Breville Group (BRG) H2 2025 earnings summary

Executive summary

• Achieved record sales of $1,696.6 million in FY25, with double-digit revenue growth across all regions and strong performance in the coffee category, supported by new product launches and geographic expansion.

• EBIT reached $204.6 million, at the top end of guidance, with 10.2% EBIT growth and 14.6% NPAT growth year-over-year.

• US-China tariff impacts were largely mitigated by inventory pull-forward, manufacturing diversification, and cost management.

• Maintained a net cash position at year-end despite increased inventory and CapEx for manufacturing diversification.

• Declared a fully franked full-year dividend of 37.0 cents per share, up 12.1% from the prior year.

Financial highlights

• Revenue rose 10.9% year-over-year to $1,696.6 million; gross profit up 11.4% to $620.5 million.

• Global Product segment revenue grew 12.3% (11.4% in constant currency), led by double-digit growth in Coffee and Cooking; Food Preparation saw improved margin but slight sales decline.

• All regions (Americas, EMEA, APAC) posted double-digit revenue growth in constant currency.

• Gross margin held steady at 36.6%, with some pressure from weaker AUD and higher EMEA shipping costs.

• Underlying cash flow remained healthy, supporting a net cash position of $48.5 million at year-end.

Outlook and guidance

• FY26 expected to see a material step up in US input costs due to tariffs; mitigation efforts include manufacturing relocation, supplier negotiations, channel adjustments, and selective price increases.

• CapEx and elevated inventory levels to continue through FY26, with normalization in unit holdings but higher cost per unit.

• Too early to provide detailed FY26 guidance due to tariff and price elasticity uncertainties; guidance expected with first half results.