Brambles shares dive on spending outlook
SHARES in logistics company Brambles had their worst day in 18 months when its earnings outlook disappointed investors who smacked down the stock by as much as 12 per cent.
Brambles shares closed 8.3 per cent, or $1.02 lower, at $11.24 after slumping as low as $10.79 earlier in the day.
It was the lowest close for the stock since July and its worst one-day fall since March 2020. Investors looked to have been spooked by the elevated operational expenditure and capital expenditure coming down the pipeline as Brambles pivoted to a digital future which would modernise its old-fashioned pallets business.
At the strategy day Brambles chief executive Graham Chipchase announced a number of transformation and strategic initiatives across digital, supply chain and short-term investments.
Planned capital expenditure for these investments is slated for $US295m in fiscal 2022-2023, with an additional investment of $US330m in 2024-25. Transformation expenditure is expected to total $US90m in each of fiscal 2022 and 2023.