Despite grappling with currency market fluctuations, Sydney-based pallet maker and logistics heavyweight Brambles has posted a slight rise in profit for the 2014-15 Financial Year.
According to Brambles, underlying profit was up three per cent over the year at US$986 million (AU$1.36 billion) – slightly below forecasts, yet 10 per cent up at constant currency.
Operating profit was US$939 million (AU$1.29 billion), up one per cent, or eight per cent at constant currency.
Global sales revenue, meanwhile, grew one per cent to US$5,465 million (AU$7.56 billion) in the Financial Year ended on 30 June 2015.
At constant currency, sales revenue were up eight per cent – reflecting market-share expansion and some pricing and volume growth, amid continued muted underlying economic conditions. Acquisitions contributed two per cent sales revenue growth at constant currency.
“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,” commented Brambles CEO, Tom Gorman.
“Our consistent growth has come despite economic conditions that remain muted and uncertain, intensifying competitor activity and limited pricing opportunities.”
Gorman continued, “In addition, there was a solid contribution from the Ferguson Group business acquired in September 2014 despite the sharp downturn in operating conditions in its sector, oil and gas. We also benefited in the year from the delivery of direct cost efficiency programs, a disciplined approach to asset deployment, indirect cost reductions, and our ongoing investment in improved control and recovery of our equipment.
“This enabled us to deliver a higher Group operating margin despite cost pressures in the North American pallets business resulting from high equipment repair and transportation costs.”
