Breville Group (ASX:BRG): FY26 Sales Growth Meets Tariff and Supply Chain Pressures

Aditi Sarkar

08 October 2026 11:23 PM AEDT

Breville Group (ASX:BRG): FY26 Sales Growth Meets Tariff and Supply Chain Pressures

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Highlights

FY26 Revenue reached A$1,810.9 million, up 6.7%, while EBIT rose 1.2% to A$207.0 million.
Net profit after tax increased 1.7% to A$138.1 million and the full-year Dividend was 38.0 cents per share, fully franked.
Manufacturing Diversification was substantially completed, with 85% of 120-volt product Gross Profit dollars sourced outside China.
Investment in product development, marketing, solutions and technology services rose to 14.4% of revenue.
Management entered FY27 focused on product innovation, geographic expansion and managing Tariff and Supply chain risks.

Breville Group Limited (ASX:BRG) designs, develops and sells premium kitchen appliances and related products across global markets under brands including Breville and Sage. Its FY26 result showed continued sales growth and broader geographic reach, but also highlighted the effect of tariffs, currency movements, Manufacturing changes and higher Investment on Earnings growth.

FY26 Revenue Outpaced Profit Growth

For the year ended 30 June 2026, Breville reported revenue of A$1,810.9 million, up 6.7% from FY25. EBITDA increased 4.5% to A$284.1 million, while EBIT rose 1.2% to A$207.0 million. Net profit after tax was A$138.1 million, up 1.7%. The result shows that sales expanded faster than operating profit as the group absorbed tariff-related costs, manufacturing transition expenses and planned investment in growth initiatives.

Gross profit increased 5.0% to A$651.4 million, while the full-year gross Margin was 36.0%, compared with 36.6% in FY25. However, second-half gross margin improved to 36.8%, above the first-half level of 35.4%, as changes to the US sourcing mix began to support margins.

Manufacturing Diversification Reshaped the Supply Chain

Breville (ASX:BRG) substantially completed its manufacturing diversification programme during FY26. The company reported that 85% of gross profit dollars from 120-volt products were sourced from outside China by year end. This shift was designed to reduce concentration in the supply chain and provide greater flexibility in managing tariff changes and logistics disruption affecting the Americas business.

The transition carried costs during the year, but the company indicated that the diversified sourcing base contributed to the improvement in second-half gross margin. Tariff changes in the United States remained an important variable, with the company continuing to manage their effect across suppliers, pricing and other parts of the value chain.

Investment Remained Central to Growth Plans

Breville increased spending on new product and solutions development, technology services and Marketing to 14.4% of revenue from 14.2% in the prior period. The company also continued to develop newer markets, including China, Korea, Mexico and the Middle East, where combined revenue growth exceeded 70% in FY26. The contribution of these markets remains smaller than Breville's established regions, but their growth broadened the group's geographic exposure.

Coffee and cooking products delivered double-digit revenue growth during the year. Management continued to position product innovation, Brand development and distribution expansion as key parts of the group's longer-term strategy.

Cash Position and Dividend

Breville (ASX:BRG) ended FY26 with net cash of A$104.4 million. The company declared total Ordinary Dividends of 38.0 cents per share, fully franked, compared with 37.0 cents in FY25. The Balance Sheet provides flexibility as the group continues investing in product development, market expansion and supply chain resilience.

Key Insights

Breville's FY26 result combined record sales with comparatively modest growth in EBIT and net profit. The key operational themes were manufacturing diversification, tariff management, product investment and expansion in newer markets. The improvement in second-half gross margin indicates that sourcing changes were beginning to affect profitability, while FY27 performance will depend on how effectively the company balances growth spending with ongoing trade, currency and supply chain pressures.

FAQs

Q:What was Breville Group's FY26 revenue?

A:Breville reported FY26 revenue of A$1,810.9 million, an increase of 6.7% from FY25.

Q:How much did Breville (ASX:BRG) earn in FY26?

A:Net profit after tax was A$138.1 million, up 1.7%, while EBIT increased 1.2% to A$207.0 million.

Q:What changed in Breville's manufacturing network?

A:The group substantially completed its diversification programme, with 85% of 120-volt product gross profit dollars sourced outside China.

Q:How much did Breville invest in growth activities?

A:Product development, marketing, solutions and technology services represented 14.4% of FY26 revenue.

Q:What dividend did Breville declare for FY26?

A:Total ordinary dividends were 38.0 cents per share and were fully franked.

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