Fund Manager Summary
The fund managers believe that Breville Group Ltd presents a strong growth opportunity as it transitions into a global innovation leader under CEO Jim Clayton. They highlight the success of the Acceleration Program, which has enhanced the company's go-to-market strategy and significantly improved product rollout speed. The fund managers note that Breville's investment in R&D and marketing has resulted in a commendable 15% annual EBIT growth, despite increased spending. They see potential in the Beanz marketplace, estimating it could contribute over $12 million in gross profit annually. Furthermore, with markets like the Americas and Europe poised for sixfold growth in penetration, the fund managers express confidence in Breville's long-term prospects, suggesting the current valuation is justified by its double-digit earnings growth outlook.
Source: Trading View
Commentary From The Managers
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Antares Capital
31 Oct 2025
$29.69
Summary
- Antares Capital is increasingly concerned about coffee maker sales at Breville Group Ltd (BRG).
- The impact of tariffs on the cost of goods sold is not expected to be mitigated as quickly as previously anticipated.
- As a result, Antares Capital prefers to sit on the sidelines for now.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Antares Capital
31 Oct 2025
$29.69
- Antares Capital is increasingly concerned about coffee maker sales at Breville Group Ltd (BRG).
- The impact of tariffs on the cost of goods sold is not expected to be mitigated as quickly as previously anticipated.
- As a result, Antares Capital prefers to sit on the sidelines for now.
Summary
Sterling Managed Investments
31 Oct 2025
$29.69
- Sterling Managed Investments has initiated a position in Breville (BRG), a premium global coffee and kitchen appliance brand.
- The fund manager is attracted to Breville's capital light business model.
- BRG holds a dominant position in premium coffee appliances.
- Sterling Managed Investments values Breville's consistent track record of double-digit revenue growth.
- While FY26 is expected to be a transition year due to US tariffs and manufacturing changes, these pressures are viewed as temporary.
- The long-term outlook for Breville remains strong, supported by rising global demand for at-home specialty coffee.
- Continued product innovation and international expansion are key growth drivers.
- BRG's strong balance sheet reinforces Sterling Managed Investments' confidence in its ability to manage near-term pressures and sustain long-term growth.
Summary
Tyndall Asset Management
31 July 2025
$32.87
- Tyndall Asset Management notes that Breville has outperformed despite minimal company-specific news.
- The outperformance is likely linked to easing global trade tensions, particularly following President Trump’s ‘Liberation Day’ announcements.
- Breville’s primary market is the US, with major manufacturing sourced from China.
- Recent financial results from major global competitors indicate a resilient coffee machine market.
- This positive market sentiment is expected to positively impact Breville’s upcoming results.
Summary
Datt Capital
11 June 2025
$30.00
- Datt Capital views Breville Group Ltd as a hold.
- Recognized as a great Australian success story over many years.
- Their primary business involves selling small kitchen appliances.
- Strength lies in innovation, particularly in making professional-style coffee at home at an affordable price.
- This has been a significant factor in their recent success.
- Product innovation is vital, but competition in the space is heavy.
- Consistent innovation is necessary to remain competitive.
- Overall, Datt Capital maintains that Breville needs to keep nailing innovation.
Summary
Yarra Capital Management
11 June 2025
$30.00
- Yarra Capital Management identifies Breville Group Ltd as a compelling buy due to short-term tariff risks presenting a buying opportunity for long-term investors.
- Despite short-term earnings risks from tariff uncertainty, Yarra Capital views Breville's ability to relocate manufacturing as a strategic advantage.
- The fund manager believes market disruption could allow Breville to capture additional market share.
- Yarra Capital highlights the attractive defensive growth of Breville's core coffee business, positioned at the premium end of the market.
- The firm is encouraged by Breville's ongoing market share growth in existing countries and potential for expansion into new markets.
- Yarra Capital notes Breville's sustainable cost base and significant investments in product quality and marketing, particularly during COVID.
- The fund manager appreciates Breville's capital-light business model that generates strong free cash flow and supports a transition to a net cash balance sheet within six months.
Summary
Pengana Capital Group
30 Apr 2025
$28.54
- Pengana Capital Group continues to monitor the impact of tariffs on Breville Group Ltd.
- Recent decline of Breville (-9%) attributed to concerns over US sales disruptions due to tariffs.
- Historical context: 2018 tariffs did not materially affect earnings growth.
- Ongoing assessment of tariff implications is a priority for Pengana Capital Group.
Summary
Selector Funds Management
31 Mar 2025
$31.30
- Solomon Lew is the largest shareholder of Breville Group Ltd, holding a 30.4% equity stake through Premier Investments, akin to having a founder's presence.
- The appointment of CEO Jim Clayton in July 2015 has been critical for Breville's ongoing success, transitioning to Managing Director in 2021.
- Breville's brand resonates locally, and under CEO Clayton, the company has improved its international expansion strategy significantly.
- CEO Clayton has transformed Breville's go-to-market approach over the past decade, positioning it as a “Virtual” IP company.
- At the Macquarie Conference in May 2024, CEO Clayton shared insights on Breville's strategic evolution and future direction.
- Breville's previous independent country operations have been centralized, moving away from a restrictive business model.
- There was a need to increase R&D spend to support international ambitions, shifting from 8.4% to 12% of revenue while maintaining operating profit margins.
- Breville has successfully entered 17 new countries, expanding its global footprint to over 70 countries today.
