The Breville Group Ltd (ASX: BRG) share price fell more than 2% after reporting its FY25 half-year result.
Breville is an appliance maker best known for its coffee machines. It has a number of businesses including Breville, Sage, Lelit, Baratza, Beanz and ChefSteps.
Breville FY25 half-year result
Here are some of the highlights from the HY25 result:
- Revenue grew by 10.1% to $997.5 million
- EBITDA climbed 11.5% to $177.6 million
- Net profit after tax (NPAT) grew by 16.1% to $97.5 million
- Dividend per share hiked by 12.5% to $0.18 per share
Looking at the global product segment revenue:
- Americas revenue grew 10.9% in constant currency exchange rates (CC) to $492.4 million
- Asia Pacific revenue grew 16.3% at same CC to $179.7 million
- EMEA (Europe, Middle East and Africa) revenue rose 15.4% at same CC to $205.6 million
Breville noted that increased freight rates impacted EMEA, while the strong US dollar offset some of its product cost savings.
The company noted that strong free cash flow generation of $124.2 million for the 12 months to 31 December 2024 supported a net debt reduction to $55.1 million.
As of 31 January 2025, a net cash position of $18.7 million was restored as peak receivables have been collected.
Outlook for the Breville share price
Breville noted that macroeconomic uncertainties are expected to “continue swirling” in the second half.
To support growth it will have new product launches, enter fast-growing new territories (including the Middle East and China), as well as rolling out other “ongoing solutions”.
The company said coffee continues to lead its growth, cooking is “performing well” and food preparation is “still finding its footing”.
However, it’s working through how US trade policy might further evolve with various trading partners, particularly China.
Its project to move 120v production out of China is “in full swing” and it will continue to adapt and adjust as the rules change.
The company expects to deliver FY25 EBIT growth of between 5% to 10%.
Breville is an impressive business and I’m encouraged by the move to grow its coffee sales. I also like its efforts to grow to new markets.
I’m not sure if the Breville share price is a buy today considering its valuation has risen 35% in the past year. Investors have priced in a lot of growth. There are other ASX growth shares that could be more appealing.
