18 WESTERN PALLET
Brambles Announces 6-Month Results to December 31, 2018
Brambles announced its 6-month results for the half year ending December 31, 2018. Its net profit fell 27 percent to $US 319 million, which it attributed to higher operational costs and the end of a one off U.S. tax benefit of $103 million from the first half of the 2018 financial year. The company reported its sales revenue had increased 3 percent (or 7 percent at constant currency) to almost $2.9 billion.
For detailed results, including audio presentation, written transcript and slides, visit the Brambles Results Centre.
In the Americas, CHEP pallet sales revenue was over $1.1 billion, up 6 percent at constant currency. Pallet revenue in the U.S. exceeded $831 million, representing an increase of 5 percent. Canada pallets sales revenue was$135 million, up 5 percent at constant currency, reflecting strong pricing growth and solid net new wins. Latin America pallets sales revenue of $145 million increased 14 percent at constant currency, reflecting strong volume growth with new and existing customers in Mexico and Central America and strong price growth across the region.
“In response to sustained levels of elevated cost inflation in most major markets, our businesses implemented surcharges and exercised contractual indexation clauses to offset three-quarters of the inflationary cost increases experienced during the period,” stated Graham Chipchase, Brambles CEO. “Our teams continue to focus on aligning contractual terms and pricing with the prevailing cost-to-serve in each region.
“In addition to pricing initiatives, we continue to look at our own operations and identify opportunities across functions and regions, as well as globally, to improve our performance, enhance the way we operate and increase the value we provide our customers.
Brambles reported making good progress in its accelerated automation program in the U.S., where it intends to invest $150 million to $160 million, through to the end of fiscal 21, to automate over 50 plants across the country. “This program remains on schedule and we have already completed 10 plant installations and have assessed and approved installations at another 17 sites,” Chipchase said. “This project is a great example of how we are utilizing the Group’s global best practice and expertise to benefit an individual business.”