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, selective price increases, 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 of 19.0 cents per share, up 5.6% from prior period.

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

Financial highlights

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

• Net debt improved to $43.6 million as of December 31, 2025, with cash at bank at $176.8 million.

• EBITDA increased 2.9% to $182.8 million; NPAT up 0.7% to $98.2 million; basic EPS up to 68.0 cents.

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

• Net tangible assets per security rose to 409.85 cents.

Outlook and guidance

• FY26 EBIT expected to show a slight increase over FY25, with FY27 to benefit from improved product mix and localization as tariff impacts moderate.

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

• No new market entries planned for FY27 due to focus on current expansion and manufacturing transition.