The Breville Group Ltd (ASX: BRG) share price has been on a steady climb since the beginning of 2016 with several pullbacks that are hardly noticeable on a 5-year timeframe chart. Within four years, Breville's share price has increased by over 100% and doesn't look to be stopping anytime soon.
The Breville share price traded at $7 in January 2016 and is currently continuing to push its all-time high of $17.97.
Breville's strong international brand name remains a cornerstone of its success
From Breville's financial report in 2018, sales revenue and profit continue to grow with strong overseas demand. The group saw its total revenue increase by 7.7% and gross profit increase by 16%. This was accompanied by a net profit increase of 8.7% and its earnings per share increasing from 41.4 cents to 45 cents.
Alongside the income statement, Breville's balance sheet and cashflow statement show healthy figures. Net cash from operating activities saw a 41% increase with receipts from customers increasing by 11.8%. This provides strong evidence of organic growth which is critical for the success of consumer discretionary businesses such as Breville.
Breville also increased its cash holding from the previous year. This surplus cash can be used for increasing the number of international stores or towards the research and development of its products.
From the recent half-year results, Breville's global product revenue continued to grow with Europe's double-digit increase being the standout performer. The Australia and New Zealand region experienced an increase of 7.9% which is impressive given the challenging retail environment.
Based on its current valuation, Breville trades at a PE of 35.5 compared to its industry of 27.4. This premium can be justified, however, with the company's past performance and future outlook. With a strong half-year performance as such, Breville expects its EBIT growth rate to be higher than the market's expectations of 11%.
Provided that macroeconomic issues remain dormant, this forecast should be well within Breville's reach.
Foolish takeaway
Factoring in the current domestic economic conditions, Breville's strong offshore earnings can work towards providing assurance to shareholders. With its respectable international branding and strong financial position, I believe the Breville share price is likely to continue to reach new heights.
