Australia's Brambles falls sharply as quarterly volumes decline

Reuters04-23

By Adwitiya Srivastava

April 23 (Reuters) - Shares of Brambles fell on Tuesday in what could be their biggest drop in almost two years, after the Australian logistics firm said its third-quarter group volumes declined due to inventory optimisations across North America and Europe.

The stock declined as much as 6.75% to A$14.590, its lowest since Feb. 27, and was one of the top losers on the benchmark index , which was up about 0.5% as of 0054 GMT.

Sydney-based Brambles, which had estimated a positive second-half growth, said volumes slipped about 1% in the third quarter ended March.

The firm also flagged that net new business wins across operations and like-for-like volumes were flat.

Analysts at Citi said investors were largely expecting an upgrade in the wake of initiatives taken by Brambles to arrest rapidly falling sales.

"Our view is the lack of upgrade implies profit growth is slowing and with fiscal 2025/2026 cycling tough pricing competitions, growth could become tougher," Citi said in a note.

Separately, Brambles reiterated its FY24 sales revenue growth forecast between 6% and 8%, while saying it expected its full-year overall volumes to be flat compared with the previous year.

(Reporting by Adwitiya Srivastava in Bengaluru; Editing by Subhranshu Sahu)

((Adwitiya.Srivastava@thomsonreuters.com;))

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