Australia’s Breville cashes in on coffee boom

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SYDNEY – Australian kitchen-gadget-maker Breville has cashed in on a worldwide surge in speciality coffee, with sales of home espresso machines driving bumper profits.
The firm said it had bucked the subdued consumer market to post revenues of more than US$1-billion, thanks in part to bumper sales of coffee machines, particularly in the United States.
The Sydney-based firm saw net profit surge 7.5 percent to just under Aus$120million (US81-million) in the 12 months ending in June.
“The continuing coffee tailwind supported this topline growth,” said group CEO Jim Clayton.
Breville — branded as Sage in Britain — is perhaps best known for its range of sleek espresso machines that run from entry level to professional grade.
While instant coffee sellers and big cafe chains like Starbucks have struggled in recent years, the industry around speciality coffee has surged.
More people are drinking coffee at speciality shops or buying locally roasted beans to grind and brew at home.
According to the International Coffee Organization coffee exports are up about 10 percent in the last year, while prices are also increasing.
Breville has seen global sales double in the last five years, despite weakness in some of its non-coffee-related products.
The firm’s share price rose more than five percent on the Australian Stock Exchange on Wednesday.