BXB Brambles Limited

By Rhiannon Hoyle

Pallet supplier Brambles Ltd. reported a lift in first-quarter sales revenue because of strong prices, although cautioned sales growth may slow in its fiscal second half amid challenging market conditions.

The Australia-listed company on Tuesday said sales revenue from continuing operations totaled $1.35 billion in the first three months of fiscal 2023, up 6% on the year-earlier period.

Sales revenue growth was roughly 14% at constant currency rates, underpinned by strong realized prices and so-called cost-to-serve increases in all regions.

Brambles said volumes were broadly in line with the year-earlier period but that underlying demand had moderated in the U.S. and some parts of Europe, citing challenging macroeconomic conditions.

The company said its first-quarter weighted-average price per pallet was above fiscal 2022 levels, and it continues to expect prices to be higher this fiscal year versus last, but cautioned growth may slow.

"While the business delivered strong first-quarter sales revenue growth and we continue to expect growth across the balance of the year, the growth rate in the second half of the year is likely to moderate given the strong pricing in the prior-year comparative period and potential impacts of macroeconomic uncertainties in the balance of the year," said Chief Executive Graham Chipchase.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

October 17, 2022 18:33 ET (22:33 GMT)

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