Brambles Maintains Positive Outlook Amid Growth in Sales Revenue

Brambles Limited (ASX: BXB), a global logistics company, has reported a robust increase in sales revenue, demonstrating sustained growth and financial stability in the first nine months of the fiscal year 2024 (FY24).

Strong Revenue Performance

For the period ending June 30, 2024, Brambles announced that its sales revenue from continuing operations reached US$4,872.3 million. This figure represents a 9% increase at actual FX rates and a 7% rise at constant FX rates compared to the previous corresponding period. Notably, the revenue growth includes an 8% increase from pricing adjustments, although there was a slight moderation from the first

half of the year.

Segment-Specific Growth Details

• CHEP Americas: The Americas segment saw a 6% growth at constant currency, primarily driven by a 7% increase from pricing actions. However, segment volumes dipped by 1%.
• CHEP EMEA: In Europe, the Middle East, and Africa, sales revenue rose by 8% at constant currency, with price realization accounting for 10% growth. Segment volumes fell by 2%, influenced by a decline in like-for-like volumes which was partly offset by new business wins in the automotive and Europe pallets businesses.
• CHEP Asia-Pacific: The Asia-Pacific region recorded a 10% increase in sales revenue at constant currency, driven by a 6% growth from pricing and a moderate 4% increase in volumes.

Operational Insights and Full Year Outlook

Graham Chipchase, CEO of Brambles, expressed confidence in the company's performance, noting that revenue growth aligned with expectations and the moderation of price growth reflected changes in the cost-to-serve. The company reconfirmed its guidance for the full year, expecting:

• Sales revenue growth of 6-8% at constant currency.
• Underlying profit growth of 13-15% at constant currency.
• Positive free cash flow before dividends between US$700-800 million.

Chipchase highlighted the impact of inventory optimization in North America and Europe, which continues to influence the demand from existing customers. Despite these challenges, modest improvements in like-for-like volume trends have been observed.

Challenges and Strategic Adjustments

The company noted ongoing inflationary pressures in labor and transport costs and fluctuations in fuel prices. However, Brambles remains committed to maintaining margins and generating returns on capital investments through stringent asset control and operational efficiencies.

Brambles Limited continues to support the global supply chain through its sustainable logistics solutions, emphasizing the reuse and sharing of its platforms. The company's robust performance and strategic initiatives position it well for sustained growth in the competitive logistics industry.

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