By Stuart Condie

SYDNEY--Global pallet giant Brambles lowered the top end of its annual revenue guidance, saying that economic uncertainty is weighing on consumer demand including in the U.S.

Australia-listed Brambles on Monday said it expects sales revenue for the 12 months through June to grow by between 4% and 5%, on a constant-currency basis. It had previously flagged growth of between 4% and 6%.

Brambles, which leases its blue CHEP pallets to customers including manufacturers and retailers, generates more than half of its global revenue from its Americas division.

On Monday, it said that Americas pallet revenue across its first three fiscal quarters rose by 4%. U.S. revenue also rose by 4%, on price rises and new business wins.

But while like-for-like volumes in Canada and Latin America grew in the period, they fell in the U.S. by 1% compared with a year earlier.

"Lower demand from existing customers reflected adverse weather conditions and increasing macroeconomic uncertainty in 3Q, as well as an earlier U.S. harvest season which impacted volumes in 1Q," Brambles said.

Chief Executive Graham Chipchase said the impact of tariffs on consumer sentiment had hit existing-customer demand in most regions in February and March.

Uncertainty will likely persist through the June quarter, leading to "challenged" like-for-like volumes across the full fiscal year, Chipchase added.

Brambles maintained its guidance for underlying net profit growth of between 8% and 11%. It raised its free cashflow guidance range to $900 million-$1 billion, from $850 million-$950 million, as lower like-for-like volumes and improved efficiency lowered its capital-expenditure outlook.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

April 27, 2025 19:42 ET (23:42 GMT)

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