Breville has reported record first-half revenue of $1.1 billion, up 10.1%, as strong global demand for coffee machines and expansion into new markets helped offset the impact of US tariffs.

The ASX-listed appliance maker posted net profit of $98.2 million for the six months to December 31, up 0.7% on the prior year and slightly below market expectations of $99.5 million.

Earnings before interest and tax were flat at $145.8 million. Breville lifted its fully franked interim dividend to 19¢ per share, from 18¢ a year earlier.

The result comes as the company continues to navigate tariffs imposed by the US on China-made goods, which added $42 million in costs during the half. Breville has been shifting production out of China, with 80% of US-generated gross profit manufactured outside China by December.

Breville chief executive Jim Clayton (pictured) said the tariff environment made conditions “incrementally challenging” but pointed to continued momentum in key categories.

“Coffee continued to lead, delivering double-digit revenue growth,” he said, citing strong US demand and improved performance in food preparation appliances.

US sales climbed nearly 12% to $549.5 million. Europe, the Middle East and other regions grew about 14%, while Asia Pacific rose 5.9%.

Breville’s newest markets – Mexico, China, the Middle East and South Korea – delivered collective growth of more than 50%.

The company is also rolling out AI tools across its global operations, with more than 1000 employees now using AI each month.

AI has been deployed across customer service teams to improve response times and reduce product replacements.

Breville’s direct-to-consumer coffee platform, Beanz, expanded rapidly, with coffee volumes shipped up 75% year-on-year and subscriptions almost doubling.

Breville said it expects full-year EBIT to be slightly higher than FY25, assuming no material changes to tariffs or economic conditions.