Breville Group (BRG) H1 2025 earnings summary

Executive summary

• Achieved 10.1% revenue growth to $997.5m in H1 2025, with resilient consumer demand and double-digit growth across all regions and product segments.

• Net profit after tax rose 16.1% to $97.5m, supported by lower interest costs and robust cash flow, with net debt reduced to $55.1m.

• Gross margin held steady at 36.7% despite inflationary and FX headwinds; EBIT grew 10.5% to $144.8m and EBIT margin reached 16.1%.

• Fully franked interim dividend of 18.0 cents per share declared, up 12.5% year-over-year.

• Strong free cash flow and low leverage provide flexibility for further expansion and investment.

Financial highlights

• Gross profit increased by 10.3% to $366.3m, with 40% flowing to EBIT and 60% reinvested in OPEX.

• EBITDA rose 11.5% to $177.6m; NPAT up 16.1% to $97.5m; Basic EPS was 67.8 cents, up 15.7%.

• Operating expenses increased in line with gross profit, including higher D&A (+16%), employment (+5.6%), and marketing (+20.9%).

• Receivables peaked at $479.1m (+6.5% YoY), with improved debtor days.

• Net debt improved by $42m YoY, moving to a net cash position of $18.7m by January 2025.

Outlook and guidance

• FY25 EBIT growth expected in the range of 5%–10%, reflecting U.S. trade policy uncertainty and assuming stable economic conditions.

• Second half margins expected to be similar to first half, with ongoing shipping and tariff headwinds offset by FOB reductions.

• Continued investment planned in marketing, R&D, and technology in 2H25.

• Direct model launches in China and Middle East expected to be profitable within a couple of years and expand addressable market by 35% in disposable income.

• Seasonality expected, with stronger performance in the half-year to December due to holiday sales.