Breville Posts 10.9% Revenue Growth, NPAT Up 14.6% Despite Tariff Headwinds

Strong Financial Performance Amid Global Challenges

Breville Group Limited has delivered a solid financial performance for the fiscal year ended 30 June 2025, posting a 10.9% increase in revenue to AUD 1.7 billion and a 14.6% rise in net profit after tax. This growth was underpinned by strong demand across its Coffee and Cooking product lines, with the company maintaining a steady gross margin despite ongoing global supply chain pressures.

The company’s earnings before interest and tax (EBIT) grew by 10.2%, reaching the upper end of its guidance range, while operating expenses rose in line with gross profit growth. Breville’s ability to absorb incremental costs related to US-China tariffs; such as storage, transport, and engineering; without eroding profitability highlights effective cost management and operational resilience.

Mitigating Tariff Impact Through Strategic Diversification

A key theme in Breville’s FY25 results is its proactive response to the US-China tariff regime. The company pulled forward inventory ahead of tariff increases, mitigating immediate cost impacts. More importantly, Breville accelerated its manufacturing diversification program, shifting production of 120-volt products for the US market from China to Southeast Asia and Mexico. This strategic move has already increased non-China sourced US gross profit dollars from 15% to approximately 65%, with expectations to reach 80% by mid-FY26.

While the tariff environment remains uncertain, Breville is pursuing multiple mitigants including pricing adjustments, manufacturing relocation, and distribution channel optimization. The company acknowledges a material step-up in input costs for US sales in FY26 but is positioning itself to manage these challenges through operational flexibility and continued investment.

Expanding Global Footprint and Product Innovation

Breville’s geographic expansion is another growth driver, with new direct market entries in China and the Middle East showing early promise. The Americas, EMEA, and APAC regions all posted double-digit constant currency revenue growth, led by strong performances in Coffee products. New product launches such as the Oracle® Jet and Luxe Brewer have been well received, complementing the company’s premium coffee accessories portfolio.

Investment in research and development, marketing, and technology solutions increased slightly to 14.2% of sales, supporting a robust pipeline of new products and solutions. Capital expenditure also rose, reflecting ongoing commitments to diversified manufacturing capabilities and store-in-store expansions.

Financial Health and Outlook

Despite elevated inventory levels and capital investments, Breville maintained a net cash position at year-end, supported by healthy underlying cash flow. The company holds substantial unused debt facilities, providing financial flexibility to navigate FY26’s expected tariff-related cost pressures and continued growth initiatives.

Looking ahead, Breville plans to provide FY26 guidance with its first-half results, signaling cautious optimism as it balances growth ambitions with the evolving tariff landscape and cost environment.