Key Highlights

  • Breville Group (ASX:BRG) shares were trading at A$31.09, down 6.07%, or A$2.01, on 19 August 2026 at 3:14 pm.
  • FY26 Revenue increased 6.7% to a record A$1.81 billion, while constant-currency Global Product revenue grew 9.7%.
  • Gross Margin declined to 36.0% from 36.6%, while EBIT increased 1.2% to A$207.0 million and NPAT rose 1.7% to A$138.1 million.
  • Net cash increased to A$104.4 million, while the total Dividend rose 2.7% to 38.0 cents per share, fully franked.

Breville Group Limited (ASX:BRG) shares were trading at A$31.09, down 6.07%, or A$2.01, on 19 August 2026 at 3:14 pm, after the premium kitchen appliance maker reported record FY26 revenue of A$1.81 billion. Revenue increased 6.7%, but gross margin fell 60 basis points to 36.0%, while EBIT increased only 1.2% to A$207.0 million amid Tariff costs, currency movements and Manufacturing Diversification expenses.

Record Revenue Despite Currency Headwinds

Breville's FY26 revenue increased from A$1.70 billion to A$1.81 billion, marking another annual increase. Global Product revenue rose 7.4% on a reported basis and 9.7% in constant currency.

The company recorded double-digit revenue growth in Coffee and Cooking, while Food Preparation increased at a single-digit rate. China, Korea, Mexico and the Middle East collectively recorded revenue growth of more than 70%.

Currency movements affected the reported result, particularly during the second half. The company said weakness in the US dollar and euro reduced reported revenue growth compared with the underlying constant-currency performance.

Gross Margin Declines Despite Second-Half Improvement

Gross profit increased 5.0% to A$651.4 million, but gross margin declined from 36.6% to 36.0%. The company attributed the full-year reduction primarily to higher net tariff costs and transition expenses associated with accelerating its manufacturing diversification.

The second half showed some improvement. Gross margin reached 36.8%, compared with 35.4% in the first half and above the corresponding prior-year second-half margin. The improvement was linked primarily to the increasing contribution from US sourcing as the diversified manufacturing base expanded production.

Breville said tariff refunds received during the year and related value-chain expenses resulted in a minimal net profit-and-loss impact.

EBIT and NPAT Increase at a Slower Rate

EBIT rose 1.2% to A$207.0 million from A$204.6 million, remaining in line with the company's budget and previous guidance. The increase was considerably slower than revenue growth.

NPAT increased 1.7% to A$138.1 million from A$135.9 million. The company said lower average borrowing costs supported the increase in NPAT.

Breville also increased Investment in its future growth areas. Spending on product development, marketing, solutions and technology services rose to 14.4% of revenue from 14.2% in FY25.

Manufacturing Diversification Advances

Breville said its manufacturing diversification programme was substantially complete, with 85% of Global Product 120-volt Gross Profit dollars now sourced outside China.

The shift is particularly relevant to the US market, where tariff conditions remain uncertain. The company enters FY27 with a larger proportion of production outside China and said the new manufacturing footprint provides additional sourcing flexibility.

Inventory increased to A$465.8 million from A$426.3 million. The increase was driven primarily by the US and earlier purchases of 120-volt products from diversified manufacturing facilities ahead of the FY27 peak season.

Regional Growth Remains Broad

The Americas generated Global Product revenue of A$879.3 million, up 6.9% on a reported basis and 10.8% in constant currency. Premium Coffee products and Cooking recorded double-digit growth, while the US continued to show Demand for higher-priced products.

EMEA revenue increased 9.0% to A$408.1 million, while APAC revenue rose 6.7% to A$324.4 million. In constant currency, growth was 8.5% and 8.3%, respectively.

Breville also highlighted the performance of China following its transition to direct operations. Revenue in its first full year of direct operation was 7.1 times the revenue generated under the previous distributor arrangement.

Cash Position and Dividend

Breville ended FY26 with net cash of A$104.4 million, compared with A$48.5 million a year earlier. The company reported a second-half cash inflow of A$148.0 million, including seasonal receivables collections and tariff refunds.

The board declared a final dividend of 19.0 cents per share, fully franked. Total FY26 dividends increased to 38.0 cents per share from 37.0 cents, representing growth of 2.7%.

The final dividend has a Record Date of 11 September 2026 and is scheduled for payment on 1 October 2026.

FY27 Outlook

Breville expects FY27 to remain affected by changing tariffs, supply-chain costs, transport expenses and elevated inventory requirements. The company expects some elevated inventory levels and investment in growth Assets to continue through FY27.

The company has not provided formal FY27 Earnings guidance at this stage and expects to provide guidance with its first-half FY27 results. It said demand remains influenced by premium consumer spending, new product launches, expanding geographic markets and additional store-in-store opportunities.

Conclusion

Breville entered FY27 with record revenue, higher EBIT, increased NPAT and a larger net cash position, but the FY26 numbers also show pressure on profitability. Gross margin declined to 36.0%, EBIT growth was limited to 1.2%, and ROE fell from 14.9% to 13.6%. Manufacturing diversification has progressed substantially, with 85% of 120-volt product gross profit dollars now sourced outside China, potentially changing the group's exposure to US tariffs. Meanwhile, elevated inventory, supply-chain costs and an uncertain tariff environment remain relevant factors as the company moves into FY27.