Key Highlights

• For the year ended 30 June 2026, Breville reported Revenue of A$1,810.9 million (FY25: A$1,696.6 million) and global constant currency revenue growth of 9.7%.

• Global Product, which designs and sells the Breville, Sage, Baratza, Lelit and related brands, generated A$1,611.8 million of FY26 revenue, up 7.4% (9.7% in constant currency), with gross Margin of 36.3% compared with 37.2%.

• Gross margin fell to 36.0% from 36.6% for the year, but the second half was 36.8%, up from 36.4% a year earlier and 35.4% in the first half.

• Net cash was A$104.4 million (FY25: A$48.5 million), cash was A$193.4 million and unused Debt facilities were A$364.4 million.

How is Breville Group (ASX:BRG) protecting profitability while selling more premium appliances into markets affected by tariffs and weaker currencies? The FY26 results, released on 19 August 2026, show that revenue grew faster than earnings: revenue rose 6.7% to A$1,810.9 million, but EBIT increased just 1.2% to A$207.0 million as the gross margin slipped 60 basis points to 36.0%. The second half was better than the first, with a gross margin of 36.8%, which offers some evidence that pricing, mix and cost actions are working, although management gave no numerical FY27 guidance.

The central development: growth outpacing profit

For the year ended 30 June 2026, Breville reported revenue of A$1,810.9 million (FY25: A$1,696.6 million) and global constant currency revenue growth of 9.7%. The gap between the reported 6.7% and the constant currency 9.7% reflects what the presentation described as a significantly weaker US dollar and euro in the second half. Gross Profit was A$651.4 million, up 5.0%. EBITDA was A$284.1 million (up 4.5%), EBIT A$207.0 million (up 1.2%, margin 11.4% versus 12.1%) and NPAT A$138.1 million (up 1.7%). Basic Earnings per share were 95.5 cents, up 1.2%.

Operating expenses rose A$28.5 million, or 6.8%. Management said EBIT was in line with budget and guidance. Return on Equity fell to 13.6%. The Dividend per share was 38.0 cents, fully franked, up 2.7% from 37.0 cents.

Business model and revenue drivers

Breville reports two segments. Global Product, which designs and sells the Breville, Sage, Baratza, Lelit and related brands, generated A$1,611.8 million of FY26 revenue, up 7.4% (9.7% in constant currency), with gross margin of 36.3% compared with 37.2%.

Global Product revenue by region was A$879.3 million in the Americas (up 6.9%, or 10.8% in constant currency), A$408.1 million in EMEA (up 9.0%, 8.5% constant currency) and A$324.4 million in APAC (up 6.7%, 8.3% constant currency, with second-half growth of 11.5%). Direct markets in China, Korea, Mexico and the Middle East grew more than 70% from a small base, according to the company. Revenue is driven by product launches, retail partnerships, direct-to-consumer channels and geographic expansion.

Operating performance and product pipeline

New products in the presentation included the Oracle Dual Boiler, the EyeQ Toaster, the Baratza Encore ESP Pro and the Lelit MaraX3. Breville also highlighted 300 store-in-store executions with Best Buy on a four-year commitment, and a coffee ecosystem. Its Beanz platform went live in the Netherlands with 12 specialty roasters, bringing the total to 26, supporting cross-border shipping to German and Dutch consumers. A Fast Track Barista Pack was due to launch in the Netherlands in September 2026. Breville|Sage coffee products were scheduled to go live with an NFC coffee experience in 40 countries in September 2026, a project that began in January 2026.

Margins, tariffs and costs

Margin is the central question. Gross margin fell to 36.0% from 36.6% for the year, but the second half was 36.8%, up from 36.4% a year earlier and 35.4% in the first half. The presentation cited Tariff and oil-led inflationary pressures, and described the net US tariff position for FY27 as remaining fluid.

Management said an earlier US inventory build tied to new Manufacturing facilities lifted Working Capital to A$455.3 million from A$418.7 million, and inventory to A$465.8 million from A$426.3 million. Receivables were A$310.6 million with days outstanding flat. Higher property, plant and equipment (A$111.7 million versus A$92.3 million) and development costs and software (A$115.2 million versus A$102.7 million) show spending on capacity and technology, and capex is expected to continue through FY27.

Balance sheet and capital allocation

The Balance Sheet is conservative. Net cash was A$104.4 million (FY25: A$48.5 million), cash was A$193.4 million and unused debt facilities were A$364.4 million. Shareholders' equity was A$1,058.3 million.

Sector position and risks

Breville competes with global small-appliance and coffee-machine brands as well as retailer private labels, and its premium positioning depends on innovation and Brand strength.

The main risks are tariffs and trade policy, currency movements, consumer Demand under cost-of-living pressure, execution of new manufacturing and Supply chain footprints, and the pace at which Investment translates into earnings.

Upcoming developments to monitor

Investors will watch gross margin progression against the 36.8% second-half level, the effect of the NFC coffee launch and Beanz expansion, working capital as inventory normalises, and whether constant-currency growth of around 10% can translate into faster EBIT growth.