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Brambles’ third quarter up 4%

Brambles Limited (ASX: BXB) reported sales revenue of US$4.354 billion for the nine months ended March 31 2013, up 4% against the pcp, reflecting strong growth from the company’s Pooling Solutions operations.

Brambles, a member of the S&P/ASX 20 (ASX: XTL) has today impressed investors with continued growth. CEO Tom Gorman says that management “continue to expect Underlying Profit for the 2013 financial year within the guidance range we provided in February 2013 of US$1,030 million to US$1,060 million”.

Highlights of the third-quarter trading update released today show that sales revenue from the pallets operation in the Americas and Asia-Pacific continued to rise 8% and 5% respectively. However, the company’s biggest growth by sales revenue comes from containers, when compared to March 2012 figures, it has increased 10%.

Brambles have consistently given healthy returns to investors and since July 2012 the share price has gained over 40% and has paid a healthy dividend. Brambles is the owner of CHEP, an international company dealing in pallet and container pooling solutions in a range of industrial and retail supply chains. Despite its immense size, organic growth opportunities are present for CHEP in current markets but the company is also looking to expand into new locations.

Opportunities in the company’s newly established business in China as well continued pressure on U.S segments such as office supplies, home improvement and food services will help the company to continued growth in coming years.  In addition, developing markets in Eastern Europe and the Middle East remain as prospective customers for the pallet and container businesses.

Foolish takeaway

With a market capital of $13.47 billion, Brambles can be expected to grow consistently and has good reason to do so. Over the past 10 years shareholder return has averaged 9.2% per year, which tells investors that management knows what they’re doing. With growth prospects on the table and smaller divisions of the company already showing strong growth, this stock can be expected to gain even more in coming years.

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More reading

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool contributor Owen Raszkiewicz does not own shares in any of the mentioned companies.

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