- Phase 3 of Breville's strategy focuses on scalable expansion and “Solving the Coffee Problem”, with a projected timeline of 3-5 years for initial goals.
- In 2024, R&D and marketing spend reached 14% of sales, demonstrating a commitment to reinvestment in core business and products.
- Breville's sales have increased 2.6x from $576m to $1.5b, with operating profits rising 2.5x from $74m to $186m, illustrating sustainable growth.
- CEO Clayton and his team have renovated Breville without compromising its foundational strengths, shaping the coffee industry.
- Management has provided a clear roadmap and timeline for investors to assess progress.
Summary
DS Capital
30 Sept 2024
$34.14
- Breville delivered better than expected earnings
- US and EMEA regions performed stronger than anticipated
- Benefiting from the growing premiumisation of coffee consumption
- Continued focus on new product development
- Progress into new markets
- DS Capital continues to hold because of these positive indicators
Summary
Selector Funds Management
31 Aug 2024
$33.82
- Premium kitchen appliance provider, Breville Group, has reported its FY24 results.
- Revenue increased by 3.5% to $1.5b.
- Gross profit margins expanded by 1.4% to 36.4%.
- Net profit after tax rose by 7.5% to $119m, despite a challenging consumer market.
- Performance was underpinned by new product launches, geographic expansions, and double-digit growth in the coffee category.
- Management is committed to increasing investment in R&D, marketing, and technology services (14% of revenue).
- Operating profits (EBIT) are expected to grow, supported by multiple product launches.
- The release of a multibrand B2B portal enables drop shipping capabilities for small specialty retailers.
- Although no formal guidance was provided, the company plans to achieve EBIT growth during FY25.
- Breville Group has a market capitalisation of $4.8b and net cash of $54m.
Summary
Oracle Advisory Group
31 Mar 2024
$27.23
- Oracle Advisory Group continues to monitor the investment thesis regarding Breville Group Ltd.
- Breville has historically been valued as a high growth retailer, with an average PE ratio of almost 30x over the past decade.
- The company has experienced growth in the US market, but previous high sales growth may be behind them.
- The next focus for growth is in Asia, which presents greater challenges compared to the US.
- Consumer differences and necessary distribution network investments in Asia may require much higher investment.
Summary
Greencape Capital
31 Dec 2023
$26.97
- Greencape Capital continues to hold a positive view on Breville Group (BRG) as it evolves under CEO Jim Clayton since 2015.
- The launch of the ‘Acceleration Program’ in 2016 marked a pivotal moment for the company, pushing for a significant operational transformation.
- This transformation involves enhancing the go-to-market strategy, expanding into new geographies, and increasing investment in R&D and marketing.
- Management's strategy has been described as ‘fixing the plane whilst flying it’, balancing investment and earnings growth.
- The establishment of a strong global go-to-market platform has facilitated quicker product launches, illustrated by the rapid success of the Barista Express Impress.
- Germany's revenue achievements highlight the effectiveness of this new model, surpassing the UK’s previous performance.
- Despite increasing marketing and R&D expenditures, Breville has maintained a solid EBIT growth rate of 15% per annum.
- Breville is evolving from selling hardware to offering comprehensive ‘solutions’, enhancing customer experience and brand loyalty.
- Examples include Breville+, providing guided recipes and classes, and Beanz, a coffee subscription service aimed at improving customer satisfaction.
- The potential for Beanz is significant, with estimates suggesting a potential gross profit of over $12m from subscriptions.
- Expansion opportunities exist in the Americas and Europe, with an anticipated growth factor of 6x in sales per capita compared to Australia.
- The espresso coffee market shows ample room for growth, with current penetration rates indicating significant potential for Breville's coffee machines.
- While BRG trades at a premium, Greencape Capital believes this is justified by a robust earnings outlook with double-digit growth projected for over a decade.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Transforming from niche to innovation powerhouse, Breville seems poised to redefine kitchen dynamics. With a roadmap for global expansion and a unique ecosystem approach, the potential for substantial growth appears limitless—investors may want to keep a close watch on this evolution."
Last Updated: 31 Oct 2025
Query The Data
Frequently Asked Questions
Who is investing in Breville Group Ltd (ASX:BRG)?
Fund managers including Greencape Capital, Oracle Advisory Group, DS Capital, Datt Capital, Yarra Capital Management, Pengana Capital Group, Selector Funds Management and Tyndall Asset Management have invested in Breville Group Ltd (ASX:BRG).
Why do fund managers invest in Breville Group Ltd?
Fund managers invest in Breville Group Ltd due to its successful transformation under CEO Jim Clayton, evolving from a niche brand to a global innovation leader in small domestic appliances. The implementation of the ‘Acceleration Program’ has enhanced its go-to-market strategy, expanded into new markets, and increased R&D investments, resulting in substantial revenue growth. Breville's focus on creating holistic customer solutions, such as the Breville+ ecosystem and Beanz marketplace, further strengthens its competitive advantage. With significant growth potential in underpenetrated markets like the Americas and Europe, alongside a promising outlook for double-digit earnings growth, fund managers view Breville as a compelling investment opportunity.
What happened to Breville Group Ltd (ASX:BRG)?
Fund managers are investing in Breville Group Ltd due to its recent outperformance amid easing global trade tensions, particularly beneficial for its US market presence and Chinese manufacturing. Additionally, strong financial results from major competitors in the coffee machine sector indicate a resilient market, suggesting positive prospects for Breville's upcoming performance.