Brambles Announces Trading Update, Greystone Logistics Reports 65% Sales Boost

Brambles Limited has reported sales revenue from continuing operations of US$4,091.0 million for the first nine months of the financial year ending 30 June 2017, up 4% at actual FX rates and up 5% at constant FX rates over the prior corresponding period. The lower growth on an actual FX basis reflects the strength of the US dollar, Brambles’ reporting currency, relative to other operating currencies across the Group.

The constant-currency sales revenue growth of 5% primarily reflected:

  • Modest pricing, organic and net new business growth in US Pallets;
  • Strong volume growth in European Pallets despite lower organic demand in Southern Europe;
  • Continued growth momentum in emerging markets, particularly in Latin America; and
  • Ongoing expansion with new and existing customers in RPCs, globally.

“Overall, our businesses delivered a solid performance in the third quarter despite ongoing macroeconomic uncertainty, softer FMCG demand in Southern Europe and the USA, and robust competition in most markets,” stated Graham Chipchase, Brambles’ CEO.

“Growth momentum across our Pallets businesses in Europe and Latin America was pleasing, and the expansion of our RPCs businesses is progressing well across all markets,” Chipchase continued.

“Our US Pooled Pallets business secured a number of new business wins during the third quarter, despite competition from other poolers and ongoing pressure from lower white-wood pallet prices. These contracts, which include conversions from both white-wood pallets and other poolers, will start during the fourth quarter. While these contracts are expected to make a minimal contribution in FY17, they provide a good foundation for FY18.”

By segment, Brambles’ sales revenue for the first nine months of the 2017 financial year was:

For the financial year ended 30 June 2017, the Group continues to expect constant-currency sales revenue growth to be in line with the first-half performance and Underlying Profit to be flat on the prior year, at constant currency.

The results mark an improvement on poor First Half results that saw Brambles stock price plummet 24%. The 1H failure was pinned on sluggish retail performance, competition from PECO and lower whitewood prices which slowed retail conversions.

Source: Brambles and PackagingRevolution.net

 

Greystone Enjoyed a 65% Sales Boost in Latest Quarter

Tulsa-based Greystone Logistics, Inc. reported sales for the three months ended February 28, 2017, totaled $8,693,851 compared to $5,280,480 for the prior period for an increase of $3,413,371, or 65%. Sales for the nine months ended February 28, 2017 were $25,759,823 compared to $15,270,671 for the prior period for an increase of $10,489,152, or 69%. There continues to be a backlog of sales for a broad range of the company’s products.

Greystone Logistics reprocesses and sells recycled plastic and designs, manufactures, sells high quality 100% recycled plastic pallets that provide logistical solutions needed by a wide range of industries such as the food and beverage, automotive, chemical, pharmaceutical and consumer products. The Company’s technology, including that used in its injection molding equipment, proprietary blend of recycled plastic resins and patented pallet designs, allows production of high-quality pallets quickly and at a low cost. The recycled plastic for its pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resin.

Greystone recorded net income attributable to common stockholders (after preferred dividends and income attributable to variable interest entities) for the three months ended February 28, 2017, of $773,667, or $0.03 per share. This result compared to a net loss attributable to common stockholders of $(200,528), or $(0.01) per share, for the prior period. For the nine months ended February 28, 2017, Greystone recorded net income attributable to common stockholders (after preferred dividends and income attributable to variable interest entities) of $697,337, or $0.02 per share. This outcome compared to a prior period net loss attributable to common stockholders of $(314,263), or $(0.01) per share. EBITDA was $2,476,394 for the quarter ended February 28, 2017 and $4,480,780 for the nine months ended February 28, 2017.

“I am pleased to report that the implementation of previous discussed operating efficiencies, cost containment strategies and extra production capacity produced significantly improved gross profit margins on record sales for Greystone’s third quarter,” stated CEO Warren Kruger.

Kruger continued, “The increased production throughput helped lower fixed costs allocation per pallet produced thus driving increased margins on greater sales volume. The fourth quarter of our corporate year has historically been strong, and with our backlog, I look for that trend to hold. We will continue to invest in equipment and facilities to drive growth and shareholder value.”