As a pioneer of the sharing and circular economy, Brambles is one of the world’s most sustainable logistics businesses.
The world’s largest brands trust Brambles to help them transport the goods that matter more efficiently, safely and sustainably.
Brambles’ platforms form the invisible backbone of global supply chains. Through its CHEP brand, Brambles primarily serves the fast-moving consumer goods, fresh produce, beverage, retail and general manufacturing industries.
Its circular business model facilitates the ‘share and reuse’ of the world’s largest pool of reusable pallets, crates and containers.
This enables Brambles to serve its customers while minimising impacts on the environment and improving the efficiency and safety of supply chains around the world.
Operations in
countries
pallets, crates
and containers
Employed
people
A network of
service centres
Sales Revenue (US$)
+7% at constant currency1
Underlying Profit (US$)
+17% at constant currency1
Return on
Capital Invested
+2.0 percentage points at constant currency1
Cash Flow from
Operations (US$)
+US$529.3M
Total Dividends
(US¢/share)
Final dividend of
19.00 US cents per share
Brambles Injury
Frequency Rate (BIFR)
Down from 3.8 in FY23
1st in industry category
Maximum AAA rating
Top 10% of companies
assessed in our
industry category
2nd most sustainable
company of ~6,700
analysed
Score of A- for
both Climate Change
and Forests
#4 ranking in
the world’s most
sustainable companies
in 2024
Top Employer
in 26 countries,
four regions and
Global Top Employer
In FY24, we enhanced our customer experience in all regions, strengthened our leadership position in sustainability and delivered on our investor value proposition. We also continued to invest in our transformation which is improving the fundamentals of our business and positions us to make the world’s supply network more resilient and regenerative while unlocking new sources of value for all stakeholders.
Read the letter
Brambles’ ambition is to pioneer regenerative supply networks with reuse, resilience and regeneration at its core. This ambition underpins Brambles’ social licence to operate. By leveraging the inherent advantages of its circular business model, network scale and pooling expertise, Brambles is able to convert key inputs as outlined by the Integrated Reporting <IR> Framework into significant value and outcomes for its stakeholders.
Read moreBrambles manages the world’s largest pool of reusable pallets, crates and containers. Through its inherently sustainable operating model, superior network advantage and industry expertise, Brambles leads the market in more efficient and sustainable supply chains.
View the Group’s Sustainability StrategyBrambles’ operating model follows the principles of the circular economy. By promoting the ‘share and reuse’ of assets among multiple parties in the supply chain, Brambles offers customers a more efficient, cost-effective and sustainable alternative to disposable single-use products or their own proprietary platforms. This inherently sustainable business model reduces demand for natural resources and ensures sustainable lumber procurement through Brambles’ sourcing strategy, thereby underpinning its position as a global leader in sustainability. This has consistently been recognised by ESG research and ratings providers around the world, as outlined in the FY24 highlights.
Brambles’ sustainable operating model is underpinned by its:
This means Brambles can be faster and more responsive to its customers’ needs and, in times of uncertainty and increased volatility, more resilient and more reliable than alternatives.
Brambles provides standardised pallets, crates and containers to customers from its service centres as and when the customer requires.
Customers use this equipment and Brambles’ support services to transport goods through the supply chain.
Customers either arrange for the equipment’s return to Brambles or transfer it to another participant for reuse.
Building from strong foundations, Brambles is transforming its business through its Shaping Our Future transformation programme to meet its strategic ambition of reinventing pooling solutions for the supply networks of tomorrow and further strengthen its value proposition with stakeholders.
The Shaping Our Future transformation programme is making Brambles better for its customers, its employees, its shareholders and the societies in which it operates. Shaping Our Future encompasses every aspect of Brambles’ business and seeks to drive a step change in value creation of the current business model while investing to create the Brambles that will continue to be an industry leader for many years to come.
Brambles is taking a twin-track approach to transformation to unlock value for customers and shareholders: optimising the existing business as well as building the ‘Brambles of the Future’. Progress of the specific Shaping Our Future programme initiatives and measures of success can be found here.
The goal for optimising the existing business is to improve the customer experience, deliver increased returns and fund investment in innovation through higher productivity, better ways of working and improved capabilities. The performance to date highlights the success of these ongoing initiatives. Concurrently, the transformation programme is focused on building the ‘Brambles of the Future’. This aims to create new business capabilities and identify new sources of growth to increase the resilience of Brambles’ business and the value it brings to fast‑moving supply networks around the world.
Strengthening global leadership in sustainability
The ambition of our transformation programme will set new benchmarks for circular business models by preserving and enhancing our sources of value while creating new value.
