Half Year 2026 Brambles Ltd Earnings Call Transcript
Key Points
- Brambles Ltd (BMBLF) achieved a 2% sales revenue growth in the first half of FY26, driven by strong net new business growth.
- Underlying profit increased by 7%, supported by supply chain and overhead productivity improvements.
- The company declared an interim dividend of USD0.23 per share, up 21% from the previous period.
- Brambles Ltd (BMBLF) is on track with its USD400 million share buyback program, having purchased USD191 million worth of shares in the first half.
- The company made significant progress in its 2030 sustainability program, achieving a 5% reduction in Scope 1 and 2 emissions and retaining CDP's maximum A-List rating for climate change and forest.
- Consumer demand remained weak, particularly in the US and Europe, affecting pallet volumes with existing customers.
- Brambles Ltd (BMBLF) faced increased costs due to excess pallets in the US and inventory optimization in Australia.
- The company ended the period with approximately 4 million excess pallets in the US, which were not absorbed as quickly as anticipated.
- Higher damage rates in the US led to increased repair activity and storage costs.
- The company experienced a decline in like-for-like volumes in Australia due to reduced inventory levels by retailers and manufacturers.
Good morning, everyone, and thank you for joining our presentation of Brambles' first half results for the 2026 financial year. Today, I'll be sharing the highlights of the first half a detailed look at the operating environment as well as our progress against our strategic priorities. I'll then outline our revised outlook for FY26 before handing over to Joaquin to take you through the financials in more detail.
Let's start with our first half performance highlights. Our first half result reflects the resilience we've built into the business and our disciplined execution on factors we can control to drive efficiencies across our operations and improve the customer experience. We achieved sales revenue growth of 2%, with strong net new business growth offsetting consumer demand pressures on like-for-like volumes and pricing recovering cost to serve increases.
Underlying profit was up 7%, reflecting meaningful operating leverage driven by supply chain and overhead productivity improvements, together with
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