Breville Group Limited (BRG) today addressed the newly announced US tariffs on products manufactured outside the country. With approximately 90% of its products manufactured in China and 45% of sales directed to the United States, the company faces potential implications. Breville has been actively diversifying its manufacturing base, initially targeting Mexico, Indonesia, and Cambodia. This strategic project aims to mitigate risks and benefit from broader geographic diversification.
Breville anticipates no material impact from the tariffs on its FY25 results and reaffirms its EBIT growth guidance of 5% to 10%. However, the company acknowledges potential input cost increases for FY26 due to the evolving economic environment, US tariff implementation, and potential retaliatory measures from other countries. The company plans to make tactical adjustments to minimize short-term impacts.
CEO Jim Clayton emphasized the company’s commitment to its long-term global growth strategy. “While we will continue to manage the short-term challenges as we did throughout the Covid period, our primary focus will remain the continued execution of our global, long-term growth strategy. Nothing announced today changes that strategy,” he stated. Breville’s long-term approach to sustainable, profitable growth across all markets remains unchanged, underpinned by a geographically diversified manufacturing base. The announcement was authorized by the Board.
