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Brambles H1 profit triples to $US447m

Prashant Mehra  |  19 Feb 2018Text size  Decrease  Increase  |  
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SYDNEY - [AAP] Logistics firm Brambles (BXB) has posted a half-year profit of $US447.2 million ($A565.65 million), more than triple the result from a year ago when it had taken a huge impairment.

The profit also included a one-off benefit of $US130.1 million due to a reduction in deferred tax liability in the US following a decrease in the federal company tax rate there from 35 to 21 per cent.

Underlying profit for the six months to December 31 was up five per cent to $US493.7 million, while sales revenue rose five per cent to $US2.75 billion, driven by volume growth in North America, Europe and Latin America pallets and ongoing expansion in its IFCO RPC businesses.

Brambles operates in more than 50 countries primarily through the CHEP and IFCO brands.

Chief executive Graham Chipchase highlighted improved volume growth in North America and continued momentum in European operations, but warned on costs.

"I was pleased to see a strengthening of the top line in North America with volume growth returning to historic levels," he said.

"We, however, continue to face structural cost challenges partly due to changes in commercial arrangements which are increasing transport and handling costs."

The company is forecasting full-year sales revenue to grow in the mid-single digits, while underlying profit growth is likely to be in excess of sales revenue growth.

BRAMBLES' HALF-YEAR PROFIT SURGES:

* Net profit $US447.2m vs $US146.2m

* Revenue up 5.0pc to $US2.75bn

* Interim dividend flat at 14.5 Australian cents

 

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is a freelance journalist.

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© 2020 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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