Brambles Provides FY 2018 Third-Quarter Trading Update

Brambles Limited reported sales revenue from continuing operations of US$4,159.1 million for the first nine months of the financial year ending 30 June 2018 (FY18), representing an increase on the prior corresponding period of 10% at actual FX rates and 5% at constant currency. The difference between actual FX and constant-currency growth rates largely reflects the depreciation of the US dollar relative to other operating currencies, particularly the Euro.

  • CHEP Americas delivered constant-currency growth of 5% reflecting ongoing expansion with new and existing customers in the USA and Latin America pallets businesses. Pricing in the segment and in USA pallets was broadly flat to prior year with inflation-related price increases in Latin America;
  • – In CHEP EMEA, constant-currency growth of 7% was driven by strong volume growth across the segment which offset some pricing initiatives in the European pallets business;
  • Revenues in CHEP Asia-Pacific decreased 5% at constant currency, reflecting the previously announced loss of a large Australian RPC contract and the wind down of the automotive industry in Australia; and
  • In IFCO, constant-currency growth of 8% was driven by expansion with new and existing retailer partners and includes the benefit of increased pricing in IFCO North America.

Brambles’ CEO Graham Chipchase said: “Sales revenue for the first nine months of FY18 was strong and in line with our expectation for mid-single digit revenue growth.

“Volume expansion continues to be the key driver of revenue growth in both developed and developing markets as our businesses continue to convert customers to our sustainable share and reuse solutions.

“Our businesses are implementing a number of pricing and operational initiatives to offset the impact of accelerated transport, lumber and labour inflation, particularly in the USA and Europe. We expect the benefits of these initiatives to start flowing through during the fourth quarter and into FY19.

Brambles Limited is a supply-chain logistics company operating primarily through the CHEP and IFCO brands. Brambles enhances performance for customers by helping them transport goods through their supply chains more efficiently, sustainably and safely. The Group’s primary activity is the provision of reusable unit-load equipment such as pallets, crates and containers for shared use by multiple participants throughout the supply chain, under a model known as “pooling”. Brambles primarily serves the fast-moving consumer goods (e.g. dry food, grocery, and health and personal care), fresh produce, beverage, retail and general manufacturing industries, counting many of the world’s best-known brands among its customers. The Group also operates specialist container logistics business serving the automotive sector. Brambles operates in more than 60 countries, with its largest operations in North America and Western Europe. Brambles employs approximately 14,000 people and owns approximately 590 million pallets, crates and containers through a network of more than 850 service centres.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s