In an attempt to offset potential tariffs levied by the US against foreign imports, kitchen appliance maker Breville has begun to move production out of China and is also rushing stock into the US ahead of any further tariffs that might be levied in the future.
On Tuesday, the company said that its move to shift 120v production out of China “is in full swing” and that it would “continue to adapt and adjust as the rules on the field change.” Mexico or South-East Asia is expected to absorb some of the production capacity.
“The unknown that we are working through is how, and when, US trade policy might further evolve with various trading partners, particularly China,” said Jim Clayton, group CEO at Breville.
“The group’s increase in net working capital by $55 million to $551.1 million at 31 December 2024 reflects the tactical decision to pull forward some 2H25 production in the US as a hedge against potential tariffs. This landed inventory will now act as a cost hedge partially protecting 2H25 margin in the US.”
As of July 2025, around 40% of Breville’s purchases were subject to the US-China trade relationship, and by January 2026 the appliances group expected this to drop to only 10% and then further reduce in the second half of 2026.
Breville posted its half-yearly results which showed record revenue for the first half, led by its coffee segment growth.
The company recorded a 10% rise in December-half revenue to $997.5 million, as net profit increased 16.1% to $97.5 million.
The group hit double-digit revenue growth across all three of its key regions. Revenue in the Americas rose 9.4% to $4924 million, Asia Pacific sales jumped around 16% to $179.7 million and in Europe sales increased 16% to $205.6 million.
Its North America arm, the largest sales driver for the business, experienced cooking and coffee categories in double-digit growth.
From the second half of this year, Breville says that it is set to sell directly to China through its headquarters in Shanghai, with offices in Shenzhen, and Hong Kong. From January, it is also selling directly into the Middle East via an office in Dubai.
“We enter the second half with good momentum on our top line, with our new product development pipeline continuing to release, new markets outperforming and our solutions offerings, including Beanz (coffee subscription), progressing well,” said Clayton.
The Beanz service has shipped more than 1.3 million bags of coffee to 145,000 customers and in the first half growing by 7%.
Breville, whose largest shareholder is Premier Investments’ Solomon Lew, has seen its share price rise more than 36% over the last 12 months and is now trading at around $37.31.
Breville expects full year EBIT growth in the range of 5-10%. Chief financial officer Martin Nicholas told analysts on a call the softer profit growth in the second half is a result of the unpredictability of geopolitics, reported the Australian Financial Review.
“Guidance really just accounts for the uncertainty in US trade policy at today’s announcement, what’s actually been announced to put into market today would be towards the top end of the guidance. It feels a quite uncertain world out there,” he said.
