Brambles (ASX:BXB) Benefited from Growth in China and India
Brambles reported a 33 percent fall in net profit, but exceeding market expectations. The global logistics firm lost its CHEP wooden pallet pooling business contract with branches of PepsiCo this year, but snared new customers like Nestle, offsetting a slump in pallet use across North America and Europe.
Brambles Chief Executive Mike Ihlein said net new wins offsetting declines in organic volumes that reflected worsening global economic conditions in the last nine months of the financial year.
Its CHEP Asia Pacific sales revenue was US$323.4 million, up 3 per cent and achieved in spite of ongoing difficult conditions in the Australian automotive sector. Brambles said the result reflects the continued investment growth initiatives such as China and India.
The company said its initiatives to deal with the economic downturn, address customer requirements, improve cost structures and realise efficiencies will provide a solid foundation to drive future operating performance. It will continue its investment program for medium to long term growth in countries and regions such as China, India and Central and Eastern Europe.