Mercury (Hobart)

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.

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