Kitchen appliance maker Breville is bracing for challenging global economic conditions after a fall in half year earnings.
It blamed weaker demand for juicers in North America for a five per cent drop in earnings in the six months to December, while cash flow was stronger in Australia and New Zealand.
The company, which also distributes Kambrook and Philips appliances, made a half year net profit of $29.7 million.
Breville expects earnings to grow by mid-to-high single digits during the second half of the 2014/15 year, from $25 million in the same period a year earlier.
"Broader business conditions will continue to be globally challenging and competitive," it said.
The company is also still searching for a new chief executive after Jack Lord stepped down in August, and expects to make an announcement shortly.
"Discussions with a potential candidate for the chief executive officer role are progressing well," Breville said.
Breville shares dropped as far as seven per cent on Tuesday but recovered to close one cent lower at $6.98.
BREVILLE'S PROFIT TAKES A FALL
* Net profit of $29.7m, down five pct from $31.2m
* Revenue of $293.9m, down six pct from $311.3m
* Interim dividend of 14 cents per share, unchanged
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