Brambles shares fall despite profit lift
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More news: Brambles shares fell 0.72% on the ASX by 12:36pm AEDT despite the company upgrading its full-year forecast and posting a lift in profit and sales during the first half of the financial year.
What they said: Jarden analysts said Brambles posted “a strong operating result”.
“In our view, the upgraded guidance and demonstrated free cash flow/ operating leverage should assure investors about the outlook,” they said.
“We expect questions on the [investor] call to focus on the 2H24 expected implied momentum with the usual questions oriented towards the pricing momentum.”
Brambles ups forecast after posting profit lift
The news: Logistics company Brambles has upgraded its full-year forecast after price increases helped lift first-half profit and sales.
The numbers: Profit for the six months to December 2023 rose 17% to USD392.1 million ($598 million), while revenue rose 12% to USD3.28 billion. It will pay an interim dividend of 15 US cents per share, up from 12.25 US cents a year ago.
The context: The pallets and containers supplier said volumes improved over the first half with an extra eight million pallets coming back into its network in North America and Europe. The company also benefited from price increases that were mostly put in place late last year as well as disciplined cost recovery.
“This performance reflects an ongoing commercial discipline and more dynamic pricing structures,” chief executive Graham Chipchase said.
The group now expects full-year underlying profit to rise between 13% and 15%, up from its previous estimate of 9% to 12%.
The source: ASX announcement
