Breville Group Record Sales and US Tariff Impact on Breville
Breville has reported record half year revenue despite tariff headwinds. In fact this resilience unlocks a new phase of growth ahead.
Breville Group Limited (ASX: BRG)
Breville Group Limited (ASX: BRG) on 12 February 2026 reported its Half Year FY26 results with record first half revenue of $1.1 billion which is up 10.1% year-on-year supported by strong Coffee sales and resilient premium demand.
Gross profit increased 6.3% to $389.5 million although gross margin declined to 35.4% from 36.7% which reflects a 130 basis points impact from US tariffs that was partly offset through production diversification and disciplined pricing.
EBIT came in at $145.8 million which was broadly flat compared to last year as the group invested in new markets marketing initiatives R&D and around 300 Best Buy store within store rollouts.
Net profit after tax rose 0.7% to $98.2 million while basic EPS improved to 68 cents and the interim dividend increased 5.6% to 19 cents per share which is fully franked.
Tariffs remained a key issue during the half as US customs cash payments rose by about $42 million which created short term pressure on cash flows.
However more than 80% of US gross profit dollars will now be sourced from manufacturing outside China by the end of 1H26 which lowers future tariff exposure.
This manufacturing shift gives the company better flexibility to respond to further trade policy changes if required.
The balance sheet remains strong with net debt of $43.6 million leverage at 0.2x EBITDA cash of $176.8 million and $221.6 million of undrawn facilities which provides capacity for expansion.
Growth was broad across Americas APAC and EMEA which shows that demand is not concentrated in one region.
New products such as the Eye Q Toaster and premium espresso machines are being introduced in FY26 which supports the premium positioning strategy.
The Beanz subscription platform expanded its customer base which increased recurring revenue contribution and the company now has a market capitalisation of $4.92 billion.
Management expects FY26 EBIT to be slightly higher than FY25 despite tariff pressures which assumes stable economic conditions and no major additional trade disruptions.
(Source: Company Announcements)
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