Investors staged a gentle sell down in shares of global logistics company Brambles after it reported a 27% fall in first-half profit, but a one percent rise in the underlying result.
The top line profit (on a statutory basis) fell 27% to $US319.8 million ($A448.26 million) because of a $US103 million tax benefit from Trump’s tax cuts inflated the results a year ago.
Brambles said revenue from continuing operation rose 3.2% to $2.86 billion in the six months to December 31, while underlying profit was up 1% at $US504.4 million.
Operating expenses rose thanks to higher transport and fuel costs, with expenses coming in at a total $2.43 billion.
The shares eased 1.5% to $11.07.
The company also confirmed on Monday it expects to spin off its IFCO reusable plastic container business this year as previously announced last August.
The company said the process remains incomplete though Reuters had reported earlier buyout group Triton had trumped bids from EQT, Pamplona, PAI and Brookfield for the business that provides boxes used to transport fruit, vegetables, meat, and bread.
In a statement with the results yesterday Brambles CEO Graham Chipchase said the company had delivered a solid performance despite ongoing cost pressures and increasingly challenging macro-economic conditions across its major markets.
“Volume growth across the Group was strong at five percent and is a testament to the inherent benefits of our share and reuse business model across the entire supply chain,” he said.
“Notwithstanding strong rates of new customer conversions in most markets, we noted a moderation in like-for-like volume growth during the second quarter, particularly in Western and Southern Europe where economic conditions were most challenging during the period.”
The board has declared an interim dividend of 14.5 Australian cents a share, franked 65% against a 30% level a year ago – and it will return to 30% for the final and full year payouts, Brambles said yesterday.
