, our R&D team has completed
the discovery phase of its Forever Project with the objective
of identifying the most impactful design changes BRG could
undertake to materially reduce the per unit carbon impact
(Scope 3 emissions) of the products it designs and engineers.
This phase of the project was undertaken by the strategic
business unit of Design and Innovation known as ‘deep dive’,
which is responsible for many of the innovations in our award-
winning products.
The primary consideration of the project was to examine how
circular economy principles could deliver sustainable outcomes
for the environment whilst delivering elevated customer
experiences and ongoing strong commercial growth. The
project resulted in a detailed paper containing several promising
avenues that were reviewed for priority, investment and action.
An initial project has been moved into the next phase of the
innovation funnel, the exploration phase, beginning in FY25.
Material usage emissions impact can also be reduced by
extending the lifecycle of our products. BRG already sells
key spare parts, filters, and cleaners for our most popular
appliances to help extend their lifecycle. Baratza goes further,
with its grinders explicitly designed to be user repairable. This
approach is mirrored in the newly acquired Lelit business
with repairability a key part of the brand identity and driver of
consumer choice. In core BRG ranges a ‘serviceability index,’
has been introduced, to track and encourage repairability as a
design criterion in new products.
1.5 Sustainable packaging
Packaging materials constitute only an estimated 0.7% of our
emissions impact but are important to our customers and
employees, and this is an area where we are making rapid and
significant progress.
We are a decade-long member of the Australian Packaging
Covenant Organisation (APCO) and have entered into a
voluntary agreement to reduce the impact of packaging on the
environment. In FY24 our comprehensive packaging audit was
extended to include all new SKUs to support the rapid roll out
of key developments in recyclable packaging across all existing
as well as new products.
BRG’s key sustainable packaging commitments are:
•
All packaging to be reusable, recyclable or compostable by
end 2025 (aligned to APCO target);
•
Removal of expanded polystyrene (EPS) from consumer
packaging by July 2025; and
•
Removal of non-essential packaging (ongoing target), for
example the combination of shipper and inner display box.
In 2023 BRG launched the company-wide Sustainable Brown
Box initiative to achieve best-in-class sustainable packaging
including use of a recyclable outer box, the complete removal of
EPS and minimal use of soft plastics.
The ‘Brown Box Project’ was formed with the intention of
creating premium packaging using only materials that are
kerbside recyclable. We are currently on track to have all EPS
removed from the Australian market by the end of H1 FY25
and we continue to seek a suitable replacement for LDPE (Low
Density Polyethylene) bags.
Moving forward the priority is the removal of EPS globally from
all product packaging with ANZ packaging configurations being
rolled out across all countries and a further 20 products, not
sold in ANZ, now being redesigned. Upon completion of this
project, no BRG product packaging will incorporate EPS.
1.6 Waste diversion
All recyclable waste streams generated at our Sydney
headquarters and global R&D centre are diverted from landfill.
This means that our co-mingled recycling, organic, paper and
cardboard, e-waste, and EPS waste are all disposed of in a
sustainable way. Soft plastics remains an area of challenge and
one where we continue to look for a recycling partner.
During FY24, BRG produced a total of 43.5 tonnes of waste,
21.3 tonnes (or 49%) of which was recycled. In FY25 the main
priority in this area will be to continue to develop and implement
initiatives designed to further reduce waste being sent to landfill.
Operating and financial review continued
ESG report continued
1.3 Energy efficiency initiatives continued
25
Breville Group Limited annual report 2024
Key Areas
Metric
Target
FY24 Status
Scope 1 & Scope
2 emissions
MT CO2 eq.
Net Zero in FY25.
On track
1,116 MT CO2 eq. emitted in FY24. With good
progress in solar, energy efficient lighting and green
energy, and an offsetting strategy, we are confident of
reaching net zero in FY25.
Refer to page 22 above for more detail.
Scope 3 emissions
MT CO2 eq.
Robust auditable
Scope 3 measurement
methodology in place
allowing ASRS compliance
and fact- based
prioritisation of reduction
initiatives.
On track
62.5% of products sold in FY24 modelled using
LCAE. Scope 3 product emissions estimated and
reported as 1,352,563.74 MT CO2 eq. including
biogenic carbon for FY24.
Expansion of methodology to cover all 15 GHCP
Scope 3 categories underway to allow empirically
based reduction targets to be set in future periods.
Refer to pages 22 to 23 above for more detail.
Energy Efficiency
% of espresso
machines using
ThermoJet®
or comparable
technology
75% of espresso
machines sold in 2028,
(and launched since 2020)
to utilise ThermoJet® or
comparable technology.
On track
In FY24 68% was achieved and 100% of machines
launched in FY24 utilised a ThermoJet®.
Packaging
% reusable, recyclable
or compostable.
100% by end of CY 2025.
On track
Sustainable Brown box initiative has been launched.
Roll out globally should deliver target by end of CY
2025.
Waste Generation
% waste produced
that is recycled.
65% to be recycled by
2026.
On track
49% recycled in FY24.
Operating and financial review continued
ESG report continued
1.6 Waste diversion continued
* Data sourced from waste providers
Remondis and Sircel
The following targets have been
set and are monitored by the
Sustainability Committee. Since
FY24 they also form a part of
the LTI (long term incentive)
targets for management (see the
Remuneration report pages 33 to
34 for more detail).
2. Ethical sourcing – human rights and modern slavery
Ethical procurement
The Group conducts its business in a socially responsible
manner. This includes upholding consistently high ethical
standards in our procurement decisions and processes. The
consumer facing nature of BRG, and the importance of this
issue to our stakeholders ensures that this is a key focus issue
within our operations.
Our Ethical Sourcing Policy sets out our requirements for
our manufacturing partners and sub-contractors including
compliance with the protection of human rights and all local
and international labour and employment laws, and generally
ensuring a safe and fair work environment.
All our suppliers are required to sign and are held accountable
to adhere to this policy. Ensuring compliance with the policy,
and the highest ethical standards, is the responsibility of
our Chief Operating Officer, who also manages the overall
commercial relationship with suppliers, supported by our
General Manager Quality who has frequent interaction with the
suppliers via their QA team and procedures.
26 Breville Group Limited annual report 2024
Directors’ report continued
Human rights and modern slavery
BRG respects and upholds the Universal Declaration of Human
Rights through its sound business activities. Our suppliers,
bound by our Ethical Sourcing Policy, are required to do likewise
to partner with us. This includes upholding the following human
rights in their operations:
•
Freedom from discrimination
•
Freedom from slavery or servitude
•
Freedom of movement
•
Freedom of expression
•
Freedom of thought
The Group’s Code of Conduct for employees is predicated on
the same principles. BRG is bound by the requirements of the
Australian Modern Slavery Act 2018 (Cth), the United Kingdom’s
Modern Slavery Act (2015), the California Transparency in
Supply Chain Act 2010 and Canada’s Fighting Against Forced
Labour and Child Labour in Supply Chains Act. Our Modern
Slavery Act Statement is published on our website (https://
brevillegroup.com/corporate-governance/) and the Australian
government platform. The actions we are taking to identify
and address modern slavery and human trafficking risks in our
operations and supply chains corroborates our commitment to
our Ethical Sourcing Policy.
The nature of our manufacturing, requiring high end, well
trained and skilled assembly, rather than low skilled transitory
labour, reduces the likelihood of any zero tolerance violations
such as forced or child labour issues. There is, however, no
complacency on this risk. Our frequent onsite visits provide
visible reassurance that standards are being applied in practice,
which we then systematically confirm through independent
audits conducted by SMETA.
The Group’s products are largely manufactured in the Shenzhen
area of southern China with long-term manufacturing partners,
many of whom we have partnered with for well over 20 years.
Our long-term relationships with our partners are collaborative
in terms of bringing innovation projects to commercialisation.
This fosters a close understanding of each other's businesses.
We represent a significant part of several of our manufacturing
partners’ businesses, giving us influence over adherence to
expected standards.
We aim to give our suppliers reasonable advanced visibility
of future volumes and pricing to avoid the types of business
pressures that may encourage unethical behaviour. Our portal
allows suppliers to view future purchase orders by SKU for a
rolling one-year period, enabling our suppliers to have adequate
lead time to scale production up and down, including the
scheduling of labour. In addition, fair pricing is continuously
monitored throughout the fiscal year by measuring currency,
commodities, and capacity utilisation.
We regularly visit our partners’ plants and obtain direct
reassurance of how the plants are run. Our engineering teams
make frequent visits to the plants during the commercialisation
phase on innovation projects. Our Chief Operating Officer and
operations teams normally make plant visits 3-4 times per
annum to review operational plans and, critically, our quality
assurance teams make plant visits on a weekly basis to quality
assess and release production batches.
These visits are both frequent, and at times, unscheduled.
We have consulted with IAST (Investors Against Slavery and
Trafficking) and are seeking guidance on a simple awareness
list to increase the effectiveness of these visits in identifying
potential human rights issues, even if that is not the primary
purpose of the visits.
To support our regular internal observations, BRG commissions
SMETA Audits (Sedex Member Ethical Trade Audits) conducted
by AACs (Affiliate Audit Companies) which comprehensively
cover four pillars: labour standards, health and safety, the
environment and business ethics.
In FY24, 21 audits were completed, and we increased our
target to ensure that audits cover suppliers that contribute at
least 75% of BRG’s total order volume. We will always cover
our biggest suppliers annually and seek to cover the majority
of smaller suppliers on a rotational basis. These audits will
comprise both those commissioned by the Group, along with
those available to us on the Sedex platform as part of our
ongoing membership.
Detailed audit reports and findings from the SMETA audits
are received and reviewed by our General Manager Quality
and COO. The severity of any non-compliance, and hence
rating of the vendor, is reviewed, and any that do not meet our
internal ‘baseline’ standard are placed into a ‘below standard’
category and are actively monitored until the non-compliance
is addressed, normally within three months. Issues are resolved
through direct engagement with the manufacturing partner
and remediation is monitored by the General Manager Quality
until satisfactorily remediated. A zero-tolerance matter such as
modern slavery would result in us severing the relationship. As
a matter of policy, BRG, and its supplier base, do not source
products or components from the Xinjiang region.
FY24 SMETA Audit Scorecard
FY24
FY23
Audits Completed
21
12
Zero Tolerance
0
0
Critical Issues
12
9
Other Issues
96
182
Total Issues Raised
108
191
We are working closely with our suppliers to address any
remaining non-compliances found in the FY24 audits and
especially critical issues that typically centre around the level of
overtime worked by some employees in the supplier plants.
All finished goods we are selling under Breville|Sage brands in
the European Union, UK, and South Korea also comply with
European RoHS legislation banning substances of concern.
Furthermore, the Group ensures all parts and materials meet
the food contact safety / REACH requirements.
3. Product Quality and Safety including Product Recall
BRG’s reputation with consumers for innovative, high quality
and safe products underpins our sustainable growth.
To protect this hard-earned reputation, BRG adheres to rigorous
quality standards during design and production and has clear
consumer focused protocols for product recalls.
Operating and financial review continued
ESG report continued
2. Ethical sourcing – human rights and modern slavery
continued
27
Breville Group Limited annual report 2024
BRG has a comprehensive quality regime to ensure that its
products are safe and compliant with all labelling requirements.
In addition to fulfilling all compliance and regulatory standards
on product safety in our various markets, we implement
additional safety requirements that exceed our legislative
obligations. Rigorous safety standards are a critical marker of
our approach to product development.
In approving all new products, we use the European Union’s
Rapid Exchange of Information System (RAPEX) analysis
to estimate severity of harm and the related probability
of occurrence of harm for any failure point of a product.
This allows us to better understand the impact of potential
product failures on our customer base and how to rectify /
design these out of the product before they occur. BRG also
maintains a rigorous Quality Assurance and Control program
for our products that includes Pre-Shipment Inspection (PSI)
of products before they leave the factory, as well as System
and Process audits. A zero-tolerance approach to quality and
safety within the Quality Assurance and Control programs gives
us a high degree of confidence that the products shipped and
sold to customers are free from safety-related defects. Our
quality team is in our partners’ factories daily qualifying the
manufacturing processes and products before shipment.
Our General Manager Quality also monitors all returns and
warranty claims, as well as any specific customer complaints,
to identify and rectify any quality issues and identify any trends
in quality. These are reported to the CEO and CFO monthly or
immediately in the case of a serious issue.
Customer safety is a non-negotiable core responsibility of
the Group.
For any alleged or actual injury to a consumer sustained through
using one of our products, we follow the ACCC guidelines (or
relevant regulatory framework in the affected market). If our
customer care team receives a claim that a product has caused
an injury requiring third party medical treatment, we lodge it with
regulators within two days of notification. If later investigations
show that treatment did not result from product failure, we
contact the regulator, and the report is rescinded.
Product failures caused by the manufacturing process or
components are treated on a case-by-case basis. If a pattern
is identified, we contact the regulator that issued the approval
certificate to discuss the matter where appropriate.
Product recall
If potential for harm, arising from a BRG product, is
identified, then a recall protocol may be triggered and recall
procedures appropriate in each territory are started. These
are accompanied by a vigorous all channel consumer
communications approach.
The last product recall was on 7 November 2016.
All historic product recalls remain online on key websites and
can be viewed at:
•
https://kambrook.com.au/pages/recall
•
https://www.breville.com/au/en/support/Recall.html
•
https://www.productsafety.gov.au/recalls
4. Community relations
4.1 Community engagement
BRG recognises that the health and wellbeing of the
communities we serve is directly linked to ongoing success of
our business. In FY24, we partnered with several not-for-profit
organisations on a range of initiatives including:
•
STEPtember – in support of the Cerebral Palsy Alliance,189
employees undertook 45,399,236 steps and raised over
$11,000.
•
Reconciliation Week – CEO of Reconciliation NSW, Tristan
Tipps-Webster, led an insightful discussion at our head
office.
•
Clean Up Australia Day – employees volunteered their time
to clean up the corporate park where our head office is
located.
•
Oz Harvest Food Drive – BRG held a second annual Oz
Harvest food drive helping people in need in our local
community.
•
Volunteer Day Policy – employees are encouraged to spend
one day per year to support local charities of their choice.
BRG refrains from making any political donations and any
engagement with its communities explicitly excludes those
affiliated to any political cause.
4.2 Reconciliation Action Plan (RAP)
In FY24 we continued our efforts on reconciliation and
engagement with the Aboriginal and Torres Strait Islander
communities within Australia via our RAP, and the continued
roll out of the Aboriginal Culinary Journey (ACJ) collection
across the globe. Our charity partners, who receive 100% of
our profits from the sale of this range, include the National
Indigenous Culinary Institute, the 'Indi-Kindi Program' by the
Moriarty Foundation and University of Technology Sydney
(UTS) where we fund three scholarships, creating pathways for
employment of Aboriginal Australians and Torres Strait Islanders
in engineering, technology, and design. We are also committed
to providing internship positions within BRG to support the
students’ transition from study to work.
Our progress is guided by an Advisory Council of elders
and community stakeholders that provides the Breville RAP
Working Group with advice and information on equity issues
facing Aboriginal and Torres Strait Islander communities. More
information on these initiatives, and our Reconciliation Action
Plan, can be found on the Breville Group Corporate website
https://brevillegroup.com/corporate-governance/
5. Employee wellbeing
BRG promotes a safe, inclusive and healthy working
environment for all employees, which we believe is core to our
growth and sustainability as an organisation.
5.1 Diversity and inclusion (D&I)
BRG’s approach to D&I is informed by its Diversity and Inclusion
policy published on our corporate website in the corporate
governance section of the Company’s website: https://
brevillegroup.com/corporate-governance/
Operating and financial review continued
ESG report continued
3. Product Quality and Safety including Product
Recall continued
28 Breville Group Limited annual report 2024
Directors’ report continued
BRG believes that diversity includes differences in perspectives,
thoughts, interests, and ideas; and that inclusion means
ensuring that all employees are valued, heard, recognised,
engaged, and involved at work, and have opportunities to
collaborate, contribute, and grow professionally in line with
our business objectives. BRG works towards gender balance
through:
•
representation of women on the Board;
•
representation of women in Senior Executive roles including
succession planning;
•
issuance of the BRG equal opportunity statement to
recruiting agencies;
•
explicit requirement of recruiting agencies to provide a
gender balance in shortlisted candidates for interview; and
•
flexible working arrangements where operationally
appropriate.
BRG complies with the (Australian) Workplace Gender Equality
Act, which requires the submission of an annual report on
gender diversity practices and metrics. We do not tolerate any
form of discrimination across our diverse employee community.
Globally in FY24, our Board was 33% female (or 37.5% of
NEDs), the percentage across the whole organisation was 46%,
with managerial roles at 36% percent and senior executive roles
at 34%.
Our Diversity and Inclusion program provides continual
recognition and educational activities including:
•
International Women’s Day – with guest speaker Mary
Mauro (CEO of Sevengrams);
•
Diwali, Eid and Lunar New Year - office celebrations and
education opportunities;
•
Men's Health Week – personality Steve Willis delivered a
talk on the importance physical and mental health; and
•
Nova Employment Services – BRG partners with Nova to
help people living with a disability find employment.
Whilst we do not maintain specific quotas for individual facets
of diversity, we continue to apply principles of equity and social
justice to achieve equal employment opportunities for talented
individuals of all backgrounds and cultures. We celebrate
achievements and we endeavour to promote continued
improvement. Our approach to Board diversity is noted in
Section 6.1.
5.2 Health, safety and wellbeing
Ensuring a healthy and safe workplace is critical to our ongoing
success as a growing business, and we strive for continuous
improvement and consistency in our wellbeing and safety
practices. A Group Health, Safety and Environment (HSE)
Advisor oversees our global HSE systems, procedures, and
compliance. The Workplace Health and Safety Committee
(WHSC) is accountable for the Group’s health and safety
standards, rules, and procedures.
* recordable injuries per million hours worked
In FY24, BRG employees worked 2,007,367 hours with 3
recordable injuries, one of which was a lost time accident. The
Board receives monthly updates on key incidents and initiatives
as well as safety KPIs.
BRG has an internal health and wellbeing program, branded
‘Nourish’, with FY24 initiatives including the following:
•
RUOK? Day – presentation from Craig Hamilton, author and
campaigner for mental health;
•
BRG Day – a day off for all employees globally, to spend
time with their friends and family free from work interruption;
•
Mental Health First Aiders – mental health first aid training
delivered through mental Health First Aid Australia;
•
Flu Vaccinations – on site free influenza vaccinations for
employees;
•
Response for Life – two training sessions for employees
addressing both general first aid and CPR; and
•
Employee Assistance Program (EAP) – all global employees
and their families now have access to EAP services.
To promote work-life balance, BRG offers:
•
Flexible Work Policy – allowing greater choice around work
locations and hours and part time employment;
•
Technology – allowing greater flexibility of work locations,
supporting work efficiency without compromising personal
time;
•
Paid Parental Leave – 12 week paid parental leave in
countries where this is not already provided by the state;
and
•
Summertime Hours – allowing extended hours during the
week and an earlier finish on a Friday.
6. Corporate Governance
BRG is committed to high standards of corporate governance
and delivers this through culture, demonstrated behaviours,
effective risk management systems and policy.
The Company’s governance framework is supported by its
constitution, Board and committee charters and a suite of
group governance policies, statements and guidelines which are
available in the corporate governance section of the Company’s
website https://brevillegroup.com/ and are listed in full in the
Company’s Corporate Governance Statement on page 52.
All documents within the Group governance framework are
reviewed and refreshed periodically having regard to legal and
regulatory requirements, the Company’s operating environment
and best practice governance standards.
Operating and financial review continued
ESG report continued
5.1 Diversity and inclusion (D&I) continued
29
Breville Group Limited annual report 2024
6.1 Board independence and diversity
BRG maintains a majority independent Board and is steadily
evolving its composition to benefit from diversity in all its forms.
The percentage of women on the Board was 33%, or 37.5%
of NEDs. For an outline of the relevant skills, experience and
expertise held by each director in office at the time of writing,
please refer to pages 12 to 13 of the Directors report.
The Board regularly assesses the independence of each of
its Non-Executive Directors in accordance with its ‘Criteria for
Assessing Independence of Directors’. Timothy Antonie, the
Chair of the Board, and Sally Herman, are not independent
due to their affiliation with a major shareholder. Lawrence
Myers, Deputy Chair, is the Lead Independent Director. The
members of the PPRNC and the ARC are all considered to be
independent.
More detailed information regarding the Board’s structure and
composition, including Director independence, is included on
pages 52 to 55 in the Corporate Governance Statement.
6.2 Sustainability governance and reporting
The Board has ultimate responsibility and oversight of
the Company’s sustainability strategy. It discharges this
responsibility with the support of the Sustainability Committee,
the ARC and the PPRNC, to which it has delegated certain ESG
responsibilities.
The Sustainability Committee is responsible for overseeing
and monitoring the development and implementation of the
Company’s sustainability strategy, policies, initiatives and
climate related disclosures. The Committee is chaired by Peter
Cowan. An executive sustainability team, led by the General
Manager Sustainability, supports the Sustainability Committee
and is accountable for initiative prioritisation, funding, monitoring
legislative and regulatory developments and coordinating
initiatives led by the various functional teams including Design
and Engineering. A sustainability tracker covering progress on
key initiatives and metrics is reviewed at each Sustainability
Committee meeting.
The Audit and Risk Committee includes climate risk as an
enterprise level risk as well as amplifier for several other material
business risks in its enterprise-wide risk mapping and mitigation
process. The risks, opportunities and mitigants identified
against the two key climate scenarios (detailed on pages 19 to
21) directly inform this enterprise level risk assessment.
The PPRNC in turn has oversight on HSE, diversity and
inclusion, and community related topics.
All three Board Committees receive regular briefings and
updates by the executive sustainability team and functional
leads. The Committee Chairs report to the full Board on
material matters addressed after each meeting with all Directors
receiving the minutes of Committee meetings.
7. Corporate Behaviour
The BRG Board encourages a positive corporate culture
across the Group valuing honesty, openness and integrity.
This is reinforced through visible leadership, policies, and a
demonstrated risk appetite including zero tolerance issues.
The Company’s published values are represented in the
acronym, CREATE which can be seen in the “About” section of
the corporate website https://brevillegroup.com/our-values/
7.1 Anti-bribery and corruption, and whistleblowing
The high standards of ethical behaviour expected across the
Group are laid out in the Code of Conduct https://brevillegroup.
com/corporate-governance/
Bribery and corruption is a ‘zero tolerance’ issue and
unacceptable under all circumstances. The Anti-bribery and
Corruption Policy and Code of Conduct prohibits all personnel
from engaging in any activity that constitutes bribery or
corruption or involves improper inducements or payments.
To ensure that these values and the Policy are properly adhered
to, the Group has appointed an Anti- Bribery Compliance
Officer who is responsible for monitoring the application of this
Policy.
In addition, the Company has a Group Whistleblower Protection
Policy, which seeks to ensure the safety and appropriate
protection from recrimination of any employee reporting a
breach of the abovementioned corporate conduct policies.
7.2 Cyber security and data privacy
Cyber security and data privacy are ongoing challenges.
Cyber-crime-for-profit appears to escalate every year.
In response our Technology Services (TS) team continues to
work to strengthen our cybersecurity and privacy programs
globally, including alignment with the NIST Cybersecurity
and Privacy frameworks. We have established cross-country
governance bodies for both Cybersecurity and Privacy to
support and guide the technical services team in this challenge.
All BRG staff are required to complete an annual cybersecurity
awareness training with specific security training for our
software development teams globally. The TS team continue to
test overall security awareness via planned phishing campaigns
identifying weaknesses and opportunities for further training.
In FY24 we completed several rounds of penetration testing,
vulnerability assessments, PCI audits and external reviews of
some of our key environments to assess their ongoing security
readiness. Our ransomware response playbook was updated
following a ransomware cyber simulation exercise with the
Board and senior executives.
With respect to personal data, our privacy platform (OneTrust) is
used to map data relationships across our systems and to meet
the ongoing compliance obligations around the world. This
platform allows us to track and respond to privacy queries from
consumers and partners and act accordingly.
Cyber security and data security remain areas of ongoing threat
and continual vigilance.
7.3 Policy availability
All Group policies, including those referred to in this ESG
Report, are publicly available in the corporate governance
section of the company’s website (www.brevillegroup.com) and
listed on page 52 in the Company’s Corporate Governance
Statement.
Operating and financial review continued
ESG report continued
30 Breville Group Limited annual report 2024
Directors’ report continued
Risk management
The company’s risk management approach is discussed in the
Corporate Governance Statement on page 56 to 57.
Dividends
The following dividends have been paid, declared, or
recommended since the end of the preceding year.
Cents per
ordinary share
$’000
Final FY24 dividend
declared:
17.0
24,383
Dividends paid in the year:
Interim FY24 dividend paid
16.0
22,949
Final FY23 dividend paid
15.5
22,231
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the
consolidated entity that occurred during the year that have not
otherwise been disclosed in this report or the consolidated
financial statements.
Annual general meeting (AGM) and Director
nominations
The Group currently plans to hold its Annual General Meeting
(AGM) in person on 7 November 2024.
In accordance with the Company’s constitution and ASX
requirements, the closing date for the receipt of Director
nominations from persons wishing to be considered for election
is 18 September 2024 (at least 35 business days prior to the
AGM).
Should the nomination of a person for election be made by a
Director, the closing date for the receipt of nomination is
23 October 2024 (10 business days prior to the AGM).
Directors’ interests
As at the date of this report, the interests of the Directors in the
shares or other instruments of Breville Group Limited were:
Ordinary
shares
Unvested
Rights
T. Antonie
43,791
-
L. Myers
163,000
-
T. Baxter
3,562
3,294
J. Clayton
277,903
492,961
P. Cowan
11,055
-
S. Herman
49,265
1,364
D. Howell
100,000
-
T. Rytilä
8,000
-
K. Wright
21,859
-
Operating and financial review continued
31
Breville Group Limited annual report 2024
Remuneration report (audited)
The Directors are pleased to present the Group’s Remuneration Report for the financial year ended 30 June 2024, which has been
prepared in accordance with section 300A of the Corporations Act 2001 and has been audited by PwC as required by section
308(3c) of the Corporations Act 2001.
1. Remuneration Framework
BRG is one of a small number of ASX 200 listed companies that derives the majority of its revenue overseas. In FY24, 84% of BRG’s
revenues were generated overseas. This percentage has increased significantly over the last nine years, and the Directors expect this
trend to continue given the significant international expansion opportunities in existing, and new, geographies. The Americas is by far
BRG’s largest market with 56% of total sales in FY24. As at 30 June 2024, 60% of Breville’s employees were based overseas. This is
again expected to increase as new market entries are pursued.
To ensure sustainable growth over the medium to long
term BRG must continue to attract high performing
leaders in major international markets including the United
States. The United States remuneration market practices
place a greater emphasis on at risk opportunities than
in Australia and make use of longer-term rewards with
significant equity grants commonly used for talent
attraction and retention.
The People, Performance, Remuneration and
Nominations Committee (PPRNC) reviews and
recommends Executive and employee remuneration
arrangements each year to the Board. Our remuneration
framework is designed to support the achievement of
strategic goals and sustained growth in shareholder value
following our overall philosophy of linking remuneration
to performance. To be globally competitive, and effective
in retaining and motivating our leadership group and
employees in each major market, we also need to be
locally competitive. From time to time the committee may
engage external remuneration consultants to assist with
their review.
Key principles that guide the remuneration framework include:
Fair and competitive Provide appropriate reward and package structures to attract and retain high calibre employees for an
international and growing business. Market benchmarks are used, and include domestic and international
peers, depending on the role being evaluated.
Simple
Clear, visible, and calculable reward linked to sustained company performance and shareholder value
creation. Wherever possible Executives will be aware of the status of their incentive achievement mid-
period.
Aligned to strategy
Reward linked to achievement of strategic goals and sustainable performance of the company.
Shareholder aligned
Reward explicitly linked to short and long-term shareholder value creation.
Sustained delivery
Reward balanced to optimise long, medium, and short-term performance.
In implementing its remuneration framework and ensuring proper oversight, the committee:
•
sets compensation to motivate and retain a high performing global team in line with shareholder interests;
•
has regard to the remuneration structures within the geographic regions in which it is competing for talent;
•
encourages an increasing level of Executive shareholdings, in excess of minimum shareholding guidelines;
•
aligns interest of shareholders and Executives via increasing use of share-based payments;
•
retrospectively discloses all performance hurdles and calculation of award and payments made to ensure transparency;
•
encourages increased variability of pay linked to short and long-term performance;
•
rewards sustained long-term performance; not just single year peak performance;
•
utilises measurable and shareholder relevant targets; and
•
retains Board discretion over the level of any award.
In establishing the remuneration arrangements each year, the Board and PPRNC specifically reviews the proportion of the fixed
compensation and variable at-risk compensation (potential short-term and long-term incentives) and the percentage of share-
based payments that the Executives are receiving.
The Board aims to steadily increase variable at-risk remuneration, and especially share-based and longer-term performance-
related remuneration.
