Brambles a beat
Stock
Brambles (ASX:BXB) $10.59 as at 24/08/2018Event
The global logistics company posted a bumper FY18 result pre-market today which has seen the stock trade up strongly through the morning. The result was 2.5% beat at the profit line on the back of a decent top line (revenue) number. BXB has had a volatile 12 months however the trends in the business now look reasonable with price increases in the CHEP America’s operation helping the cause. Today they outlined their intention to spin out Ifco, which is a fresh food logistics business that does about $1.1bn in revenue and accounts for roughly 14% of the companies EBIT.
ASX:BXB guided to mid-single digit top line growth in the business from the continued operations and that was inline with current market expectations which had 5.3% revenue growth in constant currency terms penciled in. The main variable for BXB stems from rising cost pressures which is becoming a common theme during this reporting season.
Brambles (BXB) Chart
