The company’s underlying net profit for the six months through December rose 11% year-on-year, or 7% on a constant-currency basis, surpassing the average analyst forecast of $787 million. While statutory revenue of $3.53 billion fell slightly short of consensus estimates, Brambles declared an interim dividend of 23 U.S. cents, up from 19 cents a year ago. Management attributed the higher payout to robust free cash flow, which grew 12% to $481.7 million during the period.
In section Market Quotes
Brambles Hikes Dividend as Efficiency Gains Drive Profit Beat
Brambles, the global logistics leader, raised its interim dividend and full-year cash flow guidance on Thursday after reporting a stronger-than-expected $792 million first-half underlying profit. The Sydney-listed company, which reports in U.S. dollars, successfully leveraged cost-cutting measures and supply-chain efficiencies to offset cooling consumer demand and persistent macroeconomic headwinds.
Strengthening Cash Flow Projections
Buoyed by the results, Brambles upgraded its full-year free cash flow guidance to a range of $950 million to $1.1 billion, up from its previous estimate of $850 million to $950 million. This optimistic outlook reflects the company's ability to secure new contracts across key markets despite what it described as persistent demand headwinds in the fast-moving consumer goods sector. The report states that the company continues to win new business by optimizing its circular economy model of pallet leasing.Chief Executive Graham Chipchase noted that the group’s overhead cost reduction program, launched last year, was instrumental in maintaining margins in a subdued economic environment. The company’s CHEP Americas division remained the primary engine of growth, generating $1.38 billion in revenue and accounting for roughly 55% of the group’s total top line. Chipchase emphasized that the firm delivered margin expansion through increased supply chain efficiencies and overhead productivity improvements.
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