The Breville Group Ltd (ASX: BRG) share price is up 3% after the business announced a mixed FY26 half-year result.
Breville is a major, global coffee machine business with a few different brands, with the Breville brand being the leading name in the company.
Breville FY26 half-year result
Here are some of the main numbers from the report for the 12 months to 31 December 2025:
- Revenue rose 10.1% to $1.1 billion
- Gross profit grew 6.3% to $389.5 milion
- EBITDA (EBITDA explained) rose 2.9% to $182.8 million
- EBIT edged 0.7% higher to $144.8 million
- Net profit after tax (NPAT) slightly increased 0.7% to $98.2 million
- Dividend per share hiked by 5.6% to $0.19
What happened within this period?
The company had to navigate the effects on high US tariffs on products manufactured in certain countries during this period.
Breville said significant US tariff impacts were successfully managed through “manufacturing diversification, volume growth in core, tail pricing, distribution mix and strength in other theatres.” Around 80% of US gross profit was manufactured outside of China at the end of the half.
Looking at the geographic performance, Breville reported 11.6% revenue growth in the Americas to $549.5 million, 5.9% growth in Asia Pacific to $190.3 million and 13.7% growth to $233.8 million in Europe, the Middle East and Africa (EMEA).
The company noted that it continued its investment in strategic growth drivers of new markets, marketing and new product developments, including 300 store-in-store installations across Best Buy.
Its newest markets of Mexico, China, the Middle East and South Korea collectively grew over 50%.
Profitability
The impact of US tariffs slowed gross profit growth, but it would have been hit more if the company had not taken mitigation efforts.
Earnings growth was limited because of spending on new market expansion, marketing, core overheads and depreciation & amortisation.
Outlook for the Breville share price
The company said that because of the size of the US tariffs that Breville has absorbed in FY26, this year’s EBIT is only expected to be slightly higher than FY25.
But, Breville is doing the right things to protect its market share and deliver growth in other markets. Time will tell whether it implements price rises in the US to offset these impacts – the completion of a shift of manufacturing should also help earnings, in my view.
It’s one of the ASX growth shares I have my eye on, though it has recovered some of the lost ground from the US tariff concerns.