* Australia includes global R&D facility and headquarters
32 Breville Group Limited annual report 2024
2. Linking pay to performance
The Group’s remuneration principles and framework aims to align Executive remuneration to the Group’s strategic and business
objectives, sustained business performance and the creation of sustainable shareholder value.
The key measures that are used in Executive KMP incentive plans are measurable, verifiable, and well aligned to shareholder value
creation.
•
Group Revenue - A measure of the Group’s success at growing the scale and scope of our operations. An auditable IFRS
measure of marketplace success.
•
EBIT - Earnings before interest and tax is a well-recognised measure of the Group’s performance and ability to generate cash
to fund growth and distribute dividends. It is well defined and measurable. EBIT is preferred to EBITDA given the strategic
importance of investment in new product development and associated amortisation costs.
•
PBT – Profit before tax is EBIT after accounting for the financing costs of the business and is also a well-recognised measure of
the Group’s performance and ability to generate cash to fund growth and distribute dividends. It is well defined and measurable,
and in a period where the Group has a level of debt, it is an alternative to EBIT.
•
TSR - Total Shareholder Return is a measure of share price appreciation, and dividends paid, expressed as a % of the opening
share price. The Group measures both its own absolute TSR and its relative TSR, which compares the Company against a
defined group of peers.
•
Strategic Priorities. Objective measurement of the Group’s success against Board approved pre-determined strategic priorities to
generate long term sustainable growth.
Table 1 below shows the Group’s revenue, profit, share price and TSR performance over the last 5 years.
Over these 5 years revenue has doubled, EBIT has grown by 13.8% compound annual growth rate (CAGR) per annum and $1.7bn
has been added to market capitalisation as the share price has grown by 66% or 10.7% CAGR per annum.
STI has varied year by year with short term performance, but LTI has consistently been earned at high levels, showing a strong
alignment between Executive reward and these strong long-term share price gains and shareholder returns.
Table 1: Five Year Group Performance ($m)
Year ended
30 June
2019
30 June
2020
30 June
2021
30 June
2022
30 June
2023
30 June
2024
Group Revenue
760.0
952.2
1,187.7
1,418.4
1,478.6
1,530.0
Revenue Growth
17.5%
25.3%
24.7%
19.4%
4.2%
3.5%
Revenue CAGR (5 Year)
15.0%
Group EBIT
97.3
97.7
136.4
156.4
172.0
185.7
EBIT Growth
12.0%
0.4%
39.6%
14.6%
10.0%
8.0%
EBIT Growth CAGR (5 Year)
13.8%
NPAT
67.4
63.9
91.0
105.7
110.2
118.5
Earnings per share (cents)
51.8
48.8
65.8
75.9
77.2
82.7
EPS Growth
15.2%
(5.8)%
34.8%
15.4%
1.7%
7.1%
EPS Growth CAGR (5 Year)
9.8%
Total dividends per share (cents)
37.0
41.0
26.5
30.0
30.5
33.0
Share price at 30 June ($)
16.36
22.76
29.87
17.99
19.94
27.14
Share Price Change
-
39.3%
31.2%
(39.8)%
10.8%
36.1%
5 Year share price change CAGR
10.7%
1 Year TSR
-
41.5%
32.6%
(38.8)%
12.4%
37.7%
5 Year TSR
77.7%
Average STI as % Maximum Opportunity
76.0%
0%
100%
100%
58.2%
100%
Percentage of Executive LTI performance
rights that vested/will vest related to schemes
maturing in the year
100%
100%
100%
91.9%
92.5%
100%
Remuneration report (audited) continued
Directors’ report continued
33
Breville Group Limited annual report 2024
FY24 Incentive Outcomes
STI award: 100%
STI for FY24 will be awarded at 100% of potential (pcp 58.2%). Under the Group scheme, STI is only funded after the target EBIT
has been delivered in full. The design of the scheme ensures that shareholders are rewarded first. In FY24 target EBIT was set at
$185m representing 7.5% growth over the pcp. This was in line with the top end of guidance given in February 2024. A pre-STI EBIT
of $205.7m was achieved, or $185.7m post a potential 100% STI award of $20m. 20% of the award was also subject to a second
hurdle of delivering inventory reduction targets (reducing inventory to below $365m). With actual inventory finishing at $333m this
hurdle was met and thus STI was awarded at 100%.
LTI vesting: 100%
A single tranche of LTI performance rights (FY22) were tested at 30 June 2024 and will vest at 100% in August 2024:
The targets for this tranche of rights were set in July 2021, when in response to the continuing uncertainty over relative asset values
during the Covid pandemic the Board moved LTI targets for the FY22 and FY23 LTI grants to internal performance measures.
Targets set for this tranche (FY22) were a max and min revenue growth target and an EBIT gate of 10% growth per annum for
3 years (equivalent to FY24 EBIT of $181.6m) to ensure that the quality of revenue growth was maintained. Revenue growth targets
were set in July 2021 with the real possibility of a boom-and-bust Covid revenue cycle, so they were calibrated over a 5-year period
from the pre-Covid year of FY19. 100% vesting was to be awarded for a 13% 5-year revenue CAGR and 50% for an 11% 5-year
revenue CAGR, with zero% to be awarded for lower than this minimum 11%.
•
FY24 EBIT of $185.7m represented a 3-year CAGR EBIT growth of 10.8% so the EBIT gate was met
•
Revenue of $1,530.0m achieved in FY24 represented a 15% 5-year CAGR over FY19 so a 100% vesting was earned
Across the three-year period, a strong year of revenue growth in FY22 was followed by two slower, but positive years, with many
peers seeing declining sales as consumers demand for small kitchen appliances retreated in the post Covid environment. In this
decelerating sales environment, the EBIT growth gate proved challenging, with many of the Group’s peers reporting EBIT declines
as sales slowed. BRG managed Gross Margin and expenses well to continue growing EBIT across both the up, and down, of the
revenue cycle.
FY25 Incentive targets
STI FY25
•
FY25 STI award will be 100% based on achievement of a pre-STI EBIT target with any STI funded from over achievement
of this target.
EBIT targets have been set with reference to the budget for FY25 for the Group. Given the commercial sensitivity of the STI EBIT
target, consistent with past practice, it will be fully disclosed on measurement, and testing, in the FY25 Remuneration report.
LTI FY25
•
In line with the prior year, the LTI scheme will use the Board’s preferred LTI measure of relative TSR, combined with two other
targets, to capture business performance and delivery of the Group’s strategic priorities.
The vesting of FY25 LTI performance rights will be assessed in June 2027 based on three separate criteria:
i.
50% of rights will vest based on relative TSR performance and the achievement of an absolute positive TSR gateway. Half of
the rights will vest if the Group TSR is in the top 50% of the peer group, and all of the rights will vest if Group TSR is in the top
quartile of the peer group, with a straight-line pro rata between these points. The peer group will comprise 108 listed companies
made up of the ASX200 less miners and banks (103 companies) plus 5 international competitors in the kitchen appliance sector.
ii. 30% of performance rights will vest based on achievement of 3-year business performance targets with the unifying measure of
PBT (profit before tax) chosen as the best measure of performance over a 3-year period. 50% of this tranche will vest based on
achieving a minimum PBT target, 100% for reaching a maximum target with a straight-line interpolation between these points.
The minimum target will represent reasonable growth over FY24, and the maximum target will represent the Board’s view of
good growth, judged against the current and expected economic backdrop. The targets will be amended for any significant
impact arising from a change in accounting standards or acquisitions during the measurement period. For reasons of commercial
confidentiality, the PBT targets will be disclosed in arrears in the FY27 Remuneration Report. The Board has a track record of
setting stretch profit targets as part of the Group’s financial plan.
iii. 20% of rights will vest based on the level of progress against key strategic priorities as judged by the Board. Zero rights will vest
for limited progress, 20% for good progress and a sliding scale between these two. Evaluation of the progress achieved will be
based on both quantitative and qualitative measures in the following strategic priority areas:
a. Sustained investment in the growth drivers of the business measured as an increasing percentage of revenue invested in
New Product Development, Go-to-Market, Technology Services and Solutions over the three-year period from a base of
14.0% in FY24;
Remuneration report (audited) continued
2. Linking pay to performance continued
34 Breville Group Limited annual report 2024
b. Progress with alternative sourcing to China measured as the volume of products sourced outside of China (e.g., Mexico,
Asia, Europe);
c. Continued geographic diversification measured as an increasing % revenue made outside of UK, USA, Canada, Australia and
New Zealand;
d. Acceleration of the solutions agenda largely measured in qualitative terms on the success of key initiatives launched; and
e. Progress on the Group’s sustainability agenda including reduction in the Group’s emissions footprint driven by:
-
increasing the energy efficiency of products (measured as percentage of espresso machines using Thermojet® or similar
technology with a mid-term target of 75% of post 2020 launched products by 2028);
-
recyclability of packaging (measured as % of range using fully recyclable packaging);
-
marked progress on repairability and recyclability of products; and
-
Net Zero Scope 1 and 2 emissions from FY25 and a step reduction in measured Scope 3 emissions.
The use of these 3 criteria is intended to deliver a balanced view of business progress, with the largest weighting linked to TSR.
Measurement – The PPRNC is responsible for assessing performance against KPIs and recommending the STI and LTI to be
awarded each year to the Board. To assist in this assessment, the Committee receives detailed reports on performance from
management that are based on independently verifiable, and in most cases, audited data. An external specialist is always used
to calculate and report on actual and relative TSR performance for use in LTI evaluation. In the event of fraudulent or dishonest
misconduct, the Board reserves the right to deem any unvested rights to have lapsed.
3. FY25 CEO Remuneration Package
Jim Clayton joined Breville as CEO in July 2015 and joined the Board as Managing Director on 18th August 2021.
A review of the Group’s financial performance over this 9-year period (shown below) clearly underlines that Mr Clayton has proven
himself to be a transformative and high performing CEO who has delivered outstanding shareholder returns over a sustained period.
He leads an international group, based in Australia, and has emerged as a proven, international growth CEO. He continues to set,
and execute, a winning strategy for the Group against a range of significantly larger global competitors, delivering outstanding
shareholder returns.
Under Mr Clayton’s leadership BRG has delivered sustained, sector-leading performance. Over the 9 years since July 2015, BRG has
grown revenue by 12.6% CAGR pa and EBIT by 11.5% CAGR pa while increasing our investment in R&D, marketing, technology
and solutions from 9.3% of sales in FY15 to 14.0% in FY24. $3.1bn has been added to the Group’s market capitalisation with an
over 4-fold increase in share price. Revenue, Gross Profit and EBIT have all grown every single year since FY15.
These outstanding shareholder returns have been accompanied by an increased geographic diversification, with sales outside of
Australia increasing to 84% of Group in FY24 from 61% in FY15 as the revenue of the Group has trebled. The expansion of the
Americas and successful direct entry into Europe, Mexico and now South Korea has diversified the Group and has underpinned the
consistency of this business performance.
Financial Performance during CEO’s 9-year tenure#
# Jim Clayton joined as CEO in July 2015, so this CAGR represents returns in his tenure
In August 2024 (effective 1 July 2024) the Board finalised a new employment agreement with Mr Clayton which was announced
via the ASX on 2 August 2024. This is the first change in Mr Clayton’s package for three years, with the last changes announced in
October 2021 being effective from 1 July 2021.
Directors’ report continued
Remuneration report (audited) continued
FY25 Incentive targets continued
35
Breville Group Limited annual report 2024
The new package was developed following an extensive external remuneration benchmarking exercise comparing BRG, and Mr
Clayton’s package, to three key peer groups:
•
55 companies in the ASX 80-140 (“ASX80-140”)
•
22 international focussed ASX30-200 companies (“ASX International”)
•
7 international Kitchen Appliance companies and 33 US based consumer companies (“International”)
Given the international, and US weighting of BRG, its growing international complexity, and its geographic expansion ambitions,
particular weight was given to the International group in designing an appropriate package.
Mr Clayton is a US citizen and conducts in person day-to-day business across our major international markets resulting in substantial
periods abroad, particularly in North America. Mr Clayton’s outstanding leadership over the last nine years has garnered increasing
attention from international observers, including US listed companies, seeking new leadership. In response, the Board has developed
a comprehensive package that not only recognises and rewards Mr Clayton’s exceptional performance but also strengthens retention
efforts, mitigating the risk of him being recruited by another international company.
The package was pegged in the bottom quartile of the International peer group, but still competitive enough to reward performance
and encourage retention. This International peer group comparison also resulted in a strategic emphasis on share-based payments,
including the use of long-term performance and retention (LTPR) rights to align pay and shareholder reward. Our analysis identified
the substantial use of such time-based retention rights by international companies, and the majority of US companies, as a key
component of long-term incentive awards.
As well as the performance during his 9-year tenure, the Board reviewed BRG’s performance in absolute and relative terms over
the three-year period since Mr Clayton’s package was last adjusted. To understand BRG’s relative performance the Board, with the
assistance of an investment bank, selected 3 groups of listed peer groups for comparison – key competitors, key customers and
high growth companies with substantial international sales.
In the three years to June 2024 Breville’s absolute performance was strong with revenue up 29%, EBIT up 36% and NPAT up 30%.
Despite the volatile global retail and economic environment, including trading through the Covid cycle, annual budget EBIT growth
targets were achieved in each year.
BRG outperformed all key competitors / appliance companies, none of whom grew sales and profit over the three-year period and
outperformed all but two companies in the wider comparator set.
This was achieved whilst continuing to invest in the medium-term growth drivers of the business: R&D, marketing and technology;
developing a solutions offensive; acquiring and integrating Lelit; and geographically expanding into France, Spain, Portugal, Italy,
Poland, Mexico, and South Korea thus further enhancing portfolio diversification.
3-Year Comparative Performance FY21-FY24
* Source: Publicly reported performance of listed companies compiled and compared by independent investment bank in August 2024.
• Key competitors - Listed international appliance companies (De’Longhi, Groupe SEB, Hamilton Beach, Whirlpool, Newell Brands, Traeger
and Electrolux)
• Key customers - Listed international and Australian retailers (Williams-Sonoma, Best Buy, JB Hi-Fi, Ceconomy, Harvey Norman, Currys,
and Myer)
• High growth international companies - (Yeti, TWE, Dominos, Cochlear, A2Milk, and ARB)
Remuneration report (audited) continued
3. FY25 CEO Remuneration Package continued
36 Breville Group Limited annual report 2024
Directors’ report continued
The Board believes that this benchmarked performance analysis further underlines the sustained shareholder value that Mr Clayton
has driven over his nine-year tenure.
The Board is pleased to have secured Mr Clayton’s ongoing leadership for the Group and considers the package appropriate reward
for the value Mr Clayton brings to the Group.
Key aspects of the revised package include:
•
An increase in annual fixed cash remuneration (including superannuation) from $1,700,000 to $1,850,000;
•
An increase in maximum STI opportunity from 100% to 112.5% of fixed cash remuneration;
•
Unchanged Fixed Deferred Remuneration with $850,000 of rights to be issued each year with a 5-year vesting period;
•
Unchanged maximum achievable LTI at 125% of cash base pay. Amount increases in line with cash base pay. LTI issued as
performance rights with a 3-year performance and vesting period; and
•
Long-term performance and retention (LTPR) rights: A one-off block of 200,000 LTPR rights, vesting into Breville shares on
31 August 2027, will be issued to Mr Clayton, subject to shareholder approval. Up to 100,000 rights will vest subject to
performance against a 3-year Profit Before Tax growth hurdle and completion of the 3-year service term, and 100,000 rights will
vest subject to completion of the service term.
In consideration for the above terms the Board achieved an increase in Mr Clayton’s notice period (under his previous employment
agreement it decreased to 6 months in October 2024) to 18-months until 28 Feb 2026, thereafter 12-months until 31 Aug 2027, and
six months thereafter. For reasons noted above, the extended notice periods were a priority of the Board in securing Mr Clayton’s
employment agreement over the medium term.
A 12-month non-compete restraint can also be activated at BRG’s discretion. If enforced, Mr Clayton is entitled to a payment of his
total fixed remuneration during the 12-month period following the cessation of his employment.
Mr Clayton’s total available package in FY24 was $6.375m in line with the package last agreed in October 2021. This increases to an
estimated $8.903m for FY25 onwards. Mr Clayton’s new package represents a significant re-weighting towards longer term share-
based payments which further aligns his remuneration with shareholder interests.
* Value of LTPR rights illustratively shown as number of rights multiplied by share price on 30 June 2024, then spread over three service years.
LTPR is classed as “at risk” because 50% is tied to PBT performance hurdle and 3-year service requirement and 50% is tied to 3-year service
requirement, but with no payment on resignation. If 50% were instead regarded as fixed base, the ratio of fixed to at risk would be 40%:60% The
FY24 statutory remuneration (shown in table 6 below) differs slightly from available remuneration, shown above, due to accounting for share based
payments under AASB 2 and inclusion of movement in leave balances.
Shareholder approval will be sought for Mr Clayton’s FY25 LTI, deferred remuneration and LTPR grants, as well as the payment of
potential termination benefits, at the Annual General Meeting to be held in November 2024.
4. FY24 KMP and NED remuneration
In FY24 the Director fees paid to the Group’s two overseas Directors was increased by $30,000 to A$175,000 per annum to remain
market competitive.
No change to other Executive KMP packages was made in FY24. It is planned to review other Executive packages including KMP
during FY25 for FY26 to ensure the retention of this high performing team.
Remuneration report (audited) continued
3. FY25 CEO Remuneration Package continued
37
Breville Group Limited annual report 2024
5. Key management personnel (KMP)
KMP are the persons with authority and responsibility for planning, directing, and controlling the activities of the Group and comprise
the Directors of the Group and the Executives listed below.
The Executives designated as KMP will be reviewed again in FY25 to ensure that they reflect those involved in guiding the total
operations of the increasingly international Group.
The Group CEO and Group CFO have Group wide responsibility for the performance and management of the Group and meet at
least 12 times a year to review overall progress against agreed plans.
Table 2: Key management personnel (KMP)
Name
Position
Term as KMP
Non-Executive Directors
Timothy Antonie
Non-Executive Chair
Full Year
Lawrence Myers
Non-Executive Deputy Chair / Lead Independent Director (a),(d)
Full Year
Tim Baxter
Non-Executive Director
Full Year
Peter Cowan
Non-Executive Director (e)
Full Year
Sally Herman
Non-Executive Director (f)
Full Year
Dean Howell
Non-Executive Director (b),(d).(f)
Full Year
Kate Wright
Non-Executive Director (c),(b),(f)
Full Year
Tuula Rytilä
Non-Executive Director
Full Year
Executive Directors
Jim Clayton
Managing Director & Group Chief Executive Officer
Full Year
Executives
Scott Brady
Global Product Officer
Full Year
Martin Nicholas
Group Chief Financial Officer
Full Year
Cliff Torng
Global Go-to-Market Officer
Full Year
(a) Chair of Audit and Risk Committee
(b) Member of Audit and Risk Committee
(c) Chair, People Performance Remuneration and Nominations Committee (PPRNC)
(d) Member of PPRNC
e) Chair of Sustainability Committee
(f) Member of Sustainability Committee
6. Executive remuneration - detailed elements
There are five key components in Executive remuneration:
i)
Fixed Cash Remuneration
ii)
Fixed Deferred Remuneration Rights
iii)
Short Term Performance Incentive (STI)
iv)
Long Term Performance Incentive (LTI) Rights
v)
Long Term Performance and Retention (LTPR) Rights
i) Fixed Cash Remuneration
Executives receive their fixed cash remuneration in the form of cash, car allowance, health insurance, annual leave benefits, long
service leave benefits and superannuation. Fixed cash remuneration is reviewed annually by the PPRNC, and in the case of the CEO,
the Board. The Committee considers company and individual performance, relevant comparative market compensation and internal
relativities. BRG competes in a global market for talent and employs both Australian and international executives. The Group regularly
benchmarks both domestically, and internationally, when reviewing suitability of remuneration.
Details of fixed cash remuneration by KMP are shown in the remuneration Tables 6 and 7.
Remuneration report (audited) continued
38 Breville Group Limited annual report 2024
Remuneration
component
Purpose and execution
FY24 outcomes
Fixed Cash
remuneration
Aims to provide competitive salary, including
superannuation and non-monetary benefits, to attract
and retain a high performing team.
Fixed cash remuneration is reviewed annually, with
outside assistance where needed, and set with
reference to:
•
Size and complexity of role
•
Market benchmarks (domestic and international)
•
Experience, skills and competencies
•
CEO Fixed Cash remuneration remained at $1.7m
as detailed in the explanatory memorandum in
the November 2021 AGM. No increases were
awarded in FY24.
•
No Executive KMP were awarded increases in
base salary in FY24.
Annual leave and long service leave benefits shown in Tables 6 and 7 reflect the movement in accrued benefit owing to the individual
in accordance with accounting standards. If leave balances increase, or if base salary increases are implemented, then accrued
benefits increase.
ii) Fixed Deferred Remuneration Rights
Fixed deferred remuneration rights are a core part of fixed base remuneration delivered in the form of share rights as opposed to
cash. As with cash, fixed pay remuneration is only earned, and vests into shares, when the relevant period of service is completed.
The number of rights granted is calculated as the deferred base salary amount for a year divided by the relevant value of shares in
the Company using a 20-trading day trailing volume weighted average price (VWAP) to the end of the previous financial year that
the grant is agreed. The rights only vest if the service period is completed. Because the number of rights issued is calculated at
the VWAP on the date of issue, any appreciation or depreciation of share price during the service period is to the effective benefit,
or detriment, of the Executive versus taking a fixed cash base pay amount. This aligns shareholder and management interests in
achieving sustained share price appreciation.
The accounting value of fixed deferred remuneration rights grants for which compensation is included in the remuneration tables 4, 6
and 7 is shown in table 11. Under AASB 2 accounting, although the rights relate to future periods of employment service, part of the
cost is recognised in the current period.
Remuneration
component
Purpose and execution
FY24 outcomes
Fixed Deferred
remuneration
rights
Delivers fixed remuneration to the Executive in the form of an annual
grant of deferred rights supporting the retention of high performing
international executives especially in times of increased share price
volatility.
Conditions
•
Upon completion of a specific period of employment service (the
service condition) the rights will vest and convert into fully paid
ordinary shares in the Company.
•
No consideration is payable by the Executive on granting or
exercise of the share rights as the rights satisfy part of the
Executive’s base remuneration.
•
The rights automatically lapse if the Executive resigns before the
vesting date, or is terminated with cause, and vest, on a pro-rata
basis, if the Executive is terminated without cause.
•
No disposal restrictions apply to the shares received when the
rights have vested.
The number of rights granted in each tranche is calculated as a
deferred remuneration amount divided by the VWAP 20 days prior to
the end of the previous financial year.
CEO Fixed Deferred Remuneration
•
A single new tranche of CEO
rights was issued after approval
by shareholders at the AGM in
November 2023 equivalent to
$850,000 vesting on completion of
service through to 25 August 2028.
•
In FY24 42,017 of fixed deferred
remuneration rights vested
and 43,389 of fixed deferred
remuneration rights were granted
to the CEO.
KMP Fixed Deferred Remuneration
•
In FY24 no new fixed deferred
remuneration rights were issued to
Executive KMP.
•
31,283 rights vested.
For accounting purposes, a fair value
is determined of these rights and is
expensed over the full vesting period
so part of the costs for future periods
are recognised in the current period.
Directors’ report continued
Remuneration report (audited) continued
6. Executive remuneration - detailed elements continued
39
Breville Group Limited annual report 2024
Table 3: Fixed Deferred Remuneration included in Remuneration Tables 6 and 7
Year of issue
Conditions
Fair value
right at
Grant date
$
Number
outstanding
30 June
2024
Number
outstanding
30 June
2023
FY20
•
Issued for nil consideration
•
Exercise price is $0
•
Issue price of $16.70
•
Participant (Jim Clayton) must complete the service period
between:
26 August 2019 – 25 August 2020
26 August 2020 – 25 August 2021
26 August 2021 – 25 August 2022
26 August 2022 – 25 August 2023
26 August 2023 – 25 August 2024
•
80% vested as of 30 June 2024
$16.70
$16.70
$16.70
$16.70
$16.70
-
-
-
-
29,940
-
-
-
29,940
29,940
FY21
•
Issued for nil consideration
•
Exercise price is $0
•
Issue price of $22.41
•
Participant (Jim Clayton) must complete the service period
between:
25 August 2024 – 25 August 2025
•
0% vested at 30 June 2024
$19.60
22,311
22,311
FY22
•
Issued for nil consideration
•
Exercise price is $0
•
Issue price of $28.98
Jim Clayton must complete the service period between:
26 August 2022 – 25 August 2023
26 August 2023 – 25 August 2024
26 August 2024 – 25 August 2025
26 August 2025 – 25 August 2026
•
18% vested as at 30 June 2024
Executive KMPs must complete the service period between
26 August 2021 – 25 August 2022
26 August 2022 – 25 August 2023
26 August 2023 – 25 August 2024
26 August 2024 – 25 August 2025
26 August 2025 – 25 August 2026
•
19% vested as of 30 June 2024
$29.28
$28.91
$28.54
$28.17
$27.21
$26.87
$26.52
$26.18
$25.85
-
12,077
12,077
29,330
-
-
20,370
30,555
45,834
12,077
12,077
12,077
29,330
-
13,581
20,370
30,555
45,834
FY23
•
Issued for nil consideration
•
Exercise price is $0
•
Issue price of $18.36
Jim Clayton must complete the service period between:
26 August 2026 – 25 August 2027
•
0% vested as at 30 June 2024
Executive KMPs must complete the service period between
26 August 2022 – 25 August 2023
26 August 2023 – 25 August 2024
26 August 2024 – 25 August 2025
26 August 2025 – 25 August 2026
•
25% vested as of 30 June 2024
$18.57
$17.97
$17.66
$17.44
$17.18
46,296
-
17,702
17,702
17,702
46,296
17,702
17,702
17,702
17,702
FY24
•
Issued for nil consideration
•
Exercise price is $0
•
Issue price of $19.59
Jim Clayton must complete the service period between:
26 August 2027 – 25 August 2028
•
0% vested as of 30 June 2024
$22.11
43,389
-
Remuneration report (audited) continued
6. Executive remuneration - detailed elements continued
40 Breville Group Limited annual report 2024
Directors’ report continued
iii. Short term performance incentives (STI)
The Group operates an annual STI program available to Executives and other employees and awards a cash bonus
subject to the attainment of clearly defined business targets.
Remuneration
component
Purpose and execution
FY24 outcomes
Short term
incentives (STI)
Aims to reward and incentivise Executives and employees for achieving
in-year company targets and is paid in cash.
A pre-STI EBIT target is set by the Board in advance of the financial
year. Until this pre-STI EBIT is exceeded no STI is awarded. If pre-
STI EBIT exceeds the pre-STI target, the STI pool is funded until the
maximum pool is reached.
Shareholders are effectively rewarded before any STI is awarded.
The maximum pool is calculated as the sum of maximum STI dollar
opportunities for each eligible participant. The CEO has a maximum STI
opportunity of 100% of Fixed cash remuneration, other KMP 35% and
other staff are in a range of 5-35%.
Once a pool is awarded it is distributed based on each individual’s
achievement of their individual targets.
•
The CEO and other KMP are targeted on Group EBIT and
additionally in FY24 an inventory target.
•
Regional Presidents and teams have Group EBIT and Regional EBIT
targets and in FY24 inventory targets.
•
Product Development teams have Group EBIT and Gross Profit from
new-to-market product targets.
•
Functional Teams have Group EBIT (in FY24 inventory) and specific
deliverables.
Following finalisation of the annual audit, the PPRNC recommends the
amount of STI to be paid to the Group CEO for Board approval. The
PPRNC seeks and approves recommendations on other individual pay
outs from the Group CEO.
The level of STI pay out always remains at the discretion of the Board.
As recently as FY21 the Board opted to withhold STI during the COVID
Pandemic.
•
In July 2023 a FY24 pre-STI
EBIT target of $185m was
set with the pool only to
be filled when this target
is exceeded. An inventory
target for June 30th
inventory of $365m ($75m
reduction) was also set with
20% of bonus to be withheld
if this was not met.
•
The Group achieved EBIT
of $185.7m having funded
$20m or 100% of the
potential STI pool.
•
Year-end inventory of
$333m was achieved so the
inventory target was also
met in full.
•
STI at 100% of potential was
awarded.
Remuneration report (audited) continued
6. Executive remuneration - detailed elements continued
41
Breville Group Limited annual report 2024
iv. Long term performance incentives (LTI)
The Group operates an annual LTI program available to Executives and other employees that grants performance rights that fully, or
partially, vest into shares on the achievement of clearly defined medium-term targets.
LTI grants to participants (excluding the CEO) are recommended by the CEO to the PPRNC. This recommendation, together with
a recommendation by the PPRNC of an LTI grant to the CEO, is then put to the Board for approval. Performance conditions for
the 3 years ahead are agreed at the same time taking into account what the Board considers to be the most effective means of
incentivising management to deliver sustained enhancement of shareholder value in the context of the existing environment.
Under AASB 2 accounting, although the share rights relate to future specific periods of employment, part of the cost is recognised in
the current period.
