Breville Group Ltd reported record annual sales of AUD 1.8bn for the fiscal year ended June 30, 2026, up 6.7% year-on-year on a reported basis and 9.7% in constant currency. The company’s gross profit increased 5% to AUD 648m, though gross margin narrowed to 36.0% from 36.6% a year earlier, reflecting higher input costs and supply chain investments.
EBIT rose 1.2% to AUD 207m, broadly in line with guidance, while net cash strengthened to AUD 104.4m. Operating expenses climbed AUD 25.8m, with 14.4% of revenue now allocated to growth initiatives including product development and marketing, up from 14.2% previously. Inventory rose by AUD 40m, primarily to support the transition to new manufacturing facilities for U.S.-market 120-volt products ahead of peak season.
Regional performance remained robust, with direct-market revenue in Mexico, the Middle East, South Korea and China surging 74% year-on-year. The Americas grew 10.8% in constant currency, while EMEA and APAC direct markets both posted double-digit gains. APAC theater growth accelerated to 11.5% in the second half, driven by Australia, New Zealand, South Korea and China.
Breville’s manufacturing diversification program is now substantially complete, with 85% of 120-volt gross profit dollars sourced outside China to mitigate tariff exposure. The company completed 300 additional store-in-store installations at Best Buy in the U.S. in November, expanding its retail footprint. Property, plant and equipment investments totaled AUD 23m, including AUD 18m for store-in-store expansion and AUD 5m for new tooling.
Despite the revenue growth, shares in Breville fell 4.08% to AUD 31.75, paring gains from earlier in the year. The stock remains 14.4% below its 52-week high of AUD 37.08 and 25.0% above its low of AUD 25.41. The price-to-earnings ratio stands at 35.5, while the dividend yield is 1.15%, maintained for 19 consecutive years and raised for four straight years.
Breville did not issue full-year FY2027 guidance, aligning with its practice of providing updates alongside first-half results. The company’s balance sheet remained solid, with a current ratio of 1.98, debt-to-equity of 0.28 and return on equity of 14%.
Group CFO Martin Nicholas noted FY2026 was operationally complex but delivered solid results, while CEO Jim Clayton highlighted the shift toward AI-driven operational efficiency, stating that moving from individual to team amplification would drive a step change in operating velocity.
