Ahead of next Monday’s AGM in Sydney, Brambles (BXB) told the market yesterday that sales revenue from its pallet pooling-solutions operations rose 7% to $US1.312 billion in the first quarter due in part to its acquisition of container company Pallecon late last year.
The Sydney-based Brambles said the increase in revenue reflected new business and the contribution of Pallecon, which cost $170 million to purchase last December.
In the first quarter trading update, CEO Tom Gorman said:
"Our trading performance in Pooling Solutions during the first quarter of FY14 was broadly consistent with our expectations. Despite continued muted levels of underlying sales growth in the consumer staples sector, we are benefiting from the execution of our growth strategy.
"Our sales growth in the quarter primarily reflected the rollover benefit of prior-year business wins in the Americas region of our Pallets business, continued growth in our global RPCs business from expansion with key retail partners, and growth in the Containers operations, including the contribution from Pallecon.
"We remain on track to deliver our guidance, excluding Recall, for the 2014 financial year. We expect constant- currency sales revenue growth from all three Pooling Solutions segments and Underlying Profit, at 30 June 2013 foreign exchange rates, of between US$930 million and US$965 million," Mr Gorman said in yesterday’s statement.
Brambles’ pooling solutions does not include its Recall information management business, which is due to be spun off into a separately listed company by the end of this year.
A separate trading update for Recall will be included in the documentation for the spin off which is due to be made public at the end of this month.
Brambles shares rose 9c to $9.38.
BXB YTD – Pallecon delivers for Brambles