Remuneration
component
Purpose and execution
FY24 outcomes
Long term
incentives (LTI)
Aims to reward and incentivise Executives to deliver
sustained shareholder value over multiple periods.
Annual performance right grants are made to the
CEO, Executive KMP and other managers based on a
percentage of their fixed cash remuneration, ranging from
10% for employees to 65% for KMP and 125% for the
CEO.
The number of rights issued is based on the value of
shares in the Company using a 20-trading day trailing
volume weighted average price (VWAP) up to date of
financial year end.
The number of rights vesting in favour of the individual
depends on the delivery of set performance metrics
agreed each year.
Conditions
•
Upon satisfaction of the performance hurdles, the
performance rights will vest into fully paid ordinary
shares in the company.
•
All unvested performance rights automatically lapse
upon a participant ceasing employment unless
otherwise determined by the Board.
•
Participants do not receive distributions or dividends
on unvested performance rights.
•
The number of rights vesting is guided by the
achievement of performance metrics, but the Board
retains absolute discretion on the number of rights
that vest.
•
To make the scheme globally tax efficient (reflecting
different timing of taxation) there are no disposal
restrictions after vesting, notwithstanding that any
trading in shares is, at all times, subject to the
Company’s share trading policy.
•
In the event of a takeover bid where the bidder and
its associates become entitled to at least 50% of the
voting shares of the company, any performance rights
granted will vest where the Board, in its absolute
discretion, is satisfied that performance is in line
with any performance condition applicable to those
performance rights. Any performance rights which
do not vest will immediately lapse, unless otherwise
determined by the Board.
•
Performance metrics are agreed and set each year to
govern the potential vesting of the performance rights.
In-Year grants
•
In FY24 the CEO received an LTI performance
rights grant of 125% of Fixed Cash
Remuneration or equivalent to 108,474
performance rights. The issue of these rights
was approved at the AGM in November 2023.
•
Other KMP’s received a grant of up to 65% of
fixed cash remuneration or equivalent to 57,406
performance rights.
In-Year LTI Vesting
•
During FY24 110,579 rights vested in the CEO’s
favour under the FY20 and FY21 schemes and
69,284 rights vested in favour of the other KMP.
FY25 Vesting
In FY25 it is expected that in August 2024:
•
100% of the single tranche of FY22 performance
rights will vest based on meeting the EBIT gate
and sales growth metrics detailed on page 33).
Remuneration report (audited) continued
6. Executive remuneration - detailed elements continued
42 Breville Group Limited annual report 2024
Directors’ report continued
Table 4: LTI plans for which compensation is included in the remuneration tables 6 and 7
LTI Plan for
the year
ended
Performance hurdles / conditions
Fair value per
performance
right at Grant
date $
Number
outstanding
30 June 2024
Number
outstanding
30 June 2023
FY20
Performance
based LTI
rights
Issued for nil consideration.
-
Exercise price is $0.
-
Term of two to four years with vesting as follows, each representing 33% of
the total number of performance rights:
(a) Total shareholder return (TSR) from 30 June 2019 to
30 June 2021 applying both an Absolute Test and a Relative Test.
(b) Total shareholder return (TSR) from 30 June 2019 to
30 June 2022 applying both an Absolute Test and a Relative Test.
(c) Total shareholder return (TSR) from 30 June 2019 to
30 June 2023 applying both an Absolute Test and a Relative Test.
100% vested as of 30 June 2024.
$6.51
$6.81
$7.06
-
57,350
FY21
Performance
based LTI
rights
Issued for nil consideration.
-
Exercise price is $0.
-
Term of three years with vesting applying Absolute Test of total shareholder
return (TSR) from 30 June 2020 to 30 June 2023.
-
minimum 0% and maximum 100% TSR targets set with straight line pro-
rating between these two.
-
potential Board discretion in deciding appropriate vesting was explicitly
flagged given volatile environment in which original TSR targets were set.
100% vested as of 30 June 2024.
$14.69
-
131,058
FY22
Performance
based LTI
rights
Issued for nil consideration.
-
Exercise price is $0.
-
Term of three years with vesting based on meeting a minimum EBIT CAGR
growth target and Sales CAGR.
-
If threshold EBIT CAGR is met then 50% vesting is achieved.
-
To achieve higher than 50% vesting a Sales 3-year CAGR must exceed a
minimum target
-
To achieve 100% vesting a maximum target must be achieved
-
Sliding scale set between these 2 points.
0% vested as of 30 June 2024 (nil lapsed).
Refer to section 2 of this remuneration report for vesting outcomes.
$25.96
$28.91
112,129
112,129
FY23
Performance
based LTI
rights
Issued for nil consideration.
-
Exercise price is $0.
-
Term of three years with vesting based on EBIT growth delivery.
-
If threshold positive EBIT growth is met then 50% vesting is achieved.
-
If target EBIT growth is met then 100% vesting is achieved.
-
Sliding scale set between these 2 points.
0% vested as of 30 June 2024 (nil lapsed).
$17.44
$19.13
176,989
176,989
FY24
Performance
based LTI
rights
Issued for nil consideration.
-
Exercise price is $0.
-
Term of three years with vesting percentage based on 3 individual
targets described on page 33.
0% vested as of 30 June 2024 (nil lapsed).
$12.95
$20.71
$15.36
$22.23
165,880
-
Remuneration report (audited) continued
6. Executive remuneration - detailed elements continued
43
Breville Group Limited annual report 2024
The PPRNC aims to increasingly skew Executives reward towards at-risk pay and specifically share based payments as seen in the
shape of the new CEO package for FY25.
The actual remuneration mix for FY24 and FY23, based on statutory remuneration Tables 6 and 7, is shown in Table 5 below.
The change in FY24 vs FY23 largely reflects the higher STI awarded in FY24.
Table 5: Actual Remuneration Mix of CEO and other Executive KMP for FY24 compared to FY23
•
Contracts – Employment contracts are entered with Executives designed to attract and retain the employees whilst
safeguarding the Group’s interests. None of the KMP have fixed-term contracts.
•
Termination Provisions – Executive Contracts include notice periods of 12 months for the CEO and 6 months for other KMP.
Amounts payable on termination vary from statutory entitlements to 12 months of fixed pay plus accrued leave balances. Any LTI
performance rights not vested at the date of termination are forfeited and will lapse unless otherwise determined by the Board.
Rights under the fixed, deferred remuneration scheme will lapse on resignation but will be pro-rated for time served in the case
of termination without cause. Specific termination arrangements, as part of the CEO’s package, were proposed and approved by
shareholders at the November 2021 AGM.
•
Hedging prohibited – The Group has a policy that prohibits KMP, and Executives, and their closely related parties from entering
into an arrangement that has the effect of limiting the exposure to risk relating to an element of that member's compensation.
The policy complies with the requirements of s.206J of the Corporations Act 2001.
Remuneration report (audited) continued
6. Executive remuneration - detailed elements continued
44 Breville Group Limited annual report 2024
7. Non-Executive Director remuneration
In accordance with best practice corporate governance, the structure of Non-Executive Director and Executive remuneration is
separate and distinct. The Board seeks to set Non-Executive Director remuneration at a suitable level to attract and retain high
calibre Directors, both Australian and internationally based, whilst being commensurate with growing international companies of a
similar size and type.
The remuneration of Non-Executive Directors is reviewed annually. Each Director receives a fee for being a Director of the Company.
An additional fee is also paid to each Director who also acts as Chair of a Board committee recognising the additional time
commitment required by the Director to facilitate the running of the committee.
The Group’s constitution and the ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall
be determined from time to time by general meeting. The aggregate remuneration of $1,800,000 per year was approved by
shareholders at the annual general meeting held in November 2021.
The remuneration of Non-Executive Directors for the year ended 30 June 2024 is detailed in Table 6 on page 45.
Remuneration
component
Purpose and execution
FY24 outcomes
Non-executive
Director fees
Aims to attract, reward, and retain high
calibre Directors suitable for a fast-growing
international business.
Each Director receives a fee or base
remuneration as a Director of the Group
with an additional fee for acting as Chair of a
Board committee recognising the additional
time commitment required.
Non-Executive Director remuneration is
reviewed annually within the aggregate
remuneration pool of $1,800,000 approved by
the AGM held in November 2021.
Directors are entitled to defer a cash salary
in lieu of Breville share rights to encourage
Board share ownership.
Participation is voluntary. A participant can
elect how much of their salary they would
like to exchange for share rights. The election
must be performed by the 1st of December
ahead of the calendar year vesting period of
1st of January to the 31st of December.
Rights this year were issued determined on a
VWAP for the period 20 days commencing on
the 15th February 2024. Rights vest following
the completion of the service period and are
issued on a pro-rata basis based on service
period.
•
Main Board Chair Fee: equivalent to $350,000 p.a. inclusive
of superannuation.
•
Main Board Member Fee: equivalent to $145,000 p.a.
inclusive of superannuation for Australian based Directors
and $175,000 p.a. for international Directors.
•
Lawrence Myers receives an additional $40,000 p.a. for his
role as Deputy Chair.
•
Board Committee Chair Fee: equivalent to $30,000
p.a. inclusive of superannuation. Board subcommittees
include the Audit and Risk Committee (ARC), the People
Performance Remuneration and Nominations Committee
(PPRNC) and the Sustainability Committee.
•
Lawrence Myers chairs the ARC; Kate Wright chairs the
PPRNC; Peter Cowan chairs the Sustainability committee.
•
The total fees paid in FY24 of $1,592,067 represents 88%
of the shareholder approved aggregate remuneration of
$1,800,000.
•
Two Directors elected to defer a portion of their salary
in exchange for rights for the period 1st January 2024 –
31st December 2024. The issued number of rights was
determined based on VWAP of $20.36 for the period 15th
February 2024 – 14th March 2024.
Directors’ report continued
Remuneration report (audited) continued
45
Breville Group Limited annual report 2024
Remuneration report (audited) continued
8. Statutory Remuneration Tables
Table 6: KMP remuneration for the year ended 30 June 2024
The following tables 6 and 7 set out the statutory KMP remuneration disclosures, prepared in accordance with the
Corporations Act 2001 and Australian Accounting Standards. No termination benefits were paid in FY24.
Salary &
fees
Other
Super-
annuation
Leave entitle-
ments
Fixed deferred
remuneration
rights
Subtotal
Cash
bonuses
(STI)
Performance
rights (LTI)
Total
Fixed
remuneration
STI
LTI
$
$
$
$
$
$
$
$
$
%
%
%
Non-Executive Directors
T. Antonie - Chairperson
322,500
-
27,500
-
-
350,000
-
-
350,000
100%
0%
0%
L. Myers - Deputy Chairperson
210,083
-
4,917
-
-
215,000
-
-
215,000
100%
0%
0%
T. Baxter
104,143
-
-
-
87,500
191,643
-
-
191,643
100%
0%
0%
P. Cowan
157,658
-
17,342
-
-
175,000
-
-
175,000
100%
0%
0%
S. Herman
97,973
-
14,369
-
36,250
148,592
-
-
148,592
100%
0%
0%
D. Howell
130,631
-
14,369
-
-
145,000
-
-
145,000
100%
0%
0%
K. Wright
157,658
-
17,342
-
-
175,000
-
-
175,000
100%
0%
0%
T. Rytilä
191,832
-
-
-
-
191,832
-
-
191,832
100%
0%
0%
Subtotal Non-Executive
Directors
1,372,478
-
95,839
-
123,750
1,592,067
-
-
1,592,067
100%
0%
0%
J. Clayton - Managing Director
1,672,500
-
27,500
(92,751)
883,173
2,490,422
1,700,000
1,982,210
6,172,632
40%
28%
32%
Other key management
personnel
S. Brady
697,500
-
27,500
(53,178)
232,338
904,160
210,000
337,321
1,451,481
62%
15%
23%
M. Nicholas
547,500
-
27,500
32,505
474,319
1,081,824
201,250
323,246
1,606,320
67%
13%
20%
C. Torng
577,500
-
27,500
(11,715)
326,768
920,053
194,251
312,005
1,426,309
64%
14%
22%
Subtotal Executives
3,495,000
-
110,000
(125,139)
1,916,598
5,396,459
2,305,501
2,954,782
10,656,742
51%
21%
28%
Totals
4,867,478
-
205,839
(125,139)
2,040,348
6,988,526
2,305,501
2,954,782
12,248,809
57%
19%
24%
46 Breville Group Limited annual report 2024
Remuneration report (audited) continued
8. Statutory Remuneration Tables continued
Table 7: KMP Remuneration for the year ended 30 June 2023
Salary &
fees
Other
Super-
annuation
Leave
entitlements
Fixed deferred
remuneration
rights
Subtotal
Cash
bonuses
(STI)
Performance
rights (LTI)
Total
Fixed
remuneration
STI
LTI
$
$
$
$
$
$
$
$
$
%
%
%
Non-Executive Directors
T. Antonie - Chairperson
322,500
-
27,500
-
-
350,000
-
-
350,000
100%
0%
0%
L. Myers - Deputy Chairperson
194,570
-
20,430
-
-
215,000
-
-
215,000
100%
0%
0%
T. Baxter
109,247
-
-
-
59,929
169,176
-
-
169,176
100%
0%
0%
P. Cowan
158,371
-
16,629
-
-
175,000
-
-
175,000
100%
0%
0%
S. Herman
115,016
-
12,107
-
29,964
157,087
-
-
157,087
100%
0%
0%
D. Howell
131,222
-
13,778
-
-
145,000
-
-
145,000
100%
0%
0%
K. Wright
158,333
-
16,667
-
-
175,000
-
-
175,000
100%
0%
0%
T. Rytilä
35,753
-
-
-
-
35,753
-
-
35,753
100%
0%
0%
Subtotal Non-Executive
Directors
1,225,012
-
107,111
-
89,893
1,422,016
-
-
1,422,016
100%
0%
0%
J. Clayton - Managing Director
1,672,500
-
27,500
129,269
924,678
2,753,947
989,400
1,827,795
5,571,142
49%
18%
33%
Other key management
personnel
S. Brady
668,281
9,644
27,500
69,879
244,752
1,020,056
122,220
326,873
1,469,149
69%
8%
22%
M. Nicholas
547,500
-
27,500
952
566,725
1,142,677
117,128
313,190
1,572,995
73%
7%
20%
C. Torng
568,870
-
27,500
10,608
374,036
981,014
113,054
302,126
1,396,194
70%
8%
22%
Subtotal Executives
3,457,151
9,644
110,000
210,708
2,110,191
5,897,694
1,341,802
2,769,984
10,009,480
59%
13%
28%
Totals
4,682,163
9,644
217,111
210,708
2,200,084
7,319,710
1,341,802
2,769,984
11,431,496
64%
12%
24%
Directors’ report continued
47
Breville Group Limited annual report 2024
Remuneration report (audited) continued
8. Statutory Remuneration Tables continued
Table 8: KMP STI cash bonuses awards in FY24 and FY23 and LTI performance rights vesting in FY24
STI Cash bonuses
Share-based LTI performance base
compensation vesting in FY24
Name
Financial Year
% Earned
% Forfeited
Financial Year
Granted
% Vested
% Forfeited
J. Clayton
2024
100.0%
0.0%
2021
100%
0.0%
2023
58.2%
41.8%
2020
85.1%
14.9%
S. Brady
2024
100.0%
0.0%
2021
100%
0.0%
2023
58.2%
41.8%
2020
85.1%
14.9%
M. Nicholas
2024
100.0%
0.0%
2021
100%
0.0%
2023
58.2%
41.8%
2020
85.1%
14.9%
C. Torng
2024
100.0%
0.0%
2021
100%
0.0%
2023
58.2%
41.8%
2020
85.1%
14.9%
Table 9: KMP shareholdings
Ordinary shares held* in Breville Group Limited (number)
30 June 2024
Balance at
1 July 2023
On exercise of
rights
Net change other
Balance at
30 June 2024
Directors
T. Antonie
43,791
-
-
43,791
T. Baxter
-
3,562
-
3,562
L. Myers
163,000
-
-
163,000
P. Cowan
11,055
-
-
11,055
S. Herman
47,484
1,781
-
49,265
D. Howell
140,000
-
(40,000)
100,000
K. Wright
21,859
-
-
21,859
T. Rytilä
-
-
8,000
8,000
Executive Director
J. Clayton
277,903
152,596
(152,596)
277,903
Other KMP
S. Brady
75,137
28,751
(43,888)
60,000
M. Nicholas
35,953
39,787
(25,108)
50,632
C. Torng
104,823
32,029
(28,675)
108,177
Total (a)
921,005
258,506
(282,267)
897,244
* Held directly, indirectly or beneficially.
(a) ~0.6% of total share capital is owned by KMP (~0.6% in FY23).
48 Breville Group Limited annual report 2024
Remuneration report (audited) continued
8. Statutory Remuneration Tables continued
Table 10: KMP Performance rights granted
The terms and conditions of each grant of performance rights affecting remuneration of key management personnel in this financial
year or future reporting years are as follows:
Grant Date*
Expiry
Date
Exercise
price
Fair value per performance
right at grant date ($)
(Note 19)
Vested and
exercised
30 June 2024
Number of
Rights
FY20 Performance based
11 Oct 19 (a)
2-Oct-23
0.00
7.06
Yes
57,350
FY21 Performance based
7 Sep 20 (b)
1-Oct-23
0.00
14.69
Yes
131,058
FY22 Performance based
6 Oct 21 (c)
1-Oct-24
0.00
25.96
-
38,803
FY22 Performance based
11 Nov 21 (c)
1-Oct-24
0.00
28.91
-
73,326
FY23 Performance based
21 Oct 22 (d)
1-Oct-25
0.00
17.44
-
61,248
FY23 Performance based
10 Nov 22 (d)
1-Oct-25
0.00
19.13
-
115,741
FY24 Performance based
25-Jul-23 (e)
1-Oct-26
0.00
12.95
-
28,703
FY24 Performance based
25-Jul-23 (e)
1-Oct-26
0.00
20.71
-
28,703
FY24 Performance based
8-Nov-23 (e)
1-Oct-26
0.00
15.36
-
54,237
FY24 Performance based
8-Nov-23 (e)
1-Oct-26
0.00
22.23
-
54,237
* In addition to the relevant performance hurdle, the participant must be employed by the Company on the vesting date.
(a) There are three equal tranches to be tested at 30 June 2021, 30 June 2022 and 30 June 2023 all with a total shareholder return hurdle (TSR)
applying an absolute test and a relative test.
(b) One tranche with an absolute total shareholder return hurdle (TSR) applying an absolute test.
(c) One tranche with an EBIT CAGR gateway and max and min revenue CAGR target.
(d) One tranche with a target EBIT growth %.
(e) Two equal tranches based on TSR hurdle and the other on PBT / Key Strategic priorities (Refer Section 2 above).
Table 11: Fixed deferred remuneration share rights holding of KMPs
The terms and conditions of each grant of rights issued as deferred remuneration affecting remuneration of KMPs in this financial
year or future reporting years are as follows:
Grant Date
Expiry
Date
Exercise
price
Fair value per performance
right at grant date ($)
(Note 19)
Vested and
exercised
30 June 2024
Number of
Rights
Jim Clayton
29-Jan-20
2-Oct-23
0.00
19.60
Yes
29,940
Jim Clayton
29-Jan-20
1-Oct-24
0.00
16.70
-
29,940
Jim Clayton
7-Sep-20
3-Oct-25
0.00
19.60
-
22,311
Jim Clayton
11-Nov-21
3-Oct-23
0.00
29.28
Yes
12,077
Jim Clayton
11-Nov-21
2-Oct-24
0.00
28.91
-
12,077
Jim Clayton
11-Nov-21
1-Oct-25
0.00
28.54
-
12,077
Jim Clayton
11-Nov-21
3-Oct-26
0.00
28.17
-
29,330
Jim Clayton
10-Nov-22
1-Oct-27
0.00
18.57
-
46,296
Jim Clayton
8-Nov-23
1-Oct-28
0.00
22.11
-
43,389
Other KMP
5-Oct-21
2-Oct-23
0.00
26.87
Yes
13,581
Other KMP
5-Oct-21
1-Oct-24
0.00
26.52
20,370
Other KMP
5-Oct-21
3-Oct-25
0.00
26.18
-
30,555
Other KMP
5-Oct-21
3-Oct-26
0.00
25.85
-
45,834
Other KMP
21-Oct-22
2-Oct-23
0.00
17.97
Yes
17,702
Other KMP
21-Oct-22
1-Oct-24
0.00
17.66
-
17,702
Other KMP
21-Oct-22
1-Oct-25
0.00
17.44
-
17,702
Other KMP
21-Oct-22
1-Oct-26
0.00
17.18
-
17,702
NED
1-Dec-22
28-Feb-24
0.00
20.15
Yes
5,343
NED
22-Nov-23
28-Feb-25
0.00
26.57
-
4,658
Directors’ report continued
49
Breville Group Limited annual report 2024
Remuneration report (audited) continued
8. Statutory Remuneration Tables continued
Table 12: Unvested Performance and Fixed Deferred Remuneration Rights holdings of KMPs
Balance
30 June 2023
Granted as
remuneration (a)
Vested and
exercised
Other (b)
Balance
30 June 2024
T. Baxter
3,562
3,294
(3,562)
-
3,294
S. Herman
1,781
1,364
(1,781)
-
1,364
J. Clayton
498,894
151,863
(152,596)
(5,200)
492,961
Other KMP
S. Brady
98,171
19,911
(28,751)
(1,162)
88,169
M. Nicholas
143,076
19,079
(39,787)
(1,110)
121,258
C. Torng
112,581
18,416
(32,029)
(1,073)
97,895
858,065
213,927
(258,506)
(8,545)
804,941
(a) Performance rights granted during the year are subject to performance hurdles and remaining in employment until date of vesting.
(b) Includes forfeitures and lapses.
Code
Company
Sector
A2M
The a2 Milk Company Limited
Consumer Staples
ABP
Abacus Property Group
Real Estate
AIA
Auckland International Airport
Limited
Industrials
ALL
Aristocrat Leisure Limited
Consumer Discretionary
ALQ
ALS Limited
Industrials
ALX
Atlas Arteria
Industrials
ANN
Ansell Limited
Health Care
APE
Eagers Automotive Limited
Consumer Discretionary
ARB
ARB Corporation Limited
Consumer Discretionary
ARF
Arena REIT
Real Estate
AZJ
Aurizon Holdings Limited
Industrials
BAP
Bapcor Limited
Consumer Discretionary
BGA
Bega Cheese Limited
Consumer Staples
BWP
BWP Trust
Real Estate
BXB
Brambles Limited
Industrials
CAR
Car Group Limited
Communication Services
CGC
Costa Group Holdings Limited
Consumer Staples
CHC
Charter Hall Group
Real Estate
CIP
Centuria Industrial REIT
Real Estate
CKF
Collins Foods Limited
Consumer Discretionary
CLW
Charter Hall Long Wale REIT
Real Estate
CMW
Cromwell Property Group
Real Estate
CNI
Centuria Capital Group
Real Estate
CNU
Chorus Limited
Communication Services
COH
Cochlear Limited
Health Care
COL
Coles Group Limited
Consumer Staples
Code
Company
Sector
CPU
Computershare Limited
Industrials
CQE
Charter Hall Social Infrastructure
REIT
Real Estate
CQR
Charter Hall Retail REIT
Real Estate
CSL
CSL Limited
Health Care
CTD
Corporate Travel Management
Limited
Consumer Discretionary
CWY
Cleanaway Waste Management
Limited
Industrials
DHG
Domain Holdings Australia Limited
Communication Services
DMP
Domino's Pizza Enterprises Limited
Consumer Discretionary
DOW
Downer EDI Limited
Industrials
DXS
Dexus
Real Estate
EDV
Endeavour Group Limited
Consumer Staples
ELD
Elders Limited
Consumer Staples
EVT
EVT Limited
Communication Services
FBU
Fletcher Building Limited
Industrials
FLT
Flight Centre Travel Group Limited
Consumer Discretionary
FPH
Fisher & Paykel Healthcare
Corporation Limited
Health Care
GMG
Goodman Group
Real Estate
GNC
GrainCorp Limited
Consumer Staples
GOZ
Growthpoint Properties Australia
Real Estate
GPT
GPT Group
Real Estate
GUD
GUD Holdings Limited
Consumer Discretionary
HDN
HomeCo Daily Needs REIT
Real Estate
HLS
Healius Limited
Health Care
HMC
HMC Capital Limited
Real Estate
HVN
Harvey Norman Holdings Limited
Consumer Discretionary
IEL
IDP Education Limited
Consumer Discretionary
IMU
Imugene Limited
Health Care
INA
Ingenia Communities Group
Real Estate
ING
Inghams Group Limited
Consumer Staples
IPH
IPH Limited
Industrials
JBH
JB Hi-Fi Limited
Consumer Discretionary
9. LTI Relative TSR Peer group appendix
Table 13: Bloomberg ASX200 Consumer Staples, Consumer
Discretionary, Communication Services, Health Care,
Industrials and Real Estate Peer Group along with
comparable international competitors used for Relative
TSR Measurement
50 Breville Group Limited annual report 2024
Directors’ report continued
Code
Company
Sector
JLG
Johns Lyng Group Limited
Industrials
KLS
Kelsian Group Limited
Industrials
LIC
Lifestyle Communities Limited
Real Estate
LLC
Lendlease Group
Real Estate
LNK
Link Administration Holdings
Limited
Industrials
LOV
Lovisa holdings Limited
Consumer
Discretionary
MGR
Mirvac Group
Real Estate
MND
Monadelphous Group Limited
Industrials
MTS
Metcash Limited
Consumer Staples
NAN
Nanosonics Limited
Health Care
NEC
Nine Entertainment Co.
Holdings Limited
Communication
Services
NSR
National Storage REIT
Real Estate
NWH
NRW Holdings Limited
Industrials
NWS
News Corporation
Communication
Services
PME
Pro Medicus Limited
Health Care
PMV
Premier Investments Limited
Consumer
Discretionary
PNV
PolyNovo Limited
Health Care
PXA
PEXA Group Limited
Real Estate
QAN
Qantas Airways Limited
Industrials
QUB
Qube Holdings Limited
Industrials
REA
REA Group Ltd
Communication
Services
REH
Reece Limited
Industrials
RHC
Ramsay Health Care Limited
Health Care
RMD
ResMed Inc
Health Care
RWC
Reliance Worldwide
Corporation Limited
Industrials
SCG
Scentre Group
Real Estate
SEK
Seek Limited
Communication
Services
SGP
Stockland
Real Estate
SGR
The Star Entertainment Group
Limited
Consumer
Discretionary
SHL
Sonic Healthcare Limited
Health Care
SPK
Spark New Zealand Limited
Communication
Services
SUL
Super Retail Group Limited
Consumer
Discretionary
SVW
Seven Group Holdings Limited
Industrials
TAH
Tabcorp Holdings Limited
Consumer
Discretionary
TCL
Transurban Group
Industrials
Code
Company
Sector
TLC
The Lottery Corporation
Limited
Consumer
Discretionary
TLS
Telstra Group Limited
Communication
Services
TLX
Telix Pharmaceuticals Limited
Health Care
TPG
TPG Telecom Limited
Communication
Services
TWE
Treasury Wine Estates Limited
Consumer Staples
WEB
Webjet Limited
Consumer
Discretionary
WES
Wesfarmers Limited
Consumer
Discretionary
WOR
Worley Limited
Industrials
WOW Woolworths Group Limited
Consumer Staples
VCX
Vicinity Centres
Real Estate
WPR
Waypoint REIT
Real Estate
DLG
De'Longhi
International
competitor
SK
Groupe SEB
International
competitor
WHR
Whirlpool
International
competitor
HBB
Hamilton Beach Brands
International
competitor
NWL
Newell Brands
International
competitor
Directors’ meetings
The number of Board and Board committee meetings held and
attended by Directors during the year is summarised below:
Full
board
Audit
& Risk
(A&RC)
People,
Performance,
Remuneration
& Nominations
(PPRNC)
Sustainability
Committee
(SCom)
Number of
meetings
12 (c)
5
4
3
T. Antonie
12 (b)
5
4
2
L. Myers
12
5 (b)
4 (a)
0
J Clayton
12
5
2
0
T. Baxter
9
1
2
0
P. Cowan
11
5
3
3 (b)
S. Herman
12
5
4
3 (a)
D. Howell
12
5 (a)
4 (a)
3 (a)
K. Wright
12
5 (a)
4 (b)
3 (a)
T. Rytilä
12
4
1
0
(a) A member of the relevant committee. All Board members are invited
to attend the committee meetings.
(b) Designates the current Chair of the Board or committee.
(c) In addition to these meetings, the Board held two special purpose
subcommittee meetings.
Remuneration report (audited) continued
9. LTI Relative TSR Peer group appendix continued
Table 13: Bloomberg ASX200 Consumer Staples, Consumer
Discretionary, Communication Services, Health Care,
Industrials and Real Estate Peer Group along with
comparable international competitors used for Relative
TSR Measurement continued
51
Breville Group Limited annual report 2024
Committee membership
As of the date of this report, the Company has three standing
committees: the ARC, the PPRNC and the SCom. Details of the
function and membership of these committees are included in
the Corporate Governance Statement.
