Key Highlights

  • Breville Group Limited (ASX:BRG) reported record FY26 Revenue of $1.81 billion, up 6.7% from $1.70 billion in FY25.
  • EBIT increased 1.2% to $207.0 million, while NPAT rose 1.7% to $138.1 million.
  • Full-year gross Margin declined to 36.0% from 36.6%, reflecting Tariff increases and Manufacturing Diversification costs, although second-half gross margin improved to 36.8%.
  • Net cash more than doubled to $104.4 million, while total dividends increased 2.7% to 38.0 cents per share.

Breville Group (ASX:BRG) closed FY26 with record sales of $1.81 billion, as growth across coffee and cooking products, new international markets and an expanded retail footprint offset a challenging operating environment. Reported revenue increased 6.7% from $1.70 billion, while global product revenue grew 7.4%, or 9.7% on a constant-currency basis. The company said second-half global product growth reached double digits.

Revenue Growth Across Key Markets

The Global Product segment remained the principal contributor, generating $1.61 billion of revenue compared with $1.50 billion a year earlier. Coffee and Cooking delivered double-digit growth, while Food Preparation recorded single-digit growth.

Geographically, the Americas generated $879.3 million in Global Product revenue, up 6.9% on a reported basis and 10.8% in constant currency. EMEA revenue increased 9.0% to $408.1 million, while APAC revenue rose 6.7% to $324.4 million.

Breville's newer markets continued to expand at a faster rate. China, Korea, Mexico and the Middle East collectively recorded revenue growth of more than 70%. China also completed its first full year of direct operations, with sales reaching 7.1 times the revenue previously generated through its distributor.

The Distribution segment recorded more modest growth, with revenue increasing 1.6% to $199.1 million. However, Gross Profit from the segment rose 6.5% to $65.6 million.

Profitability Gains Despite Margin Pressure

Gross profit increased 5.0% to $651.4 million, although gross margin declined by 60 basis points to 36.0%. The reduction reflected higher net tariff costs and transition expenses associated with the accelerated diversification of manufacturing.

The margin trend improved during the second half. Gross margin reached 36.8% in 2H26, compared with 35.4% in the first half, with the company attributing the improvement primarily to the changing US sourcing mix.

EBIT increased by $2.5 million, or 1.2%, to $207.0 million, in line with the company's previously stated budget and guidance. NPAT rose 1.7% to $138.1 million. The increase in net profit was supported partly by lower average borrowing costs.

Investment in product development, marketing, solutions and technology services increased to 14.4% of revenue from 14.2% in FY25. This expenditure occurred alongside continued expansion in new products and markets.

Manufacturing Diversification Changes Cost Structure

A major focus during FY26 was the diversification of Breville's manufacturing base. By year-end, 85% of gross profit dollars from 120-volt products were sourced outside China.

The transition generated additional costs during FY26 but also contributed to the improvement in second-half gross margins as volumes from the diversified manufacturing network increased. Breville also reported that net tariff impacts were actively managed across its Supply chain, with tariff refunds and related value-chain expenses resulting in a minimal net profit-and-loss impact for the year.

The company enters FY27 with manufacturing flexibility that was not available to the same extent in the previous financial year, although the tariff environment in the United States remains uncertain.

Balance Sheet and Dividend

Breville ended FY26 with net cash of $104.4 million, compared with $48.5 million a year earlier. The group also had $364.4 million of unused Debt facilities at June 30, providing additional capacity for seasonal Working Capital requirements and investment.

Inventory increased to $465.8 million from $426.3 million, partly reflecting earlier production of 120-volt products ahead of the FY27 peak season and higher inventory requirements in the United States.

The company declared a final Dividend of 19.0 cents per share, fully franked, unchanged from FY25. Total FY26 dividends nevertheless increased to 38.0 cents per share from 37.0 cents, representing growth of 2.7%.

FY27 Operating Environment

Breville expects FY27 to remain influenced by new product launches, expansion in newer markets, additional store-in-store opportunities and continued Investment in technology and solutions. At the same time, oil-related supply chain disruption, transport costs, material Inflation and US tariff settings remain areas of uncertainty.

The company expects elevated inventory and Capital Expenditure on growth Assets to continue through FY27. It plans to provide formal FY27 guidance alongside its first-half results.

Conclusion

Breville's FY26 results show continued top-line expansion and modest Earnings growth despite tariff pressures, currency movements and manufacturing transition costs. Revenue reached a record $1.81 billion, while EBIT and NPAT increased to $207.0 million and $138.1 million respectively. The decline in full-year gross margin to 36.0% remains a key financial consideration, although the improvement to 36.8% in the second half coincided with increased manufacturing diversification. The strengthened net cash position, higher dividend and continued growth in international markets provide the financial backdrop as Breville enters FY27, while tariff uncertainty and elevated inventory requirements remain material operating considerations.