Sydney – 20 October 2016: Brambles Limited today reported sales revenue from continuing operations of US$1,420.1 million for the first three months of the financial year ending 30 June 2017, representing a 5% increase on the prior corresponding period.
Constant-currency sales revenue growth of 7% primarily reflected: robust growth with new and existing customers in Pallets Europe, Middle East & Africa; strong conversions with existing clients and the contribution from acquisitions in RPCs; and modest growth in Pallets Americas.
Excluding the contribution from the North American recycled pallet business, growth in Pallets Americas was 6% at constant currency. This reflected strong growth in Latin America and modest growth in the US pooled pallet business reflecting lower customer mix benefits and the deferral of some new business opportunities. The conversion of these opportunities is expected to deliver stronger growth in the second half of the year.
For the financial year ending 30 June 2017, Brambles continues to expect constant-currency sales revenue growth from continuing operations of 7-9% and Underlying Profit5 of between US$1,055 million to US$1,075 million at 30 June 2016 exchange rates, which reflects a growth of 9-11%.
Brambles’ CEO Tom Gorman said: “Our constant-currency sales revenue growth from continuing operations for the first quarter is consistent with our guidance for FY17. Despite a somewhat subdued first-quarter performance in our Pallets segment, we remain confident that phasing of net new business wins, particularly in North America, will drive stronger sales revenue growth in the second half of FY17.”