BRG FH24--how different?

 BRG FH24—how different?

The revenue growth of 2% was low, as the market was subdued and buffeted by the Bed Bath and Beyond bankruptcy which brought about discounting. BRG decided to hold gross margin and therefore suffered some volume loss. All geographies increased GM.

Despite that inventories which have been a cause for concern fell and working capital was released reducing net debt to very comfortable levels.

The result saw softness in the core, more mature and cyclical markets, offset by new products, and new geographies. Cooking (air fryer) and coffee drove revenues, new geographies increased 70% off a low base.

Outlook ebit growth 5-7.5% slightly below estimates, mainly due to lower revenues.

FY24 should be clean overall but BBB will impact fh/sh mix.

Kleenaid reports are now reported by Whirlpool , look at these.

BRG is confident that new products and geographies will drive growth in 2025 and 2026. They sacrificed sales through low promotional activity to hold margins. Want to build share through new products not discounting, should set them up for next year. BRG took GP gains from lower freight etc into both GP and promotions not just promotions looking for share.

Reduced estimates for to 9% cagr for the next 5 years, a buy of around $21.

NPAt margins average around 8% so ok but not a great return.



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