Brambles (BXB) H2 2024 earnings summary

Executive summary

• Achieved strong FY24 results with 7% sales revenue growth to US$6,545.4m, 17% underlying profit growth to US$1,262.2m, and significant free cash flow improvement, exceeding guidance.

• Transformation and digital initiatives enhanced customer experience, asset efficiency, and sustainability, supporting future value creation.

• Free cash flow before dividends increased by US$384.7m to US$883m, enabling new capital management initiatives.

• Announced capital management for FY25: increased dividend payout range and up to US$500 million share buyback.

• Leadership in sustainability reinforced, with significant progress toward FY25 ESG targets.

Financial highlights

• Underlying profit grew 17% year-over-year to US$1,262.2m; free cash flow before dividends reached US$883m.

• Group sales revenue rose 7%, driven by price realization and disciplined cost recovery; volumes flat due to inventory optimization.

• Total dividends increased 30% to 34.00 US cents per share (35% franked), with a 3% yield and 60% payout ratio.

• Pooling CapEx to sales ratio improved to 13%, down 10 points year-over-year, reflecting fewer pallet purchases and lumber deflation.

• Basic EPS up 17% to 56.1 US cents; effective tax rate rose to 30.5%.

Outlook and guidance

• FY25 guidance: sales revenue growth of 4%-6%, underlying profit growth of 8%-11%, and free cash flow before dividends of US$750m–US$850m.

• Dividend payout range increased to 50%-70% of earnings; up to US$500 million share buyback planned.

• ROCE expected to improve by about one percentage point in FY25.

• Guidance dependent on macroeconomic conditions, customer demand, lumber prices, supply chain efficiency, and FX rates.