Breville posts steady first-half profit amid US tariff mitigation efforts
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The news: Appliances maker Breville Group reported a 0.7% year-on-year increase in half-year net profit to $98.2 million, as the "incrementally challenging" backdrop of US tariffs was "managed through diversification, volume growth in core, tail pricing, distribution mix and strength" in other regions.
The numbers: The profit figure for the six months to the end of December 2025 was slightly below average forecasts of $99.5 million, according to Visible Alpha.
Revenue picked up 10.1% year on year to $1.1 billion but profit margin declined from 36.7% to 35.4%.
The company declared a fully franked interim dividend of 19 cents per share, up from 18 cents a year earlier, and ahead of consensus estimates of 18.51 cents.
The context: Due to the impact of US tariffs being absorbed across Breville's supply chain the company expects FY26 earnings before interest and tax to be slightly higher than FY25 assuming there are no significant economic condition changes, no material supply chain interruptions, no significant changes to US tariffs and planned second-half investment levels.
Breville CEO Jim Clayton said coffee products continued to lead, with double-digit revenue growth and Breville's newest markets of Mexico, China, the MIddle East and Korea "collectively grew over 50%".
He also said that "what differentiates this half is the deliberate accelearation of our AI transformation" which is being implemented "enterprise-wide, across every function".
What they said: "[Breville] delivered 10.1% revenue growth, another record half, while executing two transformative programs simultaneously – driving the manufacturing diversification of our 120-volt portfolio and leaning into the front edge of our enterprise-wide AI program," Clayton said.
The source: ASX