The current members of each committee, as at the date of this
report, are as follows:
•
The ARC: Lawrence Myers (Chair), Dean Howell and Kate
Wright.
•
The PPRNC: Kate Wright (Chair), Dean Howell and
Lawrence Myers.
•
The SCom: Peter Cowan (Chair), Kate Wright, Sally Herman
and Dean Howell.
The Chairs and members of the ARC and PPRNC are all
independent Directors, and the Chair and a majority of the
members of the SCom are independent Directors.
Indemnification of Directors and Officers
The Directors and officers of the Company are indemnified by
the Company against losses or liabilities that they may sustain
or incur as a Director or an officer of the Company in the proper
performance of their duties. During the financial year, the
Company paid premiums in respect of contracts to insure the
Directors and officers of the Company against a liability to the
extent permitted by the Corporations Act 2001. The contract of
insurance prohibits disclosure of the nature of liability and the
amount of the premiums.
Likely future developments and expected
results
Disclosure of information as to likely future developments in
the operations of the consolidated entity and expected results
of those operations would be prejudicial to the interests of the
consolidated entity. Accordingly, such information has not been
included in this report.
Environmental regulations and performance
The consolidated entity is not involved in any activities that
have a marked influence on the environment within its area of
operation. The Group’s commitment to sustainability including
environmental initiatives is outlined in pages 18 to 29 of the
Directors’ Report.
Corporate governance
In recognising the need for the highest standards of corporate
behaviour and accountability, the Directors support the
principles of good corporate governance. The Company’s
Corporate Governance Statement is on pages 52 to 57.
Performance rights
Unissued shares
As of the date of this report there were 2,589,741 potential
unissued shares under the performance rights, fixed deferred
remuneration share rights and NED schemes (2023: 2,408,673).
Refer to note 19 of the financial report for further details of
the performance rights and fixed deferred remuneration share
rights outstanding. Neither performance right holders, nor fixed
deferred remuneration share rights holders, have any right
by virtue of the rights to participate in any share issue of the
Company.
Lapse of unvested performance rights
During the year 43,445 unvested performance rights lapsed
following the cessation of employment of employees or
Executives and 27,189 unvested performance rights lapsed as
a result of performance hurdles not being met (2023: 38,822
unvested performance rights lapsed following the cessation of
employment of employees or Executives and 25,082 unvested
performance rights lapsed as a result of performance hurdles
not being met).
Auditor’s declaration of independence
Attached on page 106 is a copy of the auditor’s declaration
provided under section 307C of the Corporations Act 2001
in relation to the audit for the year ended 30 June 2024. This
auditor’s declaration forms part of this Directors’ report.
Non-audit services
During the financial year ended 30 June 2024 the Company’s
auditor, PwC, provided non-audit services to Breville Group
entities. Details of the amounts paid to the auditor for the
provision of non-audit services during the year ended 30 June
2024 are set out in note 22 on page 101. These services
primarily relate to tax compliance and advisory services.
For FY24, the ratio between audit and non-audit fees is 1.0
to 0.9.
A significant amount of the non-audit fees associated with
taxation and accounting advisory services in FY24 are of a
project based non-recurring nature, including finalisation of
the renewal of the Advanced Pricing Agreement (APA), initial
Country by Country Reporting and work on indirect taxes.
In accordance with the recommendation from the ARC, the
Directors are satisfied that the provision of the non-audit
services during the year is compatible with the general standard
of independence imposed by the Corporations Act. Also,
in accordance with the recommendation from the ARC, the
Directors are satisfied that the nature and scope of each type
of non-audit service provided means that auditor independence
was not compromised. The auditors have also provided
the ARC with a report confirming that, in their professional
judgement, they have maintained their independence in
accordance with the firm’s requirements, the provisions of
APES 110 Code of Ethics for Professional Accountants and the
applicable provisions of the Corporations Act.
Significant events after year end
No matters or circumstances have arisen since the end of the
year that significantly affected or may affect the operations of
the consolidated entity.
Signed in accordance with a resolution of Directors.
Timothy Antonie
Chair
Sydney
21 August 2024
52 Breville Group Limited annual report 2024
The Board of Directors is committed to high standards of
corporate governance, including adhering to the ‘Corporate
Governance Principles and Recommendations (4th Edition)’ of
the ASX Corporate Governance Council (Council).
This statement sets out the Company’s corporate governance
practices and policies that were in place during the financial
year ended 30 June 2024. The Company followed the Council’s
recommendations throughout the period, except for those
differences disclosed and explained in this statement.
The following documents are available in the corporate
governance section of the Company’s website
brevillegroup.com.
•
Board Charter
•
Audit and Risk Committee Charter
•
People, Performance, Remuneration and Nomination
Committee Charter
•
Sustainability Committee Charter
•
Code of Conduct
•
Anti-bribery and Corruption Policy
•
Whistleblower Protection Policy
•
Ethical Sourcing Policy
•
Modern Slavery Statement
•
Diversity and Inclusion Policy
•
Securities Trading Policy
•
Continuous Disclosure Policy
•
Selection and Appointment of Directors
•
Criteria for Assessing Independence of Directors
•
Shareholder Communications Policy
•
Minimum Shareholding Guideline Policy
•
Workplace Gender Equality Agency Report
•
Reconciliation Action Plan
The current Directors as of the date of this report are as follows:
Director
Appointed
Term in office
Qualifications Non-executive
Independent Last elected
Timothy Antonie (Chair)
2013
11 years
BEcon
Yes
No
2023
Lawrence Myers (Dep. Chair
and Lead Ind Dir.)
2013
11 years
B.Acct, CA, CTA
Yes
Yes
2021
Tim Baxter
2022
2 years
BS
Yes
Yes
2022
Jim Clayton
2021
3 years BBA, Finance, JD
No
No
N/A
Peter Cowan
2018
6 years
Other
Yes
Yes
2021
Sally Herman
2013
11 years
BA, GAICD
Yes
No
2022
Dean Howell
2008
16 years
FCA, CTA
Yes
Yes
2023
Kate Wright
2016
8 years
BA
Yes
Yes
2022
Tuula Rytilä
2023
1 year
MSc
Yes
Yes
2023
Further information as to the experience and background of
each Director is included in the Directors’ Report on pages
12 to 13. The Company maintains a majority independent
Board and has been steadily evolving its Board composition to
benefit from diversity in all its forms including gender, skill set,
experience, ethnicity and geography.
Principle 1: Lay solid foundations for
management and oversight
Role of the Board and management
The role of the Board includes ensuring that the Company has
an appropriate corporate governance structure to create and
protect long-term shareholder value and providing leadership
and strategic guidance to management in accordance with the
Company’s objectives and values.
The Board has delegated responsibility for the day-to-day
management of the Company and its businesses to the
Managing Director and Chief Executive Officer (Group CEO).
The Board has a charter, which sets out its structure,
composition and procedures, as well as the allocation of
responsibilities among the Board, the Board committees
and management. The Board Charter is available on the
corporate governance page of the Company’s website: https://
brevillegroup.com/corporate-governance/
Board committees
The Board has established three standing committees to assist
in the execution of its duties and to allow detailed consideration
of complex issues within or relevant to the Company’s
businesses. These committees are as follows:
•
Audit and Risk Committee (ARC), which reviews and makes
recommendations to the Board regarding the Company’s
financial reporting, external audit, risk management
framework and tax management.
•
People Performance Remuneration and Nominations
Committee (PPRNC), which reviews and makes
recommendations to the Board regarding employee health
and safety, diversity and inclusion, human rights and
modern slavery, community relations and Director and
Executive nomination and remuneration matters.
•
Sustainability Committee (SCom), which reviews and makes
recommendations to the Board regarding the sustainability
policies, strategies, programmes and disclosures of the
Company.
Corporate governance statement
53
Breville Group Limited annual report 2024
Further information regarding these committees, including
details of their respective composition, is provided in the
sections below.
Appointment of Directors and Board renewal
A detailed process is undertaken for the appointment of new
Directors, including appropriate checks as to the candidate’s
background, character, education, skills and experience, as well
as any potential conflicts of interest.
Other than the Managing Director, Directors must not retain
office without re-election for more than three years or past the
third Annual General Meeting (AGM) following their last election,
whichever is longer. In addition, a Director appointed to fill a
casual vacancy must retire and seek election at the next AGM.
Prior to a Director seeking election or re-election at an AGM, the
Company provides shareholders with all material information in
its possession relevant to a decision on whether or not to elect
or re-elect the Director in the notice of meeting.
All Directors have a written agreement outlining the terms of
their appointment.
Company Secretaries
The Company has two Company Secretaries, appointed by
the Board. The Company Secretaries are accountable directly
to the Board, through the Chair of the Board, on all matters
relating to the proper functioning of the Board.
Diversity Policy
The Company is an equal opportunity employer and values
differences such as gender, age, sexuality, culture, disability
and ethnicity. The Company’s Diversity Policy aims to ensure
a corporate culture that supports workplace diversity, while
providing access to equal opportunities at work based on merit.
This policy is available in the corporate governance section of
the Company’s website: https://brevillegroup.com/corporate-
governance/
Diversity Policy objectives
The objectives and actions set by the Board in accordance with
the Diversity Policy, and progress towards achieving them, are
as follows:
•
A target gender balance of at least 40% of each gender
in managerial and Executive roles and 30% for the Board.
Please see the table below. BRG is constantly striving to
improve its gender balance and has and will continue to
look at initiatives to do so, particularly for managerial and
senior executive roles;
•
Promoting a safe workplace free from harassment or
discrimination of any kind: training and education programs
which included topics on unconscious bias, harassment,
bullying, victimisation and discrimination, were offered
during the year;
•
Explicit requirement of recruiting agencies to provide a
gender balance of suitable, qualified, vetted candidates for
interview: this continued during the year;
•
Representation of women trained in recruitment and on
selection panels: the process to train additional women in
these skills continued during the year;
•
Enhancing the gender balance in career development in
senior and managerial roles: the Company has recently
designed the Breville Emerging Leaders program, in which
the initial program nominees were over two thirds female;
•
Continued flexible working arrangements where
operationally appropriate: Breville’s policies on Flexible
Work and Paid Parental Leave support the choice of work
locations and timing of work.
The proportion of women employees in the Company at 30
June 2024 is shown in the table below.
30 June
2024
30 June
2023
Women on the Board1
33%
33%
Women in senior executive roles2
34%
35%
Women in managerial roles3
36%
37%
Women in company
46%
45%
1
The number of women on the Board is 3 and represents 37.5% of
NEDs.
2
The senior and executive role measure is comprised of all executive
staff reporting to the Group CEO and their direct reports.
3
Managerial roles include all executive, senior and management roles.
To assist the Board in fulfilling its responsibilities in relation to
diversity, the implementation of these objectives is overseen by
the PPRNC. The committee:
•
reports to the Board, at least annually, on the Company’s
progress in achieving the objectives set for achieving
diversity;
•
regularly oversees a monthly review of the relative
proportion of women across the Company and their relative
positions; and
•
champions initiatives to promote diversity in the workplace,
including the Breville Emerging Leaders program.
Workplace equality
In accordance with the requirements of the Workplace Gender
Equality Act 2012 (Act), Breville Pty Limited lodged its annual
compliance report with the Workplace Gender Equality Agency.
This report is available on the corporate governance section of
the Company’s website: https://brevillegroup.com/corporate-
governance/
Evaluating the performance of the Board
The Lead Independent Director is responsible for evaluating the
Board’s performance by way of an annual internal assessment.
This process involves a structured questionnaire, through which
each Director provides feedback in relation to the performance
of the Board, the Chair and other Board members. This
feedback is reported by the Lead Independent Director to the
Board following the assessment and a plan for improvements is
implemented.
The Board conducted an internal evaluation of its performance
during FY24.
Principle 1: Lay solid foundations for
management and oversight continued
54 Breville Group Limited annual report 2024
Evaluating the performance of senior executives
The performance of the Company’s senior executives is
reviewed against specific and measurable qualitative and
quantitative performance criteria, which includes:
•
financial measures of the Company’s performance;
•
development and achievement of the Company’s strategic
objectives;
•
development of management and staff;
•
compliance with legislative and Company policy
requirements; and
•
achievement of key performance indicators.
All senior executives were subject to an annual performance
review with their direct manager during the reporting period.
Principle 2: Structure the Board to be
effective and add value
Board composition
The Company’s constitution states that there must be a
minimum of three Directors and contains detailed provisions
concerning their tenure. The Board currently comprises eight
Non-Executive Directors and one Executive Director.
Board Skills and Experience
The Board has developed a skills matrix to assess the skills,
knowledge and experience of the Directors, comprising those
it considers necessary for the effective governance of the
business. Key skills and experience assessed include:
•
Strategy and leadership: The ability to define and lead the
implementation of strategic objectives in a large, complex
organisation.
•
Product development: Experience in product design,
development and engineering.
•
Marketing: Senior executive experience in sales,
marketing, customer experience and /or business
development.
•
Consumer-orientated digital technology: Experience
developing and applying digital and emerging technologies
to consumer products, as well as knowledge of cyber-
security and information-security frameworks.
•
Multinational businesses and global markets:
Senior executive experience in international business,
with exposure to diverse political, cultural and regulatory
operating environments.
•
Retail and consumer goods: Experience in, and
knowledge of, the retail and consumer goods sector,
including brand, inventory and supply chain management.
•
Risk management: Experience anticipating, identifying
and managing financial, non-financial and emerging risks,
and overseeing the implementation and effectiveness of risk
management strategies, frameworks and controls.
•
Corporate governance: Experience in corporate
governance, particularly the legal and regulatory frameworks
relevant to listed companies.
•
Financial acumen: Expertise in financial accounting and
reporting, tax, the assessment of internal controls and / or
corporate finance.
•
Mergers, acquisitions, and capital raisings: Experience
in the development and implementation of mergers and
acquisitions, and other corporate transactions.
•
Human resources and remuneration: Experience in
human resources matters, including culture, workplace
health and safety, diversity and inclusion, learning and
development, Executive remuneration and incentivisation
and succession planning.
•
Sustainability: A sound understanding of sustainability
best practice in managing the risks and opportunities arising
from environmental and social matters, such as climate
change, biodiversity, human rights and modern slavery.
•
Stakeholder relations: Experience in the development and
maintenance of relationships with stakeholders, including
investors, regulators, suppliers and customers.
The Board considers that, collectively, it has the skills and
experience to discharge its obligations effectively.
Director independence
The Board regularly reviews the independence of each Director
with reference to the Company’s ‘Criteria for assessing
independence of Directors’. Consistent with the Council’s
recommendations, independent Directors of the Company are
those who are not involved in the day-to-day management
of the Company and are free of any interest, position or
relationship that might influence, or reasonably be perceived
to influence, in a material respect their capacity to bring an
independent judgement to bear on matters before the Board
and to act in the best interests of the Company as a whole,
rather than those of an individual shareholder or other party.
In accordance with this definition of independence, and the
materiality thresholds outlined in the abovementioned policy, it
is the Board’s view that Tim Baxter, Peter Cowan, Dean Howell,
Lawrence Myers, Kate Wright and Tuula Rytilä are independent
Directors. The Board therefore has a majority of independent
directors. The independence of both Mr Myers and Mr Howell
is reconfirmed in light of their tenure with the Company, given
their track record of independent opinion and action, and the
fact that the Executive team has substantially changed over
the last 10 years. Thus, Mr Myers’ and Mr Howell’s tenure in
working with the current leadership team is no longer than that
of several other members of the Board.
The following Directors are not considered to be independent
for the reasons outlined:
•
Timothy Antonie (Non-Executive Chair) is a Non-Executive
Director of Premier Investments Ltd, a substantial
shareholder of the Company;
•
Sally Herman (Non-Executive Director) is a Non-Executive
Director of Premier Investments Ltd, a substantial
shareholder of the Company; and,
•
Jim Clayton (Managing Director) in his dual role as
Managing Director and Group CEO is not considered
independent.
Regardless of whether Directors are classified as independent,
all Directors are expected to bring independent views and
judgement to Board deliberations. In addition, Board members
with a material personal interest in a matter before the Board
are not permitted to be present during discussions or to vote on
the matter, unless otherwise agreed by the Board.
Corporate governance statement continued
Principle 1: Lay solid foundations for
management and oversight continued
55
Breville Group Limited annual report 2024
In accordance with good corporate governance practice,
where the Chair of the Board is not an independent Director,
the Board considers it appropriate to designate an independent
Director to serve in a lead capacity to coordinate the activities
of the other independent Directors, including acting as principal
liaison between the independent Directors and the Chair, and
representing the Board as the Lead Independent Director when
the Chair is unable to do so because of their non-independent
status. As the current Chair, Mr Antonie, is not an independent
Director, the Board has appointed Mr Myers as its Lead
Independent Director and Deputy Chair.
People Performance Remuneration and Nominations
Committee
The PPRNC’s responsibilities include overseeing the nomination
and succession of both key Executive roles and Non-Executive
Board roles. These are in addition to its responsibilities relating
to people and remuneration matters outlined on pages 52 and
57.
Further details regarding the PPRNC’s operation and
responsibilities are set out its charter, available at
https://brevillegroup.com/corporate-governance/
The PPRNC is currently structured such that:
•
it is comprised solely of Non-Executive Directors;
•
it is chaired by an independent Director; and
•
has three members all of whom are independent.
The members of the PPRNC as at the date of this report are:
•
Kate Wright (Chair)
•
Dean Howell
•
Lawrence Myers
All Non-Executive Directors have an open invitation to attend
PPRNC meetings. For details on the number of meetings of the
PPRNC held during the year and Directors’ attendance at those
meetings, refer to the Directors’ Report on page 50.
Access to independent advice
There are procedures in place to enable Directors, in connection
with their duties and responsibilities as Directors, to seek
independent professional advice at the expense of the
Company. Prior written approval of the Chair is required, which
will not be unreasonably withheld.
Induction and continuing professional development
Newly appointed Directors participate in an extensive induction
program. This includes the provision of information relevant to
their role as a listed company Director, and briefings with other
Directors and key members of management on the Company’s
strategy, operations, structure and material risks.
The Board annually assesses whether there is a need for
Directors to undertake professional development to maintain the
skills and knowledge required to perform their role effectively.
It does this with reference to the Board skills matrix, the Board’s
annual performance review, as well as new and emerging
business, governance or compliance issues relevant to the
Company. More generally, the Board keeps up to date with
industry and regulatory developments through regular briefings
from senior management and external subject-matter experts
at its Board and committee meetings. For example, during the
year, the Board received educational sessions on cyber security,
the implications of AI technology and the status of capital
markets, and the SCom received a detailed briefing on the new
Australian Sustainability Reporting Standards (ASRS).
Principle 3: Instil a culture of acting lawfully,
ethically, and responsibly
Values
The culture and values of the Company, led by the Board and
supported by policy and procedure, underpin the ethical and
responsible behaviour expected of all Directors and employees
of the Company. The Company’s values can be found in the
‘About’ section of the Company’s website www.brevillegroup.
com. Relevant policies include the Code of Conduct, Anti-
bribery and Corruption Policy and Whistleblower Protection
Policy, as detailed below.
Code of Conduct
The Board has formally adopted a Code of Conduct for all
Directors and employees. The Code aims at maintaining
the highest ethical standards, corporate behaviour and
accountability across the Company. These obligations are
also consistent with the duties imposed on Directors by the
Corporations Act. New employees are required to read and
agree to the Code of Conduct as part of the onboarding
process. Any breaches of the Code of Conduct are reported to
the Board through the Group CFO.
A copy of the Code of Conduct is available on the Company’s
website: https://brevillegroup.com/corporate-governance/
Anti-bribery and Corruption Policy
The Company has an Anti-Bribery and Corruption Policy which
prohibits Directors and employees from engaging in any activity
that constitutes bribery or corruption and from accepting other
improper inducements and / or payments.
Any material incidents of bribery or corruption are reported to
the Board through the Group CFO.
A copy of the Anti-bribery and Corruption Policy is available on
the Company’s website: https://brevillegroup.com/corporate-
governance/
Whistleblower Protection Policy
The Company has a Whistleblower Protection Policy that sets
out clear processes for employees and other parties to make
protected disclosures regarding improper conduct. The Board is
informed of material incidents reported under this policy.
A copy of the Whistleblower Protection Policy is available on
the Company’s website: https://brevillegroup.com/corporate-
governance/
Principle 2: Structure the Board to be
effective and add value continued
56 Breville Group Limited annual report 2024
Principle 4: Safeguard integrity of corporate
reports
Audit and Risk Committee
The Board has a combined audit and risk committee in the form
of the ARC. The audit-related responsibilities of the ARC include
reviewing and assessing the adequacy of the Company’s
corporate reporting process, reviewing and approving the
scope of the audit plan of the external auditor, and overseeing
the Company’s approach to internal risk management and
tax management. The ARC also has other risk-related
responsibilities, as outlined on page 57.
Details of the ARC’s operation and responsibilities are set out
its charter, available at https://brevillegroup.com/corporate-
governance/
The ARC is currently structured such that:
•
it is comprised solely of Non-Executive Directors;
•
it is chaired by an independent Director, who is not chair of
the Board; and
•
it has three members all of whom are independent
Directors.
The members of the ARC as at the date of this report are:
•
Mr Lawrence Myers (Chair)
•
Mr Dean Howell
•
Ms Kate Wright
All Non-Executive Directors have an open invitation to attend
ARC meetings.
The Directors’ Report, on page 50, outlines the number of
ARC meetings held during the year and directors’ attendance
at those meetings. It also outlines the qualifications of the ARC
members on pages 12 to 13.
CEO and CFO Declaration
Before the Board approves the Company’s half-year and
full-year financial statements, it receives from the Group CEO
and Group CFO a written declaration that, in their opinion,
the financial records of the Company have been properly
maintained and that the financial statements comply with all
applicable accounting standards and give a true and fair view
of the financial position and performance of the Company, and
that their opinion has been formed on the basis of a sound
system of risk management and internal control which is
operating effectively.
Periodic disclosures that are not subject to external audit are
reviewed and presented to the Board for approval and are
subject to rigorous internal review prior to publication.
Principle 5: Make timely and balanced
disclosure
Continuous disclosure
The Board has adopted a Continuous Disclosure Policy that
outlines how the Company seeks to comply with its continuous
disclosure obligations under the ASX Listing Rules. This policy is
available on the Company’s website: https://brevillegroup.com/
corporate-governance/
The Board receives and approves all material market
announcements before release and is notified once an
announcement has been released to the ASX.
Any substantive analyst presentations are released on the ASX
Market Announcements Platform ahead of the any presentation
or briefing.
Principle 6: Respect the rights of security
holders
Communication policy
The Company is committed to providing all shareholders with
comprehensive, timely and equal access to information about
its activities to enable them to make informed investment
decisions. The Company’s Shareholder Communication Policy
is available on the Company’s website, together with relevant
information regarding the Company’s governance: https://
brevillegroup.com/corporate-governance/
The Company aims to facilitate effective communication with
shareholders in numerous ways, including through:
•
announcements released to the ASX Market
Announcements Platform, including its annual and half year
results;
•
the Annual General Meeting (AGM), which shareholders
are encouraged to attend and in which shareholders are
encouraged to participate, including by exercising their
voting rights and asking questions of the Chair and the
Board and the external auditor; the Company requires that
all substantive resolutions at the AGM, or any other meeting
of shareholders, are decided by a poll rather than a show of
hands;
•
an investor relations program, which includes scheduled
and ad-hoc briefing sessions with investors, analysts and
other stakeholders;
•
maintenance of the Company website which provides
up-to-date information about the Company, its governance
framework and recent ASX announcements;
•
lodging with the ASX Market Announcements Platform any
presentations to be provided at investor conferences before
they are presented, and
•
notifications from the Company’s share registry.
Electronic communication
Shareholders may send and elect to receive communications
from the Company’s share registry electronically. Shareholders
are also able to send communications to the Company and
receive responses to these communications electronically.
Principle 7: Recognise and manage risk
Risk management
The Company is committed to the identification, monitoring
and management of risks associated with its business activities
including financial, operational, compliance, climate, ethical
conduct, brand, technology, employee welfare and product
quality risks. The Company has embedded in its management
and reporting systems a number of risk management controls.
These include:
•
a presentation delivered at least bi-annually to the ARC
and Board of the risk register and risk matrix identifying key
risks, mitigants and the residual risk relative to Board risk
appetite;
Corporate governance statement continued
57
Breville Group Limited annual report 2024
•
an extensive controls self-assessment process covering all
units and key controls;
•
policies and procedures for the management of financial
risk and treasury operations including exposures to foreign
currencies and movements in interest rates;
•
annual strategic planning sessions at the Executive and
Board level, with monitoring at each Board meeting;
•
annual budgeting and monthly reporting systems for all
business units that enable the monitoring of progress
against performance targets and the evaluation of trends;
•
policies and procedures that facilitate management of the
Company’s material business risks; and
•
guidelines and limits for approval, including capital
expenditure, significant contracts, acquisitions and
disposals, actual or contingent liabilities, borrowings and
legal matters.
Management reports to the Board on the Company’s risk
identification and management, internal control and governance
systems, and the effectiveness of the underlying processes
in managing the Company’s material business risks. The
Company does not currently operate with a dedicated internal
audit function, a position that is reviewed periodically. As
outlined above, the Company conducts an extensive control
self-assessment, a twice-yearly enterprise-wide risk register
review and external audits.
Audit and Risk Committee
As previously set out, the Company has a combined audit
and risk committee in the form of the ARC. In addition to the
audit-related responsibilities set out on page 56, the ARC is
responsible for monitoring the adequacy of and management’s
performance against the Company’s risk management
framework, considering the effectiveness of the Company’s
internal controls relating to both financial and non-financial risks,
reviewing material incidents involving fraud or a breakdown
of the Company’s risk controls and receiving reports from
management on new and emerging sources of risk.
Each year, including in FY24, the ARC reviews the Company’s
risk management framework to satisfy itself that it continues to
be sound and that the Company is operating with due regard to
the risk appetite set by the Board.
Further details regarding the ARC, including its composition, are
included on page 56.
Sustainability Committee
The SCom has oversight responsibilities in relation to the
Company’s environmental sustainability strategy, risks and
opportunities, and the integrity of the Company’s sustainability
reporting.
The Company’s exposure to economic, environmental and
social sustainability risks, together with how these risks are
managed, are detailed in the Operating and Financial Review
section of the Directors’ Report.
Details of the SCom’s operation and responsibilities are set out
its charter, available at https://brevillegroup.com/corporate-
governance/
The SCom is currently structured such that:
•
it is comprised of only Non-Executive Directors;
•
it is chaired by an independent Director; and
•
it has four members, a majority of whom are independent.
The members of the SCom as of the date of this report are:
•
Mr Peter Cowan (Chair)
•
Ms Sally Herman
•
Ms Kate Wright
•
Mr Dean Howell
All Non-Executive Directors have an open invitation to attend
SCom meetings.
For details on the number of meetings of the Sustainability
Committee held during the year and Directors’ attendance at
those meetings, refer to the Directors’ Report on page 50.
Principle 8: Remunerate fairly and
responsibly
People, Performance, Remuneration and Nominations
Committee
In addition to its people and nomination related responsibilities
outlined on pages 52 and 53, the PPRNC is responsible for
overseeing the remuneration and incentivisation of both key
Executive and Non-Executive Board roles, as well as the
remuneration strategy for the Company. This includes reviewing
and making recommendations to the Board in relation to short-
term and long-term incentives, employee incentive plan terms
and compliance with all applicable regulatory requirements.
Further details regarding the PPRNC, including its composition,
are included on page 55.
Remuneration disclosure
For details of the Company’s remuneration philosophy and
framework, and the remuneration received by Key Management
Personnel (KMP) in the current period, please refer to the
Remuneration Report contained in the Directors’ report on
pages 31 to 50.
Equity-based remuneration schemes and share trading
The Company currently operates an equity-based remuneration
scheme, the details of which are disclosed in the Remuneration
Report, as well as in any notice of meeting seeking shareholder
approval for a Director to participate in a particular scheme.
The Company has established a Minimum Shareholding
Guideline Policy, through which it encourages all Executive KMP
and Non-Executive Directors to maintain a minimum holding of
Company shares in order to strengthen alignment between their
interests and the interests of shareholders.
The Company also has a Securities Trading Policy, available in
the corporate governance section of the Company’s website
https://brevillegroup.com/corporate-governance, which assists
Directors and employees to understand and comply with insider
trading laws and outlines the procedures that must be followed
when dealing in Company securities, including those received
under an equity-based remuneration scheme.
Pursuant to the Securities Trading Policy, participants in the
Company’s equity-based remuneration schemes are not
permitted to enter into any agreement or arrangement (including
options and derivatives) which limits the economic risk of
participating in the scheme.
