Brambles (BXB) Investor Day 2024 summary

Strategic vision and transformation

• Commitment to a digitally enabled, customer-centric, and sustainable business model, building on the Shaping Our Future transformation and embedding digital and customer-centric capabilities with over 5,000 employees trained and ~450 digital experts.

• Four strategic pillars for the next five years: customer experience, supply chain illumination, operational excellence, and regenerative supply networks, aiming to pioneer regenerative supply chains for positive impacts.

• Focus on profitable volume growth, operational excellence, leveraging digital and data networks, and embedding data literacy across the organization.

• Leveraging global scale, network density, and circular pooling model to drive growth and value creation in key markets with significant whitespace opportunities.

• Vision to connect and illuminate global supply networks, making them more resilient, regenerative, and efficient through technology and sustainability leadership.

Financial guidance and capital allocation

• Delivered revenue CAGR of 10% and underlying profit CAGR of 15% from FY22 to FY24, outperforming previous targets; FY25 outlook targets 4-6% sales revenue growth, 8-11% underlying profit growth, and $750m–$850m free cash flow before dividends.

• FY26–FY28 guidance reaffirms mid single-digit revenue growth, high single-digit profit growth, and free cash flow before dividends of at least $750 million per year.

• Targeting margin expansion of at least two points by FY 2028, driven by automation, operational excellence, and asset efficiency initiatives.

• Pooling CapEx to sales ratio targeted at 15%-17% by FY 2028, with 2%-4% volume growth assumed.

• Dividend payout ratio remains at 50–70% of underlying profit, with a strong balance sheet and on-market share buyback program reflecting confidence in future cash generation.

Digital transformation and innovation

• Invested ~$200m in digital opex and ~$40m in digital capex (FY22–FY24), deploying ~550,000 smart tracking devices and launching three Digital Customer Solutions.

• Serialization+ pilots underway in Chile, the UK, and the US, digitizing the pallet pool for end-to-end visibility, dynamic pricing, and new customer service models.

• Digital customer solutions business launched, with three initial offerings and a serviceable addressable market estimated at $8 billion.

• Digital initiatives enabled recovery and salvage of ~16 million pallets in FY24, materially reducing losses and capital intensity.

• Advanced analytics and machine learning drive asset recovery, predictive collections, pricing optimization, and customer engagement, supporting a 20pt NPS increase since FY23.