Data 3.pdf - R&D engine driving Breville's success Eureka...

This preview shows page 1 - 3 out of 15 pages.

11/06/2021 R&D engine driving Breville's success - Eureka Report 1/15 Beat the price rise EOFY special o±er - Find out more By Alan Kohler · 14 Feb 2020 R&D engine driving Breville's success Alan Kohler speaks with Jim Clayton, the CEO of Breville Group about what is behind the company's impressive half-yearly results and what impact the coronavirus is having on the business. Jim Clayton is the CEO of Breville Group, the maker of small kitchen appliances. It’s an Australian company; Australian engineering and design and they sell these things all over the world, including more recently in Europe over the last couple of years. They're well established in North America, and of course, Australia. A very interesting interview, which went longer than normal because it was so interesting. I won’t try to preview it too much. I think it’s worth having a look at – listening to, or reading. Towards the end, he’s very clear on the situation with coronavirus in China because obviously they get their products made in China and his comments on that subject are also worth waiting for. Here’s Jim Clayton, the CEO of Breville Group. T able of contents: Company history Eureka Report Jim Clayton - Breville Group 00:00 / 36:53
11/06/2021 R&D engine driving Breville's success - Eureka Report 2/15 Share price R&D Global market Coronavirus Jim, before we get onto today’s half-yearly results, I wonder if you could just explain to us how your business works? Because I gather you design small appliances, co±ee machines, blenders and so on, get them made in China and then market them under a variety of brands in North America, Europe, Australia and New Zealand and you make a gross margin of about 15 per cent, a net margin after tax of just under 10 per cent. Does that kind of roughly sum it up? The EBIT margin, not gross margin. EBIT margin, yeah, okay. Yeah sorry. If my gross margin was 15 per cent we wouldn’t be talking right now, that would not be good! The basic set up is we have a relatively large team from Australian standards in Australia that designs and engineers our products. Those products are manufactured in China and then we sell them in roughly 65 countries, I think. We either sell them ourselves or through partners. The countries that you listed are countries where we have boots on the ground; we’re executing the o±ence and then the other countries, whether it be the Philippines, South Africa, Brazil, whatever, we have a distribution partner of some sort in that country that’s selling our products to customers there. Right. I gather the company has been in the US for quite a long time, basically making an acquisition in 1997, but that wasn’t in the same products that are in there now. Can you just give us a bit of history? Breville started in 1932 with a couple of guys called O’Brien and Norville. Right.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture