Brambles tumbles after trimming sales guidance
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More news: Shares in Brambles tumbled more than 5% to $19.82 in early trading after the pallets and containers supplier trimmed its full-year sales growth guidance, citing a rapidly evolving tariff landscape.
The company expects demand to be muted in the fourth quarter as the geopolitical environment and rapidly evolving tariff situation weigh on consumer sentiment.
Brambles trims FY sales guidance amid macro uncertainty
The news: Logistics company Brambles has narrowed its sales growth guidance for FY25 amid a rapidly evolving tariff landscape despite benefiting from price increases in the first nine months of the fiscal year.
The numbers: Sales revenue for the nine months to 31 March was up 3% to USD4.92 billion ($7.70 billion) at constant currency rates, with price hikes helping to offset lower volumes. The company now expects to lift full-year sales revenue between 4%-5%, down from the earlier 4%-6% range, although underlying profit is still forecast to rise between 8% and 11%.
The context: The pallets and containers supplier said third quarter performance reflected ongoing price realisation and net new business growth, while like-for-like volumes declined due to adverse weather events in the US and macroeconomic uncertainty in all regions.
It expects consumer demand to be muted in the fourth quarter, as the geopolitical environment and rapidly evolving tariff situation weigh on consumer sentiment.
“While we expect ongoing price realisation and improved net new business momentum through the balance of the year, like-for-like volumes will be challenged given the weakness in the third quarter and the expected continuation of macroeconomic uncertainty in the fourth quarter,” CEO Graham Chipchase told investors.
The source: ASX
