This report is for distribution only to Australian resident clients of Morgan Stanley.
GICS - Commercial Serv/Supp
Brambles Limited (BXB.AX)
Price: $13.15
Business Summary
Snapshot
Brambles Limited (BXB) is a supply-chain logistics company operating in
more than 50 countries, primarily through the CHEP and IFCO brands. BXB
specializes in the pooling of unit-load equipment and the provision of
associated services. BXB is focusing on the outsourced management of
returnable pallets, crates and containers.
Date
Market Cap.
Shares on issue
12 Month High
12 Month Low
Pallets: The business, carried out under the name CHEP, focusses on the
outsourced management of returnable pallets, which it issues, collects and
reissues through a network of service centres in multiple countries.
Manufacturers, producers, distributors and retailers use the pallets and
containers to transport their products safely and efficiently through the supply
chain. In addition, Pallets provides supply chain optimisation and transport
management services. In the USA Pallet provides a national network of pallet
management services, to sort, repair and reissue pallets.
Reusable Plastic Crates: The business is carried out under the name IFCO
in Europe, North and South America and CHEP in Australia, New Zealand
and South Africa with focus on the outsourced management of reusable
plastic containers which are used primarily to transport fresh produce from
producers to grocery retailers.
3 August 2016
$20,856m
1,586.0m
$13.64
$9.34
Investment Fundamentals
FYE 30 Jun
2012A
2013A
2014A
2015A
Profit
Profit (norm)
m
m
565.5
612.8
690.7
730.1
1,345.8
641.9
760.9
815.2
EPS($A)
EPS Growth
P/E
P/E Relative
¢
%
x
%
41.0
23.0
16.7
1.3
46.6
13.6
16.4
1.2
40.9
-12.2
22.5
1.6
51.9
26.8
19.8
1.3
DPS($A)
¢
26.0
27.0
Yield
%
3.8
3.5
Franking
%
25
30
Source: Morningstar historical financials
27.0
2.9
30
36.5
3.6
30
Share Price Chart
Containers: The business provides intermediate bulk, automotive and
chemical and catalyst containers to its customers. It also operates an airline
container pooling and repair business, and a non-flight critical aviation
equipment maintenance and repair business called CHEP Aerospace.
Total Return on $10,000 Investment
Charts Source: Morningstar
© 2016 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they
have any liability for its use or distribution. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar
Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at
www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment
Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of
information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some
material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO").
Brambles Limited (BXB.AX)
Profit & Loss ($AM)
Cash Flow ($AM)
2011A
2012A
Sales Revenue
4,352
5,520
Total Revenue ex. Int.
4,477
5,660
EBITDA
1,245
1,533
Depreciation & Amort.
-447
-542
Goodwill Amortisation
--EBIT
798
991
Net Interest
-119
-149
Profit Before Tax
679
842
Income Tax
-192
-229
Outside Equity Int.
-0
-Profit after Tax
487
614
Significant Items after Tax
-45
-49
Reported Profit after Tax
443
565
Preferred Dividends
--Source: Company Reports and Morningstar
2013A
6,350
6,507
1,740
-601
-1,140
-120
1,020
-290
-731
-40
691
--
2014A
5,737
5,880
1,582
-561
-1,022
-122
899
-257
-1,367
-21
1,346
--
2015A
7,115
7,281
2,021
-715
-1,306
-162
1,144
-329
-814
-53
761
--
Ratios and Substantial Shareholders
2012A
2013A
2014A
2015A
Profitability Ratios
EBITDA Margin
EBIT Margin
Net Profit Margin
Return on Equity
Return on Assets
%
%
%
%
%
28.61
18.34
11.20
21.36
8.04
27.77
17.95
11.10
22.79
9.89
27.41
17.95
11.50
22.38
9.67
27.58
17.81
11.19
21.98
9.34
28.40
18.35
11.46
23.71
9.40
Debt/Safety Ratios
Net Debt/Equity
Interest Cover
%
x
122.33
6.72
98.16
6.64
89.72
9.53
85.85
8.35
101.81
8.08
Source: Company Reports and Morningstar
Price vs. EPS
2013A
7,121
1,772
1,445
-1,015
-193
--1,089
127
-459
-426
-71
165
-13
81
2014A
6,887
1,696
1,346
-972
-46
--489
5
-418
-690
167
80
-11
235
2015A
7,980
2,078
1,723
-1,299
-648
--1,845
--468
78
-44
289
-41
204
2013A
139
1,212
61
77
1,489
4,752
2,235
87
7,085
8,573
3,066
2,246
5,312
3,262
7,136
-7,276
3,402
-3,262
2014A
236
1,171
71
75
1,553
4,636
1,639
79
6,343
7,896
2,743
2,232
4,975
2,920
6,362
-7,158
3,716
-2,920
2015A
216
1,360
106
77
1,759
5,761
2,280
84
8,130
9,889
3,718
2,732
6,450
3,439
7,848
-9,247
4,838
-3,439
Balance Sheet ($AM)
2011A
Top 5 Substantial Shareholders
Commonwealth Bank of Australia
MFS Investment Management Limited
2011A
2012A
Receipts from Customers
4,852
6,101
Funds from Operations
1,299
1,431
Net Operating Cashflow
944
1,069
Capex
-755
-984
Acquisitions & Investments
-978
-22
Sale of Invest. & Subsid.
-2
-0
Net Investing Cashflow
-1,641
-915
Proceeds from Issues
215
320
Dividends Paid
-209
-390
Net Financing Cashflow
646
-54
Net Increase Cash
-51
99
Cash at Beginning
115
79
Exchange Rate Adjust.
11
-29
Cash at End
75
150
Source: Company Reports and Morningstar
9.6%
9.0%
2011A
2012A
Cash & Equivalent
129
171
Receivables
978
1,035
Inventories
53
47
Other Current Assets
64
74
Current Assets
1,223
1,327
Prop. Plant & Equipment
3,985
4,061
Intangibles
1,954
1,933
Other Non-Current Assets
72
82
Non-Current Assets
6,010
6,077
Total Assets
7,233
7,404
Interest Bearing Debt
2,921
2,810
Other Liabilities
2,029
1,905
Total Liabilities
4,951
4,715
Net Assets
2,283
2,689
Share Capital
13,381
6,363
Reserves
-13,704
-6,564
Retained Earnings
2,605
2,890
Outside Equity Int.
0
-Total Shareholders Equity
2,283
2,689
Source: Company Reports and Morningstar
Principals & Directors
Principals
Company Secretary
Mr Robert Nies Gerrard
Directors
Mr Stephen Paul Johns ( Non-Executive Director,Non-Executive
Chairman )
Ms Sarah (Carolyn) Hailes Kay ( Non-Executive Director )
Mr Anthony (Tony) Grant Froggatt ( Non-Executive Director )
Mr David Peter Gosnell ( Non-Executive Director )
Mr Scott Perkins ( Non-Executive Director )
Mr Thomas Joseph Gorman ( Chief Executive Officer,Executive
Director )
Mr Brian James Long ( Non-Executive Director )
Ms Tahira Hassan ( Non-Executive Director )
Ms Christine Cross ( Non-Executive Director )
Mr George El Zoghbi ( Non-Executive Director )
Source: Company Reports and Morningstar
© 2016 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they
have any liability for its use or distribution. Any general advice or 'class service' have been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar
Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. Refer to our Financial Services Guide (FSG) for more information at
www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement (Australian products) or Investment
Statement (New Zealand products) before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of
information. Past performance does not necessarily indicate a financial product's future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some
material is copyright and published under licence from ASX Operations Pty Ltd ACN 004 523 782 ("ASXO").