Brambles profit plunges 44% in 1H FY17

Company News

by David Chau

Brambles Ltd (ASX:BXB) has released its 1H FY17 results, and they are not as strong as its results from the prior corresponding period

During this period, the logistics company’s sales revenue rose 4% to US$2.7 billion in actual-currency terms. However, its statutory NPAT fell 44% to US$162.3 million – compared with its result in 1H FY16.

The sharp fall in profit was due to significant items on the balance sheet totalling US$138.5 million. Most of this write-down (around US$120 million) was from a non-cash impairment of the Group’s investments in the Hoover Ferguson Group joint venture.

The company declared an interim dividend of 14.5 cents per share for 1H FY17 – unchanged from its previous interim dividend.

Brambles’ Northern American pallets operations also faced lower sales revenue growth. This prompted the company to permanently scrap its 2019 fiscal year targets and it will not provide medium-term targets going forward.

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