Pallet supplier Brambles sees 21% increase in profit and raises full-year guidance
- Brambles lifts dividend and full-year outlook
- 1H profit rises by 21%
- Sales revenue increases by 12%
- Net profit up 15% on year
- Guidance for positive free cash flow raised
- Prices across the group increase by 11%
- Like-for-like volumes decline by 1%
- Lower prices for whitewood pallets affect transition to rental model
- Return on invested capital increases to 21.8%
- Sales revenue growth in Americas, Europe, Middle East and Africa, and Asia-Pacific
Pallet supplier Brambles has reported a 21% increase in first-half profit, leading to an upward revision of its full-year outlook. The company’s underlying profit for the six months through December reached $664.7 million, up 19% after accounting for currency fluctuations. Sales revenue from continuing operations also rose by 12% to $3.28 billion. Brambles expects revenue to rise by 6-8% and underlying profit to rise by 13-15% for the full fiscal year. The company also raised its guidance for positive free cash flow before dividends. However, lower prices for whitewood pallets have affected the transition to Brambles’ rental model. Despite this, Brambles remains focused on driving profitable volume growth and engaging with new business pipelines in North America and Europe. Return on invested capital increased to 21.8% in the December half, and sales revenue growth was seen across the Americas, Europe, Middle East and Africa, and Asia-Pacific regions.
Factuality Level: 8
Factuality Justification: The article provides a detailed and factual account of Brambles’ financial performance, including key figures such as profit, revenue, and growth outlook. The information is presented in a straightforward manner without sensationalism or bias. The article also includes analyst forecasts and comments, adding context to the company’s performance.
Noise Level: 3
Noise Justification: The article provides a detailed and focused analysis of Brambles’ financial performance, including profit, revenue, and outlook. It includes relevant information such as dividend increases, profit growth, and supply chain efficiencies. The article stays on topic and supports its claims with data and examples. However, it lacks in-depth exploration of broader implications or consequences beyond the financial aspects.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the pallet industry and companies involved in the supply chain, such as Brambles.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: There is no mention of an extreme event in the news article.
Public Companies: Brambles (N/A)
Key People: Graham Chipchase (Chief Executive), Anthony Moulder (Jefferies Analyst)
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