The Brambles Limited (ASX:BXB) share price was trading 5% higher today following the release of its half-year financial report.
For context, the broader Australian share market or S&P/ASX 200 (ASX: XJO) was trading at 7,108, down 0.31%.
About Brambles Limited
Brambles is a pooling solutions company specialising in the provision of reusable pallets, crates, containers and associated logistics services through the CHEP and IFCO brands.
Brambles Limited’s financial report
In the Rask video above, Owen explains the difference between ‘underlying’ or ‘normalised’ results and ‘statutory’ results. Knowing the difference between these two numbers is essential to understanding a financial report. Take one of our free finance courses by clicking here.
Key Results
| This period | Last period | Change | |
| Revenue | 2397.6 | 2301.1 | 4.19% |
| Profit | 278 | 320 | 3.19% |
| Operating cash flow | 322 | 184 | 74% |
| Dividends (cents AUD) | 14.5 |
Source: Brambles Limited announcements; author calculations, USD millions.
As can be seen above, the company’s revenue came in at $2,397.6 million, up $96.5 million. Brambles Limited’s profit was $398 million, up $12.3 million.
In terms of cash flow, Brambles notched up $322 million of operating cash flow, up 70%. This helped the company declare an interim dividend of 9 US cents, or 14.5 Australian cents.
According to analysts surveyed by Bloomberg, analysts covering Brambles expected the company to report a profit of $US283 million and a dividend of 9 US cents per share. Therefore, it seems the profit result was slightly below expectations but the dividend was right on target.
“Despite a range of challenges, we delivered sales and earnings growth across all our segments and materially improved Group cash flow generation in the first half,” Brambles CEO Graham Chipchase said.
“Our operating environment in the first-half was characterised by increasing macroeconomic uncertainty and ongoing political instability, particularly evident in major European markets.”
“In this context, our first half sales performance reflects the resilient nature of our business as we continue to expand with new and existing customers despite price realisation to recover higher costs in most markets.”
Outlook
Looking ahead to the full year, Brambles expects to report mid-single-digit revenue and underlying profit growth (versus 2019).
What Happens Next?
Brambles Limited shares were last seen trading at $13.28, giving the company a market capitalisation more than $20 billion.
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