Brambles releases Q1 FY25 trading update

Brambles (ASX:BXB) has announced its first-quarter trading update for the fiscal year ending June 30, 2025. The company reported a 3% growth in sales revenue at both actual and constant foreign exchange rates, totaling US$1,679.9 million. This growth was primarily driven by price realization, with new business growth balancing out flat group volumes. Brambles has reaffirmed its FY25 guidance, projecting sales revenue growth of 4-6% and underlying profit growth of 8-11%.

Brambles' strategic outlook for FY25

Brambles has released its first-quarter FY25 trading update, reporting a 3% growth in sales revenue to US$1,679.9 million, driven by prior year pricing actions and cost adjustments. While group volumes remained flat, new business growth offset declines in like-for-like volumes. The company's segment performance varied, with CHEP Americas seeing a 5% increase in sales revenue, while CHEP EMEA and CHEP Asia-Pacific experienced more modest changes. Looking ahead, Brambles expects to maintain its guidance for FY25, focusing on price realization, volume growth, and asset efficiency improvements. The company anticipates strong free cash flow generation, projecting US$750-850 million before dividends. Brambles remains cautious about forward-looking statements, acknowledging potential risks and uncertainties.

CEO commentary on Brambles' performance

The alignment of price growth with cost-to-serve and improvements in asset efficiency have been key. Macroeconomic factors and seasonal patterns contributed to flat volume growth, but we see positive momentum with new business wins, particularly in North America. Our pooling solutions continue to offer significant benefits to customers.