Noumi reported total sales of $595 million, up 1.0% (vs MSTe +0.6%). While the Plant-based Milk division sales grew 2.5%, the Dairy and Nutritionals division sales were flat. The Plant-based Milk division sales were led by the performance of the Milklab branded product which grew 6.7% in the year, with strong sales growth in the retail channel.

Breville’s FY24 result highlighted better 2H24 sales trends in EMEA and the Americas. The company is likely to deliver good revenue growth in FY25e from these regions given new product launches and extended geographic reach. Breville is investing for growth with increased product development costs, while at the same time generating good cash flow.

We initiate coverage on Breville group, a global kitchen appliance developer that has achieved very strong sales growth in recent years, particularly in the coffee category. After a soft FY24e, we expect solid sales growth to resume in FY25e and beyond with household penetration, new markets and new products all supporting sales growth of 6%-9%. While gross margins should also expand, the company will need to invest in advertising and product development to sustain momentum.