Brambles shares jump after strong FY profit, outlook
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More news: Shares in Brambles were up more than 4% to $14.73 on Wednesday morning after the pallets supplier reported a 13% lift in full-year profit, despite persistent cost pressures and global supply chain inefficiencies. The group is expecting underlying profit growth of 9% to 12% in FY24.
Price rises help Brambles lift full-year profit
The news: Logistics company Brambles has lifted full-year profit and sales on the back of price increases despite its customers facing uncertain macroeconomic conditions.
The numbers: Full-year statutory profit rose 13% to USD647.1 million ($998 million), while revenue rose 10% to $US6.08 billion. It will pay a final dividend of 14 US cents per share, up from 12 cents a year ago.
The context: The pallets and containers supplier saw volumes drop but attributed the revenue growth to price increases and disciplined cost recovery. Chief executive Graham Chipchase said the company had demonstrated resilience despite the year being marked by macroeconomic uncertainty, persistent cost pressures and global supply chain inefficiencies. The group is expecting underlying profit growth of 9-12% in FY24, with sales revenue to rise 6-8%.
What they said: "While uncertainty remains about the broader economic outlook, input-cost inflation and overall supply chain dynamics, we are confident that we can grow our business and successfully navigate these challenges," CEO Graham Chipchase said.
The source: ASX announcement
