Breville Group (BRG) H2 2026 earnings summary

Executive summary

• Achieved record sales exceeding AUD 1.8 billion ($1.81bn), with global constant currency revenue growth of 9.7% and strong cash flow, despite operational complexity and tariff volatility.

• Coffee and Cooking categories delivered double-digit revenue growth, while young direct markets (China, Korea, Mexico, Middle East) expanded over 70%.

• Manufacturing diversification was substantially completed, shifting 85% of 120V gross profit dollars outside China and strengthening gross margins in the second half.

• AI transformation program accelerated product development and operational efficiency, with initial deployments showing compounding impact.

• The Americas, EMEA, and APAC all posted strong constant currency revenue growth, with direct markets outperforming distributor-led markets.

Financial highlights

• Revenue reached $1,810.9m (up 6.7% year-over-year); gross profit was $651.4m (up 5.0%).

• Gross margin was 36% for the year (down from 36.6%), improving to 36.8% in the second half due to manufacturing diversification.

• EBIT reached $207.0m (up 1.2%), with NPAT at $138.1m (up 1.7%) and EBITDA at $284.1m (up 4.5%).

• Net cash position improved to $104.4m at year-end, up from $48.5m prior year.

• Basic EPS increased to 95.5 cents, and dividend per share rose to 38.0 cents, both fully franked.

Outlook and guidance

• The company expects to continue investing in growth assets and inventory, with FY27 guidance to be provided at the first half results.

• Management anticipates tailwinds for gross margin from localization and manufacturing efficiencies, but notes potential headwinds from oil prices, tariffs, and inflation.

• New direct markets are expected to become more material, with further expansion planned over the next two years.

• Manufacturing diversification provides greater flexibility and optionality for FY27.

• Capex investment and elevated inventory levels expected to continue.