Brambles Reports Strong Annual Earnings and Forecasts Further Growth

Brambles, the Australia-listed pallet supplier, has announced robust financial results for the 12 months ending June. The company reported an underlying profit of US$1.07 billion, representing a significant 19% increase once currency fluctuations are factored out. This exceeds the revised guidance of a 17%-19% growth provided in April, as well as the US$930.0 million achieved in the previous year.

Consistent with this positive trend, sales revenue from continuing operations also experienced a healthy rise of 14% to reach US$6.08 billion on a constant-currency basis. This aligns with Brambles' earlier projections of a 14%-15% increase.

On a statutory basis, Brambles recorded a net profit of US$703.3 billion, demonstrating a remarkable 24% year-on-year growth at constant FX rates. This surpassed the average analyst forecast of US$660 million, while FactSet's data indicated expected revenue of US$6.17 billion for the period.

In light of its strong performance, Brambles has declared a final dividend of 14 U.S. cents, marking an increase from the previous year's payout of 12.0 U.S. cents.

Looking ahead, the company is optimistic about its future prospects. Brambles anticipates a 9-12% growth in underlying profit for its fiscal year 2024, which commenced on July 1st. Additionally, it foresees a revenue increase of 6-8% and expects positive free cash flow before dividends ranging from US$450 million to US$550 million.

This promising outlook reaffirms Brambles' position as an industry leader and underscores its commitment to delivering sustainable growth.