Principle 7: Recognise and manage risk
continued
58 Breville Group Limited annual report 2024
Consolidated income statement
for the year ended 30 June 2024
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Revenue
3(a)
1,529,993
1,478,554
Cost of sales
3(b)
(973,055)
(961,612)
Gross profit
556,938
516,942
Other income
228
778
Employee benefits expenses
3(e)
(196,526)
(183,066)
Premises and utilities expenses
(13,486)
(13,670)
Advertising and marketing expenses
(54,905)
(52,721)
Other expenses
3(d)
(46,751)
(50,100)
Earnings before interest, tax, depreciation & amortisation (EBITDA)
245,498
218,163
Depreciation and amortisation expense
3(c)
(59,785)
(46,142)
Earnings before interest & tax (EBIT)
185,713
172,021
Finance costs
3(f)
(22,457)
(21,699)
Finance income
3(f)
2,431
669
Profit before income tax
165,687
150,991
Income tax expense
4
(47,180)
(40,783)
Net profit after income tax for the year attributable to members of
Breville Group Limited
118,507
110,208
Cents
Cents
Earnings per share for profit attributable to the ordinary equity holders of
the Company:
Basic earnings per share
13
82.7
77.2
Diluted earnings per share
13
81.8
76.6
The accompanying notes form an integral part of this consolidated income statement.
59
Breville Group Limited annual report 2024
Consolidated statement of comprehensive income
for the year ended 30 June 2024
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Net profit after income tax for the year
118,507
110,208
Other comprehensive income
Items that may be reclassified to profit or loss
Foreign currency translation differences
(7,988)
26,986
Net change in fair value of cash flow hedges
(9,036)
(10,887)
Income tax on other comprehensive income
4
7,318
4,163
Other comprehensive income for the year,
net of income tax
(9,706)
20,262
Total comprehensive income for the year attributable to:
Owners of Breville Group Limited
108,801
130,470
Total comprehensive income for the year attributable to owners of
Breville Group Limited arises from:
Continuing operations
108,801
130,470
The accompanying notes form an integral part of this consolidated statement of comprehensive income.
60 Breville Group Limited annual report 2024
Consolidated statement of financial position
as at 30 June 2024
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Current assets
Cash and cash equivalents
5
137,772
84,155
Trade and other receivables
6
282,017
276,753
Inventories
7
332,790
439,633
Current tax receivables
4
6,930
4,366
Derivative financial instruments
16
3,942
14,200
Other financial assets
16
559
1,711
Total current assets
764,010
820,818
Non-current assets
Property, plant and equipment
8
62,858
53,766
Deferred tax assets
4
29,241
29,112
Right-of-use assets
10
65,431
69,968
Intangible assets
9
410,288
399,028
Other financial assets
16
9,243
2,160
Total non-current assets
577,061
554,034
Total assets
1,341,071
1,374,852
Current liabilities
Trade and other payables
6
273,269
261,336
Lease liabilities
10
22,020
19,777
Current tax liabilities
4
9,376
6,285
Borrowings
15
2,735
3,245
Provisions
6
30,337
29,699
Derivative financial instruments
16
207
1,430
Total current liabilities
337,944
321,772
Non-current liabilities
Borrowings
15
81,431
202,200
Lease liabilities
10
49,797
55,272
Deferred tax liabilities
4
19,413
22,155
Provisions
6
4,272
3,794
Total non-current liabilities
154,913
283,421
Total liabilities
492,857
605,193
Net assets
848,214
769,659
Equity
Equity attributable to equity holders of Breville Group Limited
Issued capital
14
401,129
385,541
Reserves
14
28,977
39,337
Retained earnings
418,108
344,781
Total equity
848,214
769,659
The accompanying notes form an integral part of this consolidated statement of financial position.
61
Breville Group Limited annual report 2024
Consolidated statement of changes in equity
for the year ended 30 June 2024
Consolidated
Note
Issued
capital
$’000
Foreign
currency
translation
$’000
Employee
equity
benefits
reserve
$’000
Cash flow
hedges
$’000
Retained
earnings
$’000
Total
$’000
2024
At 1 July 2023
385,541
34,526
(4,128)
8,939
344,781
769,659
Foreign currency translation reserve
-
(7,988)
-
-
-
(7,988)
Cash flow hedges
-
-
-
(9,036)
-
(9,036)
Income tax on items taken directly to equity
4
-
-
4,607
2,711
-
7,318
Total other comprehensive income
for the year
-
(7,988)
4,607
(6,325)
-
(9,706)
Profit for the year ended
-
-
-
-
118,507
118,507
Total comprehensive income
for the year ended
-
(7,988)
4,607
(6,325)
118,507
108,801
Transactions with owners in their capacity as owners:
Dividends paid
12
-
-
-
-
(45,180)
(45,180)
Ordinary shares issued for Performance Rights Plan (LTI) and
Fixed Deferred Remuneration Plan, net of transaction costs
and tax
14(a)
15,588
-
(15,620)
-
-
(32)
Ordinary shares acquired by the Trustee of the Breville
Group Performance Share Plan
14(b)
(14,940)
-
-
-
-
(14,940)
Transferred to participants of the Performance Rights Plan
(LTI) and Fixed Deferred Remuneration Plan
14(b)
14,940
-
-
-
-
14,940
Share-based payments
3(e)
-
-
14,966
-
-
14,966
At 30 June 2024
401,129
26,538
(175)
2,614
418,108
848,214
2023
At 1 July 2022
323,165
7,540
(10,255)
16,560
277,407
614,417
Foreign currency translation reserve
-
26,986
-
-
-
26,986
Cash flow hedges
-
-
-
(10,887)
-
(10,887)
Income tax on items taken directly to equity
4
-
-
897
3,266
-
4,163
Total other comprehensive income
for the year
-
26,986
897
(7,621)
-
20,262
Profit for the year
-
-
-
-
110,208
110,208
Total comprehensive income
for the year ended
-
26,986
897
(7,621)
110,208
130,470
Transactions with owners in their capacity as owners:
Dividends paid
12
-
-
-
-
(42,834)
(42,834)
Ordinary shares issued on acquisition of Lelit Srl, net of
transaction costs
14(a)
55,703
-
-
-
-
55,703
Ordinary shares issued for Performance Rights Plan (LTI) and
Fixed Deferred Remuneration Plan, net of transaction costs
and tax
14(a)
6,673
-
(6,690)
-
-
(17)
Ordinary shares acquired by the Trustee of the Breville
Group Performance Share Plan
14(b)
(6,093)
-
-
-
-
(6,093)
Transferred to participants of the Performance Rights Plan
(LTI) and Fixed Deferred Remuneration Plan
14(b)
6,093
-
-
-
-
6,093
Share-based payments
3(e)
-
-
11,920
-
-
11,920
At 30 June 2023
385,541
34,526
(4,128)
8,939
344,781
769,659
The accompanying notes form an integral part of this consolidated statement of changes in equity.
62 Breville Group Limited annual report 2024
Consolidated statement of cash flows
for the year ended 30 June 2024
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Cash flows from operating activities
Receipts from customers
1,617,072
1,474,092
Payments to suppliers and employees
(1,253,165)
(1,319,631)
Finance income received
2,431
669
Finance costs paid
(22,457)
(21,699)
Income tax paid
(41,266)
(43,177)
Net cash flows from operating activities
5(c)
302,615
90,254
Cash flows from investing activities
Purchase of property, plant and equipment
8
(24,925)
(20,479)
Proceeds from sale of property, plant and equipment
257
44
Development of intangible assets
9
(37,194)
(32,764)
Acquisition of subsidiary, net of cash acquired
21(a)
-
(79,647)
Net cash (used in) investing activities
(61,862)
(132,846)
Cash flows from financing activities
Proceeds from borrowings
5(b)
202,036
399,471
Repayment of borrowings
5(b)
(322,722)
(387,212)
Equity dividends paid
12(a)
(45,180)
(42,834)
Principal elements of lease payments
10
(20,547)
(18,303)
Net cash (used in) financing activities
(186,413)
(48,878)
Net increase / (decrease) in cash and cash equivalents
54,340
(91,470)
Cash and cash equivalents at the beginning of the financial year
84,155
168,256
Net foreign exchange difference
(723)
7,369
Cash and cash equivalents at end of year
5
137,772
84,155
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
63
Breville Group Limited annual report 2024
Key numbers
1
Summary of material accounting policies
2
Operating segments
3
Revenue and expenses
4
Income tax
5
Cash and cash equivalents
6
Receivables, payables and provisions
7
Inventories
8
Property, plant and equipment (PPE)
9
Non-current assets - intangible assets
10
Leases
11
Impairment testing of goodwill and intangibles with indefinite lives
Capital management
12
Dividends
13
Earnings per share
14
Issued capital and reserves
15
Borrowings
16
Financial risk management
17
Interests in other entities
18
Parent entity information
Further details
19
Share-based payments
20
Related party transactions
21
Business combination
22
Auditor’s remuneration
23
Contingencies
24
Events occurring after the reporting period
25
Other accounting policies
Notes to the financial statements for the year ended 30 June 2024
64 Breville Group Limited annual report 2024
Notes to the financial statements for the year ended 30 June 2024
Key numbers
Note 1. Summary of material accounting
policies
Breville Group Limited is a for profit company limited by shares
incorporated in Australia. Breville Group Limited shares are
quoted on the Australian Securities Exchange.
This financial report covers the consolidated entity comprising
Breville Group Limited and its subsidiaries (Company or Group).
A description of the Group’s operations and of its principal
activities is included in the operating and financial review in the
Directors’ Report on pages 13 to 30. The Directors' Report is
unaudited (except for the Remuneration Report) and does not
form part of the financial report.
(a) Basis of preparation
The financial report is a general-purpose financial report, which
has been prepared in accordance with the requirements of the
Corporations Act 2001 and Australian Accounting Standards.
The financial report has also been prepared on a historical cost
basis, except for derivative financial instruments which have
been measured at fair value.
The financial report is presented in Australian dollars and all
values are rounded to the nearest thousand dollars ($'000)
unless otherwise stated under the option available to the
company under ASIC Corporations (Rounding in Financial /
Directors Reports) Instrument 2016 / 191. The Company is an
entity to which the class order applies.
Where necessary, comparatives have been reclassified and
repositioned for consistency with current year disclosures.
(b) Compliance with IFRS
The financial report complies with Australian Accounting
Standards as issued by the Australian Accounting Standards
Board and International Financial Reporting Standards (IFRS) as
issued by the International Accounting Standards Board.
(c) Basis of consolidation
The consolidated financial statements comprise the financial
statements of Breville Group Limited and its subsidiaries as at
30 June each year.
Subsidiaries are all those entities over which the Group
has control. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those
returns through its power to direct the activities of the entity. The
existence and effect of potential voting rights that are currently
exercisable or convertible are considered when assessing
whether the Group controls another entity.
The financial statements of subsidiaries are prepared for the
same reporting period, using consistent accounting policies. In
preparing the consolidated financial statements, all inter-Group
balances and transactions, income and expenses and profit
and loss resulting from intra-Group transactions have been
eliminated in full.
Subsidiaries are fully consolidated from the date on which
control is obtained by the Group and cease to be consolidated
from the date on which control is transferred out of the Group.
The acquisition of subsidiaries is accounted for using the
purchase method of accounting. The purchase method
of accounting involves allocating the cost of the business
combination to the fair value of assets acquired and the
liabilities and contingent liabilities assumed at the date of
acquisition.
(d) Business combinations
The excess of the consideration transferred and the amount of
any non-controlling interest in the acquiree over the fair value of
the net identifiable assets acquired is recorded as goodwill. If
those amounts are less than the fair value of the net identifiable
assets of the subsidiary acquired and the measurement of
all amounts has been reviewed, the difference is recognised
directly in profit or loss as a bargain purchase. Further details
are provided in note 21.
(e) Foreign currency translation
(i) Functional and presentation currency
Items included in the consolidated financial statements of each
of the Group's entities are presented in Australian dollars ($),
which is Breville Group Limited's functional and presentation
currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional
currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are generally recognised
in profit or loss. They are deferred in equity if they relate to
qualifying cash flow hedges and qualifying net investment
hedges or are attributable to part of the net investment in a
foreign operation.
(f) Significant accounting judgements, estimates
and assumptions
The carrying amounts of certain assets and liabilities are often
determined based on estimates and assumptions of future
events. The key estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying
amounts of certain assets and liabilities within the next annual
reporting period are:
Impairment of goodwill and intangibles with indefinite
useful lives
The Group determines whether goodwill and intangibles with
indefinite useful lives are impaired at least on an annual basis.
This requires an estimation of the recoverable amount of the
cash generating units to which the goodwill and intangibles with
indefinite useful lives are allocated. The assumptions used in
this estimation of recoverable amount and the carrying amount
of goodwill and intangibles with indefinite useful lives are
discussed in note 11.
65
Breville Group Limited annual report 2024
Share-based payment transactions
The Group measures the cost of equity-settled transactions
with employees by reference to the fair value of the equity
instruments at the date at which they are granted. The fair value
of the equity-settled performance rights granted is estimated
as of the date of grant using a Monte-Carlo simulation model
or Black Scholes option-pricing model, taking into account the
terms and conditions upon which the performance rights were
granted. These assumptions are detailed in note 19.
Taxes
Uncertainties exist with respect to the interpretation of complex
tax regulations, changes in tax laws, and the amount and timing
of future taxable income. Given the wide range of international
business relationships and the long-term nature and complexity
of existing contractual agreements, differences arising between
the actual results and the assumptions made, or future changes
to such assumptions, could necessitate future adjustments to
tax income and expense already recorded.
The Group establishes provisions, based on reasonable
estimates, for possible consequences of audits by the tax
authorities of the respective countries in which it operates. The
amount of such provisions is based on various factors, such as
experience of previous tax audits and differing interpretations
of tax regulations by the taxable entity and the responsible
tax authority. Such differences of interpretation may arise on a
wide variety of issues depending on the conditions prevailing
in the respective Group Company’s domicile. As the Company
assesses the probability for litigation and subsequent cash
outflow with respect to taxes as remote, no contingent liability
has been recognised.
The Organisation for Economic Co-operation and Development
(OECD) / G20 Inclusive Framework on Base Erosion and Profit
Shifting (BEPS) published the Pillar Two model rules. These
are aimed at ensuring that large corporate groups are subject
to a minimum taxation at a 15 percent rate in each jurisdiction
where they operate. The Group is in the scope of the Pillar
Two Model Rules and has adopted the amendments to IAS
12. It is unclear if the Pillar Two model rules create additional
temporary differences, whether to remeasure deferred taxes for
the Pillar Two model rules and which tax rate to use to measure
deferred taxes. In response to this uncertainty, on 23 May 2023
and 27 June 2023, respectively, the IASB and AASB issued
amendments to IAS 12 ‘Income taxes’ introducing a mandatory
temporary exception to the requirements of IAS 12 under which
a company does not recognize or disclose information about
deferred tax assets and liabilities related to the proposed OECD
/ G20 BEPS Pillar Two model rules. The Group applied the
temporary exemption at 30 June 2024.
Warranty and faulty goods
Provision for warranty and faulty goods is recognised at the
date of sale of the relevant products, at the Group’s best
estimate of the expenditure required to settle the Group’s
liability. Factors that could impact the estimated claim
information include the success of the Group’s quality initiatives,
and allowable returns in agreed terms with retailers, as well
as parts and labour costs. The related carrying amounts are
disclosed in note 6.
Allowance for uncollectible receivables
Estimation is required to assess the risk of probability weighted
outcomes in determining an adequate level of provisions for
uncollectible receivables. As required by accounting standards
the Group considers past, current and future economic
conditions. The Group uses a matrix based approach and
groups its customers into different risk portfolios when
measuring its expected credit losses.
(g) Notes to the financial statements
Notes relating to individual line items in the financial statements
include accounting policy information where it is considered
relevant to an understanding of these items. Details of the
impact of new accounting policies and all other accounting
policy information are disclosed in note 25 of the financial
report.
Note 2. Operating segments
The Group has identified its operating segments in line with
AASB 8 Operating Segments based on the internal reports
that are reviewed by the chief operating decision makers
(Chief Executive Officer and Board of Directors) in assessing
performance and in determining the allocation of resources. The
Group’s external reporting segments are ‘Global Product’ and
‘Distribution’.
‘Global Product’ sells premium products designed and
developed by BRG, which are sold globally. Products may
be sold directly or through 3rd parties, and may be branded
Breville®, Sage®, Baratza®, LELIT® or carry a 3rd party brand.
‘Distribution’ sells products that are designed and developed
by a 3rd party. BRG 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 the Group (e.g. Breville®, Kambrook®),
or they may be distributed under a 3rd party brand.
Note 1. Summary of material accounting
policies continued
66 Breville Group Limited annual report 2024
Note 2. Operating segments continued
(a) Segment results
Consolidated
30 June 2024
30 June 2023
Consolidated 2024
Global
Product
$’000
Distribution
$’000
Total
$’000
Global
Product
$’000
Distribution
$’000
Total
$’000
Segment revenue
1,336,031
193,962
1,529,993
1,279,224
199,330
1,478,554
Cost of sales
(832,966)
(140,089)
(973,055)
(808,656)
(152,956)
(961,612)
Gross Profit
503,065
53,873
556,938
470,568
46,374
516,942
GM%
37.7%
27.8%
36.4%
36.8%
23.3%
35.0%
Total Overhead expenses
-
-
(371,225)
-
-
(344,921)
EBIT
185,713
172,021
Finance income
(22,457)
(21,699)
Finance costs
2,431
669
Profit before income tax
165,687
150,991
(b) Segment revenue
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Global Product
Americas
735,454
701,232
EMEA
325,219
285,774
APAC
275,358
292,218
Total Global Product revenue
1,336,031
1,279,224
Distribution: Revenue generated from USA, Canada, Australia and New Zealand.
Note 3. Revenue and expenses
Consolidated
30 June 2024
$’000
30 June 2023
$’000
(a) Revenue
Sale of goods
1,529,993
1,478,554
Total revenue
1,529,993
1,478,554
(b) Cost of sales
Costs of inventories recognised as an expense
866,831
856,637
Costs of delivering goods to customers
56,550
60,478
Warranty expense
49,674
44,497
Total cost of sales
973,055
961,612
Notes to the financial statements for the year ended 30 June 2024
67
Breville Group Limited annual report 2024
Note 3. Revenue and expenses continued
Consolidated
30 June 2024
$’000
30 June 2023
$’000
(c) Depreciation and amortisation expense
Depreciation - right-of-use assets
21,915
18,239
Depreciation - property, plant and equipment (excl. production tools)
7,151
6,550
Depreciation - production tools
7,578
4,073
Amortisation - computer software
2,453
1,065
Amortisation - development costs
19,970
15,464
Amortisation - customer relationships
718
751
Total depreciation and amortisation expense
59,785
46,142
(d) Other expenses
Net foreign exchange (gain)
(2,087)
(698)
Other product related costs
8,835
9,717
Information technology costs
19,778
19,074
Professional and administration costs
8,455
7,023
Other
11,770
14,984
Total other expenses
46,751
50,100
(e) Employee benefits expenses
Wages and salaries, leave and other employee related benefits
151,610
151,512
Short term incentives
20,049
10,447
Defined contribution plan expense
9,901
9,187
Share-based payments expense
14,966
11,920
Total employee benefits expenses
196,526
183,066
(f) Finance costs / income
Finance costs paid or payable on borrowings and bank overdrafts:
Interest and borrowing costs
17,927
17,559
Interest on lease liabilities
4,530
4,140
Finance costs
22,457
21,699
Finance income
(2,431)
(669)
Total net finance costs
20,026
21,030
Recognition and measurement
Sale of goods
Revenue from Contracts with Customers is recognised at a point in time when the performance obligation of transferring goods to
the buyer has been satisfied and the transaction price can be measured. Goods are considered transferred to the buyer when the
buyer obtains control of those goods, which is at the earlier of delivery of the goods or the transfer of legal title to the buyer. Revenue
is measured at the fair value of the consideration received or receivable, net of returns, allowances, trade discounts and volume
rebates.
Finance costs / income
Borrowing costs are recognised as an expense when incurred. Revenue is recognised as interest accrues using the effective interest
method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant
period using the effective interest, which is the rate that exactly discounts estimated future cash receipts through the expected life of
the financial asset to the net carrying amount of the financial asset.
68 Breville Group Limited annual report 2024
Note 4. Income tax
Consolidated
30 June 2024
$’000
30 June 2023
$’000
The major components of income tax expense are:
Income statement
Current income tax
Current income tax charge
46,402
40,940
Adjustments in respect of current income tax of previous years
(3,788)
(2,001)
Deferred income tax
Relating to the origination and reversal of temporary differences
1,828
2,076
Adjustments in respect of deferred income tax of previous years
2,738
(232)
Total income tax expense reported in the income statement
47,180
40,783
Deferred income tax related to items charged or credited directly to other
comprehensive income
Employee equity benefits reserve
(4,607)
(897)
Net (loss) / gain on revaluation of cash flow hedges
(2,711)
(3,266)
Income tax (benefit) / expense reported in other comprehensive income
(7,318)
(4,163)
A reconciliation between tax expense and the product of accounting profit before income tax multiplied by the parent entity’s
applicable income tax rate is as follows:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Profit before income tax
165,687
150,991
Tax at the Australian tax rate of 30.0% (2023 - 30.0%)
49,706
45,297
Adjustments in respect of income tax of previous years
(1,050)
(2,233)
Effect of different rates of tax on overseas income
(1,657)
(1,368)
Expenditure not allowable for income tax purposes
2,711
1,363
Share Based Payments
(4,455)
(3,638)
Other
1,925
1,362
Income tax expense reported in the income statement
47,180
40,783
Notes to the financial statements for the year ended 30 June 2024
69
Breville Group Limited annual report 2024
Note 4. Income tax continued
Consolidated
Statement of financial position
30 June 2024
$’000
30 June 2023
$’000
Deferred income tax
Deferred income tax at 30 June relates to the following:
Deferred tax assets
Losses available for offset against future taxable income
2,016
2,044
Provisions and accruals
26,995
26,376
Employee benefits
10,755
8,048
Inventory
1,129
771
Employee equity benefits reserve
12,439
7,832
Leases
1,514
1,668
Other
1,909
3,211
Gross deferred income tax assets
56,757
49,950
Set-off of deferred tax assets pursuant to set-off provisions
(27,516)
(20,838)
Deferred tax assets
29,241
29,112
Deferred tax liabilities
Brand names
11,335
12,720
Development costs and production tools
18,419
19,082
Other intangibles
8,449
5,887
Other
1,250
194
Cash flow hedge reserve
1,051
3,762
Accelerated depreciation for tax purposes
6,425
1,348
Gross deferred income tax liabilities
46,929
42,993
Set-off of deferred tax liabilities pursuant to set-off provisions
(27,516)
(20,838)
Deferred tax liabilities
19,413
22,155
Net deferred income tax assets
9,828
6,957
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Movement
Opening Balance
6,957
13,579
Credit / (Debit) to income statement
(4,566)
(1,844)
Credit / (Debit) to equity
7,318
4,163
Acquisition of Lelit Srl
21
-
(7,003)
FX
119
(1,938)
Closing Balance
9,828
6,957
Current income tax
Current tax receivables
6,930
4,366
Current tax liabilities
9,376
6,285
70 Breville Group Limited annual report 2024
At 30 June 2024, there is no recognised or unrecognised deferred income tax liability (2023: $nil) for taxes that would be payable on
the unremitted earnings of certain of the Group’s subsidiaries, as the Group has no current intention of distributing existing retained
earnings in jurisdictions where liability for additional taxation exists should such amounts be remitted.
Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions the Group operates. The legislation will
be effective for the Group’s financial year beginning 1 July 2024. The Group is in scope of the enacted or substantively enacted
legislation and has performed an assessment of the Group’s potential exposure to Pillar Two income taxes. The assessment of the
potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting and financial
statements for the constituent entities in the Group. Based on the assessment, the Pillar Two effective tax rates in most of the
jurisdictions in which the Group operates are above 15%. However, there are a limited number of jurisdictions where the transitional
safe harbour relief may not apply and the Pillar Two effective tax rate is close to 15%. The Group does not expect a material
exposure to Pillar Two income taxes in those jurisdictions.
Recognition and measurement
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amounts expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted by the balance sheet date.
Deferred tax
Deferred income tax is provided on all temporary differences between the tax bases of assets / liabilities and their carrying amounts
at balance sheet date for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable temporary differences except:
•
when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is
not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
or
•
when the taxable temporary difference is associated with investments in subsidiaries and the timing of the reversal of the
temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused
tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and
the carry-forward of unused tax assets and unused tax losses can be utilised, except:
•
when the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset
or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting
nor taxable profit or loss; or
•
when the deductible temporary difference is associated with investments in subsidiaries in which case a deferred tax asset is only
recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit
will be available against which the temporary differences can be utilised.
The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has
become probable that future taxable profit will allow the deferred tax asset to be recovered.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is
realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance
sheet date.
Income taxes in relation to items recognised directly in equity are recognised in equity and not in the income statement.
Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.
Tax consolidation legislation
Breville Group Limited and its wholly-owned Australian resident controlled entities (excluding the Breville Group Performance Share
Plan Trust) have implemented the tax consolidated legislation as of 1 July 2003.
Breville Group Limited is the head entity of the tax consolidated Group. For further information, refer to note 18.
Note 4. Income tax continued
Notes to the financial statements for the year ended 30 June 2024
71
Breville Group Limited annual report 2024
Note 5. Cash and cash equivalents
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Cash at bank and on hand
137,772
84,155
Notes:
- At 30 June 2024, the Group had available $184,200,000 (2023: $266,771,000) of undrawn committed and uncommitted
borrowing and overdraft facilities in respect of which all conditions precedent had been met (see note 15).
- The fair value of cash and cash equivalents is $137,772,000 (2023: $84,155,000).
Cash and cash equivalents
137,772
84,155
Borrowings - Current
(2,735)
(3,245)
Borrowings - Non-current
(81,431)
(202,200)
Net cash / (debt)
53,606
(121,290)
(a) Disclosure of financing facilities
Refer to note 15.
Recognition and measurement
Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short-term deposits with an original
maturity of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk
of changes in value.
For the purposes of the consolidated cash flow statement, cash and cash equivalents consist of cash and cash equivalents as
defined above, net of outstanding bank overdrafts.
(b) Net debt reconciliation
This section sets out an analysis of net debt and the movements in net debt for each of the years presented.
Consolidated
Cash $’000
Borrowings $’000
Total $’000
Net debt as at 1 July 2022
168,256
(172,349)
(4,093)
Cash flows
(91,470)
(12,259)
(103,729)
On Acquisition of Lelit Srl
3,289
(12,349)
(9,060)
Foreign exchange adjustments
4,080
(8,488)
(4,408)
Net (debt) / cash as at 30 June 2023
84,155
(205,445)
(121,290)
Cash flows
55,060
120,686
175,746
Foreign exchange adjustments
(1,443)
593
(850)
Net (debt) / cash as at 30 June 2024
137,772
(84,166)
53,606
72 Breville Group Limited annual report 2024
(c) Reconciliation of net profit after tax for the year to net cash flows from operating activities
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Profit for the year
118,507
110,208
Non-cash adjustments:
Depreciation and amortisation
59,785
46,142
Share-based payments
14,966
11,920
Other
23
304
Net exchange differences
(922)
(2,375)
Changes in assets and liabilities:
Decrease / (increase) in:
Trade receivables, prepayments and other receivables
132
(81,631)
Inventories
102,879
62,366
Other current assets
(2,765)
(1,142)
Non-current assets
2,296
(12,616)
(Decrease) / increase in:
Current liabilities
10,425
(44,617)
Non-current liabilities
(2,711)
1,695
Net cash from operating activities
302,615
90,254
Note 5. Cash and cash equivalents continued
Note 6. Receivables, payables and provisions
Trade and other receivables
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current assets
Trade receivables from contracts with customers
255,810
253,216
Allowance for uncollectible receivables
(9,709)
(9,609)
Trade receivables, net
246,101
243,607
Prepayments and Other receivables
35,916
33,146
Total current trade receivables, prepayments and other receivables
282,017
276,753
Notes:
(a) Trade receivables are non-interest bearing and are generally on 30-60 day terms.
Notes to the financial statements for the year ended 30 June 2024
73
Breville Group Limited annual report 2024
Consolidated
Allowance for uncollectible receivables
30 June 2024
$’000
Carrying amount at the beginning of the year:
9,609
Provision
440
Utilised
(41)
Net exchange differences
(299)
Carrying amount at the end of the year:
9,709
At 30 June 2024 an ageing analysis of those trade receivables (net of allowance for uncollected receivables) are as follows:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current
241,857
235,866
31 – 60 days overdue
2,606
3,987
61+ days overdue
1,638
3,754
Trade receivables, net
246,101
243,607
Trade receivables (net) past due, but not impaired, amount to $4,244,000 (2023: $7,741,000). In all instances each operating unit
has been in contact with the relevant debtor and is satisfied that payment will be received in full or has been provided for.
Recognition and measurement
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost. Bad debts are written off when
incurred. An allowance for uncollectible, or doubtful, receivables is calculated on a probability weighted measure of expected credit
losses using historic, present and future economic conditions. The carrying value and estimated net fair values of the trade and other
receivables is assumed to approximate their fair value, being the amount at which the asset could be exchanged between willing
parties.
Details regarding the effective interest rate and credit risk of current receivables are disclosed in note 16.
