Logistics giant Brambles has delivered a stellar earnings result, beating analyst expectations and upgrading its profit forecast for the rest of the year.
The pallet provider reported on Friday a 25 per cent jump in underlying profit for the half to $US549 million ($A806 million) and lifted its full-year profit growth forecast to 15-18 per cent, from 8-11 per cent.
Chief executive Graham Chipchase lauded the "outstanding result", which he attributed to financial discipline in the face of inflation, raw material shortages and geopolitical tensions slowing down global trade.
Brambles recorded a 14 per cent boost in sales revenue driven by higher pallet prices, despite reduced pallet availability and softer demand resulting in a 1 per cent decrease in volume.
With lumber supplies recovering in the US, pallet prices are expected to cool in the second half.
RBC Capital Markets analyst Owen Birrell said the company was well positioned to benefit from additional pallets in its inventory, with up to six million extra pallets due to be returned in the second half.
It expects free cash flow after dividends for 2023 to improve on the previous year, but it will remain a net outflow.
Brambles raised its interim dividend 14 per cent to US12.25c (A17.67c), 35 per cent of which is franked.
Meanwhile, chief financial officer Nessa O'Sullivan announced she will retire from Brambles and full-time executive life in early 2024, bringing to end a seven-year stint in the role.
"Nessa has been an outstanding finance leader and has made a significant contribution to our organisation," Mr Chipchase said.
Brambles shares had shot up 7.5 per cent to $12.97 by noon.