A world leader in sustainability, Brambles is uniquely positioned to lead the transition to regenerative supply networks. Its circular business model with reuse, resilience and regeneration at its core aligns financial, social and environmental value to the aspirations of Brambles’ stakeholders. Brambles has a vision to pioneer a global regenerative supply network, which is supported by its ambitious sustainability targets for 2025 and a net-zero target by 2040. Further details on the sustainability initiatives can be found here.
Maintaining circular assets
Enhancing propietary knowledge
Conserving natural resources
Enhancing customer relationships
Elements of Brambles’ Shaping Our Future positively contribute to the above ‘capitals’ as outlined in the Integrated Reporting <IR> Framework
Harness the power of data and digital insights to unlock new sources of value for Brambles and its customers
Make Brambles the natural partner of choice for supply networks, for today and tomorrow
Reinvent the organisation, technology and processes to be simpler, more effective and efficient
Deploy new technologies and ways of working to increase productivity and sustainability
Brambles’ pallets and containers form the invisible backbone of the global supply network. This gives Brambles key insights that help customers meet evolving consumer demands while minimising their environmental impact, and improving the safety and efficiency of their supply chains.
With a comprehensive suite of supply chain solutions, increasingly enabled by digital capabilities, Brambles provides its customers with operational, financial and environmental efficiencies not otherwise available through the use of single-use disposable alternatives and proprietary models.
Brambles is integral to its customers’ supply chains, working closely with all participants including manufacturers, producers, growers and retailers. With end-to-end involvement, Brambles has clear insights into what impacts the safe, efficient, reliable and sustainable operation of global supply networks. By leveraging these insights and its unmatched expertise, Brambles offers customers comprehensive solutions that improve the performance of the supply network. This helps address the challenges associated with the increasing complexity, rapid evolution and, at times, uncertainty of modern supply networks.
Brambles is integral to its customers’ supply chains, working closely with all participants including manufacturers, producers, growers and retailers. With end-to-end involvement, Brambles has clear insights into what impacts the safe, efficient, reliable and sustainable operation of global supply networks. By leveraging these insights and its unmatched expertise, Brambles offers customers comprehensive solutions that improve the performance of the supply network. This helps address the challenges associated with the increasing complexity, rapid evolution and, at times, uncertainty of modern supply networks.
Brambles is integral to its customers’ supply chains, working closely with all participants including manufacturers, producers, growers and retailers. With end-to-end involvement, Brambles has clear insights into what impacts the safe, efficient, reliable and sustainable operation of global supply networks. By leveraging these insights and its unmatched expertise, Brambles offers customers comprehensive solutions that improve the performance of the supply network. This helps address the challenges associated with the increasing complexity, rapid evolution and, at times, uncertainty of modern supply networks.
Brambles is integral to its customers’ supply chains, working closely with all participants including manufacturers, producers, growers and retailers. With end-to-end involvement, Brambles has clear insights into what impacts the safe, efficient, reliable and sustainable operation of global supply networks. By leveraging these insights and its unmatched expertise, Brambles offers customers comprehensive solutions that improve the performance of the supply network. This helps address the challenges associated with the increasing complexity, rapid evolution and, at times, uncertainty of modern supply networks.
Brambles is integral to its customers’ supply chains, working closely with all participants including manufacturers, producers, growers and retailers. With end-to-end involvement, Brambles has clear insights into what impacts the safe, efficient, reliable and sustainable operation of global supply networks. By leveraging these insights and its unmatched expertise, Brambles offers customers comprehensive solutions that improve the performance of the supply network. This helps address the challenges associated with the increasing complexity, rapid evolution and, at times, uncertainty of modern supply networks.
Brambles is integral to its customers’ supply chains, working closely with all participants including manufacturers, producers, growers and retailers. With end-to-end involvement, Brambles has clear insights into what impacts the safe, efficient, reliable and sustainable operation of global supply networks. By leveraging these insights and its unmatched expertise, Brambles offers customers comprehensive solutions that improve the performance of the supply network. This helps address the challenges associated with the increasing complexity, rapid evolution and, at times, uncertainty of modern supply networks.
Brambles is integral to its customers’ supply chains, working closely with all participants including manufacturers, producers, growers and retailers. With end-to-end involvement, Brambles has clear insights into what impacts the safe, efficient, reliable and sustainable operation of global supply networks. By leveraging these insights and its unmatched expertise, Brambles offers customers comprehensive solutions that improve the performance of the supply network. This helps address the challenges associated with the increasing complexity, rapid evolution and, at times, uncertainty of modern supply networks.
Brambles is integral to its customers’ supply chains, working closely with all participants including manufacturers, producers, growers and retailers. With end-to-end involvement, Brambles has clear insights into what impacts the safe, efficient, reliable and sustainable operation of global supply networks. By leveraging these insights and its unmatched expertise, Brambles offers customers comprehensive solutions that improve the performance of the supply network. This helps address the challenges associated with the increasing complexity, rapid evolution and, at times, uncertainty of modern supply networks.