Trade and other payables
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current
Trade and other payables – unsecured
273,269
261,336
Total current trade and other payables
273,269
261,336
Recognition and measurement
Current trade and other payables are carried at amortised cost. Trade payables represent liabilities for goods and services provided
to the Group prior to the end of the year, including customer rebates, that are unpaid and arise when the Group becomes obliged
to make future payments in respect of the purchase of these goods and services. The amounts are unsecured, non-interest bearing
and are usually settled on 30 day terms. The carrying value and estimated net fair values of the trade and other payables is assumed
to approximate their fair value, being the amount at which the liability could be settled in a current transaction between willing parties.
Details regarding interest rate, foreign exchange and liquidity risk exposure are disclosed in note 16.
Note 6. Receivables, payables and provisions continued
Trade and other receivables continued
74 Breville Group Limited annual report 2024
Note 6. Receivables, payables and provisions continued
(a) Movement in provisions
Consolidated
Warranty and
faulty goods
$’000
Employee
benefits -
annual leave
$’000
Employee
benefits -
long service
$’000
Total
$’000
Carrying amount at the beginning of the year:
Current
14,932
10,982
3,785
29,699
Non-current
-
-
3,794
3,794
Total
14,932
10,982
7,579
33,493
Movement in provisions during the year:
Amounts utilised during the year
(50,082)
(8,150)
(713)
(58,945)
Additional provisions made in the year
49,674
8,550
1,231
59,455
Net exchange differences
714
(78)
(30)
606
Net movement
306
322
488
1,116
Carrying amount at the end of the year:
Current
15,238
11,304
3,795
30,337
Non-current
-
-
4,272
4,272
Total
15,238
11,304
8,067
34,609
Recognition and measurement
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that
an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of
the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement
is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is
presented in the income statement net of any reimbursement.
Provisions are measured as the present value of management’s best estimate of the expenditure required to settle the present
obligation at the balance sheet date. If the effect of the time value of money is material, provisions are discounted using a current
pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage
of time is recognised as a finance cost.
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Provisions
Current
Warranty and faulty goods
15,238
14,932
Employee benefits – annual leave
11,304
10,982
Employee benefits – long service leave
3,795
3,785
Total current provisions
30,337
29,699
Non-current
Employee benefits – long service leave
4,272
3,794
Total non-current provisions
4,272
3,794
Notes to the financial statements for the year ended 30 June 2024
75
Breville Group Limited annual report 2024
Warranties and faulty goods
Provisions for warranty and faulty goods are recognised at the date of sale of the relevant products. A provision for warranty and
faulty goods represents the present value of the best estimate of the future sacrifice of economic benefits expected that will be
required for warranty and faulty goods claims on products sold. This estimate is based on the historical trends experienced on the
level of repairs and returns. Assumptions used to calculate the provision for warranty and faulty goods were based on the level of
warranty and faulty goods claims experienced during the last year.
Employee benefits - annual leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled
within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured
at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when
the leave is taken and are measured at the rates paid or payable.
Contributions to the defined contribution fund are recognised as an expense as they become payable.
Employee benefits – long service
The provision for employee benefits represents the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date. Consideration is given to the expected future wage and salary levels, experience
of employee departures and periods of service. Expected future payments are discounted using appropriate market yields at the
reporting date to estimate the future cash outflows.
Note 7. Inventories
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current assets
Finished goods and materials
291,367
420,432
Stock in transit
41,423
19,201
Total inventories
332,790
439,633
Recognition and measurement
Inventories are valued at the lower of cost and net realisable value. The cost of inventories comprises all costs of purchase, costs of
conversion and other costs incurred in bringing the inventories to their present location and condition. This includes the transfer from
equity of gains and losses on cash flow hedges of purchases of finished goods. Costs are assigned to individual items of inventory
on a weighted average cost basis.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.
Note 6. Receivables, payables and provisions continued
Provisions continued
(a) Movement in provisions continued
76 Breville Group Limited annual report 2024
Note 8. Property, plant and equipment (PPE)
Consolidated 2024
Notes
PPE (excl.
Production
tools
$’000
Production
tools
$’000
Total
$’000
At the beginning of the year
Cost or fair value
64,179
56,810
120,989
Accumulated depreciation
(44,012)
(23,211)
(67,223)
Net carrying amount
20,167
33,599
53,766
Reconciliation of the carrying amount:
Carrying amount at the beginning of year
20,167
33,599
53,766
Additions
11,226
13,699
24,925
Disposals
(259)
(21)
(280)
Depreciation charge
3(c)
(7,151)
(7,578)
(14,729)
Net exchange difference
(824)
-
(824)
Carrying amount at the end of year
23,159
39,699
62,858
At the end of the year
Cost or fair value
73,700
70,474
144,174
Accumulated depreciation and impairment
(50,541)
(30,775)
(81,316)
Net carrying amount
23,159
39,699
62,858
Consolidated 2023
Notes
PPE (excl.
Production
tools
$’000
Production
tools
$’000
Total
$’000
At the beginning of the year
Cost or fair value
40,450
56,607
97,057
Accumulated depreciation
(31,010)
(32,570)
(63,580)
Net carrying amount
9,440
24,037
33,477
Reconciliation of the carrying amount:
Carrying amount at the beginning of year
9,440
24,037
33,477
Additions
8,258
12,221
20,479
Additions from acquisition of Lelit Srl
21
8,002
-
8,002
Disposals
(157)
-
(157)
Depreciation charge
3(c)
(6,550)
(4,073)
(10,623)
Net exchange difference
1,174
1,414
2,588
Carrying amount at the end of year
20,167
33,599
53,766
At the end of the year
Cost or fair value
64,179
56,810
120,989
Accumulated depreciation and impairment
(44,012)
(23,211)
(67,223)
Net carrying amount
20,167
33,599
53,766
Notes to the financial statements for the year ended 30 June 2024
77
Breville Group Limited annual report 2024
A summary of the policies applied to the Group's property, plant and equipment is as follows:
(a) PPE (excl. Production tools)
Internally generated /
Acquired
Acquired
Recognition
PPE (excl. Production tools) is stated at cost less accumulated depreciation and any accumulated
impairment losses. The assets’ residual values, useful lives and depreciation methods are reviewed, and
adjusted if appropriate, at each year end. An item of PPE (excl. Production tools) is derecognised upon
disposal or when no further future economic benefits are expected from its use or disposal. Any gain or
loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds
and the carrying amount of the asset at the time of derecognition) is included in the income statement in
the year in which they arise.
Useful lives
Finite
Depreciation method
Depreciation on plant and equipment (excl. production tools) is calculated on a straight-line basis over
the estimated useful life of between 2 and 10 years. Depreciation on property is calculated on a straight-
line basis over the estimated useful life or in line with local tax regulations. The depreciation method is
reviewed at each year end.
Impairment test
When an indication of impairment exists, an impairment loss is recognised to the extent that the
recoverable amount is lower than the carrying amount.
(b) Production tools
Internally generated /
Acquired
Acquired
Recognition
Production tools are manufacturing components including moulds, dies, jigs, gauges, cutting equipment
and patterns that are used in conjunction with manufacturing equipment. The tools are specified,
purchased and owned by BRG, although they are deployed in our manufacturing partners' plants.
Production tools are stated at cost less accumulated depreciation and any accumulated impairment
losses. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted
if appropriate, at each year end. An item of production tooling is derecognised upon disposal or when
no further future economic benefits are expected from its use or disposal. Any gain or loss arising on
derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset at the time of derecognition) is included in the income statement in the year
in which they arise.
Useful lives
Finite
Depreciation method
Depreciation on production tools is calculated on a straight-line basis over the estimated useful life of
5 years. The depreciation method is reviewed at each year end.
Impairment test
When an indication of impairment exists, an impairment loss is recognised to the extent that the
recoverable amount is lower than the carrying amount.
Note 8. Property, plant and equipment (PPE) continued
78 Breville Group Limited annual report 2024
Note 9. Non-current assets - intangible assets
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Development costs
79,077
66,720
Computer software
7,205
5,059
Customer relationships
331
1,301
Goodwill & Brand Names
323,675
325,948
Total intangible assets (net carrying amount)
410,288
399,028
Consolidated 2024
Notes
Development
costs
$’000
Computer
software
$’000
Customer
relationships
$’000
Goodwill &
Brand Names
$’000
Total
$’000
At the beginning of the year
At cost (gross carrying amount)
178,253
6,798
3,784
325,948
514,783
Accumulated amortisation and impairment
(111,533)
(1,739)
(2,483)
-
(115,755)
Net carrying amount
66,720
5,059
1,301
325,948
399,028
Reconciliation of the carrying amount:
Carrying amount at the beginning of year
66,720
5,059
1,301
325,948
399,028
Additions
32,553
4,641
-
-
37,194
Amortisation
3(c)
(19,970)
(2,453)
(718)
-
(23,141)
Net exchange difference
(226)
(42)
(252)
(2,273)
(2,793)
Carrying amount at the end of year
79,077
7,205
331
323,675
410,288
At the end of the year
At cost (gross carrying amount)
210,337
11,181
3,715
323,675
548,908
Accumulated amortisation and impairment
(131,260)
(3,976)
(3,384)
-
(138,620)
Net carrying amount
79,077
7,205
331
323,675
410,288
Consolidated 2023
Notes
Development
costs
$’000
Computer
software
$’000
Customer
relationships
$’000
Goodwill &
Brand Names
$’000
Total
$’000
At the beginning of the year
At cost (gross carrying amount)
148,850
2,244
1,835
184,402
337,331
Accumulated amortisation and impairment
(94,277)
(573)
(1,434)
-
(96,284)
Net carrying amount
54,573
1,671
401
184,402
241,047
Reconciliation of the carrying amount:
Carrying amount at the beginning of year
54,573
1,671
401
184,402
241,047
Additions
28,514
4,250
-
-
32,764
Additions from acquisition of Lelit Srl
21
34
241
1,296
129,933
131,504
Disposals
(15)
(66)
-
-
(81)
Amortisation
3(c)
(15,464)
(1,065)
(751)
-
(17,280)
Net exchange difference
(922)
28
355
11,613
11,074
Carrying amount at the end of year
66,720
5,059
1,301
325,948
399,028
At the end of the year
At cost (gross carrying amount)
178,253
6,798
3,784
325,948
514,783
Accumulated amortisation and impairment
(111,533)
(1,739)
(2,483)
-
(115,755)
Net carrying amount
66,720
5,059
1,301
325,948
399,028
Notes to the financial statements for the year ended 30 June 2024
79
Breville Group Limited annual report 2024
A summary of the policies applied to the Group's intangible assets is as follows:
(a) Development costs
Internally generated /
Acquired
Internally generated and acquired products and product platforms
Recognition
Capitalised at cost and recognised only after the Group can demonstrate the technical feasibility and
commercial viability of the intangible asset so that it will be available for use or sale, its intention to
complete and its ability to use or sell the asset, how the asset will generate future economic benefits,
the availability of resources to complete the development and the ability to measure reliably the
expenditure attributable to the intangible asset during its development. Following the initial recognition
of the development expenditure, the cost model is applied requiring the asset to be carried at cost less
any accumulated amortisation and accumulated impairment losses. Research costs are expensed as
incurred. Therefore in practice a project is only capitalised when it becomes feasible and meets the
development phase recognition criteria. All costs before this are expensed as incurred as deemed to be
in the research phase.
Useful lives
Finite
Amortisation method
Amortised straight-line over the period of expected future sales, 5 years, from the related launch date on
a straight-line basis. The amortisation method is reviewed at each year end.
Impairment test
Annually and more frequently when an indication of impairment exists. An impairment loss is recognised
to the extent that the recoverable amount is lower than the carrying amount.
(b) Computer software
Internally generated /
Acquired
Internally generated and acquired software
Recognition
Capitalised at cost
Useful lives
Finite
Amortisation method
Amortised over the useful life, not exceeding 7 years, on a straight-line basis. The amortisation method is
reviewed at each year end.
Impairment test
Annually and more frequently when an indication of impairment exists.
(c) Customer relationships
Internally generated /
Acquired
Acquired customer relationships
Recognition
Capitalised at cost or if acquired as part of a business combination at fair value at the date of acquisition
Useful lives
Finite
Amortisation method
Amortised over the useful life, not exceeding 10 years, on a straight-line basis. The amortisation method
is reviewed at each year end.
Impairment test
Annually and more frequently when an indication of impairment exists.
(d) Goodwill and brand names
Internally generated /
Acquired
Acquired goodwill and brand names
Recognition
Initially capitalised at cost, being the excess of the cost of the business combination over the Group’s
interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities.
Capitalised at cost or if acquired as part of a business combination at fair value at the date of acquisition.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Useful lives
Indefinite
Amortisation method
No amortisation
Impairment test
Annually and more frequently when an indication of impairment exists.
The amortisation expense on intangible assets with finite lives is recognised in the consolidated income statement in the expense
category consistent with the function of the intangible asset.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and are recognised in the consolidated income statement when the asset is derecognised.
Note 9. Non-current assets - intangible assets continued
80 Breville Group Limited annual report 2024
Note 10. Leases
This note provides information for leases where the Group is a lessee. The Group does not act as a lessor. BRG leases offices,
vehicles and several of its warehouses. While the warehouses are operated by a third parties, in some instances BRG has the right to
control use and therefore accounts for these contracts as leases.
a) Amounts recognised in the consolidated statement of financial position
Consolidated
Note
30 June 2024
$’000
30 June 2023
$’000
Right-of-use assets
Buildings
65,076
69,484
Vehicles
355
484
Total
10(a)(i)
65,431
69,968
Lease liabilities
Current
22,020
19,777
Non-current
49,797
55,272
Total
71,817
75,049
(i) Additions to the right-of-use assets during FY24 were $13,374,000 (FY23: $40,398,000). Other movements of $4,004,000 (FY23:
$3,153,000) includes foreign exchange differences.
b) Amounts recognised in the consolidated income statement
Consolidated
Note
30 June 2023
$’000
Depreciation charge of right-of-use assets
Buildings
21,719
18,054
Vehicles
196
185
Total
3(c)
21,915
18,239
Finance expenses
Interest expense on lease liabilities (included in finance cost)
3(f)
4,530
4,140
The total cash outflow in the consolidated statement of cash flows for leases during FY24 was $25,077,000 (FY23: $22,443,000).
This amount includes principal lease repayments of $20,547,000 plus interest expense on lease liabilities of $4,530,000 (FY23
principal lease repayments of $18,303,000 plus interest expense on lease liabilities of $4,140,000).
c) The Group’s leasing activities and how these are accounted for
The Group leases various office buildings, third party warehouses and motor vehicles, with rental contracts typically spanning fixed
periods of 1 to 7 years, with some having options to extend.
Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease
and non-lease components based on their relative stand-alone prices.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements
do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may
not be used as security for borrowing purposes.
Notes to the financial statements for the year ended 30 June 2024
30 June 2024
$’000
81
Breville Group Limited annual report 2024
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value
of the following lease payments:
•
fixed payments (including in-substance fixed payments), less any lease incentives receivable
•
variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement
date
•
amounts expected to be payable by the Group under residual value guarantees
•
the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and
•
payments of penalties for terminating the lease, if the lease term reflects the Group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is
generally the case for leases in the Group, the lessee’s incremental borrowing rate is used, being the rate that the individual lessee
would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic
environment with similar terms, security and conditions.
To determine the incremental borrowing rate, the Group:
•
where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes
in financing conditions since third-party financing was received
•
uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by Breville Group Limited,
which does not have recent third-party financing, and
•
makes adjustments specific to the lease, e.g. term, country, currency and security.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period
so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are measured at cost comprising the following:
•
the amount of the initial measurement of lease liability
•
any lease payments made at or before the commencement date less any lease incentives received
•
any initial direct costs, and
•
restoration costs.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If
the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset’s useful
life.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less without a
purchase option. Low-value assets comprise IT equipment and small items of office furniture.
Note 10. Leases continued
c) The Group’s leasing activities and how these are accounted for continued
82 Breville Group Limited annual report 2024
Note 11. Impairment testing of goodwill and intangibles with indefinite lives
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Global Product APAC
- Goodwill
70,715
68,646
- Brand names with indefinite useful lives
13,800
13,800
Global Product Americas
- Goodwill
173,707
178,804
Global Product EMEA
- Goodwill
10,649
10,189
- Brand names with indefinite useful lives
28,920
28,625
Distribution
- Goodwill
8,109
8,109
- Brand names with indefinite useful lives
17,775
17,775
323,675
325,948
All cash generating units
- Goodwill
263,180
265,748
- Brand names with indefinite useful lives
60,495
60,200
Total carrying amount of goodwill and brand names
323,675
325,948
On a consistent basis, goodwill and brand names acquired through business combinations have been allocated to these CGU's
(cash generating units) or groups of CGU's for impairment testing as follows:
•
Global Product APAC
•
Global Product Americas
•
Global Product EMEA
•
Distribution
In all cases the recoverable amount of the individual CGU has been determined based on a value in use calculation using cash flow
projections based on financial budgets approved by the Board.
The pre-tax discount rates applied to cash flow projections are in the range of 10.6% to 12.1% (2023: of 10.9% to 11.7%),
depending on the CGU. This discount rate has been determined using the weighted average cost of capital which incorporates both
the cost of debt and the cost of capital. Cash flows are modelled upon budget year 2025. The next 4 years' growth rate is modelled
in a range of 2% to 15%. Thereafter using a terminal growth rate of 1% to 3% (2023: 2%).
Management has performed sensitivity testing by CGU, based on assessing the effect of changes in revenue growth rates as well as
discount rates. Management considers any reasonable likely combination of changes in these key assumptions would not result in
the carrying value of the goodwill or brand names exceeding the recoverable amount.
Key assumptions used in value in use calculations for the cash generating units for 30 June 2024 and 30 June 2023
The key assumptions on which management has based its cash flow projections when determining the value in use of the cash
generating units are budgeted revenue and Gross Margin. The basis used to determine the value assigned to the budgeted revenue
and Gross Margin are based on past performance and expectations for the future.
Recognition and measurement
Intangible assets – goodwill
The useful life of an intangible asset with an indefinite life is reviewed each reporting period to determine whether indefinite life
assessment continues to be supportable.
For the purpose of impairment testing, goodwill acquired in a business combination shall, from the acquisition date, be allocated to
each of the Group’s cash generating units, or groups of cash generating units, that are expected to benefit from the synergies of the
combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Each unit
or group of units to which the goodwill is so allocated represents the lowest level within the Group at which the goodwill is monitored
for internal management purposes.
Notes to the financial statements for the year ended 30 June 2024
83
Breville Group Limited annual report 2024
Impairment is determined by assessing the recoverable amount of the cash generating unit to which the goodwill relates. When the
recoverable amount of a cash generating unit is less than the carrying amount, an impairment loss is recognised. When goodwill
forms part of a cash generating unit and an operation within that unit is disposed of, the goodwill associated with the operation
disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation.
Goodwill disposed of in this manner is measured based on the relative values of the operation disposed of and the portion of the
cash generating unit retained.
Impairment losses recognised for goodwill are not subsequently reversed.
Impairment of non-financial assets other than goodwill
Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows that are largely
independent of the cash inflows from other assets or groups of assets (cash generating units). Non-financial assets other than
goodwill that suffered impairment are tested for possible reversal of the impairment whenever events or changes in circumstances
indicate that the impairment may have reversed.
Capital management
Note 12. Dividends
Consolidated
30 June 2024
$’000
30 June 2023
$’000
(a) Dividends on ordinary shares declared and paid during the year:
Final dividend for the year ended 30 June 2023 of 15.50 cents per share, 100% franked
(2023: final dividend for 2022 of 15.00 cents per share, 100% franked)
Final fully franked dividend
22,231
21,417
Interim dividend for the year ending 30 June 2024 of 16.00 cents per share, 100% franked
(2023: interim dividend for 2023 of 15.00 cents per share, 100% franked)
Interim fully franked dividend
22,949
21,417
Total dividends declared and paid during the year of 31.50 cents per share, 100% franked
(2023: Total dividends of 30.00 cents per share, 100% franked)
45,180
42,834
(b) Dividends on ordinary shares proposed and not recognised as a liability:
Final fully franked dividend for 2024 of 17.00 cents per share, 100% franked (2023: final
franked dividend of 15.50 cents per share, 100% franked)
24,383
22,131
(c) Franking credit balance
The amount of franking credits in the parent available for the subsequent year
are:
Franking credits available for subsequent reporting periods based on a tax rate of 30.0%
(2023 30.0%)
36,499
39,413
Franking (debits) / credits that will arise from the payment of income tax (receivable) /
payable as at the end of the year
6,445
(1,751)
Franking debits that will be used on the payment of dividends subsequent to the end of
the financial year
(10,450)
(9,517)
Total franking credit balance
32,494
28,145
The tax rate at which dividends are franked is 30.0% (2023: 30.0%).
Note 11. Impairment testing of goodwill and intangibles with indefinite lives continued
84 Breville Group Limited annual report 2024
Note 13. Earnings per share
The following reflects the income and share data used in the basic and diluted earnings per share computations:
Earnings used in calculating basic and diluted earnings per share:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Net profit attributable to ordinary equity holders of Breville Group Limited
118,507
110,208
Weighted average number of shares used as the denominator
2024
Number
'000's
2023
Number
'000's
Weighted average number of ordinary shares for basic and diluted earnings per share
143,309
142,696
Weighted average number of exercised, forfeited or expired potential ordinary shares
included in diluted earnings per share
144,890
143,788
Consolidated
30 June 2024
Cents
30 June 2023
Cents
(a) Basic earnings per share
From continuing operations attributable to the ordinary equity holders of the company
82.70
77.20
(b) Diluted earnings per share
From continuing operations attributable to the ordinary equity holders of the company
81.80
76.60
Recognition and measurement
Basic earnings per share is calculated as net profit attributable to members of the parent, adjusted to exclude any costs of servicing
equity (other than dividends), divided by the weighted average number of ordinary shares. Diluted earnings per share is calculated as
net profit or loss attributable to members of the parent, adjusted for:
•
cost of servicing equity (other than dividends);
•
the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as
expenses;
•
other non-discretionary changes in revenue or expenses during the period that would result from the dilution of potential ordinary
shares; and divided by the weighted average number of ordinary shares and dilutive potential ordinary shares.
Note 14. Issued capital and reserves
Issued capital
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Ordinary shares – authorised, issued and fully paid
401,129
385,541
Ordinary shares – held by the Breville Group Employee Share Trust
-
-
Total contributed equity
401,129
385,541
Notes to the financial statements for the year ended 30 June 2024
85
Breville Group Limited annual report 2024
Note 14. Issued capital and reserves continued
Issued capital continued
Ordinary shares held by the Breville Group Employee Share Trust
Ordinary shares held by the Breville Group Employee Share Trust to fulfil its obligations under the Breville Group Limited Share Plan
are deducted from equity. No gain or loss is recognised in the consolidated income statement on the purchase of the Group’s equity
instruments by the Breville Group Employee Share Trust.
The ordinary shares held by the Breville Group Employee Share Trust, if any, are yet to be allocated to LTI or fixed deferred
remuneration participants. They will be allocated to participants once performance rights vest and they are exercised. The ordinary
shares held by the Breville Group Employee Share Trust, if any, have the right to receive dividends as declared and, in the event
of winding up the company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and
amounts paid up on shares held. The ordinary shares held by the Breville Group Employee Share Trust, if any, entitle their holder to
one vote, either in person or by proxy, at a meeting of the company. Details are provided in note 17(b) and note 19.
(a) Movements in ordinary shares:
Consolidated
Consolidated
30 June 2024
30 June 2023
Number of shares
$’000
Number of shares
$’000
Beginning of the year
142,781,365
385,541
139,359,544
323,165
Movements during the year
Ordinary shares issued during the year for Performance
Rights Plan (LTI) and Fixed Deferred Remuneration Plan
(net of transaction costs) (i)
643,983
15,450
321,616
6,673
Ordinary shares issued during the year for non-executive
directors (NED)
5,343
138
-
-
Ordinary shares issued on acquisition of Lelit Srl
(net of transaction costs) (ii)
-
-
3,100,205
55,703
End of the year
143,430,691
401,129
142,781,365
385,541
(i) During the year the group issued 643,983 fully paid ordinary shares (2023: 321,616) of Breville Group Limited as a result of the
vesting of performance and fixed deferred remuneration rights issued under the Breville Group Limited Share Plan. The average
value attributable to these issued shares was $24.06 (2023: $20.80), as of the date of issue.
(ii) During the year the group issued 5,343 fully paid ordinary shares (2023: Nil) of Breville Group Limited to Non-Executive Directors
as a result of the vesting of rights issued under the NED Plan. The average value attributable to these issued shares was $25.91
as of the date of issue.
(b) Movements in ordinary shares held by the Breville Group Employee Share Trust:
30 June 2024
30 June 2023
Number of shares
$’000
Number of shares
$’000
Beginning of the year
-
-
-
-
Movements during the year
Ordinary shares transferred to participants of the Breville
Group Share Plan (i)
621,056
14,940
292,978
6,093
Ordinary shares subscribed to / acquired by the Breville
Group Employee Share Trust during the year - cash (ii)
(621,056)
(14,940)
(292,978)
(6,093)
End of the year
-
-
-
-
(i) During the year the Trustee of the Breville Group Employee Share Trust transferred 621,056 ordinary company shares (2023:
292,978) to participants to fulfill its obligations under the Breville Group Limited Share Plan.
(ii) During the year the Trustee of the Breville Group Employee Share Trust subscribed to 621,056 ordinary shares of Breville Group
Limited (2023: 292,978) in order to fulfill its obligations under the Breville Group Limited Share Plan. The average value placed on
these subscriptions was $24.06 (2023: $20.80). Details are provided in note 17(b) and note 19.
86 Breville Group Limited annual report 2024
(c) Rights over ordinary shares:
The Company has a share-based payment rights scheme under which rights to subscribe for the Company's shares have been
granted to certain executives and other employees (refer note 19). At the end of the year there were 2,589,741 (2023: 2,408,673)
potential unissued ordinary shares in respect of rights that were outstanding.
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Reserves
Foreign currency translation
26,538
34,526
Employee equity benefits reserve
(175)
(4,128)
Cash flow hedges
2,614
8,939
Total reserves
28,977
39,337
Nature and purpose of reserves
Foreign currency translation reserve - This reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
Employee equity benefits reserve - This reserve is used to record the value of equity benefits provided to employees as part of
their remuneration. Refer to note for further details of these plans.
Cash flow hedge reserve - This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is
determined to be an effective hedge.
Note 15. Borrowings
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current
Borrowings
(2,735)
(3,245)
Total current borrowings
(2,735)
(3,245)
Non-current
Borrowings
(81,431)
(202,200)
Total non-current borrowings
(81,431)
(202,200)
Terms and conditions
The Group operates under one primary facility with Australia and New Zealand Banking Group Limited (ANZ) enabling all jurisdictions
to borrow under one global facility. The facility agreement has a number of financial covenants all of which have been fully complied
with as at the years ended 30 June 2024 and 30 June 2023.
Breville Group Limited has issued corporate guarantees in favour of the local bank (HSBC) in Canada and Mexico. HSBC also
provides the day to day US, Canadian, UK, French, Mexican and German transactional banking facilities. Intesa Sanpaolo SpA, BCC
Brescia and UniCredit SpA provide the day to day Italian transactional banking facilities.
Borrowings may include Australian dollar, US dollar, Canadian dollar, British pounds, Euro and New Zealand dollar denominated
amounts.
Note 14. Issued capital and reserves continued
Issued capital continued
Notes to the financial statements for the year ended 30 June 2024
87
Breville Group Limited annual report 2024
Fair value
The carrying value and estimated net fair values of the borrowings held with banks (determined under Level 2, as described in note
16) approximates their fair value. Fair values of the company’s interest-bearing loans are determined by using an effective interest
rate method. The non-performance risk as at 30 June 2024 was assessed to be insignificant (2023: insignificant). Details regarding
interest rate, foreign exchange and liquidity risk are disclosed in note 16.
Consolidated
At reporting date, the following financial facilities have been negotiated and were available
to the Group:
Facilities used at the reporting date
93,506
212,180
Facilities unused at the reporting date
190,834
273,843
Total facilities
284,340
486,023
(a) Facilities used at the reporting date:
Non-current cash advance facilities – committed
84,166
205,445
Non-current cash advance facilities – uncommitted
-
-
Overdraft facilities
1,822
-
Business transactions facilities
1,157
654
Indemnity / guarantee facilities
6,298
6,015
Documentary credit facilities
63
66
Facilities used as at reporting date
93,506
212,180
(b) Facilities unused at the reporting date:
Non-current cash advance facilities
173,831
255,998
Overdraft facilities
10,369
10,773
Business transactions facilities
3,077
3,207
Indemnity / guarantee facilities
2,871
3,179
Documentary credit facilities
686
686
Facilities unused as at reporting date
190,834
273,843
(c) Total facilities:
Non-current cash advance facilities
257,997
461,443
Overdraft facilities
12,191
10,773
Business transactions facilities
4,234
3,861
Indemnity / guarantee facilities
9,169
9,194
Documentary credit facilities
749
752
Total facilities
284,340
486,023
Financing facilities available
Group facilities
At 30 June 2024, the Group had debt facilities with ANZ bank including;
•
$100,000,000 committed multicurrency facilities with tenures between 1.7 and 3.2 years.
