Brambles Limited (ASX: BXB) reported its result for the for the half year to 31 December 2017.
Brambles provides reusable pallets, crates and containers and associated logistics services.
Here are some of the highlights compared to the last year:
- Revenue up 9% to $2.7 billion
- Operating profit up 47%
- Reported profit per share up 205%
- ‘Underlying’ profit per share up 9%
- Dividend per share maintained at 14.5 cents
The company attributed the revenue growth to strong volume growth in North America, Europe and Latin America pallets and ongoing expansion for its businesses.
Brambles’ underlying profit only grew by 1% in constant currency terms, it was impacted by the HFG joint venture and the loss of a large RPC contract and a cessation of a number of automotive contracts in CHEP Australia. The acronyms are businesses.
The company benefited from the USA federal income tax rate being reduced from 35% to 21%.
Brambles CEO Graham Chipchase said “We delivered a return to positive underlying profit growth and strong revenue growth in the first half. We saw improved volume growth in North America and continued momentum in our European operations, in line with good economic growth in these regions.”
Outlook
Brambles expects to deliver ‘underlying profit’ growth in excess of sales revenue growth through the cycle. It will be impacted by the large loss of a large Australian RPC contract, a US$5 million to US$7 million investment in digital and the full 12 month inclusion of losses incurred in the HFG joint venture.
Mr Chipchase added “Our share and reuse model give us a great opportunity to meet the needs of our customers in the most sustainable way. As we continue to build our network, adding new customers and entering new markets, our aim is to use our assets even more efficiently.”
This will be better for our customers, consumers and the environment – and help us deliver sustainable growth and returns well in excess of the cost of capital. – Chipchase
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