Brambles Limited (ASX: BXB) is an industrial logistics company that provides end-to-end supply chain solutions to its customers. More specifically, Brambles provides pallets, containers and crates while utilising their share and reuse circular model to limit environmental burden and offer customers with a sustainable, safe and efficient means to transfer supplies.
Brambles’ most recent announcement was made today, updating investors of the company's first-quarter trading outcome. The announcement reports that Brambles has had sales revenue growth of 5% under a constant foreign currency exchange rate. With foreign exchange fluctuations accounting for 2% growth in sales revenue. A segment report was supplied in the announcement, highlighting a 7% sales revenue increase in the US and Latin America region due to the rollover benefits from contracts won the previous year. A 4% sales revenue increase in Europe, Middle East & Africa from new business wins in European pallets. A 2% sales revenue increase in Asia-Pacific despite a contract loss in Australia.
In this announcement, Brambles CEO Graham addressed the impacts from the new accounting standards for leases, macroeconomic uncertainties in major markets and the cost increases in US pallets. Although, Graham expects that their underlying profit to be in line or slightly above their reported sales revenue growth indicated by their strong sales performance in the American region, disciplined pricing, volume momentum and new European business growth.
As of 12:59 PM AEST 10/10/19, Brambles Limited had a share price of A$11.44; this represents a 6.69% decrease in share prices over the last six months. Although, since the beginning of the year, (YTD) the current share price represents a 10.32% increase. With their recent announcement of positive global revenue growth, Brambles will continue to be a trusted company by the world’s biggest brands.
This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)
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