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Highlights
- Brambles (BXB) share price has surged over 20% in 2025.
- Strong growth in profit and solid return on equity.
- Strategic role in global supply chains via CHEP pallets network.
The share price of Brambles (ASX:BXB) has risen 20.60% since January 2025, capturing the interest of market watchers keen on businesses integral to global supply networks. As part of the ASX300 index, Brambles plays a vital role in enabling supply chains to function efficiently across continents.
Brambles and Its Global Reach
Brambles is renowned for operating the largest pool of reusable pallets, crates, and containers worldwide. These assets flow primarily under the CHEP brand, a name with a strong presence across the Asia-Pacific, Americas, and EMEA regions.
Brambles runs a rental-based business model. Manufacturers transport goods on CHEP pallets to retailers, and after delivery, the pallets return to Brambles or move along to the next node in the supply chain. At each transition, Brambles earns recurring rental income, creating a stable revenue stream supported by its essential position in global logistics.
Financial Snapshot: Solid Performance Across the Board
Brambles has posted commendable financial performance over recent years. The company’s revenue reached $6,744 million in the latest full year, with a compound annual growth rate (CAGR) of 7.6% over the past three years. This steady top-line growth reflects the continued demand for supply chain resilience and automation.
Its gross margin sits at 34.5%, indicating strong profitability from core services even before accounting for operational expenses. This figure points to a healthy pricing strategy and effective cost control measures.
Most notably, Brambles reported a net profit of $780 million, marking a significant rise from $523 million three years ago — a CAGR of 14.3%, showcasing effective growth execution and improved operational efficiency.
Capital Structure and Return Metrics
Brambles has a net debt of $2,528 million, a number worth monitoring in the current interest rate environment. However, with a debt-to-equity ratio of 81.8%, the company maintains a reasonable capital structure, balancing debt usage with shareholder equity.
What truly stands out is the company’s return on equity (ROE) of 25.6% for FY24. This metric highlights Brambles’ ability to effectively generate profits from shareholder capital, a positive signal for capital efficiency.
With upward-trending profits, solid ROE, and a resilient revenue base tied to its essential supply chain services, Brambles (BXB) presents itself as a noteworthy ASX300 stock for those tracking companies with global operational importance and consistent financial delivery.
