Brambles Ltd. Reports 3% Revenue Growth Amid Flat Volumes

Brambles Ltd. has reported a sales revenue increase of 3% in the first quarter for the financial year ending June 2025, with key contributions from price realizations and reaffirmed guidance for future growth, signalling a stable outlook for investors according to the report.

Date: 24-10-2024

AI Rating: 7

Brambles Ltd. has shown positive sales revenue growth in the report. The reported sales revenue is approximately US$1.68 billion, signifying a 3% increase at both actual and constant foreign exchange (FX) rates compared to the prior year. This growth is attributed to price realizations, which accounted for a 3% increase, suggesting effective pricing strategies have been implemented during fiscal year 2024.

The group's volumes remained flat year-over-year, where net new business growth of 1% balanced against a decline of 1% in like-for-like volumes. Notably, this flat volume is attributed to external factors—such as the timing of the US produce harvest and a shift back to traditional seasonal customer demand in Australia—rather than internal performance issues.

In terms of regional performance, CHEP Americas achieved a sales revenue increase of 5% at constant FX rates, supported by a robust 4% price growth. CHEP EMEA also saw a 1% increase in sales revenue from price growth in specific sectors. However, CHEP Asia-Pacific maintained flat revenue with a 4% price growth offset by volume declines. Such mixed regional performance indicates varying customer demand across these markets.

Crucially, Brambles has reconfirmed its guidance for the financial year ending June 2025. The expected underlying profit growth lies between 8% and 11% at constant currency, alongside a target for sales revenue growth of 4% to 6% at constant currency. This reaffirmation signals management's confidence in sustaining growth despite current challenges.

Overall, the growth in revenue, along with reaffirmed future guidance, suggests a stable outlook for Brambles Ltd., which could positively influence investor confidence and stock prices moving forward.

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