Blue-chip global pallet pooling and logistics company Brambles Limited (ASX: BXB) has once again reported an impressive set of results.
Here are the key figures on a constant foreign exchange basis:
- Sales revenue increased 8% to US$5.5 billion
- Underlying profit gained 10% to US$985.5 million
- Basic earnings per share climbed 7% to US37.4 cents
- Final partially franked dividend of 14 cents (in Australian dollars) payable on October 8
- Adjusted return on capital invested added 0.3% to 16.6%
Commenting on the result, CEO Tom Gorman stated that:
"The sales and profit growth we delivered in FY15 reflect the continued ability of our people and operations to keep delivering growth over and above the rate of growth in the industries we serve. Our consistent growth has come despite economic conditions that remain muted and uncertain, intensifying competitor activity and limited pricing opportunities."
Outlook
Brambles today provided guidance for the 2016 financial year of:
"Constant currency sales revenue and Underlying Profit growth in the range of 6% to 8%. The guidance range for Underlying Profit is between US$1,000 million and US$1,020 million (at 30 June 2015 foreign exchange rates)."
In the context of subdued global growth and the sheer size of Brambles' operations this forecast reinforces the blue-chip nature of the company. Having said that, even blue-chip stocks have their value and today's sell-off in Brambles' shares suggests investors may be re-basing their valuation on the stock to account for single-digit growth rates.
