Breville Group reported record revenue of AUD 1.81 billion for fiscal 2026, up 6.7% on a reported basis and 9.7% in constant currency terms, as AI-driven efficiency programs and direct market expansion offset margin compression.
Gross profit rose 5.0% to AUD 651.4 million, though full-year gross margin narrowed 60 basis points to 36.0%. EBIT increased 1.2% to AUD 207.0 million, while net profit after tax climbed 1.7% to AUD 138.1 million. Operating expenses rose 6.8% to AUD 28.5 million, with 91% allocated to growth investments including new market expansion and product development.
The company’s direct operations in emerging markets, including China and the Middle East, delivered outsized growth. China, now in its first full year as a direct market, generated revenue 7.1 times the average of the prior two years under distributor models. The Middle East posted a similar 6.6-fold increase. Collectively, emerging markets grew 74% year-over-year in constant currency terms.
Regional performance was led by the Americas, which expanded 10.8% to AUD 879.3 million, supported by 300 Best Buy store-in-store installations. EMEA grew 8.5% to AUD 408.1 million, while APAC advanced 8.3%, accelerating to 11.5% in the second half. The global product segment, accounting for 89% of revenue, achieved 9.7% constant currency growth, with coffee and cooking categories posting double-digit gains.
AI initiatives entered their second phase, targeting team-level transformation. A Recipe Architect application reduced recipe documentation time by 84%, completing 660 documents in 67 hours compared with 425 hours manually. UI/UX design tools enabled fivefold faster prototype development and accelerated handoffs to firmware teams by two to three months.
Breville’s manufacturing base diversified further, with 85% of 120-volt gross profit dollars now sourced outside China. Net cash improved to AUD 104.4 million, up from AUD 48.5 million a year prior, while working capital rose to AUD 455.3 million due to a AUD 39.5 million inventory build.
The company declared a final dividend of 38.0 cents per share, fully franked, representing a 2.7% increase. Shares fell 3.11% to AUD 32.07 following the results, despite the revenue growth and efficiency gains.
