Brambles generates value through a virtuous circle that leverages its scale, density and expertise to achieve superior operational efficiencies.
These efficiencies in turn generate cash flow that can either be returned to shareholders or reinvested in the business to fund growth, innovation and development of its people.
Long-Term Value Creation and Superior Shareholder Returns
Brambles shares the efficiencies generated by its scale, density and expertise with its customers, providing a compelling value proposition compared to alternatives. By providing customers with supply chain solutions in over 60 countries, Brambles offers shareholders exposure to geographically diversified earning streams, primarily from the global consumer staples sector.
The supply chains served by Brambles also provide a broad range of growth opportunities including: increasing penetration of core equipment-pooling products and services in existing markets; diversifying the range of products and services; entering new and adjacent parts of existing supply chains; and exploring the digitisation of supply chains.
Within this context, Brambles is committed to striking the right balance between growing its business and delivering superior shareholder returns over the long term. By focusing on its core drivers of value, Brambles expects to deliver:
Sustainable growth and returns well in excess of the cost of capital
- Sales revenue growth3 in the mid-single digits;
- Underlying Profit growth3 in excess of sales revenue growth through the cycle; and
- Strong Return on Capital Invested.
Cash generation to fund growth, innovation and shareholder returns
- Free Cash Flow sufficient to fully fund capital expenditure and dividends.
Dividend Policy and Payment
By providing customers with supply chain solutions in over 60 countries, Brambles offers shareholders exposure to geographically diversified earning streams, primarily from the global consumer staples sector.
The Board has declared a final dividend for 2018 of 14.5 Australian cents per share, in line with the previous interim and final dividend. The 2018 final dividend will be 30% franked and is payable on 11 October 2018 to shareholders on the Brambles register at 5.00pm on 12 September 2018. The ex‑dividend date is 11 September 2018.
Total dividends for the Year were 29.0 Australian cents per share, in line with the prior year. Brambles paid the 2018 interim dividend of 14.5 Australian cents per share on 12 April 2018.
Dividend Reinvestment Plan
Brambles’ Board maintained the Dividend Reinvestment Plan (DRP) for the 2018 financial year. Shares issued under the DRP do not attract a discount. Any dilutive impact on earnings per share of DRP-issued shares will be neutralised through the transfer of existing shares to participating shareholders via on-market purchases rather than issuing new shares to them.
ESG Recognition
Third-party Environmental, Social and Governance (ESG) investor research consistently recognises Brambles’ strong governance processes and the long-term sustainability of its business model and strategies. In 2018, Brambles continues to be placed amongst the leading companies in the global industrial services sector by the following ESG research firms: