Breville shares fall despite a result brokers have welcomed

Shares in Breville Group Ltd (ASX: BRG) have fallen on Thursday after the company delivered record first-half revenue, with the effort also applauded by brokers.

The appliance manufacturer said in a statement to the ASX on Thursday that first-half revenue had come in at $1.09 billion, up 10.1% on the previous corresponding period, while net profit was up just 0.7% to $98.2 million.

The company also boosted its interim dividend by 1 cent to 19 cents, fully franked.

Management spruiks solid result

Breville Chief Executive Officer Jim Clayton said the company had performed well in challenging times.

He went on to say:

Breville delivered 10.1% revenue growth, another record half, while executing two transformative programs simultaneously – driving the manufacturing diversification of our 120-volt portfolio and leaning into the front edge of our enterprise-wide AI program.  Coffee continued to lead, delivering double-digit revenue growth. Our new product development pipeline again contributed materially to performance, with strong launches across espresso and cooking. Beanz continued its rapid growth trajectory, scaling across four countries with the infrastructure and processes now proven to support further growth.

Mr Clayton said the company’s newest markets – Mexico, China, the Middle East, and Korea – “collectively grew over 50%, further validating geographic expansion as an important growth lever”.

Mr Clayton added:

What differentiates this half is the deliberate acceleration of our AI transformation. We’re implementing AI enterprise-wide, across every function, at pace. This is Phase IV of Breville’s evolution—not a point solution or pilot program, but a multi-layered, systemic transformation. We’re building this capability internally with our own team, and I am personally training every office, globally, because organisational readiness matters as much as technology readiness.

Mr Clayton said the company also had an improved net debt position despite challenges such as having to pay $42 million in US tariffs.

On the outlook, the company said it expected earnings for the full year to be slightly ahead of FY25, “given the magnitude of the US tariff increases that the group’s value chain is absorbing”.

Brokers like what they see

Jarden analysts ran their ruler over the results and said it was a “solid result overall”, with FY26 guidance “a touch ahead” of consensus.

Jarden said their view was that FY26 was a transition year for the company, with FY27 shaping up to be a double-digit earnings growth year.

RBC Capital Markets said the result was broadly in line with market expectations.

They added:

We expect today’s result to be taken positively by the market, with the provision of guidance enhancing visibility on tariff impacts and largely de-risking the near-term earnings outlook.

Breville shares were 2% lower at $32.74 by mid-morning.

The post Breville shares fall despite a result brokers have welcomed appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.