👉 Background: Breville is the Aussie small-appliance maker famous for premium coffee machines - not quite as fancy as La Marzocco, not quite as poddy as Nespresso. Breville sell coffee machines under the Breville and Sage brands across the globe.

👉 What happened: Breville has just announced that their FY25 revenue jumped 10.9% in FY25 to $1.7 billion. And their EBIT jumped 10.2% which meant they hit the top end of their guidance. But 40% of sales come from the US, so Trump-era tariffs are still stinging.

👉 What else: But the Breville crew ain’t worried because there’s still significant growth from China, the Middle East… and the rest of the whole world, who are becoming coffee snobs. Despite the increased tariffs and input costs in the US, there’s a significant tailwind for Breville.

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‍What's the key learning?

‍💡Category tailwinds can turn a good company into a great one. When consumer behaviour shifts strongly in one direction, businesses ride the wave of the whole category’s expansion.  

💡The coffee machine market is projected to reach $9.3 billion USD by 2030, with an annual growth rate of 4.7%. That’s exactly why Breville isn’t losing sleep over Trump’s tariffs or higher input costs in the US. Those are short-term headwinds.

💡For Breville, the long-term story is pretty appealing. They've got a group of millennials and coffee aficionados that are taking their coffee drinking more seriously than their local barista. And, that’s why savvy investors look not just at a company in isolation, but the long-term prospects of the industry.