Brambles’ third-quarter trading update: Constant-currency sales revenue growth of 5%

Sydney – 26 April 2018: Brambles Limited has reported sales revenue from continuing operations of US$4,159.1 million for the first nine months of the financial year ending 30 June 2018 (FY18), representing an increase on the prior corresponding period of 10% at actual FX rates and 5% at constant currency. The difference between actual FX and constant-currency growth rates largely reflects the depreciation of the US dollar relative to other operating currencies, particularly the Euro.

  • CHEP Americas delivered constant-currency growth of 5% reflecting ongoing expansion with new and existing customers in the USA and Latin America pallets businesses. Pricing in the segment and in USA pallets was broadly flat to prior year with inflation-related price increases in Latin America;
  • In CHEP EMEA, constant-currency growth of 7% was driven by strong volume growth across the segment which offset some pricing initiatives in the European pallets business;
  • Revenues in CHEP Asia-Pacific decreased 5% at constant currency, reflecting the previously announced loss of a large Australian RPC contract and the wind-down of the automotive industry in Australia; and
  • In IFCO, constant-currency growth of 8% was driven by expansion with new and existing retailer partners and includes the benefit of increased pricing in IFCO North America.

Brambles’ CEO Graham Chipchase said: “Sales revenue for the first nine months of FY18 was strong and in line with our expectation for mid-single digit revenue growth.

“Volume expansion continues to be the key driver of revenue growth in both developed and developing markets as our businesses continue to convert customers to our sustainable share and reuse solutions.

“Our businesses are implementing a number of pricing and operational initiatives to offset the impact of accelerated transport, lumber and labor inflation, particularly in the USA and Europe. We expect the benefits of these initiatives to start flowing through during the fourth quarter and into FY19.”

Brambles results

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