Breville FY26 slides: record sales hit $1.8bn, AI drives efficiency

Breville Group reported record revenue of AUD 1.81 billion for the fiscal year 2026, but modest profit growth led to a 3.11% drop in shares to $32.07. The company credited AI-driven efficiency gains and manufacturing diversification for its achievements, despite challenges from tariff volatility and supply chain restructuring. Breville's constant currency revenue grew by 9.7%, driven by strong sales in the Americas and APAC regions.

The company's balance sheet strengthened with net cash rising to AUD 104.4 million. While gross profit increased by 5.0% to AUD 651.4 million, gross margin compressed by 60 basis points to 36.0%, recovering to 36.8% in the second half. Net profit after tax rose 1.7% to AUD 138.1 million, supported by lower borrowing costs. Breville's U.S. retail channel strategy includes premium specialty retailers, mid-tier partners, mass-market channels, and a significant Best Buy partnership. The company's AI transformation program is expected to amplify operational leverage in the future.