Key Highlights

  • Codan upgraded FY26 guidance to approximately AUD 170mn net profit and AUD 235mn EBIT.
  • Breville produced record first-half revenue of AUD 998mn, up 10.1%, with growth across all major regions.
  • Amotiv’s statutory result reflects a large non-cash impairment, while first-half underlying EBITA reached AUD 98.3mn.
  • Koala listed at AUD 3.40 in March 2026 and is targeting a return to profit in FY26.

Consumer durables businesses are navigating restrictive interest rates, cautious household spending, currency movements and changing supply chains. The four companies in this review have different exposures: Amotiv is tied closely to automotive aftermarket demand, Breville and Codan earn heavily offshore, and Koala is building scale in furniture and homewares.

August reporting will test the durability of earnings growth, the quality of cash conversion and the degree to which product innovation can offset macroeconomic pressure.

Company Updates

Amotiv (ASX:AOV). Amotiv designs and distributes automotive components across 4WD accessories, lighting, electrical, powertrain and undercarriage categories. A non-cash impairment of approximately AUD 180–190mn has weighed on statutory earnings, but first-half FY26 revenue rose 3.3% to AUD 520.5mn and underlying EBITA reached AUD 98.3mn. Cash conversion improved to 91.9%, while management has guided to approximately AUD 195mn of FY26 underlying EBITA.

Breville Group (ASX:BRG). Breville develops premium kitchen appliances under the Breville and Sage brands. First-half revenue increased 10.1% to a record AUD 998mn and underlying EBIT rose 10.5% to AUD 144.8mn. Double-digit sales growth across major regions and growth in coffee subscriptions supported the result. Elevated inventory, tariffs and a firmer Australian dollar remain the main near-term considerations.

Codan (ASX:CDA). Codan operates communications and metal-detection businesses serving defence, government, security and mining-related customers. First-half revenue rose 29% to AUD 393.5mn and EBIT increased 52% to AUD 99.8mn. Management upgraded FY26 guidance to approximately AUD 170mn net profit and AUD 235mn EBIT. Delivery against that guidance and the sustainability of Communications margins will shape the August result.

Koala (ASX:KOA). Koala sells furniture and home products through a digitally led model. It listed on 31 March 2026 at AUD 3.40 and has forecast FY26 revenue of approximately AUD 332mn and net profit of AUD 12.3mn. Investors will be looking for evidence that marketing investment, international growth and operating leverage can support profitable expansion after the listing.

Sector Themes

Product cycles are central to all four companies. Breville relies on premium appliance launches, Codan on radio and detector innovation, Amotiv on automotive and caravan products, and Koala on brand-led furniture ranges. Inventory discipline is also important because slow-moving stock can absorb cash and force discounting.

Currency exposure separates global exporters from domestic operators. A stronger Australian dollar may reduce translated offshore earnings for Breville and Codan, while domestic interest rates and household confidence have greater influence on Amotiv and Koala.

What Investors May Watch Next

Full-year results from Codan and Breville are the leading August catalysts. Amotiv’s investors may focus on underlying margins, cash conversion and the effect of restructuring. Koala’s early listed-company updates will be assessed against prospectus forecasts and the path to sustainable profit.

Risks

  • Earnings may fall short if customer demand, volumes or pricing weaken.
  • Higher interest rates, inflation and currency movements may affect margins and valuations.
  • Acquisitions, restructures and expansion programs may not deliver their expected benefits.
  • Debt, capital expenditure and working-capital requirements may constrain shareholder returns.
  • Share prices may remain volatile around results, guidance changes and company-specific events.