Breville Group (ASX: BRG) has served up a solid first half for FY25, reporting 10.1% revenue growth to $997.5 million, driven by strong global demand for its coffee products. The company’s net profit after tax (NPAT) jumped 16.1% to $97.5 million, helped by steady gross margins and lower interest costs.
Key Financial Highlights (1H25 vs 1H24)
- Revenue: $997.5m (+10.1%)
- Gross Profit: $366.3m (+10.3%)
- Gross Margin: 36.7% (steady)
- EBIT: $144.8m (+10.5%)
- NPAT: $97.5m (+16.1%)
- Interim Dividend: 18.0 cents per share (100% franked, +12.5%)
- Net Debt: $55.1m (vs $97.5m a year ago)
Coffee Drives Growth Across All Markets
Breville’s Global Product segment led the charge, posting 12.1% revenue growth (or 13.0% in constant currency) as coffee machines continued to fly off the shelves. The premium Oracle® Jet espresso machine outperformed expectations, while the Barista Express® remained a best-seller.
- Americas: Up 10.9% in constant currency, with strong demand for coffee machines and cooking appliances.
- APAC: Jumped 16.3%, with South Korea emerging as a key growth market.
- EMEA: Rose 15.4%, supported by direct-to-consumer sales and strong partnerships with major retailers.
Cooking appliances saw high single-digit growth, while Food Preparation was slightly down, though sales trends improved in retailers.
Managing Costs and Inventory
Breville kept its gross margins steady at 36.7%, despite higher shipping costs in EMEA and a strong US dollar impacting sourcing costs. The company pulled forward inventory into the US to hedge against potential tariffs, slightly increasing its working capital but ensuring supply stability.
CEO Jim Clayton credited the company’s strong product innovation, brand loyalty, and expansion into new markets for the solid performance:
“We enter 2H25 with good momentum, a strong NPD pipeline, and ongoing expansion into new markets like China and the Middle East.”
FY25 Outlook: Cautious Optimism Amid Trade Uncertainty
Looking ahead, Breville expects 5-10% EBIT growth for FY25, with new product launches and international expansion set to support demand. However, the company remains watchful of potential US trade policy changes, particularly around tariffs on Chinese imports.
With low debt leverage and strong cash flow, Breville has flexibility to continue investing in growth while returning cash to shareholders.
Next steps: The 18.0c interim dividend will be paid on March 28, 2025, to shareholders on record as of March 13, 2025.
