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

Tim Montague-Jones

Tim Montague-Jones has over 20 year investment management experience working in the financial markets. Previous experience includes a ten year stint at Morningstar as a Senior Equity Analyst/Portfolio Manager, founding the Morningstar Growth Portfolio and a founding member of their Investment Committee. Tim was also a Senior Equity Analyst for Macquarie Group and a member of the winning team to obtain the 2016 LONSEC Fund Manager of the Year award.

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.



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.



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).

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