Discount department stores are turning up the heat on Breville, with the household appliance maker facing stiff competition from the retailers' cheaper own-label brands.
The company's full year profit dipped 4.3 per cent to $46.7 million in 2014/15 amid an increasingly competitive local market and rising costs associated with the strengthening US dollar.
Breville, which owns popular brands Kambrook and Ronson, acknowledged it was challenging year, saying it struggled to get a bigger slice of the lower-cost kitchen appliance market.
"(Earnings were affected by the) continuation of discount department store retailers favouring their own home brands in the entry to mid-price points in which the group's Kambrook and Ronson brands operate," the company said in a statement.
"Price increases and cost efficiency savings did not fully offset the negative currency impact and volume shortfall."
Revenue fell 2.7 per cent to $527 million, but the company recorded growth in some of its overseas operations.
Its Sage brand in the United Kingdom, endorsed by celebrity chef Heston Blumenthal, produced double-digit revenue growth.
In North America, Breville performed strongly in the second half of 2014/15, with revenue up 24 per cent on the previous corresponding period.
Chief executive Jim Clayton said with the company's overall second half earnings were in line with guidance, there was cause for optimism.
"We expect that this positive momentum in core categories will flow through to FY16," he said on Thursday.
Breville shares closed 20 cents, or 2.99 per cent, higher at $6.09.
BREVILLE'S PROFIT SLICED
* Net profit: down 4.3pct at $46.7m
* Revenue: down 2.7pct at $527m
* Fully franked inal dividend: 13 cents per share maintained
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