Brambles Reports Strong FY13 Results, Forecasts Pooling Solutions Profit Growth for FY14

Brambles has released its FY2013 results, including the following highlights:

– Continued strong sales growth, led by Pallets Americas and RPCs
– Strong new business wins despite subdued and uncertain economic conditions
– Underlying Profit1 delivered within guidance range
– Operational and capital efficiencies in Pallets driving improved return on capital invested
– Strong year-on-year improvement in cash flow
– Guidance for 4% to 8% growth in FY14 Underlying Profit, excluding Recall2
– Recall on track for demerger after challenging year

Brambles generated sales revenue of US$5,889 million in the financial year ended 30 June 2013, up five percent, driven by strong new business growth from the Americas region of its Pallets segment and the global Reusable Plastic Crates (RPCs) segment and a resilient performance from the Europe, Middle East & Africa region in Pallets.

Operating profit was US$1,011.2 million, up eight percent as sales mix and operational efficiency improvements in the Pallets and RPCs segments offset higher direct costs, ongoing investment in business development and the effects of a challenging year for the Recall business.

“This strong result – despite the subdued economic conditions in Europe and Australia – reflects our continued ability to provide value-adding services to our customers at the same time as we deliver improved operational and capital asset efficiency,” stated Tom Gorman, Brambles CEO. “Our major established Pooling Solutions businesses are growing strongly and profitably as a result of continued new business expansion, while we are investing in the longer term opportunities in the Containers sector and in emerging markets.

“We are also seeing positive trends in our operating cash flow and return on capital, with a disciplined approach to capital allocation and progress in the asset efficiency programs that are underway throughout the group.

“We are in a great position to continue to strengthen and grow our business, to deliver further efficiencies and to keep investing for the future as we pursue sustainable value for our customers, shareholders and employees.”

To see the presentation slides, click here and then click on the ensuing presentation link.

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