Breville (ASX: BRG)Share Price and News

About Breville

Breville is an Australian company renowned for its high-quality kitchen appliances, including coffee machines, blenders, food processors, and juicers.

Founded in 1932, Breville sells over $1.7bn in goods each year in over 100 countries globally and caters to middle to higher income earners. It is headquartered in Sydney, has manufacturing facilities in China and regional offices in key markets.

Breville's Company History

Breville’s journey began in Sydney, Australia in 1932 - founded from capital obtained from a successful 4-to-1 bet at the 1932 Melbourne Cup. It started as a small radio manufacturer before transitioning into kitchen appliances in the 1950s. In the 1970s, it gained international recognition with the introduction of its first sandwich toaster.

Over the years, Breville expanded its product portfolio and cemented its status as a global player in the kitchen appliance market.

Breville listed in 1999 and has achieved growth of over 2000% since. In FY25, it generated $1.7bn revenue (up 11%), $271.9m EBITDA (up 11%) and an $135.9m profit (up 15%). It recorded a 36% gross margin.

Breville has made several strategic moves over the years, including its partnership with Nespresso in 2013, which allowed it to further extend its market reach in the coffee machine sector. Today, Breville continues to innovate, pushing boundaries with new technologies and sustainable manufacturing practices.

Breville's Future Outlook

The future outlook for Breville remains closely tied to its ability to navigate global trade pressures while continuing to grow its premium kitchen appliance brand. One of the most significant challenges facing the company in recent years has been U.S. tariffs on Chinese-made goods. Historically, about 90% of Breville’s products were manufactured in China, while roughly 45% of its sales come from the United States, making the company particularly exposed to changes in U.S.–China trade policy.

To mitigate this risk, Breville has implemented a major manufacturing diversification program. The company has been shifting production for U.S.-bound products from China to countries such as Mexico, Vietnam, Indonesia, and Cambodia, which face lower or no tariffs. This relocation effort is progressing steadily: over 80% of U.S. gross profit is now generated from products manufactured outside China, and the company expects around 90% of Americas production value to be moved by FY26.

Early indications suggest these efforts are helping to reduce tariff exposure, although they have not eliminated the issue entirely. Tariffs have still affected margins and may increase input costs in the short term as the company restructures its supply chain and builds new production capacity.

Looking ahead, Breville’s outlook is supported by strong global demand for premium home coffee equipment and continued investment in product innovation. The company is also expanding into adjacent revenue streams, including coffee bean subscriptions and direct-to-consumer services, which could strengthen brand loyalty and recurring revenue. Combined with its global expansion strategy and ongoing supply chain diversification, these initiatives position Breville for continued long-term growth despite near-term macroeconomic uncertainty.

Is Breville (ASX: BRG) a Good Stock to Buy?

We think that Breville could appeal to investors seeking exposure to a premium global consumer brand with strong growth prospects. While tariff-related challenges may create volatility in the short term, the company’s proactive supply-chain diversification and consistent product innovation suggest it is well positioned for long-term growth.

Despite short-term volatility caused by tariffs and rising input costs, Breville has maintained solid financial momentum. In FY25, the company reported revenue growth of around 10.9% and a 14.6% increase in net profit, demonstrating strong demand for its premium appliances across global markets.

Analysts remain relatively optimistic about the company’s long-term potential. For example, research from Macquarie Group has given the stock an “Outperform” rating with a price target suggesting meaningful upside from recent trading levels. The broker expects Breville to deliver annual revenue growth above 10% through the second half of the decade, driven by innovation in its coffee segment and expansion into new geographic markets.

However, investors should also consider the risks. The company remains sensitive to changes in trade policy and global supply chains, particularly because the U.S. is such a significant market. Tariffs and higher manufacturing costs could continue to pressure margins in the near term. Additionally, Breville operates in the discretionary consumer goods sector, which can be affected by economic slowdowns and reduced consumer spending.