Brambles Says Grocery Pallet Demand Hit Record Level in March
By Stuart Condie
SYDNEY--Brambles Ltd. said grocery supply chain demand for its
CHEP pallets hit record levels in March, more than offsetting falls
elsewhere due to automotive manufacturing shutdowns and government
The pallet and logistics firm on Friday said CHEP revenue growth
outpaced demand-related increases in pallet repair and collection
costs, and more than offset the material impact on the automotive
and Kegstar businesses that collectively account for about 5% of
Brambles said third-quarter revenue from continuing operations
grew 6% to US$1.13, stripping out currency changes. It now expects
fiscal 2020 revenue to grow by 5%-7% on a constant currency basis,
with underlying profit to grow by 3%-5% on fiscal 2019's US$803.7
It said the new guidance assumed lockdowns and other
restrictions would continue through the fourth quarter as the
coronavirus drives material changes in operating conditions across
all its businesses.
Previous guidance issued with February's first-half results was
for revenue and underlying profit to grow by mid-single digits.
Brambles said it had 1.1 billion Australian dollars (US$695.6
million) on deposit and US$1.3 billion of undrawn committed credit
facilities at March 28, and was not making any changes to its
buyback program or dividend policy.
Chief Executive Graham Chipchase said Brambles was playing a
vital role in keeping supply chains moving, with over 80% of
revenues derived from consumer staples and grocery supply chains.
Staples have been comparatively resilient through the coronavirus
pandemic as consumers cut back on discretionary spending.
Brambles shares last traded at A$11.39, down 2.4% in 2020.
Write to Stuart Condie at firstname.lastname@example.org
(END) Dow Jones Newswires
April 16, 2020 19:16 ET (23:16 GMT)
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