Breville Group (BRG) H1 2026 earnings summary

Executive summary

• Achieved record first-half revenue of AUD 1.1 billion (USD 1,098.7 million), up 10.1% year-over-year, led by Coffee and strong new market performance.

• Successfully managed significant US tariff impacts through manufacturing diversification, tactical pricing, and distribution mix, maintaining profitability.

• EBIT was flat at AUD 145.8 million (up 0.7%), in line with plan, with strong underlying cash flow and improved net debt position.

• Fully franked interim dividend increased 5.6% to AUD 0.19 (19cps), to be paid in March.

• Continued investment in new markets, marketing, and store-in-store initiatives, notably 300 Best Buy installations.

Financial highlights

• Revenue rose to AUD 1.1 billion (USD 1,098.7 million), up 10.1% year-over-year.

• Gross profit increased 6.3% to AUD 389.5 million; gross margin declined by 130 basis points to 35.4% due to tariffs.

• EBITDA up 2.9% to AUD 182.8 million; EBIT up 0.7% to AUD 145.8 million; EBIT margin at 13.3%.

• Net profit after tax up 0.7% to AUD 98.2 million; basic EPS up to 68.0 cents.

• Net debt improved to AUD 43.6 million as of December 31, 2025; cash at bank at period end was AUD 176.8 million.

Outlook and guidance

• FY 2026 EBIT expected to show a slight uptick over FY 2025, with tariff impact seen as a one-time event.

• FY 2027 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 FY 2027 due to ongoing operational focus.

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