The following is a summary of the Brambles Limited (BMBLF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Brambles reported a 10% growth in sales revenue, largely credited to improved commercial terms that align with their cost-to-serve.
Underlying profit grew by 19% following operating leverage despite increased plant and transport costs.
Free cash flow before dividends increased by $303 million due to stronger earnings, lower capital expenditure, and increased compensation for lost assets.
Return on capital invested increased by 2 percentage points to 21.8%.
An interim dividend of $0.15 per share was declared, representing a 22% increase from the prior year.
Group sales revenue saw growth across all regions leading to a 10% increase.
North American surcharge income fell by $29 million while an effective tax rate of 30.5% remained constant.
The company anticipates sales revenue will grow by 6% to 8% at constant currency in FY '24, however, volumes are expected to remain consistent with the results of FY '23.
Business Progress:
Improved pallet availability, customer service levels and asset efficiency were observed as output from the company's Shaping Our Future transformation programme.
Stable market share was maintained despite increased competition.
Future focus includes an increase in new business wins in the U.S. and Europe, pallet repair, handling, transport costs and Shaping Our Future costs expected to be around $130 million.
Success in asset productivity initiatives and operational efficiency led to improved returns in the second half.
Digital transformations enhanced customer experience, asset productivity and optimized commercial terms.
Significant investments in network improvements, automation and data analytics capabilities have been made.
The company also made progress on its commitment to sustainability targets, realizing a 2 point improvement in women's representation in management positions and reducing the injury frequency rate to 3.6.
More details: BRAMBLES LTD IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.