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Highlights:
Brambles narrowed its full-year sales growth range citing tariff and geopolitical pressures.
Sales revenue rose during the first nine months, supported by price increases despite lower volumes.
Consumer demand is forecast to remain muted due to macroeconomic headwinds.
Brambles (ASX:BXB), a major player in the logistics sector specialising in pallets and containers, reported a revision to its full-year sales growth expectations. The adjustment comes as the company navigates a volatile tariff environment and broader geopolitical uncertainty, both of which are influencing global consumer sentiment.
Sales Revenue Boosted by Price Increases Despite Volume Decline
For the nine-month period ending in March, Brambles recorded a rise in sales revenue at constant currency rates. This growth was largely driven by ongoing price realisation initiatives, which helped offset a decline in like-for-like volumes. The overall sales revenue increase reflected the company's ability to manage pricing strategies effectively despite headwinds in global markets.
The revised sales growth guidance now anticipates a narrower range compared to earlier expectations. Brambles indicated that while underlying profit is still forecast to rise within a previously stated range, the tightening of sales growth projections reflects the pressures emerging from an evolving tariff situation and softer economic conditions across key regions.
Macroeconomic Uncertainty Weighs on Consumer Demand
Brambles noted that consumer demand is expected to remain subdued into the final quarter of the fiscal year. Ongoing macroeconomic uncertainty, combined with the impact of adverse weather events in regions such as the United States, has affected like-for-like volumes. The company’s third-quarter performance showed continued price realisation and net new business gains, although underlying volume trends remained challenged.
The geopolitical landscape, particularly around tariffs, continues to evolve rapidly. This environment is contributing to softer consumer sentiment globally, which is influencing Brambles’ outlook for the remainder of the fiscal period.
Outlook Focused on Price Management and New Business Momentum
Despite external pressures, Brambles highlighted that ongoing price realisation and momentum from net new business are expected to support performance through the balance of the year. However, the company acknowledged that like-for-like volumes would remain under pressure, influenced by the weakness seen in the third quarter and the anticipated continuation of macroeconomic challenges.
The pallets and containers provider remains focused on managing its commercial strategies effectively in response to shifting market dynamics. Its approach centres on maintaining pricing strength while navigating the uncertainties presented by external economic factors.
