Brambles HY Profit From Cont. Opns Increases; Lifts FY Outlook

Brambles Ltd. (BXB.AX,BMBLF.PK), a pooling solutions company, reported that its profit after tax from continuing operations for the half-year ended 31 December 2021 was US$304.8 million, an increase of 3% or 4% at constant currency basis compared to the prior year.

Underlying profit and operating profit of US$481.2 million increased 4% at constant currency and included US$24.4 million of short-term transformation costs. Excluding these short-term transformation costs, underlying profit increased 9% at constant currency.

Sales revenue from continuing operations of US$2.77 billion increased 8% at constant currency. It was driven by price growth from contractual price increases (including indexation) and other pricing initiatives to recover record levels of input-cost inflation and other cost-to-serve increases in all regions.

The board has declared an interim dividend of 10.75 US cents per share. The interim dividend is payable on 14 April 2022 to shareholders on Brambles’ register on 10 March 2022.

For the full-year ending 30 June 2022, Brambles now expects underlying profit growth 3%-5% at constant currency including about US$50 million of short-term transformation costs compared to the prior outlook of of 1%-2% growth.

Excluding short-term transformation costs, annual underlying profit growth is expected to be between 8%-10% compared to the previous guidance of 6%-7%.

The company projects annual sales revenue growth of 6%-8% at constant currency compared to the previous guidance of 5%-7%.

Brambles expects fiscal year 2022 dividends to be in line with its policy to pay out between 45-60% of underlying profit after finance costs and tax in US dollar terms.

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