Breville ends distribution agreement with Philips

Company News

by David Chau

Breville Group Ltd (ASX:BRG) has announced that its distribution partnership with Philips will come to an end on 31 May 2017.

The company says, for over 15 years, it distributed a range of Philips Male Grooming, Beauty and Garment Care products in Australia and New Zealand.

Breville also says the expiration of the distribution agreement is consistent with both parties changing their go-to-market strategies.

Philips will now distribute the majority of its consumer product portfolio in house in Australia, and consolidate its distribution partners in New Zealand into one master distributor.

Breville expects the expiration of this agreement will have an insignificant impact on its current financial year earnings, and an immaterial impact on its FY18 earnings.

Breville reported a net profit of $50.2 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.