Brambles shares drop after soft Q1 results
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More news: Shares in Brambles are down more than 3% to $17.98 after the pallets and containers supplier reported a softer quarterly performance with volumes remaining flat. The company however, reiterated its its full-year guidance.
RBC Capital Markets analyst Owen Birrell said the sales growth of 3% initially looked a little soft relative the 4% to 6% FY25 sales guidance.
What they said: "Through the course of FY25, we expect BXB’s key business outcomes are to be driven by earnings and FCF [free cash flow] performance (rather than purely sales), and as such we can't draw too many direct conclusions from the 1Q25 sales update other than BXB has reiterated its guidance," he said in a note.
Brambles lifts quarterly sales, keeps FY guidance
The news: Logistics company Brambles has reaffirmed its full-year guidance as price increases helped lift sales in the first quarter despite volumes remaining flat.
The numbers: Sales revenue for the three months to September was up 3% to USD1.68 billion ($2.53 billion). The gains mainly came from price increases effected last year. Brambles said volumes were flat as 1% new business growth was offset by a similar decline in like-for-like volumes. The company expects to lift full-year sales revenue by 4% to 6%, while underlying profit is forecast to rise between 8% and 11%.
The context: The pallets and containers supplier said lower-than-expected like-for-like volumes were largely driven by macroeconomic conditions, lower US produce volumes and a return to seasonal patterns. CEO Graham Chipchase said higher prices to recover modest input cost inflation was partially offset by the revenue impact of improved asset efficiency. Market dynamics in the first quarter support the expectation of net new business growth accelerating in the second half of the year, he added.
The source: ASX announcement
