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Brambles Ltd Up Over 5% On The Back Of Strong Financial Results

Tumul Sinha

Tumul is an experienced Equity Analyst with ASR Wealth Advisers. She holds a Master’s Degree in Finance from the University of Sydney. Her key industry verticals include Real Estate, Health Care and Technology.

Australian supply chain logistics company Brambles Limited (ASX: BXB) has rallied over 5.5 per cent at market open today, trading as high as $13.36 per share. Brambles specialises in the pooling of unit-loading equipment, specifically pallets, crates and containers and operates globally through the CHEP and IFCO brands.

 

BRAMBLES LTD

Australian supply chain logistics company Brambles Limited (ASX: BXB) has rallied over 5.5% this morning, trading as high as $13.36 per share, on the back of strong 1H20 financial results. (Credit: Financial Times).

 

Brambles released its 1H20 result for the half year ending 31 December 2019. BXB produced sales revenue of US$2,397.6m representing nearly a 38% increase from 2H19 and a 0.4% per cent beat on consensus expectations, which was expecting an already huge 37.4%. This translated to net profit after tax of US$278.9m, or earnings per share of $0.18, in line with consensus expectations and representing growth of over 50%.

The company announced it will pay an interim dividend of 9 US cents, keeping the payout ratio at 50%, in line with the prior year and consistent with the company’s dividend policy to payout between 45 and 60 per cent of underlying profit after finance costs and tax. The dividend will be franked at 30%. Consensus expected DPS to equal 11 US cents.

BXB reported return on capital invested of 18.2%, a decrease of 2.7% on constant currency. However, Brambles attributes the majority of this to AASB 16, stating that it would’ve only been a decrease of 0.9% otherwise. Brambles claim this is largely due to capital expenditure to support volume growth in US supply chain programmes.


 

Disclaimer:

This article has been prepared by the Australian Stock Report Pty Ltd (AFSL: 301 682. ABN: 94 106 863 978)

(“ASR”). ASR is part of Amalgamated Australian Investment Group Limited (AAIG) (ABN: 81 140 208 288 Level 13, 130 Pitt Street, Sydney NSW 2000).

This article is provided for informational purpose only and does not purport to contain all matters relevant to any particular investment or financial instrument. Any market commentary in this communication is not intended to constitute “research” as defined by applicable regulations. Whilst information published on or accessed via this website is believed to be reliable, as far as permitted by law, we make no representations as to its ongoing availability, accuracy or completeness. Any quotes or prices used herein are current at the time of preparation. This document and its contents are proprietary information and products of our firm and may not be reproduced or otherwise disseminated in whole or in part without our written consent unless required to by judicial or administrative proceeding. The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor in relation to any information contained herein. Any projections are estimates only and may not be realised in the future.

ASR has no position in any of the stocks mentioned.

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