Breville’s Supply Chain Diversification: A Shield Against Tariff and Climate Risks?
Breville Group Limited reported robust FY25 results with 10.9% revenue growth and a 10.2% rise in EBIT, underpinned by strong coffee segment performance and strategic geographic expansion. The company also advanced its sustainability agenda, achieving net zero Scope 1 and 2 emissions.
- 10.9% revenue growth to A$1.697 billion
- EBIT increased 10.2% to A$204.6 million
- Double-digit growth across Americas, EMEA, and APAC theatres
- Entry into Middle East and China markets
- Achieved net zero Scope 1 and 2 emissions in FY25
Strong Financial Performance
Breville Group Limited has delivered a compelling financial performance for the year ended 30 June 2025, posting a 10.9% increase in total revenue to A$1.697 billion and a 10.2% rise in earnings before interest and tax (EBIT) to A$204.6 million. This marks the tenth consecutive year of growth in revenue, gross profit, and EBIT, underscoring the company’s resilience and strategic execution amid a complex global environment.
The Global Product segment, which includes Breville’s premium kitchen appliances, was the primary driver of growth, expanding revenues by 12.3% and gross profit by 11.1%. Coffee products led the charge with robust double-digit growth across all three geographic theatres, the Americas, Europe Middle East and Africa (EMEA), and Asia Pacific (APAC). Cooking appliances returned to growth, while Food Preparation stabilized after post-COVID fluctuations.
Geographic Expansion and Market Diversification
FY25 was notable for Breville’s strategic geographic expansion, with direct market entries into the Middle East and China. While still in early stages, these markets have shown promising customer and partner engagement, positioning Breville for long-term growth. The company also continued to grow its specialty coffee segment through acquisitions and brand development, including Baratza and Lelit, which are expanding their footprint in key markets.
The Americas remained the largest market, accounting for 56% of sales, with the US consumer market showing resilience despite tariff challenges. Breville proactively mitigated tariff impacts by accelerating inventory build in the US and diversifying manufacturing away from China to locations in Mexico and Southeast Asia. This diversification enhances supply chain resilience against geopolitical and climate risks.
Innovation and Sustainability Leadership
Innovation remains central to Breville’s growth strategy. FY25 saw successful launches of the Oracle™ Jet espresso machine, the Luxe Brewer™ Thermal, and the Smart Oven™ Air Fryer Compact, all supported by the Breville+ digital culinary platform. The company’s focus on energy efficiency is exemplified by the ThermoJet® heating technology, which reduces energy consumption significantly in espresso machines. Breville aims for 75% of espresso machines sold by 2028 to incorporate this technology, with 70% already achieved by FY25.
On the sustainability front, Breville achieved net zero Scope 1 and 2 emissions in FY25, supported by renewable energy use, carbon offset programs, and waste reduction initiatives. The company also advanced its sustainable packaging program, eliminating expanded polystyrene (EPS) in key markets and committing to 100% recyclable packaging in Australia and New Zealand by the end of 2025. These efforts are integrated into a comprehensive ESG strategy overseen by the Board’s Sustainability Committee.
Governance and Remuneration
Breville maintains a strong governance framework with a majority independent Board and clear oversight of risk, remuneration, and sustainability. The FY25 remuneration report highlights alignment of executive incentives with long-term shareholder value, including a 100% short-term incentive payout and 94% vesting of long-term performance rights based on EBIT growth. The Board declared a fully franked final dividend of 19 cents per share, bringing total dividends for the year to 37 cents per share, consistent with the target payout ratio of approximately 40% of earnings per share.
With a net cash position of A$48.5 million and undrawn debt facilities exceeding A$388 million, Breville is well-positioned to fund ongoing innovation, geographic expansion, and supply chain diversification initiatives.
Bottom Line?
Breville’s FY25 results reinforce its position as a global leader in premium kitchen appliances, but investors will watch closely how the company navigates ongoing tariff pressures and scales its new market entries.
Questions in the middle?
- How will Breville’s geographic expansion into the Middle East and China evolve in FY26 and beyond?
- What impact will ongoing US tariffs and supply chain diversification have on margins and growth?
- How will Breville balance continued investment in innovation with maintaining its strong cash position?