Breville Group Limited (ASX:BRG) Announces Response to US Tariffs
Tariff Implications and Manufacturing Diversification
Breville Group Limited addressed the recent US tariffs by advancing its project to diversify its manufacturing base to Mexico, Indonesia, and Cambodia. Currently, approximately 90% of its products are manufactured in China, with the remainder produced in the EU, Mexico, and Taiwan. This diversification aims to enhance geographic resilience in its manufacturing operations.
Financial Guidance
The company does not anticipate any material impact from the newly announced US tariffs on its FY25 results and reiterates its guidance for EBIT growth between 5% and 10%. However, Breville Group expects potential increases in input costs for FY26 due to the evolving economic environment and tariff implementations.
Executive Comments
Managing Director and CEO, Jim Clayton, stated, “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.”
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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