Brambles Ltd. Reports Modest Revenue Growth Ahead of Outlook

Brambles Ltd. indicates steady performance with 3% constant FX revenue growth. However, revenue outlook narrowed slightly. Investors should assess the implications of the updated free cash flow forecast amid ongoing inflation pressures.

Date: 28-04-2025

AI Rating: 7

Revenue Growth: Brambles Ltd. has reported a sales revenue of US$4.922 billion for the first nine months of the fiscal year, reflecting a 3% increase at constant foreign exchange rates. While this signals resilience, the narrowing of the sales revenue growth outlook from 4%-6% to 4%-5% at constant FX rates suggests possible caution regarding future performance.

Profit Margins: The expectation of annual underlying profit growth between 8%-11% at constant FX rates is notably positive, indicating that the company may continue to manage margins effectively despite facing challenges from input-cost inflation.

Free Cash Flow (FCF): Brambles has upgraded its FCF forecast to between US$900 million and US$1.000 billion, compared to an earlier estimate of US$850 million to US$950 million. This is a strong indicator of financial health and flexibility, as the ability to generate substantial free cash flow is critical for maintaining operations and investing in growth.

In terms of market performance, the company’s revenue growth reflects its ability to partially offset inflationary pressures through price realization, with CHEP Americas exhibiting a notable 4% revenue growth from price recoveries. Additionally, the positive free cash flow forecast may engender confidence among investors, potentially stabilizing or increasing stock prices in the short term.

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