The Breville Group Ltd (ASX: BRG) share price is down 5% after the FY26 result and providing outlook commentary for FY27.
Breville is one of the world’s largest coffee machine businesses in the world. It has brands like Breville, Sage, Lelit and Baratza. It also sells coffee beans through the Beanz business.
FY26 result
Here are the highlights for the 12 months to 30 June 2026.
- Revenue grew 67% to $1.8 billion
- EBITDA (EBITDA explained) grew 5% to $284.1 million
- EBIT climbed 1.2% to $207 million
- Net profit after tax (NPAT) increased 1.7% to $138.1 million
- Annual dividend per share rose 2.7% to $0.38
What happened in this report?
Breville reported that distribution revenue rose 1.6% and global product revenue increased 7.4% to $1.6 billion (with double-digit growth in the second half). In constant currency terms, global product revenue rose 9.7%.
Within the $1.6 billion product revenue, Americas revenue rose 6.9% to $879.3 million, Europe, the Middle East and Africa (EMEA) revenue grew 9% to $408.1 million and Asia Pacific revenue rose 6.7% to $324.4 million.
Its newest markets of China, South Korea, Mexico and the Middle East collectively grew revenue by more than 70%.
Earnings did not grow as much as revenue because of a challenging tariff and currency backdrop.
The gross profit margin declined by 60 basis points (0.60%) year on year because of the net effect of the tariff increases and the transition costs from the accelerated production diversification program.
But, it should be noted the company’s gross profit margin of 36.8% was stronger than both the second half of FY25 and the first half of FY26.
It invested $25.8 million, representing 91% of the total operating expense increase, to support new markets and growth drivers for the business.
Net profit grew faster than EBIT because its average borrowing costs were lower.
Outlook for the Breville share price
Breville still has a number of uncertainties to work through, with the US tariff situation still evolving.
The company said the outlook for demand across its core markets continues to be characterised by a resilient premium consumer and macroeconomic headwinds combined with company-specific tailwinds, including new product launches, fast-growing new markets, store-in-store expansion and more.
Cost inflation and supply chain disruption for materials and transport continues to evolve.
Breville said the effective tariff rate it will face in FY27 remains unclear.
The company said it has substantially completed its 120-volt manufacturing diversification program, providing materially more optionality than the group had a year ago.
It said that capital expenditure investment in growth assets and some elevated inventory levels are expected to continue through FY27.
As a shareholder, I’m happy to see the company managed to deliver net profit growth despite the difficult conditions. Revenue growth continues to be solid. I think it has a good, long-term future, particularly when it comes to the newer markets.
I wouldn’t describe it as cheap, but it’s one of the leading ASX growth shares out there, in my opinion.
