APRIL 2019
all CHEP segments as we continue to convert new customers to our sustainable share-and-reuse solutions. Notwithstanding positive volume growth, we saw a moderate slowdown in the growth of like-for-like volumes during the third quarter, particularly in Europe which is consistent with broader macroeconomic conditions in that region. Price realization continued during the third quarter and reflects ongoing pricing actions to offset input-cost inflation and cost-to-serve increases, particularly in CHEP Americas.”
FY19 expectations remain unchanged
Brambles continues to expect FY19 constant-currency Underlying Profit growth to show modest improvement over the prior year, with increased price realization and the delivery of cost efficiencies largely offset by ongoing global input-cost inflation.
Cash generation is expected to improve in 2H19 from 1H19 levels, notwithstanding investment in growth and business improvement projects and excluding IFCO transaction-related proceeds and costs.
Brambles’ global automation, productivity and supply chain cost-out programs remain on track to progressively deliver margin benefits and improved business outcomes over the medium term.
IFCO sale process update and discontinued operations
The IFCO sale process is expected to be completed by the end of FY19.
As outlined in the IFCO sale announcement on 25 February 2019, proceeds from the transaction will be used to fund an on-market share buyback of up to US$1.65 billion, a capital return of AU29 cents per share and to pay down debt.
LPR expansion in Central Eastern Europe
LPR – La Palette Rouge, the pallet pooling specialist, a division of Euro Pool Group, is accelerating its expansion into Central and Eastern Europe and announces the development of its support team in this region with the appointment of Slavomir Sykora, in charge of Czech Republic, Slovakia and Hungary and Andrei Nicolae, in charge of Romania and Bulgaria.
LPR is responding to the growing demand of its customers, where more and more players in the mass retail market are operating in Central Eastern Europe and there is a need to support their supply chain requirements.
“Assisting and supporting our customers in their development, including internationally, is a priority for us. We are working with them to find solutions in a constant process of optimisation and profitability of the supply chain. Moreover, LPR continues to develop its service network across Europe,” indicated Xavier Goube, Managing Director of LPR.