Breville has delivered a record year of sales, with strong demand for coffee machines helping the company in the face of US tariffs and a turbulent global trading environment.

Breville reported group revenue of A$1.81 billion for the year to June 30, up 6.7%, slightly below market expectations but still a record. Net profit rose 1.7% to $138.1 million and underlying earnings before interest and tax increased 1.2% to $207 million.

Coffee remained one of the company’s strongest growth drivers, alongside cooking appliances, as consumers continued to spend on premium equipment for preparing coffee and food at home.

Breville is also turning to AI to accelerate product development and help it respond more quickly to changing consumer demands.

The company is deploying AI across parts of its product development process, with chief executive Jim Clayton reporting to media that the technology is helping Breville bring coffee machines to market faster.

It’s a shift seen more broadly in the appliance industry, where manufacturers are increasingly using AI in connected products as well as behind the scenes to improve design, development and commercial decisions.

The result for Breville comes despite a difficult year for global supply chains and the growing cost implications of US tariffs. Breville’s American market is particularly important to the group, making the company’s efforts to diversify manufacturing a key part of its response.

Breville Group CEO Jim Clayton.

Breville has shifted production of products destined for the US away from China towards other locations, including Mexico and South-East Asia. By the end of the first half of the financial year, 80% of its US gross profit was being generated from products manufactured outside China.

In order to offset some of the additional costs, the company has also used pricing, changes to its distribution mix and higher sales volumes.

Meanwhile, Breville’s expansion into China has also begun to pay off. Having moved to direct sales in the region, the company saw a sharp increase in revenue.

The company’s latest result also builds on a strong first half, when revenue climbed just over 10% to $1.1 billion. Breville had then said coffee was delivering double-digit revenue growth,  and that new product launches and expansion into newer markets were also contributing to sales.

AI has the potential to give Breville another tool in sustaining its momentum, rather than traditional product development, it can use AI to shorten the path from concept to finished appliance. 

This could become significant as appliance makers increasingly compete on not only the finished product and its components, but software and technology. 

Breville, though, has warned that its effective US tariff rate for financial year 2027 remains unclear and higher transport and material costs continue to pose risks.

The company declared a final dividend of 19 cents a share, taking its full-year dividend to 38 cents.