•
$150,000,000 one year uncommitted facility.
Recognition and measurement
All borrowings, including cash advance facilities, are initially recognised at the fair value of the consideration received less directly
attributable transaction costs. After initial recognition, borrowings, including cash advance facilities, are subsequently measured at
amortised cost using the effective interest method. Gains and losses are recognised in the income statement when the liabilities are
derecognised.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least
12 months after the balance sheet date.
Note 15. Borrowings continued
30 June 2023
$’000
30 June 2024
$’000
88 Breville Group Limited annual report 2024
Note 16. Financial risk management
The Group’s principal financial instruments, other than derivatives, comprises cash advances, bank overdrafts, cash at bank and
short-term deposits.
The main purpose of these financial instruments is to raise finance for the Group’s operations. The Group has various other financial
assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The Group also enters
into derivative transactions, primarily forward exchange contracts. The purpose is to manage the currency risks arising from the
Group’s business operations and its sources of finance. It is the Group’s policy that no speculative trading in derivatives shall be
undertaken. The main risks arising from the Group's financial instruments are foreign currency risk and credit risk. The Board reviews
and agrees policies for managing each of these risks and they are summarised below.
Recognition and measurement
Derivative financial instruments and hedging
The Group may use derivative financial instruments such as forward exchange contracts to hedge its risks associated with foreign
currency fluctuations. Such derivative financial instruments are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently remeasured to fair value. The fair value of the forward exchange contracts is estimated
using market observable inputs. Derivatives are carried as assets when their fair value is positive and as liabilities when their fair value
is negative.
Any gains or losses arising from changes in the fair value of derivatives, except for those that qualify for hedge accounting, are taken
directly to the income statement for the year.
The fair value of forward exchange contracts are calculated by reference to current forward exchange rates for contracts with similar
maturity profiles and where applicable, exercise prices.
For the purposes of hedge accounting, hedges are classified as cash flow hedges when they hedge exposure to variability in cash
flows that is attributable either to a particular risk associated with a recognised asset or liability or to a forecast transaction.
At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group
wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation
includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how
the entity will assess the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s cash flows
attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in cash flows and are
assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for
which they were designated.
Hedges that meet the strict criteria for hedge accounting are accounted for as follows:
Cash flow hedges
Cash flow hedges are hedges of the Group's exposure to variability in cash flows that is attributable to a particular risk associated
with a recognised asset or liability or a highly probable forecast transaction and that could affect profit or loss. The effective portion
of the gain or loss on the hedging instrument is recognised directly in equity, while the ineffective portion is recognised in income
statement.
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Cash flow hedges
Forward exchange contracts - Assets
3,942
14,200
Forward exchange contracts - Liabilities
(207)
(1,430)
3,735
12,770
Amounts taken to equity are transferred to the income statement when the hedged transaction affects profit or loss, such as when
hedged income or expenses are recognised or when a forecast purchase occurs. When the hedged item is the cost of a non-
financial asset or liability, the amounts taken to equity are transferred to the initial carrying amount of the non-financial asset or liability.
If the forecast transaction is no longer expected to occur, amounts previously recognised in equity are transferred to the income
statement. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its designation
as a hedge is revoked, amounts previously recognised in equity remain in equity until the forecast transaction occurs. If the related
transaction is not expected to occur, the amount is taken to the income statement.
A hedge of the foreign currency risk of a firm commitment is accounted for as a cash flow hedge.
Other Financial assets at amortised cost
These amounts generally arise outside of the usual operating activities of the Group. Interest may be charged at commercial rates
and collateral may be obtained over the balance. Non-current loans to suppliers are expected to be repaid within three years of the
reporting period.
Notes to the financial statements for the year ended 30 June 2024
89
Breville Group Limited annual report 2024
Other financial assets
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Current
Loans to suppliers
559
1,711
Total
559
1,711
Non-current
Other financial assets
3,747
-
Loans to suppliers
5,496
2,160
Total
9,243
2,160
Interest rate risk
The Group is exposed to interest rate risk on its borrowings, cash balances and derivative financial instruments. The Group’s policy is
to manage its interest rate risk using a mix of fixed and variable rate debt where appropriate. Cash advance facilities have short term
fixed interest rates with maturities ranging between 1 and 3 months, therefore within the financial year they are exposed to interest
rate risk.
At 30 June 2024, the Group has the following exposure to interest rate risk:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Cash at bank
137,772
84,155
Borrowings
(84,166)
(205,445)
Net exposure
53,606
(121,290)
At 30 June 2024, 100% of the Groups borrowings are exposed to floating rates. On a principal net cash of $53,606,000 (2023:
$121,290,000 debt), an increment / reduction of 0.5% in the market rates would result in a decrease / increase in finance costs of
$268,000 (2023: $554,000).
Foreign currency risk
The Group undertakes certain transactions denominated in foreign currency and is exposed to foreign exchange rate fluctuations.
Such exposure arises primarily from purchases of inventory by a business unit in currencies other than the unit’s functional currency
(purchases are predominately US dollar denominated). Other foreign exchange risk only arises when future commercial transactions
and recognised assets and liabilities are denominated in a currency that is not the entity’s functional currency.
To hedge exposure arising from the purchase of inventories or payments in currencies other than the business unit’s functional
currency, forward exchange contracts may be utilised. At inception these hedge contracts are designated as cash flow hedges to
hedge the exposure to the variability in cash flows arising as a result of movements in exchange rates below contracted exchange
rates for options and for movements above or below a contracted exchange rate for forward exchange contracts.
Also, as a result of the Group’s investment in its overseas operations, the Group’s balance sheet can be affected significantly by
movements in the exchange rates of the jurisdictions it operates within.
Note 16. Financial risk management continued
Recognition and measurement continued
90 Breville Group Limited annual report 2024
Foreign currency risk continued
At 30 June 2024, the Group has the following financial assets and liabilities exposed to foreign currency risk:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Cash at bank
4,487
2,857
Trade and other receivables
5,629
7,814
Trade and other payables
(6,965)
(15,925)
Other financial assets – derivative assets – forward exchange contracts
3,942
14,200
Other financial liabilities – derivative liabilities – forward exchange contracts
(208)
(1,430)
Loans to suppliers
6,055
3,871
Net exposure
12,940
11,387
Instruments used by the group
Derivative financial instruments are used by the Group in the normal course of business in order to hedge exposures to fluctuations in
interest and foreign exchange rates.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly
or indirectly.
Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable
market data.
The fair value of all derivative assets and liabilities has been determined under Level 2.
(i) Forward exchange contracts – cash flow hedges
The majority of the Group’s inventory purchases from suppliers are denominated in US dollars (USD). In order to manage exchange
rate movements and to manage the inventory costing process, the Group has entered into forward exchange contracts to purchase
USD, Euro and CHF. These contracts are hedging highly probable forecasted purchases and highly probable forecasted payments
and they are timed to mature when settlement of purchases or the payments are scheduled to be made. All forward exchange
contracts have 0-12 months maturity (2023: 0-12 months).
The cash flows are expected to occur between 0-12 months from 1 July 2024 (2023: 0-12 months) and the cost of sales and where
applicable the sale of goods within the income statement will be affected in the next financial year as the inventory is sold or the
payments are made. At balance date, the details of outstanding contracts are:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Buy USD
113,469
230,723
Buy CHF
917
21,620
The cash flow hedges of the forecast purchases and forecast payments are considered to be highly effective and any gain or loss
on the contracts is taken directly to equity. Where the contracts are hedging highly probable forecasted inventory purchases, when
the inventory is received or the risk is assumed, the amount recognised in equity is adjusted to the inventory account in the balance
sheet. During the year $7,750,000 was credited to inventory (2023: $13,743,000) and $1,286,000 was debited (2023: $2,856,000
credited) to equity in respect of the Group.
At 30 June 2024, the Group had hedged 83% (2023: 100%) of its forecast foreign currency purchases extending to June 2025
(2023: June 2024) via foreign exchange contracts or by using the natural hedge that exists within the Group, and therefore is not fully
exposed to foreign exchange risk.
In respect of net derivative assets and liabilities above, being the fair value of forward exchange contracts designated as cash flow
hedges, a decrease of 10% in the US dollar exchange rate against local currencies, all other variables held constant, would result in
an increase in equity of $12,506,000 (2023: $23,234,000). Conversely, an increase of 10% in the US dollar exchange rate against
local currencies, all other variables held constant, would result in a decrease in equity of $10,232,000 (2023: $19,010,000).
Note 16. Financial risk management continued
Notes to the financial statements for the year ended 30 June 2024
91
Breville Group Limited annual report 2024
Note 16. Financial risk management continued
Capital management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain
future development of the business.
The Board seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the
advantages and security afforded by a sound capital position. The Board monitors the Group’s gearing ratio and compliance with
debt covenants on a regular basis. The Group was ungeared at 30 June 2024 and at 30 June 2023 the gearing ratio was 0.56. The
gearing ratio is defined as Group net borrowings divided by EBITDA.
Credit risk
Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted. The credit risk on financial
assets (including trade receivables), excluding investments, of the Group that has been recognised on the balance sheet is the
carrying value amount, net of any uncollectible receivables (measured on a collective basis).
To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the
days past due. The Group appropriately provides for expected credit losses on a timely basis, and in calculating the expected credit
loss rates, the Group considers historic loss rates for each category of customers, adjusting for forward looking macroeconomic
data.
The Group trades only with recognised, creditworthy third parties. It is the Group's policy that all customers who wish to trade on
credit terms are subject to credit verification procedures. In certain instances, where deemed appropriate, receivables insurance is
acquired to offset the Group’s exposure to credit risk. The Group also uses other measures such as obtaining letters of credit.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is
appropriately provided for.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents and certain
derivative instruments, the Group’s exposure to credit risk arises from default of the counter party with a maximum exposure equal to
the carrying amount of these instruments. These counter parties are large multi-national banks.
Liquidity risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of borrowing facilities and
bank overdrafts.
Group financial liabilities
Management monitors rolling forecasts of the Group’s liquidity reserve on the basis of expected cash flows. See note 15 for details of
available facilities.
At 30 June 2024, the remaining contractual maturities of the Group’s financial liabilities are:
Consolidated
30 June 2024
$’000
30 June 2023
$’000
Less than 1 year
298,231
285,788
Between 1 and 5 years
131,228
257,472
429,459
543,260
The table below analyses the Group’s remaining contractual maturities by the type of financial liability. The amounts disclosed are the
contractual undiscounted cash flows.
Consolidated
Consolidated
30 June 2024
30 June 2023
Less than
1 year
$’000
Between
1 and 5 years
$’000
Total
$’000
Less than
1 year
$’000
Between
1 and 5 years
$’000
Total
$’000
Trade and other payables
273,269
-
273,269
261,336
-
261,336
Borrowings
2,735
81,431
84,166
3,245
202,200
205,445
Lease liabilities
22,020
49,797
71,817
19,777
55,272
75,049
Derivative financial
instruments
207
-
207
1,430
-
1,430
298,231
131,228
429,459
285,788
257,472
543,260
92 Breville Group Limited annual report 2024
Note 17. Interests in other entities
(a) Entities subject to reporting relief
Pursuant to ASIC Corporations (Wholly-owned Companies) Instrument 2016 / 785, relief has been granted to Thebe International
Pty Limited, Breville Pty Limited and Breville Holdings Pty Limited from the Corporations Act 2001 requirements for preparation, audit
and lodgement of their financial reports.
As a condition of the instrument, Breville Group Limited and Thebe International Pty Limited entered into a Deed of Cross Guarantee
on 4 November 1999. This deed was subsequently assumed by Breville Pty Limited and Breville Holdings Pty Limited under an
assumption deed dated 19 December 2001. The effect of the deed is that Breville Group Limited has guaranteed to pay any
deficiency in the event of winding up of either controlled entity or if they do not meet their obligations under the terms of overdrafts,
loans, leases or other liabilities subject to the guarantee. The controlled entities have also given a similar guarantee in the event that
Breville Group Limited is wound up or if it does not meet its obligation under the terms of overdrafts, loans, leases or other liabilities
subject to the guarantee.
The entities comprising the “closed group” are Breville Group Limited, Thebe International Pty Limited, Breville Pty Limited and
Breville Holdings Pty Limited. The Consolidated statement of financial position and income statement of the entities that are
members of the "closed group" are detailed in note 20.
(b) Breville Group Employee Share Trust
A trust has been established with the appointment of an independent Trustee. The trust is funded by cash irretrievably contributed to
it by the company and the Trustee uses these funds to either subscribe for a new issue of shares in the company or purchase shares
on the ASX in order to fulfil its obligations under the Breville Group Limited Share Plan.
The trust does not form part of the Breville Group Limited Australian tax consolidation group.
During the year the Trustee of the Breville Group Employee Share Trust subscribed to 621,056 ordinary shares of Breville Group
Limited (2023: 292,978 shares) in order to fulfil its obligations under the Breville Group Employee Share Trust. The average value
placed on these subscriptions was $24.06 per share (2023: $20.80 per share). Details are provided in note 19.
The consolidated financial statements include the financial statements of Breville Group Limited and the subsidiaries listed in the
following table.
Equity interest
Legal entity
Country of
incorporation
Note
30 June 2024
%
30 June 2023
%
Thebe International Pty Limited
Australia
17(a)
100
100
Investments not held directly by Breville Group Limited:
Breville Holdings Pty Limited
Australia
17(a)
100
100
Breville Pty Limited
Australia
17(a)
100
100
Breville R&D Pty Limited
Australia
100
100
Breville Group Employee Share Trust
Australia
17(b)
-
-
Breville New Zealand Limited
New Zealand
100
100
HWI International Limited
Hong Kong
100
100
Breville Services (Shenzhen) Company Limited
China
100
100
Breville Holdings USA, Inc.
USA
100
100
Breville USA, Inc.
USA
100
100
Baratza LLC
USA
100
100
Holding HWI Canada, Inc.
Canada
100
100
HWI Canada, Inc.
Canada
100
100
Breville Canada, L.P.
Canada
100
100
1591114 Ontario Inc.
Canada
100
100
BRG Appliances Limited
UK
100
100
Sage Appliances GmbH
Germany
100
100
Sage Appliances France SaS
France
100
100
Breville Mexico, S.A. de C.V.
Mexico
100
100
Breville Korea Limited
Korea
100
100
Lelit Srl
Italy
100
100
Lelit Italy Srl
Italy
100
100
Seriveneta Srl
Italy
100
100
BRG Middle East Appliances LLC
UAE
100
-
Breville Group Limited, a company incorporated in Australia is the ultimate parent of the Group.
Notes to the financial statements for the year ended 30 June 2024
93
Breville Group Limited annual report 2024
Note 18. Parent entity information
(a) Summary financial information
As at and throughout the financial year ended 30 June 2024 the parent company of the Group was Breville Group Limited.
30 June 2024
$’000
30 June 2023
$’000
Results of the parent entity
Profit of the parent entity
58,688
54,544
Total comprehensive income of the parent entity
58,688
54,544
Financial position of the parent entity
Current assets
136,981
123,512
Total assets
448,615
415,566
Current liabilities
-
-
Total liabilities
-
-
Net assets
448,615
415,566
Equity attributable to the equity holders of the parent
Issued capital
401,129
385,541
Employee equity benefits reserve
(175)
(4,128)
Retained earnings
47,661
34,153
Total shareholders’ equity
448,615
415,566
Tax consolidation
Breville Group Limited and its 100% owned Australian resident subsidiaries (excluding the Breville Group Performance Share Plan
Trust) have formed a tax consolidated Group with effect from 1 July 2003.
The head entity, Breville Group Limited and each subsidiary in the tax consolidated Group are required to account for their own
current and deferred tax amounts. These tax amounts are measured as if each entity in the tax consolidated Group continues to be a
standalone taxpayer in its own right.
In addition to its own current and deferred tax amounts, Breville Group Limited also recognises:
(a) the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed
from controlled entities in the tax consolidated Group; and
(b) assets or liabilities arising for Group under the tax funding agreement as amounts receivable from or payable to other entities in
the Group.
Members of the tax consolidated Group have entered into a tax funding agreement. The tax funding agreement supports the
calculation of current tax liabilities (and assets) and deferred tax assets / liabilities on a stand-alone basis. Calculation is performed
in accordance with AASB 112 Income Tax. The allocation of taxes under the tax funding agreement is recognised as an increase /
decrease in the subsidiaries' intercompany accounts with the tax consolidated Group head company, Breville Group Limited.
No amounts have been recognised in the financial statements in respect of the tax sharing agreement should the head entity default
on its tax payment obligations on the basis that the possibility of default is remote.
Contingencies
The parent company has guaranteed under the terms of an ASIC class order any deficiency of funds if Thebe International Pty
Limited, Breville Pty Limited and Breville Holdings Pty Limited are wound up. No such deficiency currently exists.
The parent company has issued corporate guarantees in favour of HSBC local banks in Canada and Mexico. HSBC provides the day
to day US, Canadian, Mexican, UK, French and German transactional banking facilities.
94 Breville Group Limited annual report 2024
Further details
Note 19. Share-based payments
Performance rights plan (LTI) and fixed deferred remuneration rights plan
Under the performance rights plan (LTI) and fixed deferred remuneration rights plan participants are issued with rights over the
ordinary shares of Breville Group Limited issued in accordance with the Breville Group Limited Share Plan. See pages 38 to 44 of the
Remuneration report for details of the two plans.
At 30 June 2024 there were 2,589,741 (2023: 2,408,673) total rights outstanding under both plans, 1,889,840 (2023: 1,618,067)
under the performance rights plan (LTI) and 699,901 (2023: 790,606) under the fixed deferred remuneration rights plan, also
including non-executive director remuneration rights. The expense recognised in the income statement in relation to share-based
payments is disclosed in note 3(e).
Recognition and measurement
Performance rights issued to employees (including key management personnel) are accounted for as share-based payments,
whereby employees render services in exchange for shares or rights over shares (equity-settled transactions). The cost of these
equity-settled transactions with employees is measured by reference to the fair value of the equity instruments at the date at which
they are granted. The fair value has been determined as of the date of grant using a Monte-Carlo simulation model or Black Scholes
option-pricing model, taking into account the terms and conditions upon which the performance rights were granted (further details
of which are given below).
Market based performance conditions are reflected within the fair value at grant date. Service and non-market performance
conditions are not taken into account when determining the grant date fair value of the awards. The likelihood of the conditions being
met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest.
The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which
the performance and / or service conditions are fulfilled (the vesting period), ending on the date on which the relevant employees
become fully entitled to the award (the vesting date). At each subsequent reporting date until vesting, the cumulative charge to the
income statement is the product of (i) the grant date fair value of the award; (ii) the current best estimate of the number of awards
that will vest, taking into account such factors as the likelihood of employee turnover during the vesting period and the likelihood
of non-market performance conditions being met; and (iii) the expired portion of the vesting period. The charge to the income
statement for the period is the cumulative amount as calculated above less the amounts already charged in previous periods. There
is a corresponding entry to equity.
No expense is recognised for awards that do not ultimately vest because non-market performance and / or service conditions
have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of
whether the market or non-vesting condition is satisfied, provided that all other performance and / or service conditions are satisfied.
Rights granted and outstanding under the performance rights plan (LTI)
The following table illustrates the number and weighted average exercise prices (“WAEP”) of and movements in performance rights
issued during the year:
30 June 2024
30 June 2023
Number of
performance rights
WAEP
Number of
performance rights
WAEP
Outstanding at the beginning of the year
1,618,067
0.00
1,149,704
0.00
Performance rights granted during the year
822,745
0.00
796,735
0.00
Performance rights exercised during the year
(480,338)
0.00
(264,468)
0.00
Performance rights lapsed during the year
(70,634)
0.00
(63,904)
0.00
Outstanding at the end of the year (a)
1,889,840
-
1,618,067
-
Exercisable at the end of the year
-
-
-
-
Notes to the financial statements for the year ended 30 June 2024
95
Breville Group Limited annual report 2024
Rights outstanding under the performance rights plan (LTI)
(a) The outstanding balance as at 30 June 2024 is represented by:
Number of
performance
rights
Measure
Period
start
Period End
Grant date
Vesting
date
Expiry date
WAEP
$
Fair value
at grant
date ($)
250,135
EBIT & Revenue
CAGR
30-Jun-21
30-Jun-24
06-Oct-21
27-Aug-24
01-Oct-24
0.00
25.96
73,326
EBIT & Revenue
CAGR
30-Jun-21
30-Jun-24
11-Nov-21
27-Aug-24
01-Oct-24
0.00
28.91
639,066
EBIT CAGR
30-Jun-22
30-Jun-25
24-Oct-22
25-Aug-25
01-Oct-25
0.00
17.44
115,741
EBIT CAGR
30-Jun-22
30-Jun-25
10-Nov-22
25-Aug-25
01-Oct-25
0.00
19.13
8,861
EBIT CAGR
30-Jun-23
30-Jun-25
25-Jul-23
25-Aug-25
01-Oct-25
0.00
20.71
347,118
Relative TSR
30-Jun-23
30-Jun-26
25-Jul-23
25-Aug-26
01-Oct-26
0.00
12.95
54,237
Relative TSR
30-Jun-23
30-Jun-26
8-Nov-23
25-Aug-26
01-Oct-26
0.00
15.36
347,119
PBT & Key Strategic
Priorities
30-Jun-23
30-Jun-26
25-Jul-23
25-Aug-26
01-Oct-26
0.00
20.71
54,237
PBT & Key Strategic
Priorities
30-Jun-23
30-Jun-26
8-Nov-23
25-Aug-26
01-Oct-26
0.00
22.23
1,889,840
0.00
Rights granted and outstanding under the fixed deferred remuneration plan
The following table illustrates the number and weighted average exercise prices (“WAEP”) of and movements in fixed deferred
remuneration rights and non-executive director remuneration rights issued during the year:
30 June 2024
30 June 2023
Number of
performance
rights
WAEP
Number of
performance
rights
WAEP
Outstanding at the beginning of the year
790,606
0.00
537,399
0.00
Rights granted during the year
78,283
0.00
310,355
0.00
Rights exercised during the year
(168,988)
0.00
(57,148)
0.00
Rights lapsed during the year
-
0.00
-
0.00
Outstanding at the end of the year (b)
699,901
-
790,606
-
Exercisable at the end of the year
-
-
-
-
Note 19. Share-based payments continued
96 Breville Group Limited annual report 2024
Rights outstanding under the fixed deferred remuneration plan
Notes
(b) The outstanding balance as at 30 June 2024 is represented by:
Number of performance rights
Note
Grant date
Vesting date
Expiry date
WAEP $
Fair value at
grant date ($)
29,940
(i)
29-Jan-20*
25-Aug-24
01-Oct-24
0.00
16.70
22,311
(ii)
7-Sep-20
25-Aug-25
03-Oct-25
0.00
19.60
70,570
(i)
5-Oct-21
25-Aug-24
01-Oct-24
0.00
26.52
81,991
(ii)
5-Oct-21
25-Aug-25
03-Oct-25
0.00
26.18
122,989
(iii)
5-Oct-21
25-Aug-26
03-Oct-26
0.00
25.85
12,077
(i)
11-Nov-21
25-Aug-24
02-Oct-24
0.00
28.91
12,077
(ii)
11-Nov-21
25-Aug-25
01-Oct-25
0.00
28.54
29,330
(iii)
11-Nov-21
25-Aug-26
03-Oct-26
0.00
28.17
64,679
(i)
21-Oct-22
25-Aug-24
01-Oct-24
0.00
17.66
64,679
(ii)
21-Oct-22
25-Aug-25
03-Oct-25
0.00
17.44
64,679
(iii)
21-Oct-22
25-Aug-26
03-Oct-26
0.00
17.18
46,296
(iv)
10-Nov-22
25-Aug-27
03-Oct-25
0.00
18.57
7,559
(i)
25-Jul-23
25-Aug-24
01-Oct-24
0.00
21.38
7,559
(ii)
25-Jul-23
25-Aug-25
03-Oct-25
0.00
21.15
7,559
(iii)
25-Jul-23
25-Aug-26
03-Oct-26
0.00
20.92
7,559
(iv)
25-Jul-23
25-Aug-27
01-Oct-27
0.00
20.69
43,389
(v)
8-Nov-23
25-Aug-28
01-Oct-28
0.00
22.11
4,658
(vi)
22-Nov-23
1-Jan-25
28-Feb-25
0.00
26.57
699,901
0.00
*
material terms and conditions of the grant were agreed in January 2020 but administrative finalisation of grants were delayed due to COVID-19
priorities. In line with AASB2, fair value was based on the price at the time when grant was agreed when VWAP for H1 FY20 was $16.70.
(i) Rights granted as fixed deferred remuneration with vesting condition that the participants must complete the service period
between 26 August 2023 - 25 August 2024.
(ii) Rights granted as fixed deferred remuneration with vesting condition that the participant must complete the service period
between 26 August 2024 - 25 August 2025.
(iii) Rights granted as fixed deferred remuneration with vesting condition that the participant must complete the service period
between 26 August 2025 - 25 August 2026.
(iv) Rights granted as fixed deferred remuneration with vesting condition that the participant must complete the service period
between 26 August 2026 - 25 August 2027.
(v) Rights granted as fixed deferred remuneration with vesting condition that the participant must complete the service period
between 26 August 2027 - 27 August 2028.
(vi) Rights granted as non-executive director remuneration with vesting condition that the participant must complete the service
period between 01 January 2024 - 01 January 2025.
Note 19. Share-based payments continued
Notes to the financial statements for the year ended 30 June 2024
97
Breville Group Limited annual report 2024
Rights granted under the performance rights plan and fixed deferred remuneration plan
The remaining contractual life for the performance and the fixed deferred remuneration rights outstanding at 30 June 2024 is
between 0 and 4 years (2023: 0 and 4 years).
The exercise price for performance rights and the fixed deferred remuneration rights outstanding at the end of the year was $nil
(2023: $nil).
The weighted average fair value of performance rights granted under the performance rights plan during the year was $17.09
(2023: $20.46).
The fair value of the equity-settled performance rights granted under the performance rights plan is estimated as of the date of grant
using a Monte-Carlo simulation model or Black Scholes option-pricing model, taking into account the terms and conditions upon
which the performance rights were granted.
The following table lists the inputs to the model used for the grants during the year ended 30 June 2024 and 30 June 2023:
30 June 2024
Fixed Deferred
Remuneration
(NED)
Performance
rights
Fixed Deferred
Remuneration
Performance
rights and
Fixed Deferred
Remuneration
(Jim Clayton)
Grant date
22 Nov 23
25 Jul 23
25 Jul 23
08 Nov 23
Vesting Date - Performance Rights
25 Aug 26
-
25 Aug 26
Vesting Date - Fixed Deferred Remuneration Rights
01 Jan 25
25 Aug 24
25 Aug 28
25 Aug 25
25 Aug 26
25 Aug 27
25 Aug 28
Share price at the grant date
23.98
21.64
21.64
23.13
Dividend Yield
1.1%
1.1%
1.1%
1.1%
Right exercise price
0.00
0.00
0.00
0.00
30 June 2023
Fixed Deferred
Remuneration
(NED)
Performance
rights
Fixed Deferred
Remuneration
Performance
rights and
Fixed Deferred
Remuneration
(Jim Clayton)
Grant date
01 Dec 22
21 Oct 22
21 Oct 22
10 Nov 22
Vesting Date - Performance Rights
25 Aug 25
-
25 Aug 25
Vesting Date - Fixed Deferred Remuneration Rights
01 Jan 24
25 Aug 23
25 Aug 27
25 Aug 24
25 Aug 25
25 Aug 26
Share price at the grant date
20.60
18.20
18.20
19.13
Dividend Yield
1.61%
1.5%
1.5%
1.5%
Right exercise price
0.00
0.00
0.00
0.00
The weighted average fair value of share rights granted under the fixed deferred remuneration plan during the year was $21.96
(2023: $22.92).
Note 19. Share-based payments continued
98 Breville Group Limited annual report 2024
Note 20. Related party transactions
30 June 2024
$’000
30 June 2023
$’000
(i) Consolidated statement of financial position for
class order closed group
Current assets
Cash and cash equivalents
21,174
27,638
Trade and other receivables
65,043
53,385
Inventories
47,131
43,114
Current tax assets
-
1,751
Other financial assets
4,501
15,911
Total current assets
137,849
141,799
Non-current assets
Investments
487,141
421,606
Right-of-use-assets
10,034
4,026
Plant and equipment
43,649
36,869
Intangible assets
149,111
137,402
Deferred tax assets
16,821
15,109
Other financial assets
5,496
2,160
Total non-current assets
712,252
617,172
Total assets
850,101
758,971
Current liabilities
Trade and other payables
110,814
98,517
Current tax liabilities
6,445
-
Provisions
15,253
15,573
Lease liabilities
3,472
3,902
Other financial liabilities
208
1,430
Total current liabilities
136,192
119,422
Non-current liabilities
Lease liabilities
8,179
2,287
Provisions
2,695
2,196
Total non-current liabilities
10,874
4,483
Total liabilities
147,066
123,905
Net assets
703,035
635,066
Equity
Issued capital
401,129
385,541
Reserves
2,439
4,811
Retained earnings
299,467
244,714
Total equity
703,035
635,066
Notes to the financial statements for the year ended 30 June 2024
99
Breville Group Limited annual report 2024
Note 20. Related party transactions continued
30 June 2024
$’000
30 June 2023
$’000
(ii) Consolidated income statement for class order closed group
Profit from ordinary activities before income tax expense
140,448
162,331
Income tax expense relating to ordinary activities
(40,515)
(33,963)
Net profit
99,933
128,368
Accumulated profits at the beginning of the year
244,714
159,180
Dividends paid or reinvested
(45,180)
(42,834)
Accumulated profits at the end of the year
299,467
244,714
(a) Ultimate controlling entity
The ultimate controlling entity of the Group in Australia is Breville Group Limited.
