Company Reports

Brambles' fiscal 2026 underlying profit was 4% higher than the prior year, at constant currency, the midpoint of previously downgraded guidance. This included the adverse impact of a shortage of repairs in the US. Shares fell 4%.

Brambles focuses on supplying pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, including packaged food, beverages, fresh food, and personal healthcare.

Brambles is focused on the supply of pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, including packaged food, beverages, fresh food, and personal healthcare.

Brambles downgraded fiscal 2026 constant-currency underlying profit growth to 3%-5%, from 8%-11% previously. The downgrade is due to a shortage of repairs, causing an undersupply of pallets in Central and Northeastern US. Shares fell 20%.

Brambles' first-half fiscal 2026 underlying profit of USD 792 million was 7% ahead of the prior year. This was mostly due to a 110-basis-point increase in profit margin, benefiting from better purchasing, fleet management, and optimization projects to extend the life of pallets. Shares rose 4%.

Brambles is focused on the supply of pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, including packaged food, beverages, fresh food, and personal healthcare.

At its AGM, Brambles reported unchanged earnings guidance for fiscal 2026, despite ongoing macroeconomic uncertainty in its key markets.

Brambles' fiscal 2025 underlying profit of USD 1.4 billion was 10% ahead of the prior year. Most of the growth was due to a 130-basis-point increase in underlying EBIT margin, with the group investing in technology and data programs to improve pallet pooling operations.

Brambles is focused on the supply of pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, or FMCG, including packaged food, beverages, fresh food, and personal healthcare.

Brambles reported revenue of USD 4.9 billion for the first three quarters of fiscal 2025, up 3% on a constant-currency basis from the prior corresponding period. However, the company narrowed its fiscal 2025 revenue growth guidance to 4%-5%, from 4%-6%, as tariffs dampen consumer sentiment.

Brambles is focused on the supply of pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, or FMCG, including packaged food, beverages, fresh food, and personal healthcare.

US President Trump temporarily lowered tariffs to 10% on most ex-China US imports for a three-month period while countries seek to negotiate. But China is facing an even higher 145% tariff. Most ANZ industrial shares rallied, returning to, or nearing, pre-"liberation day" prices.

Brambles is focused on the supply of pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, or FMCG, including packaged food, beverages, fresh food, and personal healthcare.

We lift our fair value estimate for wide-moat Brambles by 9% to AUD 24 per share. The main drivers of our change include the stronger US dollar, with an exchange rate of one Australian dollar to 0.63 US dollars, applied to Brambles’ equity value to derive our fair value estimate, from USD 0.66 previously. We also lower our capital cost estimates for replacement pallets. We assume the firm’s efficiency improvements result in more returned pallets, reducing the volume of new pallets the firm needs to buy.

Brambles is focused on the supply of pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, or FMCG, including packaged food, beverages, fresh food, and personal healthcare.

Wide-moat Brambles’ fiscal 2025 is shaping up to be another high-performing year. The first quarter saw a 3% constant-currency sales growth to USD 1.7 billion versus the previous corresponding period. We note strong momentum in the Americas with 5% sales growth, underpinned by price rises of 4%. We expect the latter to stabilize over the remainder of fiscal 2025, with most of the increase resulting from rollover benefits from fiscal 2024. However, we still expect fiscal 2025 margin improvement via scale benefits and digitization.

Brambles is focused on the supply of pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, or FMCG, including packaged food, beverages, fresh food, and personal healthcare.

Wide-moat-rated Brambles' fiscal 2024 result is strong. From revenue growth of about 7%, as expected, underlying EBIT grew by 17% to USD 1.26 billion, ahead of our USD 1.21 billion forecast. Growth reflects impressive productivity and asset utilization gains, and free cash flow was consequently buoyant. Guidance for fiscal 2025 is similarly strong. Brambles expects to increase net profit by 8% to 11% from revenue growth of about 5%. Higher margins and greater capital efficiency underpin management’s decision to repurchase up to USD 500 million of shares, or about 3% of the shares outstanding. Robust free cash flow also supports the higher target payout ratio of 50%-70%, up from 45%-60% last year.

Brambles is focused on the supply of pallets for consumer staples, which accounts for about 85% of revenue. Its market is primarily fast-moving consumer goods, or FMCG, including packaged food, beverages, fresh food, and personal healthcare.

We raise our fair value estimate for Brambles by 36% to AUD 19 from AUD 14 with the transition of coverage to a new analyst. A key driver of the upgrade is our expectation for a much higher midcycle operating income margin of 21% from 16% previously. We expect the firm’s recent investment in digitalization and operating efficiency to improve transport and repair costs incrementally, and customer service and sales offerings. We also anticipate higher revenue growth, averaging 6% for our 10-year forecast period, from 4% previously. This is predicated on higher volumes in the largest segment of the United States and higher prices in the second-largest segment of Europe, the Middle East, and Asia. We assume Brambles increases pricing broadly with inflation, with volume gains to increase with consumer spending and share gains in existing and new markets.