Brambles Ltd
OTC:BMBLF

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Brambles Ltd
OTC:BMBLF
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Price: 15.51 USD 1.37%
Market Cap: 21.6B USD

Brambles Ltd
Investor Relations

Brambles Ltd., an often underappreciated giant within the global logistics and supply chain arena, has cemented its place with an innovative twist on an age-old service — pooling and managing reusable pallets and containers. Rooted deeply in the world of supply chain dynamics, Brambles operates predominantly through its CHEP brand, which has become synonymous with pallet pooling. This business model involves renting out millions of standard-sized pallets to manufacturers and retailers, helping them transport goods more efficiently. Clients, ranging from small businesses to multinational corporations, leverage CHEP's extensive network, thus avoiding the colossal costs tied to buying, maintaining, and repairing pallets themselves.

The real genius of Brambles' business lies in its model of circularity, which not only ensures a steady stream of revenue but also promotes sustainability — a pressing concern in today’s business landscape. Companies pay Brambles for the privilege of using its pallets repeatedly, essentially a lease arrangement, rather than owning them outright. This service model allows Brambles to capitalize on scale, as the pallets are continuously cycled through the supply chain, maximizing their utility and lifespan. By optimizing pallet usage and reducing waste, Brambles crafts a clear value proposition that aligns with modern corporate social responsibility ideals, turning its logistics solutions not merely into a service, but into a sustainable, profitable venture that underscores the company’s resilience and forward-thinking ethos.

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Last Earnings Call
Fiscal Period
Q4 2023
Call Date
Aug 29, 2023
AI Summary
Q4 2023

Revenue & Profit Growth: Brambles delivered strong FY23 results with revenue up 14% and underlying profit up 19%, both driven primarily by pricing actions offsetting cost increases.

Free Cash Flow: Free cash flow after dividends was positive $179.5 million, a major turnaround from the prior year and supported by higher earnings and favorable working capital.

Dividend Increase: The final FY23 dividend was increased by 17% to $0.14 per share, with a total payout ratio of 55%.

Outlook & Guidance: For FY24, Brambles expects sales revenue growth of 6–8%, underlying profit growth of 9–12%, and free cash flow before dividends of $450–550 million.

Asset Recovery & Efficiency: Asset efficiency initiatives resulted in 10 million pallets recovered or salvaged, allowing reduced purchases of new pallets and improved customer service levels.

Cost Pressures: Lumber and pallet costs remain well above historical averages, though prices are moderating; labor and plant costs remain elevated due to wage inflation.

Transformation Progress: Digital and operational transformations are delivering tangible benefits in asset tracking, pricing, and customer service, with further investment planned.

Market Conditions: Demand environment remains subdued with ongoing destocking, but modest net new business wins are emerging, especially from whitewood pallet conversions in the US.

Key Financials
Revenue
$6.083B
Underlying Profit
$1.085B
Earnings Per Share
26% growth
Free Cash Flow After Dividends
$179.5M
Dividend Per Share
$0.14 (final), $0.2625 (FY23 total)
Return on Capital Invested
18.5%
Pooling CapEx to Sales Ratio
23.4%
Net New Business Growth
1%
Group Volumes
-2%
Plant Costs
increase of $226M
Transport Costs
increase of $93M
Depreciation
increase of $73M
Hyperinflation Charge
$19M
Profit from Discontinued Operations
$56.2M
Earnings Call Recording
Other Earnings Calls

Management

Mr. Graham Andrew Chipchase CBE
CEO & Executive Director
No Bio Available
Mr. Joaquin Gil
Chief Financial Officer
No Bio Available
Mr. David Cuenca
Chief Executive Officer of CHEP North America
No Bio Available
Mr. Enrique Montanes Garcia
Chief Operations Officer
No Bio Available
Mr. Harry Winstanley
Chief Information Officer
No Bio Available
Ms. Alice Marsden Black
Chief Legal Officer
No Bio Available
Ms. Sarah Pellegrini
Chief Communications Officer
No Bio Available
Mr. Phillip Austin
CEO of CHEP Asia-Pacific & CHEP India, Middle East, Turkey and Africa
No Bio Available
Mr. Patrick Bradley
Chief Transformation & Customer Experience Officer
No Bio Available
Dr. Juan Jose Freijo
Chief Sustainability & Product Innovation Officer
No Bio Available

Contacts

Address
NEW SOUTH WALES
Sydney
Angel Place, L 10 123 Pitt Street
Contacts
+61292565222.0
www.brambles.com