(b) Key management personnel
Consolidated
30 June 2024
$
30 June 2023
$
Compensation by category: key management personnel
Short-term
9,213,327
8,233,693
Defined contribution plans expense
205,839
217,111
Other long-term
(125,139)
210,708
LTI Share-based payment
2,954,782
2,769,984
Total
12,248,809
11,431,496
(c) Wholly owned Group transactions
During the financial period, loans were advanced and repayments received on inter-Group accounts with subsidiaries in the wholly
owned Group. These transactions were undertaken on commercial terms and conditions.
Note 21. Business combination
Breville Group Limited (ASX: BRG) completed the acquisition of 100% of the Italian-based prosumer coffee group, Lelit Srl and its
associated subsidiaries, on 1 July 2022 (CET).
The assets acquired constitute the acquisition of a business. The acquisition is considered a business combination pursuant to
AASB 3.
Total consideration comprised $82,936,000 in cash and the issue of 3,100,205 BRG ordinary shares (“Shares”). The share
component was valued at market prices on the date of completion, share price on date of issue was $17.99 (closing price on day
before 1 July 2022). Details of the purchase consideration, the net assets acquired and goodwill are as follows:
30 June 2023
$’000
Purchase consideration
Cash paid
82,936
Ordinary shares issued
55,773
Total purchase consideration
138,709
The assets and liabilities recognised as a result of the acquisition are as follows:
100 Breville Group Limited annual report 2024
Fair value
$’000
Cash and cash equivalents
10,788
Trade and other receivables
5,325
Other Assets
666
Inventories
34,116
Property, plant and equipment
8,002
Deferred tax assets
1,973
Intangible assets
30,196
Trade and other payables
(20,696)
Cash advance
(7,499)
Borrowings
(12,349)
Provisions
(1,962)
Other liabilities
(2,183)
Deferred tax liability
(8,976)
Net identifiable assets acquired
37,401
Add: goodwill
101,308
138,709
Intangible assets includes an indefinite life Brand name asset of $28,625,000.
(i) Revenue and profit contribution
The acquired Lelit Srl business has been completely integrated into the Group and is managed within the Global Product segment
and geographies alongside other brands within the Group. LELIT® brand revenues during FY23 were $64.5m.
(a) Purchase consideration - cash outflow
30 June 2023
$’000
Outflow of cash to acquire subsidiary, net of cash acquired
Cash consideration
82,936
Less: Balances acquired
Cash and cash equivalents
10,788
Cash advance repaid
(7,499)
3,289
Net outflow of cash - investing activities
79,647
Recognition and measurement
The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or
other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:
•
fair values of the assets transferred
•
liabilities incurred to the former owners of the acquired business
•
equity interests issued by the Group
•
fair value of any asset or liability resulting from a contingent consideration arrangement, and
•
fair value of any pre-existing equity interest in the subsidiary.
Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions,
measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquired entity
on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest’s proportionate share of the acquired
entity’s net identifiable assets.
Acquisition-related costs are expensed as incurred.
Note 21. Business combination continued
Notes to the financial statements for the year ended 30 June 2024
101
Breville Group Limited annual report 2024
The excess of the:
•
consideration transferred,
•
amount of any non-controlling interest in the acquired entity, and
•
acquisition-date fair value of any previous equity interest in the acquired entity
over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the
net identifiable assets of the business acquired, the difference is recognised directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present
value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar
borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently
remeasured to fair value with changes in fair value recognised in profit or loss.
If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity
interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are
recognised in profit or loss.
Note 22. Auditor’s remuneration
Consolidated
30 June 2024
$
30 June 2023
$
Amounts received or due and receivable from the entity and any
other entity in the consolidated entity:
PricewaterhouseCoopers Australia – primary auditors
Parent entity
Audit or review services - Parent
618,850
609,754
Taxation and accounting advisory services - Parent
183,269
253,341
Network Firms of PricewaterhouseCoopers Australia
Controlled entities
Audit or review services - Controlled entities
294,150
369,872
Taxation and accounting advisory services - Controlled entities
672,279
581,336
Total services provided by PricewaterhouseCoopers
1,768,548
1,814,303
A significant amount of the non-audit fees associated with taxation and accounting advisory services provided by
PricewaterhouseCoopers Australia as the auditor of the parent entity, Breville Group Limited and by PricewaterhouseCoopers
related network firms in FY24 are of a project based non-recurring nature, including finalisation of the renewal of the Advanced
Pricing Agreement (APA), initial Country by Country Reporting and work on indirect taxes.
Note 23. Contingencies
Indemnity agreements have been entered into with certain officers of the Group in respect of expenses and liabilities they incur in
their official capacities. No monetary limit applies to these agreements and no known obligations have emerged as a result of these
agreements.
Cross guarantees given by Breville Group Limited, Thebe International Pty Limited, Breville Holdings Pty Limited and Breville Pty
Limited are described in note 17(a).
Breville Group Limited has issued corporate guarantees in favour of the local bank (HSBC) in Canada and Mexico.
Note 24. Events occurring after the reporting period
Other than the events disclosed elsewhere in this report, no other matters or circumstances have arisen since the end of the year
which significantly affected or may affect the operations of the consolidated entity.
The financial report of Breville Group Limited for the year ended 30 June 2024 was authorised for issue in accordance with a
resolution of the directors on 21 August 2024.
Note 21. Business combination continued
Recognition and measurement continued
102 Breville Group Limited annual report 2024
Note 25. Other accounting policies
a) Foreign currency translation
(i) Functional and presentation currency
Both the functional and presentation currency of Breville Group Limited and its Australian subsidiaries are Australian dollars (AUD or
A$). Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are
measured using that functional currency.
(ii) Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the
balance sheet date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at
the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated using the exchange
rates at the date when the fair value was determined.
The functional currencies of the foreign subsidiaries are:
•
USD - United States dollar (Breville Holdings USA, Inc. and Breville USA, Inc.);
•
HKD - Hong Kong dollar (HWI International Limited);
•
CAD - Canadian dollar (HWI Canada, Inc., Holding HWI Canada, Inc. and Breville Canada, L.P., 1591114 Ontario Inc.);
•
NZD - New Zealand dollar (Breville New Zealand Limited);
•
GBP - British pound (BRG Appliances Limited);
•
RMB - Chinese Renminbi (Breville Services (Shenzhen) Company Limited);
•
EUR - Euro (Sage Appliances GmbH, Sage Appliances France SaS, Lelit Srl, Lelit Italy Srl and Seriveneta Srl);
•
MXN - Mexican Peso (Breville Mexico, S.A. de C.V.);
•
KRW - South Korean Won (Breville Korea Limited); and
•
AED - United Arab Emirates Dirham (BRG Middle East Appliances LLC).
As of the reporting date the assets and liabilities of these foreign subsidiaries are translated into the presentation currency of Breville
Group Limited. They are translated at the rate of exchange ruling at the balance sheet date and the income statements are translated
at the weighted average exchange rates for the year.
The exchange differences arising on the retranslation of the financial statements of foreign subsidiaries are taken directly to a
separate component of equity. On disposal of a foreign entity, the deferred cumulative amount recognised in equity relating to that
particular foreign operation is recognised in the income statement.
(iii) Disposal of foreign operations
In some instances companies in the Breville Group provide intra-Group funding to other Group entities by way of permanent equity
loans. In these instances any foreign exchange movements are recognised in equity (foreign currency translation reserve) as these
equity loans are considered to form part of the net investment in the subsidiary.
b) Investments and other financial assets
Financial assets in the scope of AASB 139 Financial Instruments: Recognition and Measurement are classified as either financial
assets at fair value through profit or loss, loans and receivables or held-to-maturity investments, as appropriate. When financial
assets are recognised initially, they are measured at fair value, plus, in the case of investments not at fair value through the income
statement, directly attributable transactions costs. The Group determines the classification of its financial assets after initial
recognition and, when allowed and appropriate, re-evaluates this designation at each year end.
Regular way purchases or sales are purchases or sales of financial assets under contracts that require delivery of the assets within
the period established generally by regulation or convention in the marketplace. All regular way purchases and sales of financial
assets are recognised on the trade date, i.e. the date that the Group commits to purchase or sell the asset.
(i) Held to maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity when the
Group has the positive intention and ability to hold to maturity. Investments intended to be held for an undefined period are not
included in this classification. Investments that are intended to be held-to-maturity, such as bonds, are subsequently measured at
amortised cost. This cost is computed as the amount initially recognised minus principal repayments, plus or minus the cumulative
amortisation using the effective interest method of any difference between the initially recognised amount and the maturity amount.
This calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective
interest rate, transaction costs and all other premiums and discounts.
For investments carried at amortised cost, gains and losses are recognised in the income statement when the investments are
derecognised or impaired, as well as through the amortisation process.
Notes to the financial statements for the year ended 30 June 2024
103
Breville Group Limited annual report 2024
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. Such assets are carried at amortised cost using the effective interest method. Gains and losses are recognised in the income
statement when the loans and receivables are derecognised or impaired, as well as through the amortisation process.
For investments carried at amortised cost, gains and losses are recognised in the income statement when the investments are
derecognised or impaired, as well as through the amortisation process.
c) Other Taxes
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST) or value added tax (VAT) except:
•
where the GST / VAT incurred on the purchase of goods and services is not recoverable from the taxation authority, in which
case the GST / VAT is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
•
receivables and payables, which are stated with the applicable amount of GST / VAT included.
The net amount of GST / VAT recoverable / payable is included in receivables / payables in the statement of financial position.
Cash flows are included in the cash flow statement on a gross basis and the GST / VAT component of cash flows arising from
investing and financing activities are classified as operating cash flows.
Commitments and contingencies are disclosed net of recoverable / payable GST / VAT.
d) New accounting standards and interpretations
(i) Changes to accounting policy and disclosures
The accounting policies of the Group are consistent with those of the previous financial year.
The Group adopted all other new and amended Australian Accounting Standards and Interpretations that became applicable during
the current financial year.
The adoption of other Standards and Interpretations did not have a significant impact on the Group’s financial results or statement of
financial position.
Note 25. Other accounting policies continued
104 Breville Group Limited annual report 2024
Consolidated entity disclosure statement
The ultimate controlling entity of the Breville Group is Breville Group Limited. Outlined below is the Group’s consolidated entity
disclosure statement as at 30 June 2024 prepared in accordance with the Corporations Act 2001 (Cth). Unless indicated, no entities
are trustees, partners or participants in joint ventures.
As at 30 June 2024
Name of entity
Type of entity
% of
share
capital
held
Place of
business/
country of
incorporation
Australian
resident
or foreign
resident
Foreign
jurisdiction(s) of
foreign residents
Breville Group Limited
Body corporate
n/a
Australia
Australian
n/a
Thebe International Pty Ltd
Body corporate
100
Australia
Australian
n/a
Breville Holdings Pty Ltd
Body corporate
100
Australia
Australian
n/a
Breville Pty Limited
Body corporate
100
Australia
Australian
n/a
Breville R&D Pty Ltd
Body corporate
100
Australia
Australian
n/a
Breville Group Employee Share Trust
Trust
n/a
n/a
n/a
n/a
Breville New Zealand Limited
Body corporate
100
New Zealand
Foreign
New Zealand
HWI International Limited
Body corporate
100
Hong Kong
Foreign
Hong Kong
Breville Services (Shenzhen)
Company Limited
Body Corporate
100
China
Foreign
China
Breville Holdings USA, Inc.
Body Corporate
100
United States
Foreign
United States
Breville USA, Inc.
Body Corporate
100
United States
Foreign
United States
Baratza LLC
Body Corporate
100
United States
Foreign
United States
Holding HWI Canada Inc.
Body Corporate
100
Canada
Foreign
Canada
HWI Canada Inc.
Body Corporate*
100
Canada
Foreign
Canada
1591114 Ontario Inc.
Body Corporate*
100
Canada
Foreign
Canada
Breville Canada, L.P.
Partnership*
n/a
n/a
n/a
n/a
BRG Appliances Limited
Body Corporate
100
United Kingdom
Foreign
United Kingdom
Sage Appliances GmbH
Body corporate
100
Germany
Foreign
Germany,
Switzerland, Czech
Republic, Poland
Sage Appliances France SaS
Body Corporate
100
France
Foreign
France
Breville Mexico, S.A. de C.V.
Body Corporate
100
Mexico
Foreign
Mexico
Breville Korea Limited
Body Corporate
100
Republic of Korea
Foreign
Republic of Korea
Lelit Srl
Body Corporate
100
Italy
Foreign
Italy
Lelit Italy Srl
Body Corporate
100
Italy
Foreign
Italy
Seriveneta Srl
Body Corporate
100
Italy
Foreign
Italy
BRG Middle East Appliances LLC
Body Corporate
100
United Arab
Emirates
Foreign
United Arab
Emirates
* Breville Canada, L.P. is a partnership between HWI Canada Inc. and 1591114 Ontario Inc. and is therefore consolidated by Breville Group Limited.
105
Breville Group Limited annual report 2024
In accordance with a resolution of the directors of Breville Group Limited, I state that:
1. In the Directors' opinion:
(a) the financial statements and notes set out on pages 58 to 103 are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the consolidated entity's financial position as at 30 June 2024 and of its performance for the
financial year ended on that date, and
(ii) complying with Accounting Standards and the Corporations Regulations 2001;
(b) the financial statements and notes also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as disclosed in note 1;
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable, and
(d) the consolidated entity disclosure statement on page 104 is true and correct;
(e) at the date of this declaration, there are reasonable grounds to believe that the members of the extended Closed Group
will be able to meet any obligations or liabilities to which they are or may become subject, by virtue of the Deed of Cross
Guarantee.
2. This declaration is made after receiving the declarations by the Chief Executive Officer and Chief Financial Officer required to be
made to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2024.
On behalf of the Board
Timothy Antonie
Non-Executive Chair
Sydney
21 August 2024
Directors’ declaration
106 Breville Group Limited annual report 2024
Auditor’s independence declaration
Auditor’s Independence Declaration
As lead auditor for the audit of Breville Group Limited for the year ended 30 June 2024, I declare that to the
best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Breville Group Limited and the entities it controlled during the period.
Aishwarya Chandran
Sydney
Partner
21 August 2024
PricewaterhouseCoopers
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au
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T: +61 2 9659 2476, F: +61 2 8266 9999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
107
Breville Group Limited annual report 2024
PricewaterhouseCoopers, ABN 52 780 433 757
One International Towers Sydney, Watermans Quay, Barangaroo, GPO BOX 2650, SYDNEY NSW 2001
T: +61 2 8266 0000, F: +61 2 8266 9999
Level 11, 1PSQ, 169 Macquarie Street, Parramatta NSW 2150, PO Box 1155 Parramatta NSW 2124
T: +61 2 9659 2476, F: +61 2 8266 9999
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report
Independent auditor’s report
To the members of Breville Group Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Breville Group Limited (the Company) and its controlled entities (together the
Group) is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial performance
for the year then ended
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
•
the consolidated statement of financial position as at 30 June 2024
•
the consolidated statement of comprehensive income for the year then ended
•
the consolidated statement of changes in equity for the year then ended
•
the consolidated statement of cash flows for the year then ended
•
the consolidated income statement for the year then ended
•
the notes to the financial statements, including material accounting policy information and other explanatory
information
•
the consolidated entity disclosure statement as at 30 June 2024
•
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the Corporations
Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code
of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our
audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
108 Breville Group Limited annual report 2024
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis
of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on
the financial report as a whole, taking into account the geographic and management structure of the Group, its
accounting processes and controls and the industry in which it operates.
Audit Scope
Our audit focused on where the Group made subjective judgements; for example, significant accounting
estimates involving assumptions and inherently uncertain future events. The Group comprises of entities
located globally, with the most financially significant operations located in Australia and the United States of
America. We tailored the scope of our audit to ensure we performed sufficient work to give an opinion on the
financial report as a whole, taking into account the geographical structure of the group. Under instruction and
supervision from the group audit team, component auditors in Italy performed an audit of the special purpose
financial information of significant financial statement line items used to prepare the consolidated financial
statements.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the financial report for the current period. The key audit matters were addressed in the context of our audit of
the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
on these matters. Further, any commentary on the outcomes of a particular audit procedure is made in that
context. We communicated the key audit matters to the Audit and Risk Committee.
Key audit matter
How our audit addressed the key audit matter
Estimated recoverable amount of goodwill and intangibles
with indefinite lives (Refer to note 11)
Under Australian Accounting Standards, the Group is required
to test goodwill and intangibles with indefinite lives annually for
impairment.
The Group assesses goodwill and intangibles with indefinite
lives for impairment at the cash generating unit ('CGU') level.
This assessment is inherently complex and judgemental. It
requires judgement by the Group in forecasting the operational
cash flows of the CGUs, and determining discount rates and
terminal value growth rates used in the discounted cash flow
models used to assess impairment (the 'models').
The recoverable amount of goodwill and intangibles with
indefinite lives was a key audit matter given the:
●
financial significance of intangible assets to the
consolidated statement of financial position; and
●
judgement applied by the Group in performing the
impairment assessments.
●
Assisted by PwC valuation experts in aspects of our work,
our audit procedures included, amongst others:
●
assessing the identification of CGUs and the allocation
of carrying value of assets and liabilities and cash flows
to those CGUs for consistency with our knowledge of the
Group;
●
assessing whether the models applied by the Group for
impairment testing were prepared in accordance with the
requirements of Australian Accounting Standards;
●
comparing the cash flow forecasts in the models to the
Board approved budget;
●
testing the mathematical accuracy of the models;
●
assessing the terminal growth rates and discount rates
applied in the models;
●
assessing cash flow forecasts, which contain key growth
assumptions included in the models against historical
performance and budget accuracy, future strategic plans,
and other market information;
●
performing sensitivity analyses over the key assumptions
used in the models to understand the impact of reasonably
possible changes to key assumptions; and
●
assessing reasonableness of the related financial statement
disclosures for consistency with Australian Accounting
Standards requirements.
Independent auditor’s report continued
109
Breville Group Limited annual report 2024
Key audit matter
How our audit addressed the key audit matter
Revenue from contracts with customers (Refer to note 3)
The Group's accounting policy is to recognise revenue
when the performance obligation of transferring goods to the
customer has been satisfied and the transaction price can be
measured.
Revenue was a key audit matter given the financial
significance of revenue to the financial report and the
significant audit effort required to gather sufficient appropriate
audit evidence for revenue recognition.
Our procedures over the recognition of revenue included, amongst
others:
●
considering the Group's accounting policy in line with Australian
Accounting Standard requirements;
●
developing an understanding, and evaluating the design and
implementation of key controls over the revenue to receivables
business process;
●
obtaining a sample of revenue transactions and testing back
to source documentation, including identifying performance
obligations, assessing whether the transactions occurred and
were recognised in the correct period;
●
understanding any manual adjustments; and
●
assessing reasonableness of the related financial statement
disclosures for consistency with Australian Accounting
Standards requirements
Other information
The directors are responsible for the other information. The other information comprises the information included
in the annual report for the year ended 30 June 2024, but does not include the financial report and our auditor’s
report thereon. Prior to the date of this auditor's report, the other information we obtained included the Company
information, Directors' report and Corporate governance statement. We expect the remaining other information to
be made available to us after the date of this auditor's report.
Our opinion on the financial report does not cover the other information and we do not and will not express an
opinion or any form of assurance conclusion thereon through our opinion on the financial report. We have issued a
separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
When we read the other information not yet received, if we conclude that there is a material misstatement therein,
we are required to communicate the matter to the directors and use our professional judgement to determine the
appropriate action to take.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report in accordance with
Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair view, and for such
internal control as the directors determine is necessary to enable the preparation of the financial report that is free
from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
110 Breville Group Limited annual report 2024
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with the Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the
financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This
description forms part of our auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the year ended 30 June 2024.
In our opinion, the remuneration report of Breville Group Limited for the year ended 30 June 2024 complies
with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the remuneration report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards.
PricewaterhouseCoopers
Aishwarya Chandran
Sydney
Partner
21 August 2024
Independent auditor’s report continued
111
Breville Group Limited annual report 2024
Shareholder information
Substantial shareholders notices as at 27 August 2024
Source: ASX Notices lodged
Name
% of issued
ordinary shares
Number of
ordinary shares
S. Lew Custodians (a)
30.42%
43,638,384
Bennelong Australian Equity Partners
9.38%
13,449,087
Greencape Capital Pty Ltd (b)
5.81%
8,335,787
First Sentier Investors Holdings Pty Limited (c)
5.15%
7,392,739
(a) The interests of S. Lew Custodians Pty Limited include a deemed relevant interest in the 36,499,538 shares held by Premier
Investments and shares held by other related parties of the group.
(b) Challenger Limited lodged a substantial shareholder notice for the same shares noted above. Greencape Capital Pty Ltd is
an associated entity of Fidante Partners, a member of the Challenger Limited group of companies. The Challenger Limited
substantial shareholder notice declared a total holding of 8,585,787 shares (5.99%) which also included shares held by Apollo
Global Management, Inc.
(c) Mitsubishi UFJ Financial Group, Inc. lodged a substantial shareholder notice for the same shares noted above on the basis
that it has 100% voting power in First Sentier Investors Holdings Pty Limited. Mitsubishi UFJ Financial Group, Inc.'s substantial
shareholding is therefore not included in the table above.
Distribution of shareholdings as at 27 August 2024
Size of holding
Ordinary
shareholders
1 to 1,000
5,883
1,001 to 5,000
1,694
5,001 to 10,000
239
10,001 to 100,000
212
100,001 and over
40
Total shareholders
8,068
Voting rights
All ordinary shares issued by Breville Group Limited carry one vote per share without restriction.
112 Breville Group Limited annual report 2024
Twenty largest shareholders by registered holder as at 27 August 2024
Name
Shares
% IC
Premier Investments Limited
35,761,415
24.933%
Citicorp Nominees Pty Limited
30,109,941
20.993%
HSBC Custody Nominees (Australia) Limited
22,587,599
15.748%
J P Morgan Nominees Australia Pty Limited
17,428,854
12.151%
HSBC Custody Nominees (Australia) Limited-GSCO ECA
3,113,767
2.171%
SL Superannuation No1 Pty Ltd
3,000,000
2.092%
BNP Paribas Noms Pty Ltd
2,093,861
1.460%
National Nominees Limited
1,912,907
1.334%
Lew Family Investments Pty Ltd
1,891,461
1.319%
Lew Family Investments Ltd
1,535,718
1.071%
HSBC Custody Nominees (Australia) Limited
1,476,733
1.030%
UBS Nominees Pty Ltd
755,258
0.527%
Premier Investments Ltd
738,123
0.515%
BNP Paribas Nominees Pty Ltd
723,128
0.504%
BNP Paribas Nominees Pty Ltd
711,828
0.496%
S L Nominees Pty Ltd
711,667
0.496%
Australian Foundation Investment Company Limited
702,494
0.490%
Netwealth Investments Limited
622,638
0.434%
Mirrabooka Investments Limited
616,200
0.430%
Citicorp Nominees Pty Limited
467,461
0.326%
Total
126,961,053
88.517%
Unquoted equity securities as at 27 August 2024
Number
on issue
Number
of holders
Rights issued under the Breville Group Limited Share Plan to take up
ordinary shares
2,589,741
247
Shareholder information continued
113
Breville Group Limited annual report 2024
Company information
Directors
Timothy Antonie
Non-Executive Chair
Lawrence Myers
Non-Executive Deputy Chair and
Lead Independent Director
Jim Clayton
Managing Director and CEO
Tim Baxter
Non-Executive Director
Peter Cowan
Non-Executive Director
Sally Herman
Non-Executive Director
Dean Howell
Non-Executive Director
Tuula Rytilä
Non-Executive Director
Kate Wright
Non-Executive Director
Company secretaries
Sasha Kitto
Craig Robinson
ABN
Breville Group Limited ABN 90 086 933 431
Registered office and principal place of
business
Ground Floor, Suite 2
170-180 Bourke Road
Alexandria NSW 2015
(+61 2) 9384 8100
Share register
Boardroom Pty Limited
Level 8, 210 George St
Sydney NSW 2000
Enquiries within Australia: 1300 737 760
Enquiries outside Australia: (+61 2) 9290 9600
Website: www.boardroomlimited.com.au
Auditors
PricewaterhouseCoopers
One International Towers Sydney
Watermans Quay
Barangaroo NSW 2000
Bankers
Australia and New Zealand Banking Group Limited
242 Pitt Street
Sydney NSW 2000
Company websites
brevillegroup.com
breville.com
kambrook.com.au
sageappliances.com
chefsteps.com
baratza.com
beanz.com
lelit.com
This report is printed on ecoStar+ which is an environmentally responsible paper made carbon neutral, and
the fibre source is FSC Recycled certified. ecoStar+ is manufactured from 100% post consumer recycled
paper in a process chlorine free environment under the ISO 14001 environmental management system.
Design: Design United and Buzzsaw. Print: Hogan Print
114 Breville Group Limited annual report 2024
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BOV950 The Joule Oven Air Fryer
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2020
BNE900 the Creatista Pro
2020
CSV750/700 Hydro Pro Immersion
Circulator
2020
BMO870/850 3 in 1 Combi Wave /
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2019
BES500 the Bambino Plus
2019
BES878 the Barista Pro
2019
BTM700 the Tea Maker Compact
2019
BBL920 the Super Q
2019
BPZ800 the Smart Oven Pizzaiolo
2018
BES880 the Barista Touch
2018
BDC450 the Precision Brewer
Thermal
2018
BJE830 the Juice Fountain
Cold XL
2018
BFP820 the Kitchen Wizz Peel and
Dice
2017
BES990 the Oracle Touch
2017
BSG600 the Perfect Press
2017
BFS800 the Steam Zone
2017
BSM600 the Smoking Gun
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2017
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2017
BKE735 the Soft Top Luxe
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CMC800 Control Freak Cooker
2016
BEM825 the Bakery Boss
2016
Thermal Pro Cookware
2016
BPB620 Boss To Go Personal Blender
2015
BMO700 Quick Touch Microwave
2015
BCP600 Citrus Press
2014
BES980 the Oracle Espresso
2014
BMO734 the Quick Touch
2014
BTA720/730 the Lift and
Look Pro
2014
BWM640 the Smart Waffle
2013
BEF100 the Thermal Grill Pro
2013
BRC600 the Multi Chef
2022
An Aboriginal Culinary Journey
IDSA Design Award – USA
IDEA International Design Excellence
Awards
Silver Award
2019
BES878 the Barista Pro
2017
BES990 the Oracle Touch
Bronze Award
2019
BTM700 the Tea Maker Compact
2019
BOV860the Smart Oven Air Fryer
2017
BES990 the Oracle Touch
2017
BNE800 Creatista Plus
2017
BSM600 the Smoking Gun
2014
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2021
BJB815 the 3x Bluicer Pro
2021
CSV750/700 Hydro Pro Immersion
Circulator
2021
BMO870/850 3 in 1 Combi Wave /
Smooth Wave
2019
BPZ800 the Smart Oven Pizzaiolo
2019
BES500 the Bambino Plus
2018
BES880 the Barista Touch
2018
BDC450 the Precision Brewer Thermal
2018
BJE830 the Juice Fountain Cold XL
2018
BFP820 the Kitchen Wizz Peel and
Dice
2017
BOV900 the Smart Oven Air
2014
BWM640 the Smart Waffle
2014
BTA720/730 the Lift and Look Pro
2013
BFP800 Kitchen Wizz Food Processor
2013
BBL 605 Kinetix Control Blender
2013
BDC600 You-Brew Drip Coffee
Machine
Good Design Award Chicago Anthenaeum
2022
An Aboriginal Culinary Journey
2022
BES876 Barista Express™ Impress
2021
BMO870/8503 in 1 Combi Wave/
Smooth Wave
2021
BNE900 the Creatista Pro
2019
BOV860 the Smart Oven Air Fryer
2019
BES878 the Barista Pro
2019
BTM700 the Tea Maker Compact
2019
BBL920 the Super Q Blender
2019
BPZ800 the Smart Oven Pizzaiolo
2018
BDC450 The Precision Brewer
2018
BMC8oo The Control Freak
2018
BES990 The Oracle Touch
2018
BSM6oo The Smoking Gun
2018
BOV900 The Smart Oven Air
2018
BKE735 The Soft Top Luxe
2018
BTA735 Toast Select Luxe
Selected Accolades