Brambles reaffirms full-year guidance

Brambles has confirmed its full-year guidance after reporting a modest 5pc rise in sales.

Brambles boss Tom Gorman. Pic: Renee Nowytarger

Logistics group Brambles has reaffirmed its full-year guidance after reporting a modest 5 per cent rise in sales from continuing operations through the first quarter.

In a statement to the market this morning, Brambles (BXB) booked a 7 per cent jump in constant currency sales, while sales revenue from continuing operations advanced 5 per cent to $US1.42 billion ($1.84bn).

The company pinned the improved showing on strength in the Pallets Europe, Middle East & Africa unit, although growth was kept in check by a modest showing from its US arm.

Brambles added the deferral of new business opportunities in the US pooled pallet business is likely to lead to stronger results in the second-half of the fiscal year.

“Our constant currency sales revenue growth from continuing operations for the first quarter is consistent with our guidance for FY17,” chief executive Tom Gorman said.

“Despite a somewhat subdued first-quarter performance in our pallets segment, we remain confident that phasing of net new business wins, particularly in North America, will drive stronger sales revenue growth in the second half of FY17.”

Brambles reaffirmed FY2017 guidance for constant currency sales revenue growth from continuing operations of 7 to 9 per cent and underlying profit growth of between 9 and 11 per cent to a range of $US1.055bn and $US1.075bn.