Highlights

  • Breville Group (ASX:BRG) reported record FY26 Revenue of $1.81 billion, up 6.7%.
  • Net profit after tax increased 1.7% to $138.1 million, while EBITDA rose 4.5% to $284.1 million.
  • Global Product revenue increased 7.4% to $1.61 billion, supported by growth across key regions.
  • Manufacturing Diversification progressed, with 85% of Gross Profit dollars from US-focused products now sourced outside China.

Breville Group (ASX:BRG) has reported record FY26 sales performance, supported by continued global Demand for its premium kitchen appliances, while investors assess the impact of Margin pressures and Supply chain transition costs.

The company continues expanding its international footprint and strengthening its Manufacturing network, but profitability remains a key focus as tariffs, logistics costs and production diversification affect margins.

FY26 Performance

Breville delivered record revenue of $1.81 billion in FY26, representing growth of 6.7% on a reported basis and 9.7% growth on a constant-currency basis.

Net profit after tax increased 1.7% to $138.1 million, while EBITDA rose 4.5% to $284.1 million.

Basic earnings per share reached 95.5 cents, and the Board increased the fully Franked Dividend to 38.0 cents per share, compared with 37.0 cents previously.

The Global Product segment remained the key growth driver, with revenue increasing 7.4% to $1.61 billion.

The Distribution segment also recorded growth, with revenue increasing 1.6% to $199.1 million.

Margin Pressure

While revenue growth remained strong, profitability was impacted by lower margins.

EBIT increased only 1.2% to $207.0 million, while EBIT margin declined to 11.4% from 12.1%.

Gross margin decreased to 36.0% from 36.6%, reflecting higher Tariff costs and expenses associated with manufacturing diversification.

However, second-half gross margin improved to 36.8%, suggesting some stabilisation after earlier pressure.

Return on equity declined to 13.6% from 14.9%, reflecting the impact of lower profitability growth relative to the previous period.

Supply Chain Strategy

Breville continued reshaping its manufacturing footprint to reduce supply chain concentration risks.

The company highlighted progress in moving production away from China, particularly for its US-focused product range.

Approximately 85% of gross profit dollars from its Global Product 120-volt range are now sourced outside China.

While the strategy is expected to improve supply chain resilience, the transition has created additional costs through inventory requirements, logistics changes and manufacturing adjustments.

The market focus remains on how quickly these changes can translate into improved margins.

Regional Growth

Despite margin pressures, Breville continued delivering growth across major markets.

Constant-currency revenue growth reached:

  • 10.8% in the Americas.
  • 8.5% in EMEA.
  • 8.3% in APAC.

The performance indicates continued demand for Breville’s premium coffee and cooking products across international markets.

The company’s challenge remains converting strong revenue growth into higher profitability as cost pressures continue.

Balance Sheet Strength

Breville strengthened its financial position during FY26.

Net cash increased to $104.4 million, compared with $48.5 million previously.

The stronger Balance Sheet provides flexibility to invest in manufacturing capabilities, product development and future growth opportunities.

Outlook

Breville expects FY27 to continue being influenced by tariff conditions, supply chain adjustments, transport costs and elevated inventory levels.

The company did not provide formal FY27 earnings guidance, with further outlook expected alongside the first-half FY27 results.

The key focus will be whether manufacturing diversification progresses smoothly and whether margin recovery continues after the improvement seen during the second half of FY26.

Key Risks

Breville remains exposed to consumer discretionary spending trends, particularly as households manage cost pressures.

Additional risks include tariff changes, supply chain execution, manufacturing transition costs and the ability to maintain premium pricing.

For a company valued on Long-term Growth expectations, sustained margin pressure could influence investor sentiment.

Outlook

Breville continues to demonstrate strong global demand, Brand strength and international growth capability.

The FY26 result reinforced the company’s ability to expand revenue, but future performance will depend on restoring margin momentum and successfully completing supply chain changes.

Investors will continue monitoring gross margin trends, tariff developments, regional demand and progress towards a more efficient manufacturing structure.