Breville Group (BRG) H1 2026 earnings summary

Executive summary

• Achieved record half-year revenue of $1,098.7 million, up 10.1% year-over-year, doubling over six years, led by Coffee, new product development, and expansion into new markets.

• Successfully managed significant US tariff impacts through manufacturing diversification and tactical pricing, with 80% of US gross profit now from outside China.

• EBIT and NPAT both grew 0.7% year-over-year to $145.8 million and $98.2 million, respectively, in line with plan, despite gross margin decline.

• Strong underlying cash flow and improved net debt position, with balance sheet flexibility for further expansion.

• Fully franked interim dividend of 19.0 cents per share, up 5.6% year-over-year, to be paid in March.

Financial highlights

• Revenue rose to $1,098.7 million (+10.1% year-over-year); gross profit increased 6.3% to $389.5 million; gross margin declined 130bps to 35.4% due to tariffs.

• EBITDA up 2.9% to $182.8 million; EBIT up 0.7% to $145.8 million; NPAT up 0.7% to $98.2 million.

• Basic EPS up 0.3% to 68.0 cents; ROE at 13.5%, down from 14.7% year-over-year.

• Net debt improved to $43.6 million from $55.1 million a year earlier; net cash position of $70.1 million as of January 31, 2026.

• Interim dividend increased to 19.0 cents per share, fully franked.

Outlook and guidance

• FY26 EBIT expected to show a slight increase over FY25, assuming stable economic conditions, no major supply chain disruptions, and no significant tariff changes.

• FY27 expected to benefit from improved product mix and localization, providing margin tailwinds if tariff environment remains stable.

• Ongoing investments planned in manufacturing diversification, marketing, R&D, and technology, including AI transformation.

• No new market entries planned for FY27 due to operational focus.

• Management notes seasonality, with stronger performance in the half-year to December due to holiday sales.