Breville Group delivered record sales of $1.8 billion in the year ended 30 June 2026, with global constant currency revenue growth of 9.7% and EBIT performance tracking to budget and guidance despite an operationally complex year marked by substantial tariff volatility. The sales increase of $114.3 million represented 6.7% reported growth, though reported figures were suppressed by significantly weaker USD and Euro movements in the second half. The achievement is notable given the company’s successful navigation of tariff headwinds, which emerged as a material operational challenge during the period.
The Coffee and Cooking segment drove the growth story with double-digit revenue expansion, lifting the overall global segment to 9.7% constant currency growth. This performance underpinned the company’s strategic focus on core market expansion and store-in-store channels, where sustained investment continued despite near-term operational complexity. The diversification of manufacturing across multiple locations proved a critical operational lever, with second-half gross margins expanding to 36.8% above both the prior comparable period of 36.4% and the first-half level of 35.4%.
Gross margin for the full year came in at 36.0%, a 60 basis point decline from the prior year’s 36.6%, but the trajectory in the second half suggests the diversification strategy is bearing fruit and offsetting earlier-period pressures. EBIT reached $271.9 million, up materially from $204.6 million in the prior year, while EBIT margin stood at 11.4% against 12.1% previously. The EBIT outcome aligned with board guidance, providing clarity on the company’s ability to forecast and manage performance even during periods of external volatility. Net profit after tax grew 1.7% to $138.1 million, supported by lower average borrowing costs, whilst basic earnings per share increased to 95.5 cents from 94.4 cents. The company maintained its dividend commitment, lifting the payout to 38.0 cents per share from 37.0 cents, both fully franked.
The balance sheet strengthened considerably, with net cash improving to $104.4 million compared to $48.5 million in the prior year. This $55.9 million improvement in net cash position reflected the company’s underlying operational cash generation and financial discipline. Return on equity declined to 13.6% from 14.9%, a reflection of the higher equity base following retained earnings accumulation, though the absolute return remains respectable given prevailing interest rate and risk-free rate environments.
Investors should monitor the sustainability of the manufacturing diversification benefits as tariff regimes potentially normalise, along with the trajectory of currency movements and their impact on translated earnings. The strength of the Coffee and Cooking segment and its contribution to group profitability will warrant close attention in future updates. This announcement is price sensitive and has been flagged as material by the ASX.
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About Breville Group Limited (ASX: BRG)
Breville Group Limited is an Australian multinational manufacturer and marketer of premium small electrical kitchen appliances, including coffee machines, blenders, toasters, and other home appliances. The company operates globally under its flagship Breville brand in Australia, North America, and New Zealand, and under the Sage brand in the UK and Europe. It designs, manufactures, and distributes products serving both domestic and international markets.
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