Brambles’ Zero Waste World (ZWW) programme reinforces its objective to collaborate with customers and create smarter and more sustainable supply networks – creating more value by using less and regenerating more resources. Brambles has collaborated with 491 customers as part of its ZWW and logistics collaboration programme.
Through ZWW, Brambles seeks to use its unique position in the supply network to help customers address three key industry challenges:
By using its circular economy expertise to convert customers to more sustainable ‘share and reuse’ solutions which save resources and reduce costs.
By using its network scale with density and expertise to facilitate collaborative transport solutions, bringing manufacturers and retailers together to reduce the environmental impact of their operations and save money.
By using its end-to-end supply chain solutions and BXB Digital technology to enhance customers’ visibility of their supply networks so they can make better decisions
Brambles offers shareholders exposure to invest in a low-carbon circular business model with geographically diversified earnings streams, primarily from the defensive global consumer staples sector.
The supply networks served by Brambles also provide a broad range of growth opportunities including increasing penetration of core equipment pooling products and services in existing markets as well as diversifying the range of products and services. Brambles is also exploring the digitisation of supply chains to identify new solutions and services that unlock value and efficiencies across customers’ supply chains and its own operations.
Brambles generates value through a circular ‘share and reuse’ model that leverages its scale, density and expertise to achieve superior operational efficiencies. These efficiencies in turn generate cash flow that allows the Group to maintain a strong balance sheet, support the payment of sustainable dividends, and reinvest in the business to fund growth and optimise its operations.
Through transformation, Brambles also seeks to further strengthen its competitive advantage and the long-term sustainability of its business by unlocking new avenues for growth and significant operational and asset efficiencies that are intended to deliver strong financial returns for shareholders.
The fundamental improvements made to the business through transformation have and are expected to continue to enhance the stability of Brambles’ Free Cash Flow generation and contribute to a strong financial position.
As a result of this strong financial position and Brambles’ focus on shareholder returns, the Group will be undertaking the following capital management initiatives.
Increasing its target dividend payout ratio range to 50-70% from FY25 (previously 45-60%) of Underlying Profit after finance costs and tax; and
An on-market share buy-back in FY25 of up to US$500 million, subject to market conditions.
Following the completion of the buy-back, the Group is expected to remain in a strong financial position to support growth, with a proforma FY24 leverage ratio of 1.35x (from 1.12x), which is below the medium-term target range of 1.5x-2.0x.
Further capital management initiatives may be considered in the future, subject to the Group’s operating performance, market conditions and the capital allocation framework.
To maximise shareholder value creation, Brambles employs a disciplined approach to capital allocation. This approach is outlined in the capital allocation framework that has now been embedded in the Group’s updated investor value proposition.
This framework seeks to deliver strong financial returns for shareholders by prioritising reinvestment to sustain the existing business and fund growth, optimisation and transformation initiatives that increase the scale, resilience, and efficiency of its operations. These investments are expected to consistently deliver mid single-digit revenue growth with operating leverage and strong cash flow generation.
When assessing growth options, the Group will consider both organic and inorganic opportunities. Given Brambles’ leading market position in all regions, inorganic opportunities are expected to be limited and will be subject to a disciplined evaluation process.
Brambles also seeks to maintain a strong balance sheet and its investment grade credit ratings. This includes a target net debt/ EBITDA of between 1.5x-2.0x over the medium term.
Brambles expects to generate sufficient Free Cash Flow to fully fund dividend payments to shareholders in accordance with its target dividend payout ratio range, which has recently been increased to 50-70% of Underlying Profit after finance costs and tax. This dividend policy provides flexibility and draws a strong link between the performance of the business over time and annual cash returns to shareholders.
Dividends are expected to be partially franked in the future. Franking credits are a function of the taxable earnings Brambles generates in Australia. As Brambles’ global business continues to grow as a proportion of its overall Group operations, the franking credits available for distribution are expected to reduce over time
After funding growth, maintaining a strong balance sheet, and the payment of dividends to shareholders, Brambles will determine the level of surplus capital available, if any, to return to shareholders to further optimise its capital structure and maximise value creation. Any capital returns to shareholders will be subject to market conditions, reinvestment requirements and the operating performance of the business.
As outlined below, by allocating capital in accordance with this framework and continuing to execute its strategy and transformation, Brambles seeks to create total value in excess of ~10% per annum while maintaining Group ROCI in the high teens.
Brambles' roadmap to regeneration is articulated in our ambitious 2025 sustainability targets. Our FY24 performance against these targets is outlined in the link below.
Further information will be available upon the release of Brambles’ Sustainability Review in August 2024.
View roadmap
