Pallets and containers supplier Brambles says it has entered the 2012/13 financial year in good shape despite uncertain economic conditions.
“Brambles has entered the 2013 financial year in robust and resilient shape, despite the ongoing challenges created by the uncertain and volatile economic conditions in many of our major markets,” Brambles chairman Graham Kraehe and chief executive Tom Gorman said in the company’s annual report, which was released on Wednesday.
Brambles repeated its guidance for the 2013 financial year, saying it expected an underlying group profit of between $US1.01 billion and $US1.07 billion ($A991.80 to $A1.05 billion) at June 30 foreign exchange rates.
“This profit guidance represents year-on-year growth of four per cent to 10 per cent at those exchange rates,” Brambles said.
Brambles said its reusable plastic crates (RPC) business was on track to deliver 15 per cent constant-currency sales revenue growth in fiscal 2013 financial year.
Brambles said its acquisition in March 2011 of the world’s largest RPC pooling business, IFCO Systems, had given it a significant boost in this area.
“Today, our RPC’s segment is growing strongly as retailers continue to drive their suppliers of fresh produce to adopt reusable pooled solutions, which are more sustainable and efficient than disposable alternatives,” Brambles said.
“We are expanding strongly by penetrating further into new regions, in particular in the US.”
Brambles said it was progressing its growth strategy in its containers business, which services the automotive, manufacturing, chemicals and aerospace sectors.
The company was also making progress with its strategy of expanding its automotive and intermediate bulk container operations in the US.
The annual report showed that Brambles chief executive Tom Gorman received a total remuneration of $US4.45 million ($A4.37 million) in fiscal 2012, compared to $US3.25 million ($A3.19 million) in fiscal 2011.
Brambles said Mr Gorman had received a significant one-off increase to his base salary, following the board’s assessment of his performance and contribution during his first year as chief executive, and following external benchmarks.
The company in August reported a 21 per cent lift in net profit to $US576.3 million ($A565.92 million) for the 2011/12 financial year.
Shares in Brambles were 4.5 cents lower at $6.795 at 1348 AEST on Wednesday.
