A director of ASX 200 kitchen appliance manufacturer Breville Group Ltd (ASX: BRG), is in for a boosted dividend payout after buying 30,000 more shares a few days before the ex-dividend date.
The Breville share price is down 1.73% in early trading on Tuesday to $18.80.
A change of director’s interest notice lodged with the ASX last Friday reveals that non-executive director, Lawrence Myers, spent $577,785.49 buying more Breville shares through a family trust fund.
He made the purchase on Friday on-market.
How much will this ASX 200 director receive in dividends?
Breville shares begin trading ex-dividend tomorrow.
The ASX 200 share will pay investors 15 cents per share fully franked for 1H FY23 on 27 March. This is the same amount as the interim dividend for 1H FY22.
Before the purchase, Myers already had an indirect interest in 133,000 shares through his superannuation, family trust, and other investment vehicles.
His bumped-up investment will deliver $24,450 in dividends for 1H FY23.
Investors typically draw comfort from seeing board directors spend their own money buying more shares in the ASX 200 companies they run. It’s a clear sign of confidence in the company’s future.
A quick recap on Breville’s 1H FY23 results
In its 1H FY23 report, Breville revealed record sales with a 13.1% increase in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $141.9 million compared to the prior corresponding period (pcp) of 1H FY22.
Breville’s net profit after tax (NPAT) increased by 1.3%, and its gross margin improved by 1% to 35.1%.
The ASX 200 share’s return on equity (ROE) declined from 19.7% to 16.1% due to its acquisition of Italian prosumer coffee company, Lelit, in July 2022.
Breville Group CEO, Jim Clayton said:
The strength of our product portfolio, coupled with the maturity and agility of our underlying Acceleration Platform, cut through the macro-economic headwinds of the 1H23.
We grew Gross Profit by tacking into our areas of strength: we managed price to counter
material input and logistics cost inflation as well as negative currency swings; we leaned on our
geographic diversification to deflect the impact of EMEA retailers buying much less than they
were selling; we aligned our supply chain and go-to-market to take advantage of the trending
tailwinds of “air frying” and âcafé quality coffee at homeâ; we executed a much improved new
product launch process that accelerated revenue; and, we captured the benefit from the
investments weâve made in our digital execution and geographic expansion.
Recent history on this ASX 200 share
The Breville share price is up 0.75% in 2023 compared to an 0.5% bump in the S&P/ASX 200 Index (ASX: XJO).
The ASX 200 share is down 31% over the past 12 months, compared to a 2.4% fall for ASX 200 shares overall.
The post This ASX 200 director bought over $500k of his company’s shares just in time for the dividend! appeared first on The Motley Fool Australia.
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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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