Brambles lifts dividend and launches buyback as profit jumps 15%

(Alliance News) - Brambles Ltd on Wednesday reported both profit and revenue growth for financial year 2025, prompting the company to boost shareholder returns through a new share buyback programme and an increased dividend.

The Sydney-based logistics support services company said attributable profit increased 15% to USD896.0 million in the year ended June 30 from USD779.9 million a year earlier. Diluted earnings per share grew 16% to 64.5 US cents from 55.8 cents.

Brambles shares were 11% higher at AUD25.69 in Sydney on Thursday afternoon.

Sales revenue from continuing operations rose 2.3% to USD6.67 billion from USD6.52 billion, while other income and revenue declined 8.5% to USD240.1 million from USD262.3 million.

Meanwhile, operating expenses edged up 0.3% to USD5.53 billion from USD5.52 billion.

Brambles lifted its final dividend by 9.6% to 20.83 cents per share from 19.0 cents, increasing the total dividend by 17% to 39.83 cents per share from 34.00 cents. Additionally, the company announced plans to launch a USD400 million share buyback programme during the current financial year, subject to market conditions and other factors.

Total equity rose 3.8% to USD3.35 billion from USD3.23 billion.

Chief Executive Officer Graham Chipchase said: "Our profit performance included material operating leverage, driven by structural reductions in capital intensity of our business combined with the growing benefits from supply chain and overhead productivity initiatives, particularly in the second half of the year.

"These savings not only offset additional costs linked to inventory optimisation undertaken by retailers and manufacturers in the prior year, but also enabled reinvestments in transformation initiatives that further enhanced the customer experience and our competitive advantage."

Looking ahead, Brambles expects to deliver constant currency sales growth between 3% and 5% during financial year 2026.

"Our outlook for FY26 reflects continued momentum, with revenue growth to include contributions from both price and volume. While the macroeconomic environment remains uncertain, we expect like-for-like volumes to be slightly down year-on-year, with volume growth to be driven by ongoing net new business wins in key markets," CEO Chipchase commented.

By Elijah Dale, Alliance News senior reporter Asia-Pacific

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