Brambles Upgrades Full-Year Outlook
By Stuart Condie
SYDNEY--Brambles Ltd. upgraded its full-year outlook after
strong consumer staples-driven pallet demand drove higher sales
revenues and profits in the six months through December.
Brambles said it now expects revenue growth of between 4% and 6%
after stripping out the impact of currency swings. That was above
earlier guidance for 2-4% growth outlined to investors as recently
as November, and includes a one percentage-point improvement in
In addition, Brambles forecast 5-7% growth in underlying profit
at constant exchange rates in the 12 months through June, up from
prior guidance for a 3-5% increase.
The brighter outlook was detailed by Brambles alongside a 6%
rise in net profit for the six months through December of US$293.6
million at actual exchange rates. Stripping out currency swings,
net profit rose by 4%.
Half-year revenue rose by 6% to US$2.57 billion at constant
exchange rates, which Brambles said largely reflecting strong
pallet demand from existing customers in the consumer-staples
sectors as well as new customers in its Central and Eastern
European pallets business. It also included a contribution from a
large Australian contract won in the second half of fiscal
Brambles said the coronavirus pandemic and Brexit had driven up
demand for pallets, while changes in consumer behavior and higher
input costs had pushed up operating costs.
"We experienced elevated levels of demand in our key pallet
businesses in the first half, as retailers raised inventories to
accommodate increased levels of at-home consumption and to provide
greater contingency against changes in consumer demand," said Chief
Executive Graham Chipchase. "There was also a noticeable shift
within the consumer staples segment towards established, household
brands which drove stronger volume growth with our largest
Directors of the company declared an interim dividend of 10 U.S.
cents a share, representing a payout ratio of 50%. Brambles also
said a 2.4 billion Australian dollars (US$1.9 billion) share
buyback program, currently 61% complete, will restart on
Write to Stuart Condie at email@example.com
(END) Dow Jones Newswires
February 16, 2021 01:57 ET (06:57 GMT)
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