Toasty profit for appliance maker after rocky year

One of the nation's most popular toaster makers has delivered a rise in annual profit after a turbulent year, marked by supply chain disruptions due to the Middle East conflict and tariff burdens.

Home appliances group Breville made a net profit of $138.1 million in 2025/26, up 1.7 per cent from the previous year.

"Financial year 2026 tested the business on every front," chief executive Jim Clayton said on Wednesday.

The year was marked by the impact of the war, which resulted in the closure of the key shipping channel, the Strait of Hormuz, and the application of US tariffs on foreign imports.

One of Breville's biggest export markets is the United States, where the Trump administration has applied tariffs of 10 per cent or more to many goods.

Most of the group's earnings came from its coffee and cooking appliance segments, which both delivered double-digit growth.

But Breville also played up its China foray, which has just completed its first full year of direct sales operations and delivered more than seven times the revenue of its previous distributor.

"These are the results you hope for when you make the decision to go direct," Mr Clayton said.

Group sales revenue was a record $1.8 billion, and a gain of 6.7 per cent for the 12 months ended June 30.

Underlying earnings - before interest and tax - rose 1.2 per cent to $207 million, which was in line with its guidance.

Looking ahead, Breville said it expects demand for its products in the new financial year to remain resilient, although some issues are ongoing.

"The risk of oil-based supply chain disruption and cost inflation across both materials and transport continues to evolve," the company said.

"In the US, our biggest market, the tariff environment remains fluid, and the effective tariff rate we will face in financial year 2027 remains unclear."

Breville, which has a market value of $5 billion, declared a final dividend of 19 cents, taking the total for the year to 38 cents, slightly higher than the prior year.