By Stuart Condie 
 

SYDNEY--Brambles Ltd. raised the lower end of its fiscal 2021 revenue and earnings guidance ranges after unexpectedly strong demand for consumer staples helped the pallet supplier to lift first-quarter sales revenue by about 6%.

The Australia-listed firm on Tuesday reported sales revenue from continuing operations for the three months through September of US$1.19 billion, up by about 6% when adjusted for the prior corresponding period's two additional days. Stripping out currency changes, it said the increase was about 5%.

Brambles said it now anticipates fiscal 2021 sales revenue growth of 2-4% at constant foreign exchange rates, compared with the 0%-4% range provided at August's annual result and reiterated at October's annual meeting of shareholders. It expects improved underlying profit margins, including a one percentage-point increase in U.S. margins.

It expects underlying profit growth of between 3% and 5%, compared with a previous 0-5% range. It said free cash flow should be sufficient to fund dividends and core business capital expenditure despite increased investments to support new core business opportunities.

 

Write to Stuart Condie at stuart.condie@wsj.com

 

(END) Dow Jones Newswires

November 02, 2020 18:11 ET (23:11 GMT)

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