Breville Posts 10.9% Revenue Growth and $135.9m NPAT in FY25
Breville Group delivers robust FY25 results with double-digit revenue and profit growth, successfully navigating US tariff pressures while expanding globally and investing in manufacturing diversification.
- 10.9% revenue growth driven by all global product theatres
- EBIT growth of 10.2% at top end of guidance
- US tariff impact largely mitigated through inventory strategy
- Net cash position of $48.5 million despite increased investments
- 37 cents per share fully franked dividend declared
Strong Growth Across All Regions
Breville Group Limited (ASX, BRG) has reported a solid financial performance for the year ended 30 June 2025, with revenue climbing 10.9% to nearly $1.7 billion. This growth was broad-based, spanning all three major geographic theatres; Americas, EMEA, and APAC; with the coffee segment leading the charge. Cooking appliances returned to growth, while food preparation products stabilized, reflecting a well-rounded portfolio performance.
The company’s ability to sustain a gross margin of 36.6%, virtually unchanged from the prior year, underscores effective cost management amid inflationary pressures and a challenging global environment.
Navigating Tariff Headwinds with Tactical Agility
One of the standout features of Breville’s FY25 results is how it managed the evolving US tariff landscape. The company proactively pulled forward inventory into the US ahead of tariff changes scheduled for April 2025, mitigating cost impacts that could have otherwise eroded margins. While this strategy increased storage, transportation, and engineering expenses, these incremental costs were absorbed within the year’s results, demonstrating operational discipline.
CEO Jim Clayton highlighted the dynamic nature of the Americas market, noting that FY26 will likely be marked by countervailing forces, rising input costs and tariff uncertainties balanced against resilient sales momentum and new product introductions.
Investing in Future Growth and Diversification
Breville’s commitment to innovation remains strong, with new product launches such as the Oracle® Jet premium coffee accessories, Luxe Brewer™ Air Fryer, and Smart Oven™ Air Fryer Compact contributing materially to growth. Geographic expansion into the Middle East and China also shows early promise, positioning the company for long-term market penetration.
Significant investments were made in manufacturing diversification, with new facilities emerging in Mexico and Southeast Asia to complement existing Chinese operations. These moves aim to reduce reliance on any single region and provide greater flexibility amid global trade uncertainties.
Financial Strength and Shareholder Returns
Despite increased capital expenditure and inventory build due to tariff mitigation, Breville ended FY25 with a net cash position of $48.5 million, maintaining a healthy balance sheet. The company declared a fully franked final dividend of 19 cents per share, bringing the total dividend for the year to 37 cents, up from 33 cents in FY24, reflecting confidence in ongoing cash generation.
Looking ahead, management refrained from providing full-year guidance for FY26, citing the uncertain tariff environment and input cost inflation. However, the company’s strong liquidity and strategic initiatives provide a buffer to navigate the anticipated challenges.
Bottom Line?
Breville’s FY25 results showcase resilience and strategic foresight, but FY26’s tariff and cost pressures will test its agility.
Questions in the middle?
- How will evolving US tariffs specifically impact Breville’s cost structure and pricing strategies in FY26?
- What is the timeline and expected scale of benefits from the manufacturing diversification program?
- How quickly can new geographic markets like China and the Middle East contribute to overall profitability?