Miele has reported softer profits despite higher revenues in Australia, as discounting and mounting pressure in the premium appliance sector continue to weigh on margins.

The German appliance manufacturer posted a 3.75% decline in net profit for 2025 in Australia, with earnings falling to $8.912 million from $9.258 million in 2024. The result follows our exclusive report yesterday revealing an 83% collapse in profits at Andi-Co.

Despite the earnings decline, Miele Australia lifted revenue to $523.975 million, up from $495.298 million a year earlier, with analysts attributing much of the growth to aggressive pricing and promotional activity aimed at maintaining market share in an increasingly competitive premium appliance market.

Freight costs remained largely unchanged year-on-year despite ongoing global logistics pressures, while service revenue slipped to $27.4 million, down on 2024 levels.

During the financial year, payments were made to related Miele operations in Japan, Hong Kong, India, Singapore, Germany and Dubai.

Industry analysts say Miele’s Australian operation appears to be outperforming several of the company’s international businesses as the group continues to recover from a difficult post-pandemic trading environment.

After being hit by soaring European energy costs, slowing consumer demand and weaker housing activity, Miele has spent the past two years restructuring its operations globally.

Observers describe the period as a “hard reset” for the premium appliance manufacturer.

The company’s latest results indicate that the restructuring program has begun to stabilise operations, even as the broader European appliance industry continues to battle structural pressures, regulatory challenges and growing competition from Asian manufacturers.

Globally, Miele reported turnover of approximately A$8.385 billion for the 2025 financial year, representing modest growth of 2.3%. While subdued, the result marked a recovery from the sharp 9% revenue decline recorded in 2023.

Central to the turnaround has been the company’s “Miele Performance Programme”, launched in 2024 to streamline costs and improve efficiency. The program is believed to have delivered savings of more than A$600 million before being completed at the end of 2025.

As part of the restructuring, Miele reduced its German workforce by around 1,400 positions through voluntary redundancies and severance arrangements, avoiding forced layoffs.

Growth across the group is increasingly being driven by Miele’s Professional Business Unit, which supplies medical, laboratory and commercial laundry technology. The division now contributes more than A$1.8 billion in annual turnover, reducing the company’s reliance on traditional consumer kitchen appliances.

At the same time, Miele is preparing for one of the largest product renewal cycles in its history, with a major suite of new appliances expected to be unveiled at IFA 2026.

By 2028, the company aims to have refreshed 60% of its product portfolio, with a strong focus on AI-enabled cooking systems, sensor-driven induction technology and connected home appliances. Recent innovations including the “CulinaryCoach” platform and KM 8000 induction series were showcased at EuroCucina 2026.

Analysts say Miele has succeeded in stabilising its business, even as major European appliance manufacturers including BSH and Electrolux continue warning about what they describe as “existential” industry pressures.