American gains help Brambles
The world's largest supplier of pallets grew its net profit for the six months to December 31 from $US239.5 million to $US302.5 million. Underlying profit rose 7 per cent to $US490 million.
Brambles chief executive Tom Gorman said the result reflected the strength in the group's established operations and its ability to deliver profit growth through expansion and diversification. "The continued growth and improved efficiency of the Americas region of our pallets segment, despite only moderate improvement in economic conditions to date, is particularly pleasing," he said.
Mr Gorman said the company expected to report an underlying profit for the full year of about $US1.05 billion. It declared an interim dividend of 13.5¢ a share, 30 per cent franked, up half a cent from last year, payable on April 11.
Shares in Brambles defied a wide selloff in the broader market, gaining 8¢ to $8.59. This was despite its net profit coming in slightly under consensus analyst estimates of $US326.3 million.
Brambles shares are up nearly 40 per cent this financial year and are trading at their highest levels since the global financial crisis.
The company's core business is its "pooling solutions", or the distribution and collection of pallets, crates and containers to transport goods in bulk quantities, provided through its CHEP and IFCO brands. Pallet sales in the Americas account for about a third of revenue.
It also owns the Recall document management business, having aborted attempts to sell the business last year after failing to generate enough interest.
Brambles grew its operating profit in the Americas by 23 per cent, and in Europe, Middle East and Africa by 11 per cent on a constant currency basis. Its reusable plastic containers division also delivered strong profit gains due to cost management, but fell short of its sales growth target.
"The benefits of our increasing scale will enable us to continue to improve profitability as we expand," Mr Gorman said.
Brambles also said it would simplify its organisation structure, as it continued to integrate its IFCO acquisition.
Frequently Asked Questions about this Article…
Brambles reported a 26% rise in first-half net profit for the six months to December 31, from US$239.5 million to US$302.5 million. Its underlying profit rose 7% to US$490 million.
Brambles said profit growth was driven by winning new customers in North America and the strength and improved efficiency of its established operations. The Americas region of its pallets segment showed continued growth despite only moderate economic improvement.
Operating profit in the Americas grew 23% and in Europe, the Middle East and Africa it rose 11% on a constant currency basis. Pallet sales in the Americas account for about one-third of Brambles' revenue.
Brambles declared an interim dividend of 13.5 cents a share, 30% franked, which is up half a cent from last year. The dividend is payable on April 11.
Shares in Brambles rose 8 cents to $8.59 on the day of the report, despite the reported net profit being slightly below the consensus analyst estimate of US$326.3 million. Brambles shares are up nearly 40% this financial year and are trading at their highest levels since the global financial crisis.
Brambles' core business is its 'pooling solutions' — distribution and collection of pallets, crates and containers — delivered through its CHEP and IFCO brands. It also owns the Recall document management business and has a reusable plastic containers division.
Brambles' chief executive Tom Gorman said the company expected to report an underlying profit for the full year of about US$1.05 billion.
Brambles plans to simplify its organisational structure and continue integrating its IFCO acquisition. Management says increased scale and cost management—notably in its reusable plastic containers division—are helping improve profitability, although that division missed its sales growth target.
Call 1300 880 160
Start a chat
Schedule a call
