Breville says it has so far dodged US tariff threat as coffee machine sales surge
A manufacturer of coffee machines, air fryers and other kitchen goods, Breville on Wednesday said it had returned to double-digit revenue growth across the three regions it operates in — Asia Pacific; Americas; and Europe, the Middle East and Africa.
It comes as the company diversifies some of its manufacturing away from China — which is facing a 30 per cent US tariff — to Mexico and South-East Asia.
The Solomon Lew-backed retailer said its manufacturing diversification program continued to progress at pace.
Breville chief executive Jim Clayton said its coffee machine products once again led performance across the portfolio in the 2025 financial year, as more Australians look to beat the cost-of-living crunch by increasingly brewing at home.
He singled out its $3000-plus Oracle Jet coffee machine among the products that drove sales.
Breville said revenue grew 10.9 per cent to $1.7 billion in the year ended June 30, with net profit up 14.6 per cent to $135.9 million.
Earnings before interest and tax rose 10.2 per cent to $204.5m, achieving the top end of its February guidance.
Mr Clayton said the company had been able to side-step the impact of the tariffs through a 'tactical pull forward of US inventory pre-April.'
He added while the impacts of US tariffs were becoming clearer, Breville still faced 'a significant input cost increase in FY26 and FY27 for US-based sales'. It was actively seeking ways to avoid price increases.
Mr Clayton said Breville's expansion into China and Middle East markets — announced earlier this year — was showing 'early promise'.
'While still early days, customer and partner engagement has been strong, and both markets have meaningful long-term growth potential,' he added.
RBC Capital Markets analyst Wei-Weng Chen said US tariff impacts were largely mitigated in the 2025 financial year, but he questioned how Breville's pull-forward strategy would play out in the near-term.
Breville shares were down 3.4 per cent to $34.82 just after 10am.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ABC News
an hour ago
- ABC News
Live updates: Australian share market to rise, Wall Street ends lower as investors sell tech
Australian shares are likely to open higher, while the Nasdaq and S&P 500 have fallen as investors have sold tech stocks and moved into less highly valued sectors. Meanwhile, the market awaited remarks from Federal Reserve officials at their Jackson Hole symposium on Friday for any clues on the economic outlook and monetary policy. We will bring you the latest on what's happening on the markets throughout the day in our live blog. Disclaimer: this blog is not intended as investment advice.
West Australian
2 hours ago
- West Australian
Productivity roundtable final day: Tax reform up for discussion as summit eyes negative gearing
An overhaul of how Australians could be taxed will be put in the spotlight as a productivity roundtable draws to a close. The third and final day of the federal government's economic reform summit in Canberra will focus on tax reform and budget sustainability on Thursday. The government went into the federal election in May promising not to make changes to negative gearing and the capital gains benefit, but forum attendees are still expected to make the case for the reforms. Unions are set to argue for a full suite of tax measures including limiting negative gearing to one investment property, with existing laws allowed to stay in place for the next five years. A minimum tax rate of 25 per cent for people earning more than $1 million per year has been pitched by union attendees. Capital gains and negative gearing reform needed to be considered by the government to take to voters, tax expert Dale Boccabella said. 'Aspects of the tax system is just unfair and the big one is the capital gains tax discount,' the associate professor of tax law at the University of New South Wales told AAP. 'If you look at who gets the benefits, it goes to the top end, they don't need a 50 per cent tax break.' Assoc Prof Boccabella said sustainability of the tax system needed to be front and centre during the final day of the roundtable. 'Sustainability and fairness go hand in hand, and underlying that, of course, is generational unfairness,' he said. 'The government should not be criticised for acting on (negative gearing), it should be done in a sustainable way.' The third day of the summit will include a presentation on budget sustainability by Treasury secretary Jenny Wilkinson. A pitch on a better tax system will be delivered by Grattan Institute chief executive Aruna Sathanapally. Discussions on how to make government services and spending more efficient will be another topic for debate. The roundtable had produced consensus for areas of economic reform, Treasurer Jim Chalmers said. 'We've already got a big agenda to ease the burden on businesses, cut red tape and build more homes but we're keen to do more where we can,' he said.
9 News
3 hours ago
- 9 News
Trump calls himself, Netanyahu, 'war hero'
US President Donald Trump called Israeli Prime Minister Benjamin Netanyahu a 'war hero' and said he is one,
