Why it matters: Brambles operates a pool of 361 million pallets under the CHEP brand, transporting goods to retailers and is a bellwether for economic health.
The company lifted its final dividend payout by 17 per cent, with heavy price increases pushed through to customers bolstering profits.
CEO Graham Chipchase says there is still inflation, but price increases will slow.
Transport and logistics group Brambles expects profit growth to slow in 2023-24 as cost-of-living pressures on households mean lower volumes of goods are being transported on pallets to the group’s retailer customers, which are cutting back inventory levels.
But hefty price rises and surcharges of $US815 million ($1.26 billion) imposed by Brambles on customers as it clawed back inflation in timber prices, energy, labour and transport costs enabled it to lift net profit by 19 per cent to $US703.3 million in the 12 months ended June 30.
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Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide. Connect with Simon on Twitter. Email Simon at simon.evans@afr.com
