Brambles (ASX: BXB) delivered a resilient financial performance in the first-half of FY22 in light of extraordinary cost inflation and disruption across global supply chains.
Revenue of US$2,766.4m, up 8%
Net profit of US$304.8m, up 4%
Interim dividend of 15 cents per share, up 15%
Dividend in-line with 50% payout ratio
Net profit exceeded Bell Potter and Citi forecasts of US$287m.
Brambles operates the world’s largest pool of approximately 345m pallets, crates and containers across 60 countries. Timber is a core material used to repair and produce pallets.
The business faced immense cost pressures from elevated timber prices, which have historically traded around the US$200-400 range.
Timber inflation has cost the business an additional US$270m in the first-half.
Passing on prices to customers, supply chain efficiencies and repair cost timing benefits helped offset higher costs in the first-half.
"“Our scale, network advantages and the supply chain investments we have been making across our businesses have helped us respond to a range of cost and supply change challenges in the first half," said CEO Graham Chipchase.
In addition, Brambles said that new customer growth helped offset the like-for-like volume decline, which was impacted by pallet availability constraints.
Brambles upgraded its full-year outlook slightly, now expecting:
Sales revenue growth between 6-8%, up from 5-7%
Underlying profit growth between 3-5%, up from 1-2%
Finance Writer & Social Media
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