Brambles Limited reported a 5% rise in sales revenue and a 7% increase in underlying profit for the half-year ended December 2025, alongside a raised interim dividend. The company navigated volume declines with price realisation and productivity gains, while advancing sustainability goals.
- 5% increase in sales revenue to US$3.53 billion
- 7% growth in underlying profit to US$792 million
- Interim dividend raised to 23.0 US cents per share
- 2% net new business growth offsets 2% volume decline
- Scope 1 and 2 greenhouse gas emissions down 5%
Solid Revenue and Profit Growth Despite Volume Pressures
Brambles Limited has delivered a robust first half for the 2026 financial year, with sales revenue climbing 5% to US$3.53 billion and underlying profit rising 7% to US$792 million. This performance reflects a strategic balance between modest price increases and operational efficiencies that have helped offset a 2% decline in like-for-like volumes.
The company’s pricing strategy realised a 2% uplift, aimed at recovering increased cost-to-serve expenses amid inflationary pressures. Meanwhile, net new business growth of 2%; driven primarily by the Americas and European pallet businesses; helped counteract the volume softness caused by weak consumer demand in key markets such as the US, Latin America, and Europe.
Segment Performance and Operational Efficiencies
Segment analysis reveals that CHEP Americas led growth with a 3% increase in sales revenue and a 14% jump in underlying profit, supported by strong new business wins and supply chain optimisations. CHEP EMEA saw an 8% revenue increase but a slight 4% decline in underlying profit, impacted by higher asset loss rates and inflationary costs, though management expects profit growth in the full year. CHEP Asia-Pacific recorded a 3% revenue rise and a 5% profit increase, benefiting from price realisation and productivity gains despite inventory optimisation pressures in Australia.
Across the group, productivity initiatives contributed significantly to margin expansion, with supply chain and overhead cost savings more than offsetting inflation and increased damage rates. The company’s asset efficiency metric remained stable, with ongoing improvements in asset control particularly in the Americas.
Financial Position and Dividend Policy
Brambles’ net debt increased slightly to US$2.71 billion but remains well within the company’s target leverage range, supported by strong free cash flow generation. The interim dividend was raised to 23.0 US cents per share, representing a payout ratio of 60.5%, up from 58% in the prior year. This reflects confidence in the company’s cash flow and earnings stability despite ongoing market uncertainties.
Sustainability and Safety Progress
On the environmental front, Brambles reported a 5% reduction in Scope 1 and 2 greenhouse gas emissions, driven by lower fleet fuel consumption and electrification efforts. Scope 3 emissions also declined by 1%, reflecting supplier initiatives to adopt renewable energy and electric equipment. The company’s Lost Time Injury Frequency Rate improved by 38%, underscoring progress in workplace safety under its Safety First strategy. Additionally, Brambles introduced the Employee Experience Index to measure diversity, equity, and inclusion, scoring 89 out of 100 in its first reporting period.
Brambles remains committed to its 2030 sustainability targets, including sourcing 100% sustainably certified timber and advancing net-positive waste solutions, positioning the company as a responsible leader in supply chain logistics.
Outlook and Market Conditions
Looking ahead, Brambles anticipates a moderation in the rate of volume declines as weaker comparative periods cycle through and some improvement in consumer demand materialises, particularly in the US. The company expects continued profit growth and margin expansion in its EMEA segment, subject to prevailing market conditions. Investments in digital transformation and supply chain initiatives are set to continue, supporting long-term operational resilience.
Bottom Line?
Brambles’ solid half-year results and raised dividend underscore resilience amid market headwinds, but volume softness and legal contingencies warrant close watch.
Questions in the middle?
- How will Brambles manage ongoing volume declines amid uncertain consumer demand?
- What impact will the pending class action litigation have on future financials?
- Can the company sustain margin improvements while investing in digital and sustainability initiatives?