Breville has posted strong revenue and upped its interim dividend
The kitchen appliances maker posts record interim revenue on surging demand for its coffee machines, with the group moving some production out of China to get ahead of a US-China trade war and punishing tariffs.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
Kitchen appliances maker Breville, which last year began rushing products into the US to beat the possible imposition of tariffs by President Donald Trump, is shifting production of key products out of China as it braces for a potentially bruising trade war.
This production shift was “in full swing” said chief executive Jim Clayton, as Breville branded machines found a new home to be manufactured. As of July 2025, around 40 per cent of Breville’s purchases were exposed to the US-China trade relationship, and by January 2026 the appliances group expected this to drop to only 10 per cent and then further reduce in the second half of 2026.
But there were also new opportunities despite the threats of a US-China trade war with Breville set to sell its Sage coffee machines range directly into China from the second half through its headquarters in Shanghai, with offices in Shenzhen, and Hong Kong. There were also plans to sell its Baratza and Lelit coffee machine brands in China through a distributor model.
Spreading its international wings, Breville also began selling directly into the Middle East from January via an office in Dubai.
However, the company warned on Tuesday as it released its first-half results, which showed a strong uplift in profit, dividend and record December-half sales, that the full impact of the Trump administration’s new trade policies on its business and production remained unknown for now.
The looming trade war could be particularly damaging for Breville as the US is now its largest market and accounts for nearly half its annual revenue, and against this backdrop Breville has forecast earnings growth for fiscal 2025 of between 5 per cent and 10 per cent which some analysts saw as “underwhelming”.
Breville, whose largest shareholder is billionaire Solomon Lew’s Premier Investments, posted record revenue for the first half against a backdrop of resilient consumer demand for its toasters, coffee machines and juicers. The appliances group said it hit double-digit revenue growth in all three of its key regions, led by strong coffee category growth. The company also ratcheted up its dividend.
The company recorded a 10 per cent rise in December-half revenue to $997.5m, as net profit increased 16.1 per cent to $97.5m. The revenue and profit were slightly ahead of analyst expectations, while cash flow was weak due to Breville shifting Breville-branded products into the US ahead of any tariffs.
Last year, Breville said it was concerned a tariff war may break out when Donald Trump returns to the White House, and is rushing stock into the US to get ahead of any higher tariffs on Chinese-made goods.
Breville declared an interim dividend of 18c a share, up from 16c, and payable on March 28.
Among its key regions, revenue in the Americas rose 9.4 per cent to $4924m, Asia Pacific sales jumped around 16 per cent to $179.7m and in Europe sales increased 16 per cent to $205.6m. Its North America arm, now easily the largest sales driver for the business, experienced cooking and coffee categories in double-digit growth, but that was slightly reined in by a single-digit decline in food preparation.
“Cooking, globally, was in high single digit growth with food preparation in a small single digit decline,” said Mr Clayton.
“The strength of our new product launches, expansion into new markets and the continuing coffee tailwind supported this growth as consumers remained loyal to trusted brands during the headwinds of ongoing cost-of-living pressure”.
Mr Clayton said tariffs were a tactical challenge demanding a tactical response, with the shift of production out of China begun three years ago by Breville and the best solution in the current environment.
The company said macroeconomic uncertainties were expected to continue swirling in the second half.
“The group will have new product launches, fast-growing new territories, including our direct entry into the Middle East and China, and our ongoing solutions roll out to support growth. Coffee continues to lead our growth, cooking is performing well, and food preparation is still finding its footing.
“The unknown that we are working through is how, and when, US trade policy might further evolve with various trading partners, particularly China.
“We enter the second half with good momentum on our top line, with our new product development pipeline continuing to release, new markets outperforming and our solutions offerings, including Beanz (coffee subscription), progressing well,” Mr Clayton said.
The Beanz service has been particularly popular, shipping more than 1.3m bags of coffee to 145,000 customers and in the first half growing by 71 per cent.
“Beanz is a fundamental solution component that enables our customers to make cafe quality coffee at home,” Mr Clayton said.
Mr Clayton said the company’s low debt leverage provided flexibility to both invest further in inventory as a cost hedge, if the return on investment is attractive, and to provide funds for further expansion.
Originally published as Breville has posted strong revenue and upped its interim dividend
Macquarie profit flat amid subdued commodities income
The company has reported broadly flat net profit for the first nine months of its financial year, as improved income in asset management and banking was offset by softer results in commodity markets.
Michel’s Patisserie cafes to be rebranded after grim year
Retail Food Group is moving to retire its troubled Michel’s Patisserie brand less than a year after settling a class action brought by its former and current franchisees.