The Bramble Industries share price surged to its highest ever level after the global supply chain logistics company reported a strong increase in profit for the 2025 financial year (FY25).
The shares were trading A$2.05 higher (up 8.82%) at $25.28 at the time of writing, capitalising the company at $34.41 billion, after ranging between $23.65 and $25.46, a record high.
The company, best known for its CHEP pallets, earlier announced that underlying profit and operating profit increased 9% to US$1.372 billion (A$2.11 billion) on sales revenue, which grew 2% to $6.669 billion in the 12 months to 30 June 2025.
Directors declared a 30% franked final dividend of 20.83 U.S. cents per share to be paid on 8 October 2025 to shareholders registered on 11 September, compared with 19 cents a year earlier, bringing the total payment for 39.83 U.S. cents per share (34 cents).
Brambles also forecast revenue growth of 3-5%, underlying profit growth of 8-11% and free cash flow before dividends of between US$850-950 million in FY26.
The company plans an on-market share buy-back of up to US$400 million (subject to market conditions) in FY26, following the completion of US$403 million of share buy-backs in FY25.
Brambles attributed the FY25 profit improvement to margin expansion driven by asset efficiency and supply chain and overhead productivity improvements, which more than offset supply chain inefficiencies linked to higher pallet returns in FY24.
The increase in revenue was due to price realisation, which recovered the cost-to-serve, and improved net new business momentum, which more than offset lower volumes, amid second half headwinds.
“Our FY25 performance delivered another year of successful financial, operational and sustainability outcomes at the same time as strengthening our customer value proposition,” CEO Graham Chipchase said in an ASX announcement.
The profit performance included “material operating leverage” driven by reductions in capital intensity and the benefits of supply chain and overhead productivity initiatives, particularly in the second half of the year.
